Things to Know If You Are Looking For Business Setup Guidance in UAE

by Jenny C. Blogger and Outreach Expert

Source: Wikipedia

The procedure of business setup in UAE barely took a week, once you sorted all legal procedure there for starting a new business. There has never been a higher time for business enterprise formation in UAE or Dubai. However, the signs of business setup in UAE are particularly promising at present. According to the International Monetary Fund (IMF), the UAE's growth in 2019 by 2% and expected to exceed 3% in 2020-21. This figure is impressive, if you are looking to join them, the great news is business enterprise formation in UAE is a comparatively simple, easy and fast process with big incentives, particularly in the form of free Zone in the UAE. There are many types of business options you can set up in UAE, but Free Zones are very popular with new entrepreneurs and with powerful reasons. With the good incentives, they offer 0 percent Personal & corporate tax, 100 percent Repatriation of gained profit & capital, 100 percent business ownership, no restriction of currency, and 100 percent export & import tax exception.

Before you start with the legal or formal formalities, there are some points for which you need to prepare a checklist in the process. The whole process is affordable & straightforward more than you can think. This article will help you to establish companies in various UAE’s free zones:

1. Choose your business type:

It is important to know the nature of your start-up corporate business services in UAE. Whether it is professional, commercial, or industrial; it determines what kind of license you required for your business and its operations. While choosing remembers that some activities like veterinary activities, food trade, legal consultancy, and jewelry trading require further permissions form other Govt. sectors or departments. The list of DED in UAE has a list of activities you can choose from. Each free zone in the UAE has its own rules and regulations to follow. There is no need for multiple licenses for listed activities; you can have multiple business activities under one trade license of corporate business services in UAE.

2. Choose ownership and name for your company:

If you want full ownership of your business or company; then you need to select proper location and license. If you want to opt license then there are some specific activities and this step will help you to find a better option. The DED has its restrictions and rule for different legal structures.
There is one more important thing before you make any commit start business because UAE has its strict naming convections. These are as follows:
· No offensive language used
· Use full name- no initials or abbreviations

3. Finalize legal structure:

Before finalizing the legal structure you need to complete the application and all relevant activities to the government authorities such as:
·       Providing copies of shareholders’ passport
·       Business Plan
·       NOC
·       Company name and location: The legal structure of the firm is depending on the location and types of business you are choosing.

4. Trade name

A trade name is also an important section of the legal procedure of the business setup. There is an ideal relationship that is indicated through your company name and business type. You can search for all detail regarding trade names on DED official website.

5. Premises & license

When you are ready with all formalities and your form is ready to go. Once your application form has been processed from all legal procedures, the government authorities will issue your license.

6. Employees list

In some legal rules book of DED, you require hiring the manager to look after the operations and you have to ready with him before your company approved. The manager will help you to set up water supply, the internet, electricity facilities, and other amenities.

7. Manage Local support

According to DED rules, it is mandatory to have any local support such as agent, sponsor or partner for a license. It is also good for your business to get success.

8. Open a business bank account

When you are done with all the paperwork you need to open a corporate bank account. There are many options, both international & local. You can choose any bank of your choice or ask your partner to help you in choosing a suitable bank for your company.

9. Process your visa

Now, in the end, this is the final step of set up your business in the UAE. The process of visa is made up of four steps:
·       Entry permit
·       Status adjustment
·       Medical & fitness test
·       Emirates ID registration
·       Visa stamping

These basic nine steps will help you to set up your business in the UAE. Since company setup is not an easy task; but you can make it easy with the help of choosing the right business partner or local agent. With local agents or partners help better guidance you can understand local area easily and increase the chance of business success.