Aspiring entrepreneurs all over the world are leaving their jobs and brainstorming ideas on owning their own businesses. This journey is a grueling task and requires hard work, determination and perseverance in order to succeed. Some of the more ambitious individuals take their business ideas to other countries and make it more challenging by setting up a new country. Some tips to know before starting a business in Dubai are highlighted below:
It is essential to have a good knowledge of the country you do business in and its specific regions. The new business setup differs from country to country. You must be prepared to undertake any type of research in to the relevant business sector you decide to do business in and study the markets, its competitors, customer preferences, lifestyles, cultures and the overall sustainability of the business. You will have to prepare the necessary financial investments through your own resources or through a known bank. Sometimes if you have a credible plan and a reputation of proven track record, there is a possibility of attracting local or even government support.
Rules and regulations
The laws in Dubai require companies to have a partner who is of local origin usually holding majority interest and can therefore control the business. If in case, you want 100% or majority stakes the company formation in Dubai free zones will allow you that however with some high rental costs than within the city limits for business operations. The local partner will usually hold about 51% of the company and whether it is a local individual or a company, they are not bound to legally contribute to the initial start up investments or participate financially. All self employment methods would require some kind of remuneration and this is done in various methods in Dubai and are certainly very attractive forms thereby generating most of the foreign direct investments as well. The rates in which the local partners are remunerated are under review and change from state to state and business to business.
After the business is registered in abiding with the rules of the region, it is mandatory to show the Ministry of Commerce that you are capable of investing and sustaining the business for a reasonable period of time. The sum of money required varies from each state and is generally between $10,000-$50,000 most of the times. This is regarded as the guarantee against certain liabilities and you are free to withdraw money from the account as you require them after the formal evaluation process is done.