Business set-up in Dubai, UAE – Important facts to be taken care if you are setting up a company in Dubai

From many years now, United Arab Emirates (UAE) is providing an international platform to the world for expanding the business especially in Asian Countries. If we discuss about Dubai, Dubai is one of the business hub for small, medium and big businesses and companies. And off course, it is providing many facilities for the various businesses to open their own entity and provide many other benefits.

So, if you are planning to do business in Dubai, there are few things which must be taken care before you discuss your plan to any consultancy firm. First, you must take care of your business size and activity. The Government of Dubai is providing a unique idea of Free Zone entity where you can establish an entity with 100% ownership and within Dubai, there are many Free Zone areas where you can open your company. So, while we are discussing about the business size, you must consider opening you company in Free Zone area if you have plan to open very small business and you need whole ownership with 100% shareholding. You can get 100% shareholding and you need to pay only annual fee then you can establish your business. In Free Zone areas, the fee for opening a company is less then opening in mainland areas. But the only limitation comes in the Visa quotas, however it completely depends upon your requirement. Also, the main withdrawal is that if you open company in Free Zone area then you must open your office in Free Zone area only but if you open in Main Land, then you can open your office anywhere in Dubai. Along with that, there are some business activities which are not allowed if you are opening business in Free Zone. However, if you have small business then it is highly recommended to go for Free Zone company only. You can easily operate from the Free Zone Business Centers and can open your bank accounts to work freely and to deal with the payments from international countries.

Whereas, if you plan to invest big and open the company with big platform, then the recommendation is to for Dubai Economic Department (DED) company. The main benefit for opening a DED company is that you can operate your office anywhere in Dubai and you will get good number of visa quotas that too depend upon your office space. All the business activities are allowed in DED company but in few activities, there is security deposit which must be deposited as per government rules. As compare to Free Zone company, the cost for opening company in DED is more expensive because the sponsorship from a local Emirati national is must and you must pay their sponsorship fees also. Once you come in DED area that means you must share your business with local national or your sponsor. Your sponsor will be the owner of your company 51% shares and will also act as your local agent. Therefore, you have to choose your sponsor wisely.