Setting up a business in Dubai requires strict adherence to local laws and following the guidelines stipulated by the Department of Economic Development. The process can be tedious when you lack a total understanding of the country's business environment.
That is why we have invited Sami Raja to give us a step-by-step guide on how to establish a company in the mainland jurisdiction in Dubai.
Sami Raja is the CEO and Managing Director of a Dubai-based company formation firm. His firm, Sami Raja Consultancy was established in 2016 and have helped hundreds of foreign investors to establish their businesses in the mainland and free zone areas of Dubai.
Read on to find out the steps and the tips that Sami Raja have shared with us:
Step 1: Define Your Business Structure and Type
Let's assume that you already have a product or service to offer to the market. The first step when bringing that product or service to Dubai is to define the nature of your business and the type of company you intend to register.
This will determine your business name, trade license category, and even the most suitable jurisdiction to register your business.
Obtaining a trade license in Dubai is a straightforward process but can seem twisted for first-time foreign investors. For this reason, it is advisable to seek the services of an experienced business consulting firm like Sami Raja Consultancy.
Step 2: Decide On The Most Suitable License Type
Based on the nature of your business, you can then choose the type of business license that will serve you best.
Basically, there are three types of licenses issued by the Department of Economic Development (DED). The first one is a commercial license which allows an investor to conduct a trading business in any part of the UAE.
The second type is the professional license which is most suitable for those offering specialized services and we have the industrial license that is issued to firms that engage in manufacturing and industrial activities.
Step 3: Get A Local Partner Or Shareholder
Since you are setting up your business in the mainland, you are mandated by law to have a local partner. And in accordance with UAE's law, your local partner or shareholder should maintain 51 percent ownership stake in the company.
However, you can go sub-contracts to limit the power of the local shareholder and agree on the amount that he would be paid on a yearly basis.
Step 4: Prepare All The Required Documents
Assuming you have followed all the steps I have highlighted including registering a business name, this step will be a lot easier for you.
If you are working with a business consulting firm, the assigned consultant will provide you with a comprehensive list of documents required for your trade license applications.
Bear in mind that the documents that will be needed will depend on the nature of your business and the type of trade license you are applying.
Step 5: Apply for Trade License
Once you have the documents ready, your business setup consultant will proceed with applying for the license. The business set up processes in Dubai is quite straightforward and the country's level of technological advancement has eliminated a lot of the procedures that delay the process.
So once you have the necessary documents and have made all the required payments, your license will be ready in no time. In addition, you may be required to register with some government agencies that regulate business operations in your industry.
Following these steps will help eliminate the stress involved in setting up a business in the Dubai mainland area.
This post is contributed by Sami Raja. He is is the CEO of Sami Raja Consultancy, a Dubai-based business consulting firm specialized in company formation, business restructuring, and investment management.
