Before starting a business in the UAE, it’s essential to know all the rules and regulations whether you’re looking for offshore company registration in Dubai or a free zone set up in any other city.
There are many basic business etiquettes and legal formalities that are required to establish businesses in the UAE and considering these elements could help foreign investors to know more about the UAE markets.
There are many trade free zones in the UAE such as Fujairah free zone company formation and other free zones that require minimal legal requirements and procedures for setting up a company.
Therefore, we have come up with these 6 basic steps to set up a business in the UAE. Let’s see below.
- Ownership and Licensing
It’s important to determine the type of business and its purpose to help you out in getting approvals from the governmental departments. The kind of licenses for the commercial, industrial or professional purpose will define your business operations.
You can opt for many free zones and offshore companies in the UAE to gain 100% ownership by obtaining a license from the Department of Economic Development (DED).
- Legal Procedures
After choosing the type of business, it’s essential to choose a consultancy firm so they could do handle all the legal procedures for you. However, it all depends on the location of the free zone and the restrictions regarding the company structure.
- Trade name
A trade name determines the legal status of your business and therefore it’s necessary to decide the name of the company which clearly defines the nature of the business.
Once it’s all decided and you have completed all the legal procedures, the next step is to decide the premises of the business. Finding suitable premises that compliment all your requirements is necessary while also looking for other amenities like electricity, water, internet, etc. to help you out in daily processes.
- Local Sponsor
A local sponsor could be a great support for the foreign investors in terms of locating the business anywhere in the UAE however it’s not mandatory in Dubai as there are many free zones that allow foreign nationals to set up their businesses without finding a local sponsor or agent.
- Hire a Manager
As a start-up business, it might be necessary to hire a manager in the start to handle all the business operations, although it’s not mandatory in some cases as each free zone has its own specific rules and regulations in terms of the corporate structure.