Articles
Dubai Business: Important Things to Know
For those considering starting a Dubai business, there are various steps that should first be taken to ensure the success everyone expects in a new venture. Buying a business in Dubai assists in the process of building relationships with customers, suppliers, and the local business community.
Dubai’s business opportunities are nearly endless but include a variety of possible outcomes. They should be considered in the context of learning as much as possible about the city and the necessary tasks in starting a new business.
Beginning a new business in Dubai requires the kind of person who has and can develop a successful local business network. The Dubai business realm is ideal for new business because of its liberal approach to competition. Also, the high percentage of expatriate workers makes the population receptive to building new relationships. However to truly succeed in Dubai business, the entrepreneur needs contacts and connections. To be successful in Dubai business, a company needs to have the right contacts and approach.
Because of the goals of the Dubai business community – that being to succeed on an international level – the approach to most business concerns in the city is decidedly Western. There are certain traditional elements though that must be considered. Someone who sells a business in Dubai will often help the buyer learn local ways of doing business, especially since many sellers are also expatriates and have experienced the transition.
Founded in 1992, the Economic Department of Dubai is the most important government regulatory authority in Dubai. It is responsible for the processing of business contracts and licenses. It also contributes to the overall planning and development of Dubai's economy, as well as ensuring the growth of new sectors and the placement of laws regarding commerce.
There are four separate Dubai business categorizations. They include: general partnership (for United Arab Emirates and Dubai residents only), joint ventures, joint stock and shareholding companies, and limited liability companies. Additionally, Dubai businesses operating out of the Jebel Ali Free Zone are subject to specific benefits in their business status, including freedom from the UAE legal implications. This also allows foreign ownership and a tax-free status for corporations for up to 15 years. No personal income tax is paid here and currency is not restricted as it is elsewhere. There are no duties on imports or exports as well, making this an ideal place to establish a Dubai business.
To start a Dubai business, there are four different types of license a company can receive. The general license is given to those Dubai businesses that have already received their licenses from the Economic Department. A special license is given to a company developed in another country. A National Industry license is given to manufacturing companies that are capable of registering in UAE. The last type of Dubai business license is the Free Zone Entity License, given to any business fully owned and operated by foreigners. Different classes of licenses have different rules and regulations. When an owner sells a business in Dubai, the buyer and seller will notify the Economic Department of a change in the memorandum of association, effectively transferring title to the business buyer.
