How a Foreign Expat New Business in Dubai, UAE?

One primary way to ensure that a foreign company maintains foreign ownership in the UAE is by registering or joining a company. It ensures that the parent company retains all 100% of its properties while still operating in Dubai. Company formation in uae ,means that foreign investors mainly open branch or representative offices there.

How To Start New Business in UAE?

Step 1
Decide The Business Activity

Your type of company will determine the type of license you will need. Whether it is a commercial, professional, or industrial license, it defines the basis of your operations. However, when choosing, please note that some activities such as wholesale trade, jewelry, veterinary activities, and legal consulting require additional permits from other government agencies.

The DED Dubai consists of a list of around 2100 or more business activities. You have a lot of choices to select your business activity from that list. If you cannot find a business on that list of your choice, call DED to enquire. Every Freezone has a set of different rules and activities.

Step 2
Decide The Ownership

If, as a foreigner, you want a 100 percent stake in your business, you will have to choose a license and location in one of the UAE’s many free zones. There is a specific type of activity every Free Zone handles, and the clarity of the first steps will help you find the best option. If you need a local license or need to work locally, you will need to get a (DED)Department of Economic Development permit. The DED license has specific restrictions on share ownership for foreigners.

Step 3
Define Legal Structure of Company

Depending upon the business’s business activity and location, there are some rules about how your company will operate.

For example, if you plan a legal advisory firm, this could only be done as a subsidiary company or as a standalone company. A sole proprietor cannot participate in this activity. Each free zone has its restrictions on the corporate structure, and you can find them on the zone’s official website.

Step 4
Decide The Trade Name

Your trade name is an essential part of the legal process. The company idea should ideally show the type of business unless it is a branch of another company. You can find all the rules regarding trade names on the official DED website here.

Step 5
Finalize The Office Location

Once you have done legal procedures and forms, you will need to add multiple offices to your fee list and other details. It means a clear path forward once you have completed your legal formalities. The free zone can help you find a room that meets your needs and help set up electricity, internet, water, and other amenities.

Step 6
Hire Employees

In most DED legal forms, you will need to hire a manager to oversee operations and get them on board before your registration is approved. In some cases, you may not be permitted to rent at all. For example, the owner of an Intelaq license (a license for a homeowner from a company in Emirates) cannot hire employees but can hire contractors. Every free zone has its own specific business structure rules.

Step 7
Local Support

Having a local agent, partner or sponsor is mandatory for a DED license, which is an excellent support for foreigners. For free zones, on-site contacts can promote effective business development. Thus, Dubai as a business destination offers a simple environment for all business people regardless of nationality.

Conclusion

However, the whole procedure consists of involving a branch or representative office of a company in Dubai. In this way, foreign investors can fully control their companies without local intervention. The registration process is lengthy, and there are several steps with various requirements.