A Comprehensive And Holistic Analysis Of The Legal, Financial, And General Business Climate In Dubai

I am assuming you’re interested in setting up a company in Dubai? Otherwise why would you be reading this? Corporations in Dubai have paid their fair share in order to establish get going. The abundance in the Dubai employment market has made it easier than ever to commence a business today and run at full speed tomorrow.



A few years ago, I was even interested in starting a business in Dubai. Consequently this discussion is based on my personal research and experience from the time I was serious about the idea. If you want to start your corporation in Dubai you'd have to go through the Dubai Department of Economic Development or the "DED" as most refer to it.



This agency was established in order to stimulate economic activity that could grow the emirate of Dubai. Most cities, states, provinces have an agency of identical stature that reviews business applications, approves them and provides them licenses to operate.



Your cost of establishing a business in Dubai would include the following costs:



* License involved with the kind of business activity you engage in (service vs. manufacturing vs. intellectual capital)

* Business and liability insurance (still a comparatively weak infrastructure compared to the USA)

* Specialist fees (legal and accounting)

* The cost of a local partner (this varies from UAE Dirhams 20,000 to 2,000,000 annually based on their self-indulgence)



The banks in Dubai are ever ready to give you the initial cash in order to establish your business concern. However, be prepared to sign for the loan with a personal guarantee. Unless you've got an existing business and can show a strong performance trend over the last few years, banks in Dubai will be really reluctant to lend to you, if they lend at all that is. After all, everyone wants to protect their behind.



In order to avoid paying a local partner, many entrepreneurs begin their companies in one of the numerous free zones in Dubai like the Jebel Ali free zone. These free zones were established by the Dubai Government in order to encourage business formation and foreign investment. These zones are treated as stand alone entities and they can be your "silent partner" in business.



If you want to get an idea on the amount of money required to start a company in Dubai, visit the DED website Dubaided(dot)gov(dot)ae and select the "English" option on the upper left hand side of your monitor. This is only if the web site reads in Arabic. Once you are in the English mode, navigate to the eservices menu where you can do the cost simulation.



As much as I’m an entrepreneur at heart that loves to control of the situation and do the required task, setting up a business in Dubai is something that I DO NOT RECOMMEND you do alone. There are several cracks to slip through and they can prove really expensive for you both in the short and long term.



You should understand the legal infrastructure and the rules of business in Dubai in general. The initial estimate of the finances required to start your own company in Dubai all by yourself would most probably be crossed and the individual would end up spending more money.



If you are serious about doing business in Dubai, I strongly recommend you consider the team at Global Office FZ led by Christine Orth. As of 2009 Christine has over 6 years with her team and is my single trusted point of contact with everything which has to do with doing business in Dubai. You could read more about their credibility and qualifications here.



This is a really serious move and you would like to ensure you go about it the right way. Having the right business mentor in order to guide you would make all the difference while you get started and continue to need guidance along the way. I wish you very well and I’m certainly eager to hear about your experiences. Do come back and give us an update. We would be keen on featuring your success story in our Dubai personal stories section.



2010 UPDATE New - Virtual Office company established with full business license and 3-year residence visa now available in Dubai. Costs start at AED 18,000 p.a. Being an investor, you are entitled to get 5 visa for you and staff and can sponsor your family and a maid.



The set up is approved by Abu Dhabi High Court and is being licensed through a Northern Emirates Free Zone that’s legally entitled to offer Free Zone business licenses in Dubai.



Their business center is conveniently located in Dubai Marina with loads of restaurants, hotels and ample free parking in walking distance . For more information, please contact our business partner Christine.

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