Do you dream of starting a business abroad ? You can make your dream come true! As the fastest growing economic hub in the UAE, Dubai is the perfect place to put your company. Offering a constantly growing market and a stable and competitive economic structure, the city is perfectly ideal for investors from all over the world.
Start a business abroad: why choose Dubai?
Starting a business abroad , especially in Dubai, allows you to enjoy various benefits. Here are a few :
- Investment flexibility in any part of the UAE
- No limit on the number of visas
- Various licensed commercial activities available
- Tax haven: no business or personal tax.
8 Things to Consider Before Starting a Business Abroad
1. Type of business
To create your business, you have to define what is the type. Your type of business will determine the type of license you will need. Whether they are commercial, professional or industrial licenses, they will define the basis of your operations. However, when selecting, remember that certain activities such as food trade, jewelry trade, veterinary activities, service delivery and legal consultation require additional authorization from other government departments. .
If you want to start a business abroad and own your company 100%, you need to choose a license and a location in one of the UAE’s many free zones. There are types of activities specific to each free zone and the clarity of the first step will help you find your best option.
If you need a local license or need to operate locally, you must obtain a license from the Department of Economic Development (DED). The DED license is subject to certain ownership restrictions for foreigners, based on different legal structures under DED.
3. Legal structure
For new businesses, depending on location and type, there are rules regarding the composition of your business. For example, if you plan to use a legal advisory firm, you can only do so as a branch of a company or as a standalone company. A sole proprietor can not perform this activity. Each free zone has its own restrictions on the structure of the enterprise . You can also search them on the official website of the area.
4. Trade name
Starting a business means having a business name. Your business name is a very important part of the legal process. The name of the company should ideally indicate the nature of the business. However, this one does not apply for a branch of another company. All the rules regarding trade names can be found on the DED official website.
5. Social capital
To set up a company, your company must have share capital. Minimum share capital is generally defined in the proposed association’s protocol of association. In most cases, you do not need to pay a minimum capital at the time of installation.
Once your legal procedures and forms are ready, it would be best to select some offices with costs and other details. This is a way to go once your legal formalities are settled. In the free zones, you will get help to find the premises that meet your needs, as well as to set up electricity, internet, water and other amenities.
In most legal forms of the DED, you must hire a manager to oversee the operations and prepare them to be present before your registration is approved. But in other cases, you may not be able to hire at all. For example, Intelaq license holders (license for UAE home business owners) are not allowed to hire staff. However, they can hire contractors. For free zones, each zone has its own specific rules regarding the business structure.
8. Local support
For DED licenses, it is mandatory to have a local agent, partner or sponsor. This is a valuable support for starting a business abroad . For free zones, having a local contact can help move the business forward effectively. However, this is not mandatory in Dubai. Indeed, the city offers an easy configuration for all investors, regardless of their nationality.