World-class infrastructure, astonishing architecture, huge industrialization, top-notch luxury services and being named as a renowned destination for leisure – this is Dubai, aptly called the ‘city of gold’. Dubai is known to be the commercial hub of United Arab Emirates. It is not only a major attraction for small time entrepreneurs from around the world venturing into company formation in Dubai, but also a nesting place for leading companies wanting to expand their operation in the Middle East and African regions.
The Dubai government has left no-stone unturned to attract foreign investors in this region of affluence and treasure, which makes the revenue system of Dubai’s economy diversified unlike its counterparts within the United Arab Emirates. In the current scenario, the oil dependency of Dubai contributes not more than 5% of its entire economy. Much of the wealth is created by its dynamic economy systems that the city follows with an aim to make Dubai the entrepreneurial capital of the world. The cherry on the top is the upcoming Expo 2020 that also plans to exaggerate the economy further.
With an aim to outgrow new business prospects for potential innovators and businessmen UAE’s Vice President and Ruler has set up a fund to finance innovation worth AED 2 Billion. Thus if you have a budding business personnel inside you, this is the right time to explore the UAE market.
Apart from all the encouragement and opportunities, setting up a company in Dubai can be tedious. With several exclusions in jurisdiction, business types, documentation, governmental approvals and more. Especially in terms of a foreign investor, understanding the implied laws and restrictions, barricades of language and cultural constrains as well as other essential requisites are a matter of attention.
Nevertheless, the Department of Economic Development (DED) in Dubai has made several attempts to make business formation in Dubai an easy process. Supportive towards launching business entrepreneurs and expanding their operations effectively, the DED also has online portals for the procedures.
The set of procedures stated by the Department of Economic Development (DED) for company formation in Dubai: Type of Business – this may vary from being a Limited Liability company, Free Zone or Offshore; Proprietorship / Partnership – depending on the type of business partnership or 100% ownership needs to be determined; Legal Form – categorizing your ownership under legalities and drafting a business structure based on jurisdiction; Trade Name and Trade License – a name for all your business activities which is then licensed; Permissions and Approval – number of documentation and approval are required from various governmental bodies and social institutes; Drafting a MOA / LSA – a Memorandum of Association (MOA) or Local Service Agent (LSA) agreement is drafted between the shareholders or the partners of the company; Premises of Proceedings – acquiring a rented premises for conducting business; Licensing Approval – Federal or the Local departments of the respective jurisdiction provide licensing approvals.
The procedures may vary from company to company depending on the requirements of the business activity. Under such circumstances appointing a business setup service provider can be a fruitful decision, that will not only deal with the governmental works but also guide you towards smooth-flow of your business.