Setting Up A Business In A Free Zone In Dubai
There are many people who are interested in starting up a business in Dubai but find the laws to be a bit of an annoyance. That is to say if you want to start a business there you need to have a resident who has 51% ownership of the company. This many investors think as a bit of a too risky investment as they would have no say in the company. I mean nobody wants to start a company that they do not have the majority shares of. It would simply not do.
As a solution to this problem business setup in Dubai freezone is available. Now in these zones foreign nationals can have 100% ownership of their new company. They do not have to have a resident who owns 51% of the shares of the company. There multiple areas within the country that has this option. But keep in mind that you can’t start any business you want in some of these free zones. You will only be able to start specific kinds of businesses. For an example certain zones are dedicated for commercial activities that are involved with the creative industry. Furthermore if you are looking to start something like a retail store keep in mind that you can only do so as long as you have the premises within the zone. On that same note there are certain restrictions as to what kind of goods that can be brought into the country so it would be advisable to check all of these details before you embark on starting up a new business.
Moving on when it comes to a business setup in Dubai freezone you need to be aware that there are certain requirements that need to be satisfied for you to start anything. One of the first things is that there are various types of trading licenses that are issued. You will have to get one that pertains to your industry. Also keep in mind that these last only for a year so you need to keep paying a fee to renew it every year. It needs to have physical premises inside of the zone a well. Following that there needs to be a manager who will be able to represent the company legally for any issues that may crop up. There could be any number of issues where it is required for someone who is capable of representing the company so choose someone who can be trusted and dependable. Moving on it needs to be made sure that there is at least one shareholder and also make sure that you have covered the required capital requirement to start a business. Also you can’t trade outside of the zone without a local distributor.
All in all starting something in a free zone is more beneficial but there are certain requirements that need to be satisfied. The ones mentioned here are simply the most basic ones.