Dubai Lawyers: Repost: Starting a Business in Dubai

There are three major considerations to be made by those thinking of starting a business in Dubai. However, keep in mind that Dubai welcomes foreign investment greatly, so their restrictions are amongst the most liberal around the world.

The Dubai government offers different types of business models to be chosen from by foreign investors, such as direct sale, commercial agency arrangements, branch or representative office, limited liability company and special free zone investment.

Here are the three things you must know before starting a business in Dubai:

You must have a good knowledge of the region. Be prepared to undertake extensive research into the business sector you aim to operate within. You must have a viable business plan, which includes a study of the market conditions, the competition and your forecast results. You must be prepared to find the necessary investment from your own resources or through your bank and preferably by other means than applying locally, particularly if you’re new to the region and without a track record. A credible plan might attract local support, possibly government support.
The law requires that you have a local partner who holds the majority interest and can therefore control the business, which includes closing it if necessary. The partner will own 51% of the company, therefore being able to call all the shots regarding it. Be it a company or an individual, the local partner doesn’t need to contribute to the start-up investment or participate financially at all. As with self-employment, there are various ways that a partner can be remunerated. The local partner requirement is currently under review in some states, however, in order to encourage foreign investment.
When the business is registered, you must show the Ministry of Commerce that you have a substantial sum of money to invest. The required sum varies between the states (it’s between $10,000/£6,500 and $50,000/£33,500 in most cases) and is regarded as a guarantee against liabilities, although you may withdraw the money shortly afterwards!

Thinking of Company Formation in Dubai! Read the Ultimate Guide to #Business Setup in #Dubai https://t.co/TKY7R61lTZ http://pic.twitter.com/d2WyVtJMtN

— Asnaad Consultancy (@asnaad) August 18, 2016