Starting a business in Dubai is a fruitful decision you make, as many investors have their way to the Market of Dubai. Dubai is special place with a lot of skyscrapers, beaches, and business opportunities. Dubai chamber in UAE is a semi-government organization which clarifies people’s query related to. The government has also created a hub Market access, which helps the startups to coordinate with the corporates and public-sector units.
New companies can do the business in 40 Free Zones in the UAE, as they are Well designated, self-regulated. Commercial Companies Law (CCL), require that 51 percent of the share should be owned by the UAE nationals for any company.
Bringing a branch or representative office in Dubai avoid the constraint put in by CCL. The branch office is allowed to gain profit, where RO is not allowed to gain profits, only they can endorse market for their parent company.
A foreign company has to choose whether they are going for new registration, or set up a local branch with local Service agents to avoid CCL constraint. Follow the steps below to know investing, step by step.
Start a Business in Dubai
1. Plan: As a first step you have to plan and analyze the investment to be given to branch or representative office in a particular area of the free
2. Local Partner selection: You must have a local partner to operate you branch, thus ensuring all the stocks are with the parent company.
3. Application: Select the type of business and, you have to file an application for obtaining the license to Ministry of Economy and Commerce Wait for a few days for the application to get processed.
To establish a representative or branch office, you need the following documents
- Certificate of incorporation (or equivalent), memorandum and articles of association
- A board resolution for approval
- Audits up to last 2 years;
- Bank Guarantee for 50,000.
- A statement of the company’s main operations and activities;
- Certified passport copies for the General Manager;
- 2 x Certified proofs of address for the General Manager;
- 1 x CV for the General Manager;
- 1 x Professional / bank reference letter to the General Manager.
- Service agreement with a UAE national as representative.
4. Getting License: After the process with license with Federal Foreign company, you will get the license with activities that are allowed mentioned on it.
5. Dubai Chamber: Go to Dubai Chamber to register your branch.
6. Set up the office and hire people: According to your budget, you hire employees.
In conclusion, you have been introduced to the beautiful business place of Dubai. You can pay salary for your local partner yearly, and get acquainted with them for any future help. Free zones in Dubai means the place name that has a lot of companies.
Setting up your branch office in the free zones gives a lot of subsidies like 100% ownership, exemption from taxes and 25 years lease options, etc. You can some of the free zone in Dubai on the map below. Follow the step below to setup your representative office or branch office in Dubai.