6 Things to Keep in Mind While Setting Up a Business in UAE

6 Things to Keep in Mind While Setting Up a Business in UAE

27th, Aug 2022 Team Global Biz

To begin with, setting up a business in the UAE is a fascinating notion. The UAE provides businesses, startups, and corporations with numerous profitable options. UAE offers great business conditions and access to global markets, which promotes economic growth. It is the 15th largest global business center and a magnet for international trade. There is no limit to how far you can go if you successfully launch a firm and grow it.

However, having a huge idea is insufficient; it also needs to be implemented, which calls for a well-thought-out plan of action. Before making the huge step towards business setup in the UAE or company registration services in Dubai, consider the factors below:

1. Plan of Idea- Define Expectations Clearly

Every great idea begins with a strategy and the willingness to take a chance. Confusion and a lack of clear direction are the primary causes of many startups' failures. However, giving up on a secure life and starting a road of struggle is not for the weak of the heart. You must know what can be in store for you, what you seek specifically, and what expectations you have for your business idea. Create a strategy for the plan and development you want to drive in your organization before you do anything else. A strategy should also be in place if you sell your business.

2. Select a Business Activity

The viability of the chosen activity in the UAE market is essential when choosing a business activity for your venture. Before establishing a business in the UAE, it is important to conduct an extensive study about the viability and profitability of the venture. The three primary categories of business structures are as follows:

  • Sole Proprietor: A single person who establishes a business
  • Partnership - A firm run by two or more people
  • Stakeholder-A separate legal entity

3. Choose a jurisdiction

Jurisdictions are another name for economic zones. The choice of jurisdiction for a business relies on the business activity and requirements. Every jurisdiction has a unique set of rules and laws governing business establishment—the Mainland, Free Zone, and Offshore economic zones segment the UAE market. For instance - if you’re going for a business outside the UAE, then the Free Zone is best suited. Whereas, if you’re thinking of entering the local market, Mainland Business is more suitable. 

4. Obtain consent for the company name

Before setting up a company in the UAE, the Department of Economic Development (DED) must approve the trade name for the company. During this phase, the chosen business activity is approved along with the company name. After receiving clearances, one must submit paperwork to apply for a UAE trading licence.

5. Opening a corporate bank account

Access to corporate banking services is challenging for foreign business owners due to the complex legislation process in the UAE. A considerably smoother procedure is achieved by working with a subject-matter expert.

Experts in company formation have excellent connections with both domestic and foreign banks. They can put you in touch with the one that is most suitable for your needs — including setting up in-person meetings if necessary.

6. Rent an Office

Depending on business needs, one can rent an office space or go for a shared workspace in a business center. Office space can also determine the number of visas one can request from the Department of Economic Development.

Are you ready to start your business in the UAE? Well, we at Global Biz Setup can help you with complete guidance on company registration services in Dubai, compliance, or taxes. We have an enthusiastic and passionate team with more than 35 years of experience. Visit us today to get bespoke support for your business.