Do you know that the investors from all over the world are investing in Dubai in comparison to other Middle East locations?
Dubai ranks amongst the highest economies, which provides a notable and attractive work environment. Therefore, a larger number of investors want to start a business in Dubai because of the expeditious growth in the economy, leading up to Dubai Expo 2020.
Every investor always has one question in mind that how much time is required to start a business in Dubai? Before starting a business, businesses need to accomplish certain procedures and requirements.
Every business has its suitable structure, and every structure has its own requirements, so it will be tough to give an exact time. Normally, it requires one week to start a business in Dubai. Let us know in detail.
Factors that Influence the Time Required to Start a Business
There are several factors that affect the time required to start a business in Dubai; We have discussed a few of them.
When the investors are planning to invest in a new region, they have to work out what type of business activities they will be doing in that region. Decision making related to business activity is the most vital and prime step which every business has to take. It also affects the time which is needed to set up a business in Dubai.
Every business activity has its own structure, requirements, procedure, and time required to complete these procedures. These procedures also vary from activity to activity. Hence, the activity of the business is one key factor in deciding the time for business setup in Dubai.
Business Operational Jurisdiction
Every business has to tactically finalize its location from where it will carry out its business operations. In Dubai, there are several jurisdiction categories that are categorized into Dubai mainland, Dubai free zones, and offshore.
Every jurisdiction of Dubai has its own advantages, and working requirements like registration procedure for business setup in Dubai Mainland is different from offshore business setup.
It mostly takes 3 days to start a business for offshore business setup, but for mainland company formation, it takes more than a week. Therefore, the locations and zones of businesses in Dubai are other major factors to finalize the time required to start a business in Dubai.
Types of Business Entity
Before starting a business in Dubai, every business has to choose the appropriate type of business entity. In Dubai, there are many types of business entities. However, every business type has a subdivision. The main four types of business entities which operate in Dubai are:
Limited Liability Company(LLC), Joint Venture Company, Civil Company, Public Shareholding Company, and Private Shareholding Company
Simple Limited Partnership and Partnership-En-Commandite
- Branch Office
Branches of civil companies, foreign companies, UAE & Dubai companies, GCC companies, and free-zone companies
- Free-Zone Companies
Every category of the company has to accomplish certain requirements that vary the time needed to form a company.
Types of License Required
Every business setup in Dubai has to work under its related license. There are mainly three licenses in Dubai, which differs according to the working structure of the businesses. They are as follows:
This license is needed for those companies that are indulged in any kind of trading activity.
This license is convenient for those businesses who want to carry out manufacturing and industrial activities in Dubai.
This license is taken by every professionals like service providers, artisans and craftsmen has to perform their operations in Dubai.
You have to obtain these licenses, whether you are working in a sole proprietorship, limited liability, partnership, or providing consultancy. Therefore, time required to start a business in Dubai varies according to your license requirements.
For setting up a business in Dubai, you must have the knowledge of all these requirements that we discussed above. By understanding all these requirements, you can obey the procedures and can set up a business in Dubai without any hindrances. But, It is tough for you to have the understanding and apprehension of every domain of the business setup, mainly when you are new in the market.
Most of the people waste a lot of time in the confusion from where they should start their business. This happens because those people are not familiar with the procedure.
That’s why we will always recommend you to take the help of our experts in Dubai who have the proper knowledge of all the requirements and also have the experience of setting up new businesses in Dubai.
We, at Commitbiz, have been one of the business consultant players in the UAE region. We provide services for companies and business people interested in establishing their progress in the UAE. If you have any further queries, you can contact us.
We will be delighted to help.