Do you want to set up a new office in Dubai? You should understand the essential factors you need to consider before starting a business in Dubai. From choosing the right jurisdiction to business structure, you also need the proper business insurance to cover potential risks.
Since Dubai is the business hub of the middle east region, entrepreneurs worldwide want to build their start-up here. It provides international exposure and access to several investors for startups. However, it can be difficult to run a business without direction and clarity.
Things to Consider While Starting Your Business in Dubai-
From legal restriction to business insurance, these are some important factors that you should consider before starting a business in Dubai.
1. Understand the Law and Decide Your Business Activities:
First and foremost, you need to understand the law and decide which business activities are legal. Although there are light regulations for entrepreneurs and investors, there are some limitations.
Before you start your business, you need to choose what activities you can implement in your business. The best way to know about the legal requirements is to consult a business consultant or lawyer in Dubai.
2. You Need Business Insurance:
According to insurance authority Dubai, most startups failed in the first few years because they were unable to deal with financial loss due to disaster or any catastrophic event. So, experts suggest having proper and adequate business insurance that will cover their loss due to any uncertainty.
There are several types of business insurance, such as general liability insurance, product liability insurance, commercial vehicle insurance, etc. So, you need to choose business insurance that is suitable for your organization.
3. Choose the Right Business Structure:
There are several business structures to set up your business. You need to choose the right structure and build a policy that aligns with your business operations. Apart from that, the business structure should also go in line with the jurisdiction you choose.
Whether you want to make it a limited liability company or choose a general partnership, or a sole proprietorship, you should decide it carefully. Apart from these common options, there are several other options such as:
- SME License,
- Limited Partnership,
- Joint Venture.
- Public Shareholding
4. You Need to Register a Business Name With DED:
When you are naming your business name, you need to first register with the Department of Economic Development. Usually, it takes around three days to register your trade name with DED, and it is valid for six months.
Here one important thing to note, your trade name should align with the standards provided by DED. Additionally, the authority put emphasis on associate your name as per your license type.
5. Follow all the Business Registration and License Procedures:
You need to complete all the business registration and license procedures. The registration and license process happens parallelly. The business license primarily depends on the chosen jurisdiction and the business activities. There are different types of business licenses in Dubai; some of the most popular are professional license, commercial license, industrial license, etc.
It takes around a week to get your business license after the initial approval. You need to provide the essential documents and certificates to get your business license. Here are some important documents that you need for getting a trade license in Dubai.
- Application Form for License
- Attested Agreement
- Initial approval Certificate
- Passport Copies of Partners
- NOC for Partners
These are some of the general lists of documents; you can go through the official website of DED to know the complete list.
These are some of the essential factors you need to consider before setting up a new office or business in Dubai. Apart from these, there are several other things that you need to consider before starting a business. Don’t hesitate to consult a business lawyer or consultant if you need any professional advice or help. Lastly, please share your opinion on this post in the comments section.
Business Activities Business Insurance Department of Economic Development License Procedures starting a business