Over the past 40 years, many entrepreneurs have decided to set up their offshore companies in the UAE due to its high annual trade surplus and prime business environment.
And because of its thriving commerce, Dubai is identified as the commercial capital of the Middle East.
In fact, in most cases, Dubai has started allowing foreign entrepreneurs to have 100% ownership of their businesses. That was certainly a game-changer for the business world.
Now, if you are also looking forward to expanding or relocating your business to the UAE, here’s something that can help you build a concrete business plan.
Know the difference between free zone and mainland
For those who don’t know, there are business jurisdictions in the UAE.
Suppose a foreign business investor decides to establish a business in the UAE mainland. In that case, it is mandatory for them to allot 51% of the total company’s shares to the UAE local sponsor. The foreign investor owns the remaining shares.
On the other hand, by setting up a business in a free zone, a foreign entrepreneur can enjoy full ownership of the company. Currently, around 40 free zones are operating in the UAE.
So, it would be best if you chose the business jurisdiction in UAE depending on your company’s needs and preferences.
Analyze the estimated cost
Although obtaining a business license in the UAE isn’t much of a challenge, it is better to know everything about it in advance to avoid any last-minute troubles.
First things first, you would need to draft a budget keeping in mind your human resources. Obviously, you would need someone to manage your business operations.
If you are looking for some cost-effective ways to get your work done without spending heftily on in-house employees , you can always opt for local outsourcing professionals.
For instance, suppose you don’t want to spend your time managing the accounts of your Dubai business. In that case, you can always streamline the process by opting for accounting services dubai to reconcile and organize your finances.
Apart from this, you must also be familiar with the cost estimation of the license and your business set up to simplify the overall setup process.
Pro Tip: You’ll be surprised to know that the Dubai SME offers not only financing but also incubatory and advisory services to business owners. Your local sponsor can apply for that and get some technical, legal and financial assistance.
Study your target audience
Needless to say, every business needs a target audience, and it varies from region to region. That’s why before you even apply for a business registration licence in the UAE, you need to take a thorough look at your potential customer base.
This will help you analyze the demand for your product and service and allow you to make necessary changes.
Studying the target audience is a rough idea of how successful your business will be in a foreign country.
In the end,
Setting up your business in the world’s third-largest richest country is definitely challenging. Hopefully, the tips mentioned above will help you get through the process seamlessly.