An increasing number of entrepreneurs admire Dubai and are considering the option to set up operations there.
Dubai has become a regional economic hub and one of the leading centers of international business. Today, this dynamically developing metropolis, in which people of hundreds of nationalities live, acts a part of a link between the West and the East. Convenient transportation accessibility, bleeding-edge infrastructure and a huge selection of exhibition and conference venues - all these make Dubai an ideal venue for exhibitions and conferences.
To start and run an undertaking in Dubai may seem like a great challenge, because in a foreign land, you might not be aware of the formalities involved in the registration of a company, obtaining a license and hiring the right staff. However, Dubai has almost heavenly conditions for doing business; this contributes to a lot of overseas investors, a large influx of tourists and a wide array of features that Dubai is noted for.
Recently, Dubai’s economic strength has earned a reputation of being considered as a secure place for investments and for start-ups to launch.
Here are 9 tips that should stand you in good stead if you are thinking of setting up a start-up in Dubai.
1. Zone in on the communities of Dubai for serving diverse groups
Alternatively, you can engage in serving many communities. Worldwide hubs, such as Dubai, are known for all manner of men. With open eyes, the goal of a startup may be to use it for its own benefit, because you can make your products open to diverse groups.
For instance, in the case of you opening a clothing shop, you can offer different types of clothing focused on different communities in Dubai. Alternatively, if you have a restaurant, you can suggest different cuisines focused on different groups, instead of sticking to just one type of cuisine.
2. Starting a company in Dubai, it is worth creating a chain of sponsors, partners, and clients
Before registering a company in Dubai, it is necessary to focus on making a professional chain of contacts and on launching word gets around in order promoting an undertaking of yours.
Dubai is a place, which is full of opportunities thanks to the diversity of people and investors. It is necessary to give a try to promote your brand at various events independently because the majority of networking occurs at events where you can accumulate a certain capital of society in a relatively sincere environment. At various events, you may feel free not only advertise your business to target customers personally, but the events will also let you attract sponsors and even build a team of effective partners who adhere to your undertaking vision.
3. Finding a sponsor to get a company started in Dubai
Of course, many entrepreneurs would like to own their company fully. However, in the UAE, a foreigner can fully own an establishment in the free zones only. However, in registering such an establishment, no sufficient coverage is possible, especially in areas inhabited by local people. A free zone establishment cannot operate outside the boundaries of the zone. Being in constant contact with the Emirates’ population can be the key to successful upgrowth, and therefore it is reasonable to involve someone from the country to take part in the undertaking. In accordance with the UAE laws, at least 51% of the shares should belong to a citizen from outside the quiet zone establishment; such a citizen should be a local sponsor from the UAE. An outside quiet zone establishment, i.e. an indigenous company, will let you put an undertaking around any part of the UAE, and this can be very important for launching a start-up in Dubai.
4. The deriving benefit of digital marketing when establishing a company in Dubai
It is Internet age, and any kind of undertaking can be started. A start-up is not an exception. Marketing is necessary and the internet offers many opportunities. It is significant to perform certain actions for the startup website to occupy the first lines in the tracking systems and in various directories. In addition, it is necessary to maintain a website of yours in accordance with current trends; it should be user-friendly, and easy to use on various devices. In addition, you can promote your service/product, for instance, by means of Google AdSense, and then your startup and will be displayed on various platforms, such as blog, games, forums, etc.
5. Using marketing policies of the budget when running an undertaking in Dubai
Hiring, for example, expensive celebrities with the aim to promote a brand of yours will not always be an effective sales promotion. Occasionally, it might be more efficient to perform simple but competent actions. It can be about the development of effective and funny quotes about the start-up of yours and distribution in various social networks, which will grow your popularity in the market. Also, it is worth interacting with an audience online, responding to comments on your publications, receiving feedback and applying online surveys to get to know what people want from you, what product is the best in their opinion, that requires changes or has to be improved about the product, etc.
6. Choose a free zone
Take into account that a one-of-a-kind means to start and run your company without a local citizen of the UAE acting as a partner is to get off the fence on what you would want to do, and commence operations in one of the free zones. There are 3 great benefits of starting your company in a free zone in Dubai:
- 100% ownership
- Duty-free customs frontier
7. Choose a position optimizing cost, usability, and availability
Another essential step to take is to define a good place for your business at the stage of start-up planning. Creating a lucrative undertaking within the city will not bring you to benefit much, in spite of the expanding economy, if consumers are unable to reach you.
The most beneficial or convenient area for a start is needed. Select the location taking into consideration a type of an item or service you are going to provide.
If you plan on a quiet zone establishment, pick a suitable location from the standpoint of cost, distance and, if appropriate, your item, trade requirements and business case.
One should make a loan agreement. If a small undertaking is what you plan to start, basic amenities, such as telecommunications and space within the institution, are a major issue to be met. Other types of available services in commercial property can vary very much.
8. Visa confirmation
For everyone who is to start a business in the UAE, a visa should be confirmed, allowing your staff to reside in the UAE, which is necessary for running your undertaking.
All kinds of undertakings allow visas. However, their amount varies depending on many criteria, such as an office size, the undertaking direction, an employee or an investor’s category, etc.
You should engage your financial supporter to get visa services at an early stage the least if you plan on to embark on something in the territory of Dubai. Getting business visiting visa in Dubai is not as difficult as most people think.
Besides that, apart from an identity document and the other statutory specifications, a letter to emphasize your or your investor’s personal information is required of your financial supporter, a reason to apply for a visa and its preferences before processing.
9. Hire a handling agent to guide you throughout a business start-up process
- You can hire a business advisory firm at the stage of your start-up registration
- These advisers are there not to hold you by the hand straight through the process of setup only, but also for a company registration. In addition, it will be handy in opening your banking account, organizing a chartered accountant, extending it and suggesting availing services
- You can get your experience by working with bureaucratic municipal authorities and companies of a free zone, getting an idea of planning and detailing the expense for running a business all the while
- More often than not, these organizations provide you with a group of experts for planning the registration of your company from the ground up, including strategies required to follow to start your undertaking smooth-bodied, detailing position options, suggesting licensing and investments, which come with potential pitfalls of running undertaking etc.
- In addition, they will help to register your undertaking on easy terms with minimal expense and conscious efforts.
Financing is not easily available when it comes to funding start-ups, usually. If the initial costs cannot be borne, you might want to wait a bit before following up.
There are pitfalls everywhere. Business people consider the key disadvantages of the region to be:
- A heavy climate to bear. A tourist season freezes into a summer season because of not temperature to be incredibly high only, but also humidity.
- Undertaking dealing might be spoiled in Dubai also due to some cultural, religious and legislative peculiarities of this kingdom. For example, difficulties with getting an alcohol license, a Friday off, appearance standard, etc.
- The Arab Emirates is still not Europe but the Middle East. It means that there are a few hot spots nearby, where operations conducted/or ISIS works Libya, Syria, Iraq, etc.
- One should possess a decent startup capital for the purpose of starting an undertaking in Dubai, as long as you cannot make a registration of a company with no license, payment of fees, registered capital presentation. In addition, this is without taking into account expenses for office, salaries of workers, etc. Do not think about taking a credit, if only there are engaging for banking pledged assets at your disposal.