Many people around the world want to start their business in Dubai, what is the main reason behind this attraction and place priority to this region? The answer is liberalization of the Govt. policies for business activities where Federal Govt. and public partnership go hand in hand and promote economic growth of UAE.
In order to start a new business in Dubai or an existing Business in Dubai, the foreign companies need to work on their personal relation terms with the local company, which can introduce them into the market and help them in applying for license making products and marketing strategies for longer survival. This is mandatory for all the companies to have one sponsor in Dubai.
Foreign companies that look Dubai as potential growth market for their business need to complete some of the legal requirements under three categories of licensees are as follows:
Commercial licenses - That is covering all types of trading activities
- Professional licences - That is covering professions, services, craftsmen and artisans.
- Industrial licences - That enables the company for establishing industry or manufacturing unites and related activities.
All businesses in Dubai must be registered with the Dubai Chamber of Commerce and Industry.
How the ownership of the company works in Dubai:
As per the UAE commercial norms a foreign company need to share its 51% per share with UAE nationals company, however there some of he free zone areas that offer100% local ownership, and some offers 100% ownership for foreign companies. The federal Law has categories the businesses as follows
General partnership company
- Joint venture company
- Public shareholding company
- Limited liability company
- Share partnership company
- Private shareholding company
How you can get your company in Free zone (FZE)
If you want to establish your company in Free zone area, then you have to follow certain procedures through that you will have full support by the Free Zone authorities. If you apply with complete Free Zone requirement for new business set up then you will get your reply within 30 days. If your application is accepted then you will be issued a registration that enables you to perform your business activities as permitted in the license.
Free Zone Advantages:
Free zone area offers lots of options to foreign companies in terms of selecting their ownership and partnership for sharing up the profit and loss. Free zone areas are made to encourage foreign investors into Dubai market and as return they get many incentives like
100% foreign ownership
All Import duties exemption
100% repatriation of capital and profits
Relaxation in corporate taxation
Renewal leverage of inexpensive energy for 15 years
Free to purchase goods or services within the UAE
For a foreign company establishment in the UAE, they need to take certain licensees. They need to apply for trading license, residential permit, driving licensees for their employees, commercial insurance, medical insurance for their employee. You can search out more info on Dubai visa provider websites online under the category for business visa.