Dubai is one of the important business hubs in the world. It has an emerging economy that is diverse in nature which makes it an ideal place for businesses to step in. High standards of living and stable economy has helped Dubai in becoming one of the best performing consumer markets in the region. Moreover, stable political situation and progressive thinking has played an important role in its phenomenal economic achievements. Dubai has always welcomed foreign investment by providing them innovative and business friendly policies. As a result of these serious efforts and determination, Dubai has become one of the most attractive places in the region for business startups.
To setup business in Dubai, you must have to acquire proper information and knowledge about the legal requirements, procedures and available options to obtain the right license for your business. You should keep your business requirements in mind when selecting right legal jurisdiction and license type to run is successfully without any problems. Following information will help you a great deal in this regard:
Selecting the right legal jurisdiction for your business
To begin with, you must give serious attention when registering a company in Dubai is that where should you register it. There are three different legal jurisdictions (Dubai land, Free Zone and Offshore) available in Dubai for foreign investors. To avoid problems operating your business, it is highly recommended for you to consider your business needs in mind when selecting the legal jurisdiction for your business.
Selecting the right license for your business
In Dubai there are three different types of licenses (Commercial License, Industrial License and Professional License) available for businesses based on the business activity/activities. On the other hand, a commercial license allows a business to engage in trading activities. Industrial license is required if your business is involved into manufacturing and industrial activities. Professional license is for the companies that offer consultancy services of any sort.
Selecting the ownership type for your business
Again, there are three different types of ownerships (Sole proprietorship, Partnership/Limited Liability Company and company) available for businesses in Dubai. Whereas, sole proprietorship and company is only available for UAE and GCC nationals, foreign investors can register a partnership firm only if there is a local partner involved having minimum 51% of company’s shares. Although, you don’t need a local partner in a free zone jurisdiction or for offshore company registration in Dubai.