Basic things to know before starting a new business in UAE
To set up a new company in Dubai is not that much tough now. You can even form the company and finish all the legal procedures in one week time. When you really plan to start the company in Dubai, then you will have to consider some basic things to start the process.
License type:
In Dubai economic department three types of license, you can form. Professional, commercial and Industrial. Depend upon the licensed activity, license types may change. All types of trading come under the commercial license example – foodstuff trading, general trading, garments trading, electronic trading etc.
Some of the activities like restaurant, IT services, education, events, facilities management services and consultancies are in the professional license category.
Dubai and other emirates are the best places to open the manufacturing license. The license is issued for companies to manufacturing the new products in the plant or factories.
Ownership
If the foreign partner needs 100% ownership regardless the type of the business then the free zone is the right options. There are plenty of free zones available in UAE. You can choose the free zone as per your convenient for example location, visa requirements, budget etc.
If you want to engage the local market in UAE, then you have to take the license from the economic department. In Economic department license, the foreign partner can hold 49% share and balance 51% belong to the UAE local National.
Company Name:
Company trade name is very important for any trade license. The company name should reflect the business activity unless it’s a branch office. The Economic department has certain rules for booking the trade names.
Share capital:
The minimum share capital must show in the MOA during the license incorporation. You don’t need to pay any capital amount in most of the cases. Some free zones are required the capital amount should show in the bank account.
Office space
Office space is mandatory to form any company under the economic department. As soon as finish the initial process (trade name approval, MOA) you can finalize the office space. The minimum office space requirement is 200 sqft sizes. It can be changed depends upon some activities related to municipality regulated work.
In Free zone, not necessary to find out office space because most of the free zones provide the different types offices as per the business requirements. Partners can choose the flexi desk, executive’s offices etc. The facilities are including the electricity internet etc.
Employees:
For all legal of the trade license in economic department or free zone can hire the employee for the business operations. You can get the different designation accordingly the employees’ qualification. Attested certificate is mandatory if the employee looking for the managerial designation. Number of visa eligibility is depends upon the office size. Ministry of labour will give the approval if the company needs more visas. Free zone has normally different types of package. As per the visa requirements the package fees may change. The package includes the license cost, office rent and registration fees etc.
This blog post is written by Mr. Sajith. Feel free to call our Business Advisor today for a quality consultation relating your Business queries. Please send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.
