Get To Know All About Setting Up Your Own Business in Dubai
I’m assuming you’re interested in starting a company in Dubai? Otherwise you would not be reading about this. Companies in Dubai have paid their fair share in order to establish get going. The abundance in the Dubai employment market has made it easier than ever to commence a business today and run at full speed tomorrow.
I was also interested in setting up a business in Dubai not long ago. Consequently this discussion is based on my personal research and experience from the time I was serious about the idea. If you’d like to start your company in Dubai you’d have to go through the Dubai Department of Economic Development or the “DED” as most refer to it.
This agency was formed so as to stimulate financial activity which would grow the emirate of Dubai. Most cities, states, provinces have an agency of similar stature that reviews business applications, approves them and provides them licenses to operate.
Your cost of setting up a business in Dubai would include the following costs:
* License involved with the type of business activity you engage in (service vs. manufacturing vs. intellectual capital)
* Business and liability insurance (still a comparatively weak infrastructure compared to the USA)
* Specialist fees (legal and accounting)
* The cost of a local partner (this varies from Dhs. 20k to 2M a year depending on how greedy they are)
The banks in Dubai are ever ready to give you the initial cash in order to establish your business concern. However, be prepared to sign for the loan with a personal guarantee. Even if the banks in Dubai ever lend money to you, its crucial to show them the proper credentials and the economic performance of your business during the last several years. Its a well known fact that all the people would like to safeguard their own self interests.
So as to avoid paying a local partner, various entrepreneurs start their companies in one of the numerous free zones in Dubai like the Jebel Ali free zone. These free zones were instituted by the Dubai Government to encourage business formation and foreign investment. These zones are treated as stand alone entities and they can be your “silent partner” in business.
If you’d like to get an idea on the amount of money required to start a company in Dubai, check out the DED website Dubaided(dot)gov(dot)ae and choose the “English” option on the upper left hand side of your screen. This is only if the site reads in Arabic. Once you’re in the English mode, navigate to the eservices menu where you could do the cost simulation.
As much as I am an entrepreneur at heart that loves to take charge and execute things first hand, setting up a business in Dubai is something that I DO NOT RECOMMEND you do alone. There are numerous cracks to slip through and they can prove very costly for you both in the short short term and long term perspective.
You must understand the legal structure and the general rules and regulations regarding finance and commerce in Dubai. Starting your company in Dubai all by yourself can also end up costing you way more than what it should.
If you’re serious about doing business in Dubai, I strongly suggest you consider the team at Global Office FZ led by Christine Orth. Christine has over 6 years of work experience, as of 2006, and is my single trusted point of contact with everything which has to do with doing business in Dubai. You can read more about their credibility and qualifications here.
This is a really serious move and you want to ensure you go about it the right way. Having the right business mentor to guide you will make all the difference as you get started and continue to need guidance along the way. I wish you very well and I am certainly eager to hear about your experiences. Do come back and give us an update. We’d be keen on featuring your success story in our Dubai personal stories section.
2010 UPDATE New – Virtual Office company set up with full business license and 3-year residence visa now available in Dubai. Costs begin at AED 18,000 per annum You as an Investor are entitled to get five visa for you and staff and can sponsor your family and a maid.
The Abu Dhabi High Court has approved this set up and is being licensed through a Northern Emirates Free Zone which is legally entitled to provide Free Zone business licenses in Dubai.
Their business center is conveniently located in Dubai Marina with loads of restaurants, hotels and ample free parking in walking distance . Please contact our business partner Christine for more information regarding this topic.
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