Want to set up a Business in the UAE- Here’s what you have to do?
There is a reason behind the UAE being ranked as one of the major business hubs. With more than half of the global conglomerates operating out from here, it is fast becoming a destination of choice. In addition to these, you are not likely to find any place that offers quality hospitality, strong infrastructure, and a wide range of facilities and amenities.
In recent years, it has also become a major tourist and air travel hub. So, if you wish to set up your business in one of the cities of the UAE, there is nothing wrong with it. But the actual process of starting a venture and taking care of the other vital aspects. Apart from calling the decision at the right time, it is also necessary to have the necessary experience and expertise.
No matter what, the actual process of starting a business isn’t that difficult. There are a few steps that you have to take and this includes:
Choosing the ideal business type
Before taking a plunge, it is essential for you to have a precise understanding of the business and whether it makes practical sense or not. There is no point in investing huge sums in activities that you have no idea about. Make it a point to carry out proper research and see if the business model is feasible for you or not. Take everything into account and make a decision, accordingly.
Location matters a lot:
For the benefit of all the stakeholders, the UAE market has been divided into different zones. This is being done with the intention to offer businesses the ideal opportunity to thrive and enhance their profitability. Selecting the zones – Mainland, Off-shore and Free zone is based entirely on the kind of business activity you have. Do select a location that offers greater flexibility.
Be specific about the company structure:
In the very beginning, you are required to decide about the structure of your business. This will help you to have a proper layout of the company, right before securing a license. Most of the UAE companies are generally under the structure of limited liability, general trading, general partnership, partnership in commendams, Public shareholding, private shareholding, joint venture, and share partnership. More or less, on the basis of your jurisdiction, you will be in a position to decide on the structure of the company.
Approval of name and activity:
The approval of your company name and activity lies in with the Economic Department. In fact, the department also makes it a point to approve the type of activity after receiving the documentation for the processing of license.
Your company license:
To start with, there are 4 types of licenses to choose from, if you are looking forward to start a business in the UAE. Based on the occasion and need, you can opt for a commercial license, professional license, industrial license, and tourism license. For your information, the licenses are primarily regulated in UAE mainland. But then, it is also necessary to note that structure of licensing in the free zone is different and is more or less, based on the type of business activity of the company.
How to register your company:
Keep in mind that registration and licensing of your company goes on simultaneously. Of course, the entire process of documentation and approval is somewhat tedious and goes through several stages. Here, you have to make sure to get all the desired approval from the relevant authorities, as asked by the Economic Department. Well, the documentation process is somewhat different for each business type and activity.
Seek a local partner or sponsor:
When it comes to starting your business in the UAE, this happens to be one of the most important steps. You have to find a local partner or sponsor, who also happens to be a UAE national. This can be a bit complicated, but there is some good business set-up that you can rely upon. These business setup companies are here to make things more convenient and suitable. For the same reason, they will facilitate you with all the necessary documentation and control, which in turn will assist you to start your business.
Secure your external approvals:
It is necessary for the companies to get the desired approvals from the banks, municipality offices and embassies, right before getting started. On that front, you have to secure the approval, as the Department of Economic Development seeks external approval clearance from some of the government and non-government bodies.
Memorandum of Association or MOA:
Please make sure to avoid any sort of complexities, when it comes to drafting your Memorandum of Association. In this regard, it would seem appropriate to seek the help of an expert, who will then help you to compose the draft in accordance with the government standards.
Find a place to rent:
As far as getting your business started is concerned, you must rent an office space so that you can function without much of any glitch. The economic department has certain conditions related to the space rented for certain types of business along with the number of visas sanctioned, that too on the basis of office space.
Obtaining the tenancy contract and Ejari:
It is a must for you to obtain the tenancy agreement and Ejari, for the rented warehouse, factory or office space. At the same time, you must make a conscious effort to draft an agreement and make a tenancy contract. This should be notarized, as per the governmental standards.
Get hold of the initial approval:
Right before presenting you with the business license, the Economic Department offers you an initial approval. This will help you to carry out business in the interim period until the trade license is made available to you. After the name reservation certificate, passport copies of the partners and all the necessary approvals from the external departments are submitted. Once it is done, the Economic Department provides the initial clearance.
Now collect your business license:
Right before collecting your UAE business license, it is necessary for you to submit the Memorandum of Association, the License Application, the attested LLC agreement, government forms, name reservation certificate, initial approval certificate, external departments approval, tenancy contract, EJARI registration certificate, passport copies of partners, NOC for partners and other related documents that are deemed necessary. After submitting the documents, you are also required to pay the necessary fee. Once all the formalities get over, you will then receive the operating license in the span of a week.