Business in Dubai | Things you need to know before starting
If you are a foreigner and looking to start a business in Dubai. Then you must understand different aspects and facts before launching it.
In this article, we will be discussing some details that will help you to understand important factors to which you need to pay close attention before offshore company formation in Dubai.
Prepare a Business Plan
It is important for every business to have a complete and structured business plan. It helps to describe all the important aspects of your business. For example, If you are planning to open any restaurant then you must include different details in your plan. This will highlight where you will source fresh ingredients, the number of staff, and what will be your menu. Projected sales of food in a day, week, or month as well as different operating expenses. What will be your generated profit after paying taxes.
It is understandable that it is a bit difficult to compile and pinpoint all these things with proper accuracy. But if you will have a proper business plan. You will stick to it on every step and you will have to do only minor changes when required. If you can forecast your profit, then it will be helpful to plan everything properly. You must not do over investment by putting massive renovations to your interiors. If you are not sure that your profit will be going to cover it. Many entrepreneurs make this mistake before starting their business that they don’t develop a business plan before starting their business. The structured business plan will give desired and expected results on regular basis.
Hire a reputed business setup consultant in Dubai
If you hire reputed and experienced business setup consultants in Dubai then you can maintain your business structure. They will help you to generate a business plan. It will also be giving you advice about potential pitfalls related to your business. However, It will give you all the important suggestions to launch your business. So you can take all the necessary steps to secure your business. Somehow, this information helps to make the necessary changes to your business plan if required. Then launch your business if you have everything reviewed on paper. No one can guarantee that everything will work as planned but it will take you in the right direction.
Get the Business License
There are more than commercial activities in Dubai. Any business setup company that has good experience with company formation in Dubai. It will be able to help you in getting your business license. If you are planning to open your business in Dubai. It is necessary first to get the license. For example, if you have experience in the field of digital marketing. Also, if you are working as a website developer then you have two different options. This means that either you can get a freelance license, or you can get the license to set up your own company. If you are getting a license for your company, then it is necessary to have a lease commercial space for your organization before you can get a business license.
Develop the right kind of Company
If you are working as a solo entrepreneur, then you must get your company registered as a Sole establishment which is the same as a Sole proprietorship. On the other hand, if you have multiple business partners then you have the option to get your company registered as a Limited Liability Company. This type of business gives equal rights to every partner. If you are looking to have majority shareholders or minority shareholders, then it is recommended that you can set up your company as a private joint-stock company.
If you are a foreigner and your company is already registered in any other country, then you can easily register your company in Dubai as well which will be your branch office. The ownership of the company will be in the hands of the parent company. You can also open a representative office if you just want to have the presence of your business in the UAE or the Middle East. The main difference between a Representative office and a branch office is that the latter can’t make a profit. You can outsource your work to the parent company.
Tax affairs should be in order
The United Arab Emirates provides Double Taxation Avoidance Agreements to 137 countries in the world. The country does not issue any tax on your personal income. You also don’t have to pay taxes from the income which is generated through your business in your home country. However, this rule is not applied to those who are tax residents in their country of residence so the time which you will spend in Dubai will be the main difference-maker.
The laws related to the business are different from another country that is why it is suggested by the business consultants in Dubai to get complete information before starting your business. You must get an inventor visa before starting your business. You must spend more than 6 months in any part of the United Arab Emirates or Dubai so you can be exempted from paying tax. Dubai is mainly ranked in the top 5 cities all over the world for entrepreneurs. It is considered the most innovative city to do business. This place comes on top priority when it comes to startup funding and attracting venture capital.
Support of Government
You can live or set up your business in the United Arab Emirates easily because this country is very safe and secure in these aspects. The country has created a benchmark in the business market. This is all possible because of the strong economic and business policies. The government of Dubai is always supportive of all types of foreign investment. His Highness Mohammed bin Rashid Al Maktoum has given his support to strengthening the relationship between local and foreign business experts. This is the reason that the country is creating major business opportunities for foreign investors from all over the world.
Great benefits offered in Free Zone
There are multiple free zones in Dubai that allow businessmen to get 100% foreign ownership and they will not have to pay any corporate tax for the next 50 years. The services offered by free zones are attractive networking opportunities, purpose-built infrastructure, streamlined immigration procedures and flexible office solutions. With the help of these free zones, it has become very easy for businessmen to form their companies.
Hire a reputed Business Setup Consultant
Redberry.ae is one of the verified and experienced providers of corporate services that helps entrepreneurs and foreign businessmen in company formation. Redberry helps entrepreneurs to lead better and enhance their business ideas and pitch them to investors to get good equity partners. Our team has expert and experienced individuals that have expertise in providing business consultation, corporate finance, tax advisory, and legal affairs. We are dealing with clients from more than 100 countries all over the world and providing our services internationally. If you choose Dubai to set up your business, then our team will help you3 from the first step and will you take through to launching your business properly. We design and develop strategies as per your business requirements. Our team has been providing services since 2014 and has worked for many clients till now.