You should not take more than a week to setup a company in
the UAE once you have completed all your legal processes.
But you need to consider some factors necessary in the
process before you initiate your legalities:
1.
Type of business activity
The type of business activity will determine the kind of
trade license you require.
Whether it's business, professional, industrial or
commercial licenses, the foundation for your activities will be defined. While
choosing, however, remember that certain activities such as food trading,
jewelry trade, veterinary operations, and legal consultancy require additional
approvals from other government departments.
The Dubai Department of Economic Development (DED) has a
list of more than 2100 operations from which you can choose.
You can contact the DED if you can't locate your particular
business activity in there. Each free zone has its own formalities and approval.
2.
Ownership
As a foreign citizen, you need to opt for a business license
and location in one of the many free zones of the UAE if you want 100 percent
legal ownership of your business.
Each free zone caters to specific kind of business activity and
hence determining your business activity in the initial stage will help you
find your best option.
There are more than 45 free zones in the UAE with distinct
activity classifications.
If you need a local trade license, you have to get a license
from the Department of Economic Development (DED).
The DED permit comes with certain limits on share of
ownership for foreigners depending on various legal structures under DED.
3.
Legal Structure
Depending on your location and business activity, there are
rules for your company formation.
For instance, if you're planning on a legal consultancy
firm, this can only be achieved as a business branch or as an independent
company.
This activity is not permissible for a sole proprietor. Each
free zone has its own business structure constraints and you can view them on
the respective free zone's official site.
4.
Trade Name
Your trade is a very significant component of the legal
process. Ideally, the name of the company should show the nature of the
business unless it is another company's branch.
All trade names rules can be viewed on the official website
of the DED.
5.
Share Capital
Minimum share capital is generally specified in the
Memorandum of Association of your suggested company. Most of the time, you
don't need to pay minimum capital.
6.
Location
It would be best to shortlist some offices with the expenses
and other information once you have your legal processes and forms ready to go.
Once you get your legal formalities out of the manner, this would imply a
definite way forward.
In free zones, you will get help in finding suitable
locations as per your needs along with assistance in setting up electricity,
internet, water and other facilities.
7.
Employees
You need to employ a manager to supervise activities in most
legal forms of the DED and have him available on board before your business is
registered.
But you may not be permitted to employ at all in other
instances. For instance, Intelaq license holders (license for home-based
Emirati company owners) are not permitted to employ employees, but may employ
contractors.
8.
Local Support
Having a local sponsor is compulsory for DED licenses and
this is an excellent support for foreign business owners.
Having a local partner for free zone companies can support
the business growth.
This is not compulsory, however, and Dubai as a business
destination offers simple set-up regulations for all entrepreneurs irrespective
of nationality.
Looking for a trusted consultant for business setup in
Dubai?
Log on to www.pmcsolutions.me or contact at +971 588 631 656
or email at setup@pmcsolutions.me
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