Dubai is the most favored destination for setting up a free zone company due to the business-oriented policy framework. The restrictions are liberal for foreign investors but there are several considerations that you must keep in mind before initiating the procedure of setting up a business in Dubai. The initial costs are the most important aspect of starting a new business.
Cost Planning to Start a Business in Dubai’s Free Zones:
As a matter of fact, the costs of setting up a company may differ from one free zone to another. Some of them ask for a minimum capital investment for the formation of a new company. Another significant cost entailed in this process is the amount you need to spend on your employees for their visas and documentation purposes. If you are starting a trading company, you should also keep in mind the costs incurred for importing your products to Dubai. Before allocating your budget for these heads, you must check out the regulatory requirements and guidelines specified by the local authorities for your business type.
Things to Remember Before Starting a New Company in Dubai Free Zones:
Plan your Business Model:
After planning your financial investment in the free zones of Dubai, the next step is to prepare your business model and work for its accomplishment. The government in Dubai offers various business models, viz. commercial agency, direct seller, limited liability Company, representative office, and special free zone company.
Research into Your Business Sector:
Before starting a company in any region, it is imperative to understand its business environment. Make an extensive research and prepare an infallible business plan based on the current market conditions, your business forecasts, and competition. Also, you should be prepared with the investment options. Whether you consider arranging investment from your sources or through the lending agencies, a proper business plan can garner complete support for your company.
Consult a Reputed Local Consultant:
The procedure of starting a new business in Dubai can be financially risky. Hence, you require comprehensive approach for understanding the local regulations. In this context, it is advisable to hire the experienced consultants from the onset. They can guide you throughout the procedure of establishment from registration to licensing and agreements. Having a legal recourse is always beneficial for the foreign investors in this city.
The authorities in Dubai are welcoming and helpful for the new entrepreneurs. Hence, setting up business in Dubai will be an enriching experience if you follow the right method.