If you are a foreign investor in the Dubai market, then you must be glad that you can get ample opportunities there. But, when it comes to getting into delve of the company formation procedure, there are certain things that you surely need to consider if you are looking for company formation in Dubai. Scroll down for the list of dos and don’ts that you need to go through.
List of Do’s for Company Formation in Dubai
- Choose A Local Sponsor
When you are choosing a local sponsor for your firm, you need to ensure he is a UAE national and gives him 51% of the share. Take the assistance of a local enterprise to find out a sponsor nearby. Pay a yearly fee to the sponsor only after negotiation. Become friendly with him so that he can lend you a hand in further problems too.
- Choose A Free Zone
If you do not want to include a local sponsor, setting up your firm in free zones is the best gig. Though it is not possible for such business which either needs to be set up in cities or includes government regulations, yet it is a perfect choice. Even the cost of renting a free zone can be higher from your expectations, but, it offers 100% ownership, duty-free customs shield, speedy processing. With this, you get the worth.
- Choose A Suitable Location
While choosing a location, you must keep distance, product, business model, trade requirements, and other costs in mind. Ensure the satisfaction for basic amenities like electricity, storage; space, etc. are up to excellence for company formation in Dubai.
- Choose A Registration Agent
When registering your business startup, hiring a business advisory body or firm can be highly beneficial for you. These kinds of firms can endow you with efficient planning for your company registration process. With this, you will get a smooth business setup, location options, licensing, and accomplishment of other tasks effortlessly.
List of Don’ts for Company Formation in Dubai
- Check The Free Zone Wisely
Though you get a huge number of options according to the published information of free zones, yet the actual availability keeps on varying. In the beginning, you might find the business startup quite effortless and cheap. However, when you find the office from one zone, you can go out of the budget. At that time, you will not have the option to make changes to your free zone. Thus, checking before confirmation is the best way to go.
- Check The Published Info
The rules in free zones never stay constant or same; therefore, you need to check the validity of the published information for free zone. Contact a business setup consultant or who deal with company formation in Dubai to clear all your pondering thoughts. Find out which special permissions you need and negotiate for the same.
- Check The License Details
In the UAE, it is nearly impossible to devise a business model that will not need any changes in the future. Therefore, you need to check your license wisely so that you can make the required amendments to your model in the future. For this, choosing a license with a broad array is the best choice.
- Check The Bank Charges For The Account
Choosing a bank based on its reputation is the biggest blunder people make. However, you must confirm the charges that bank levy as well as the other requirements so that you do not get a shock in the future.
- Check The Legal Agreement With The Sponsor
When you are going through the initial startup procedure for company formation in Dubai, you can need ample help from others. In that case, you always think of your UAE national legal sponsor. But, you must know that he can ask for some additional charges for helping you out. Therefore, you must pay keen attention to your legal agreement with him before making one. Attest the agreement in local court rather than relying on his words.
Over and all, these do’s and don’ts can keep you away from the problems that you could witness while going through startup procedures. Thus, note these points in your mind wisely to avoid possible mistakes.