Being the commercial capital of the United Arab Emirates, Dubai is the perfect place for starting your new business. We’ve all heard stories about people who moved to Dubai and made a fortune by starting a company. However, if you want to follow their example and start a successful business in this beautiful city, there are some things you need to know. That being said, we came up with a guide on how to start a business in Dubai.
1. Think about your business idea
One of the most important things you need to do when starting a business in Dubai is think about the type of business you want to run. This is a necessary step as different industries require different permits and licenses. Being aware of all the requirements is extremely important as it could have a direct impact on your business costs. For example, starting a jewelry or veterinary business requires special approvals from the government. Therefore, to get started, you should think about your skills and what kind of business you’d like to run. Once you do that, it’s time to do some research on how to enter that specific industry in Dubai.
2. Get the money ready
Starting a business takes a lot of money. And this isn’t the only reason why you need to obtain funding for your new business. The UAE government requires you to have a proof of financial investment. This means that even if you find a local investor who’ll help you out, you still need to have some money available. It’s recommended that you keep your money in your bank account and use it to show that you can fund your new company. It’s also important to mention that businesses in the UAE are divided into 7 different groups and there are different financial rules for each of them.
3. Have your business registered
Obviously, if you want to start a new business, you need to register it. This rule applies to Dubai as well and it’s one of the first things you need to do. It’s a good idea to get this done as quickly as possible as there will be so much paperwork to deal with later. In order to do this, you should turn to a company that offers solutions for a company setup in Dubai and have them help you. These experts know exactly what you need to do to get your business off the ground and have it registered. If you don’t know which business structure you should opt for, they should also be able to help you.
4. Connect with a local sponsor
A rule regarding starting a business in Dubai you probably didn’t know is that you have to connect with a local sponsor. And what’s a local sponsor exactly? Basically, it’s a company based in the same area you are that is ready to help you out. The way the contract with a local sponsor works is that they own 51% of your business and in return, you can get a more affordable location for your business. On top of this, they’ll help you if any problems with local authorities arise. When looking for a local sponsor you can turn to, it’s also necessary that you agree on a fee you’ll pay them on a yearly basis.
5. Make sure you can get a visa
In order to be able to live and work in Dubai, you and your employees will need to obtain a visa. What’s important to remember is that the number of visas your company can obtain depends on the industry you’re in and the size of your office. When it comes to obtaining visas, it’s best that you have your local sponsor get the job done for you. Even though this may look complicating, obtaining visas is actually quite easy. This is mostly due to the fact that the UAE government wants to encourage foreign investors to start businesses in cities like Dubai.
If you’ve decided to start a business in Dubai, you’re on the right track. Follow this guide and there should be nothing stopping you from turning your business idea into reality.
