Tanvi Fal Dessai
We often find it reluctant to set up our own company. But creating a company in the UAE is a reasonably simple and hassle-free process. However, incorporating a business in the UAE involves a UAE resident owning 51% of the firm, commonly referred to as a partner or sponsor, and many other factors, such as employment policy, immigration policies, higher freight charges, etc.
But does it apply everywhere?
You must have surely heard of Freezones!
The government has established several free zones in the UAE to encourage more foreign trade investment, each of which is regulated by its Free Zone Authority. Free zones can independently draw up their business regulations of the UAE’s company (or mainland) laws. Foreign companies are allowed to own a business in a free zone. Out of the more than forty free zones in the UAE, most of the free trade zones are located in Dubai as it is the economic and financial hub of the UAE.
So, does it make it effortless to start a business in Dubai?
It indeed does, particularly in the free zone of Dubai. However, a business person should bear clear criteria before starting a business in the Dubai Free Zone.
So, here is AM Audit giving you Tip-Offs that will allow you to integrate a company process.
There are, in general, three groups of organizations that can set up free zones in Dubai, which are:
The difference between both types is the number of shareholders and whether they should be natural or legal. The Free Zone Corporation may be registered with two or more shareholders, while a single shareholder may establish the Free Zone Establishment. These owners can be either an individual or a corporation.
These types of organizations may not be registered in all the free zones of Dubai. Therefore, you ought to check with the individual Free Zone Authorities in the company they can register.
After choosing the business organization that you want to set up, the next step is to shift your focus to the business operation you want to conduct. Many free zones in Dubai allow for a variety of business activities. So as an entrepreneur, you have several places in which to set up a business. Choosing a company practice is the first decision you have to make, and it is perhaps the most important of all those decisions.
3. Choosing a Business License
Depending on the type of business operation you want, you will be limited to the kind of business license you will apply for. The following are the general forms of permits that can be issued in free zones in the UAE.
However, it is essential to note that the Dubai Aiport Free Zone (DAFZA) allows dual licenses to be obtained.
As mentioned above, the type of business operation you select will decide the type of license you will receive, which will allow you to choose a free zone to set up a business. It is necessary to note that not all the free zones in Dubai allow the same business license to be issued.
The final mission after learning all the other basics is to establish a trademark. It is recommended to inspect the same with the respective Free Zone Authority or with the Department of Economic Development (if necessary) on the criteria for approved trade names and verify if the possible name has already been registered.
The guidelines of the Department of Economic Development (DED) are as follows:
Even after learning the basics listed above, it is still helpful to rely on someone to start a Dubai business. Let’s take a look at the advantages that you can reap from making use of them.
Availing legal services while a company is formed in Dubai offers a range of opportunities that can impact you and your newly merged company, even in the long run. The advantages are as follows:
AM Audit is a leading Audit firm, and our expert advisors are well versed in the process of company incorporation. We will help you simplify and speed up the process of starting up a business. If you want to know more, please contact us, we will be pleased to assist you.