Things to know before starting a business in UAE

It is no longer difficult to start a new business in Dubai. Along with the help of a business consultant in UAE, you can even start a business and complete all legal procedures much faster than you could think. If you genuinely want to start a business in Dubai, you'll need to think about a few essential things to get started.

• Type of license:

You can apply for three different types of licenses in Dubai's economic department. There are three types of professionals: professional, commercial, and industrial. License types may vary depending on the licensed activity. Commercial licenses cover all sorts of trading, such as food trading, general trading, garment trading, electronic trading, and so on. Restaurants, IT operations, teaching, events, facilities management services, and consultancies are among the activities that require a professional license.

The finest areas to open a manufacturing license are Dubai and other emirates. Companies are granted licenses to manufacture new products in their plants or factories.

• Name of the company:

Any trade license requires the use of a company's trade name. Unless it's a branch office, the company name should match the business activity. For booking trade names, the Economic Department has a set of rules.

• Business Ownership

The free zone is the best solution if the foreign partner requires 100 percent ownership regardless of the type of business. In the United Arab Emirates, there are numerous free zones. You can select a free zone based on factors such as geography, visa requirements, and price.

If you wish to sell to the UAE's local market, you must first obtain a license from the economic department. In an Economic Department license, a foreign partner can own 49 percent of the company, with the remaining 51 percent belonging to UAE nationals.

• Cash flow of the company:

During the license incorporation, the minimum share capital must be shown in the MOA. In most circumstances, you will not be required to contribute any capital. In some free zones, the capital amount must be reflected in the bank account.

• Space for work

Any corporation forming under the economic department must have office space. You can complete the office space as soon as the initial process (trade name approval, MOA) is completed. A minimum of 200 square feet of office space is required. It is subject to change based on certain actions relating to municipally regulated projects.

It is not essential to find office space in a free zone because most free zones offer various types of workplaces to meet the needs of different businesses.

• Workforce

Employees can be hired for business operations for any lawful trade licenses in the areas of economic activity or free zone. You can receive several designations based on the qualifications of your personnel. If an employee seeks a managerial position, an attestation certificate is required. The number of visas available is determined by the size of the office. If the corporation requires more visas, the Ministry of Labor will grant permission. Different types of packages are usually available in a free zone. The package fees may fluctuate depending on the visa requirements. The bundle includes the cost of the license, office rent, and registration costs, among other things.