The Basics of Setting up Business in Dubai for Entrepreneurs
As the world around us is gradually changing, more and more entrepreneurs are introducing new solutions that will shape the world of tomorrow. Behind inspiring success stories there are several fundamental steps that almost all innovative entrepreneurs follow to setup business in Dubai. Here are some business start-up basics to help you build and manage your business seamlessly:
Make a Business Idea
This step may sound meaningless to many, but it’s a little more difficult than it sounds. Moving from the dream of owning your own business to developing a viable business idea can be very challenging as it requires thorough market research (analyzing the relevant market and target audience) and a lot of brainstorming (picking up and developing your ideas) to come up with your business proposition. Do you need the inspiration to come up with new ideas? Try this amazing tool to generate ideas that have the potential to change the world.
Compose a Business Plan
Once your business idea is complete, create a business plan accordingly. This is a fundamental step as it will be the first comprehensive literature of its kind for your company. A business plan details what your company is, its mission, vision, values, services, products, functions, customer service standards, expected revenue streams, and other key points. If the task of writing a business plan seems daunting, use a tool like Live Plan to speed up your workflow until you get a system that will help you forecast and present yourself to investors.
Find Financing Options
Part of a plan is to indicate your financing options, as this determines your next path. First, make a complete list of all the funding sources you have access to. If you find that your start-up capital or personal resources are insufficient, you should look for alternative ways to fund your project, including special funds, banks, financial institutions, partnerships, and other sources.
Make a Basic Marketing Plan
You don’t need to hire a communications agency or social media expert at this point. However, you should start thinking about your marketing plan. Identify your target group (gender, age, education level, income level, etc.) and analyze their profile: who are they? What are their needs and wants? Decide which platform and communication channel is best for your service or product and see the details and potential costs.
Decide on a Legal Business Structure
A limited liability company (LLC) is the legal firm structure that small businesses and entrepreneurs feel the most when setting up their business in Dubai as it offers operational flexibility. LLC companies can trade in UAE and GCC. You also enjoy several benefits, including no minimum capital and no real estate ownership restrictions. Other legal entities accepted in the United Arab Emirates include sole proprietorships, civil companies, private joint-stock companies, and free zones.
Register Your Business and Select a Business Name Legally
This is your company’s first official step for business setup in Dubai. In Dubai, you must choose a name that does not contain offensive words or religious, political or criminal references. In addition, your company name must match your type of business and be accessible to use. Once you have chosen a name, you must register it with the Department of Economic Development (DED). This protects your property rights and is an important step in getting your business involved.
Gather Pre and Post Company Incorporation Paperwork
There are never too many documents in a company file. It’s better to make sure you have everything in one batch than to have incomplete files that can slow down your setup process. Here are some of the most important documents you will need to provide: a certificate of registration of your name, a copy of your passport and residency in the United Arab Emirates, a copy of a partnership or sponsorship agreement with a local agent or partner, and a certificate of registration from your company, among others. Remember, a consultant on your side can help you organize paperwork and speed up all formal processes.
Find a Business Location
Keeping your company in the right place is as important as finding a company name. because It not only represents your brand. In Dubai, you will never forget to find the perfect place. However, you should know that although free zone-based companies benefit from some tax exemptions, they are not allowed to trade anywhere else in the UAE.
Continental companies, on the other hand, can act anywhere, both locally and regionally, and also benefit from more flexible visa requirements. Before choosing a location, find out about the exact advantages and limitations of each location and research your business model.
Get a Business License
If you are setting up a business setup in mainland Dubai, you must apply for a license from the Department of Economic Development (DED). In a free zone, your starting point is which set of your business. A trade license is your official license. From the moment you receive it, your are becomes legal.