Wednesday, April 2, 2014

Finding a local UAE national sponsor is mandatory for foreigners, who want to setup their business in Dubai. Company owner must have a legal local partner possessing 51% of the shares in company. Whereas, expat entrepreneurs usually possess 49% shares in the business. It is possible for shareholders to adjust these terms via Memorandum of Understanding.

The tax free nature of doing business in the Emirate is very alluring for many investors and business persons.  Irrespective to the nature of your business, being an entrepreneur what you need to consider first is the primary cost of setting up business in Dubai. Whether you are going establish a franchise of an existing company or you want to establish a brand new business in the city, you need to consider paying some essential cost.

•    Every entrepreneur is bound to pay fee to get trade license to become eligible to establish a business in emirate.

•    Everyone who wants to setup business in free zones in Dubai is required to pay some amount as fee. Every free zone has its own setup procedures and fees. Whereas, few of the free zones also consider the bank balance of applicant and allow only those candidates who have minimum amount of capital according to their criteria.

•    Other important expanses you need to keep in mind, while running business in free zone include the amount you will spend to sponsor your employees to provide them visas and legal documents to enable them to live in the country.

•    If you own a trading firm, then you need to consider future expenses of importing goods to the country. Check Dubai Customs guidelines to know what is allowed to bring in with cots of import. If your company is trading within Gulf Council Countries then custom fee is nominal, in contrast to those who are trading across the world. 

There are many benefits of working with local partner as they will be very well aware with social, cultural and business etiquettes in the city. Business licenses can be obtained for both mainland and free-zone areas. Depending on your budget and nature of business you may choose suitable sector to setup your business. If you don’t have huge capitals setting up your business in Dubai Free Zones could prove pricey due to high property prices. If your business directly involves consumers then it’s good to find suitable office space in commercial projects located on the mainland.

Cost of setting up business is very important aspect of establishing business irrespective to the nature of business. This cost does not include the capital amount of your investment.

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