A Guide To Business Setup in Dubai for British Entrepreneurs

With the UK being one of the world’s most important trading partners of UAE, Dubai holds many opportunities for British investors who are looking forward to international ventures, particularly in Company Formation in Dubai. The trading partners have benefited from a long history of trading relations where current trade in goods and services exceeds £ 25 billion. Significantly, the UK invested approximately $ 6:5 bn in FDI in the UAE, while making it a hub for UK businesses after Brexit, with more than 6,000 companies already operating in the UAE. Some of the significant investments include Mubadala’s £800 million investment in British life sciences to highlight the growing bilateral cooperation.

Identifying the Business Environment in Dubai

Being in the geographical region where three continents, Europe, Asia, and Africa meet, Dubai turns out to be an ideal business hub. Singapore has a well-diversified economy and features in almost all key areas like property, tourism, financial, and shipping services. What sets Dubai apart is one of the favorable tax environments, any feature that would make the city exceptionally attractive to investors in any part of the globe, looking for a great business opportunity.

Things To Consider Before Establishing Your Business in Dubai from the UK

Economic Zone

Free Zones vs Offshore Free Zone or Offshore Zone Business is one of the most commonly discussed topics in today’s business world.

Main Dubai has more than 30 Free Zones with different advantages such as tax relief and 100% foreign control. Offshore structures on the other hand are mainly for those companies that plan for international operations.

Types of Licenses

There are mainly three broad types of licenses that are issued in Dubai, they include; Commercial, industrial, and professional. The kind of license that is required depends on the kind of business that one is undertaking.

Sponsorship

To operate a business in Dubai many are required to have a local partner who owns more than 50% of the business. In Free Zones, foreign ownership is permitted 100% so that the local sponsor is not necessary.

Legal system for doing business in Dubai.

The initial procedure when you want to start a business in Dubai involves selecting the legal form of your business. There are several legal structures available in Dubai, the most common ones being: There are several legal structures available in Dubai, the most common ones being:

Limited Liability Company (LLC)

An LLC is the most preferred legal business formation selected by foreign investors in setting up their businesses in Dubai. It needs at least two members who are shareholders and the corporate body can have up to fifty members who are the shareholders. An LLC offers its shareholders the relief of limited liability, whereby the shares of the company do not affect the shareholders’ personal property in case of the company’s financial problems.

A branch of a Foreign Company

This provides a foreign company with an opportunity to operate in Dubai without forming a new company since the organization is a branch of the foreign company present in Dubai. The branch is managed by a foreign company for all its activities, although, for legal purposes, it is like a local company and is under regulation of the country’s laws.

Free Zone Company

A free zone company simply refers to a legally recognized organization in any of the free zones in Dubai. Through free zones, foreign investment is given incentives such as tax exemption, 100 percent foreign ownership, and others. Well, free zone companies are limited in their operation to the free zone area only.

Offshore Company

An offshore company is a business formed in a country that has no taxation or low taxation policies. It is important to note that offshore companies enjoy fewer restrictions that are put in place by the government of Dubai and shareholders’ details are kept top secret. Nevertheless, they cannot engage in business operations within the UAE geographical region.

Steps to begin Business in Dubai, UAE from the UK

The procedures of business incorporation in Dubai, UAE from the United Kingdom included the following. Everything from choosing the most appropriate business activity concerning your specialty to the necessary licenses.

However, the steps that will be used to register a company in Dubai shall depend on the legal structure whether it is the Free Zone company or the Mainland company. However, the general process involves:

• Choosing a Business Activity: It is highly effective to outline your business operations to avoid violating legal requirements.
• Selecting a Company Name: Select an appropriate and available company name that has not been registered and follows the laws of the UAE when it comes to naming a business.
• Obtaining a Business License: If your business activity falls under any of the listed trades, then proceed to get the relevant trade license.
• Securing a Local Sponsor (if applicable): When deciding to go for a Mainland company, it requires finding a local agent to help you as a legal representative.
• Opening a Corporate Bank Account: After registration of your company you should open a corporate account which will be used for financial transactions of the business.
• Visa Application: Obtain the required visas for yourself and/or your employees because all workers in Dubai are required to have a visa.

Important Tip: One should also consult a business setup consultant in Dubai if possible. They will assist you in navigating through the process, legal requirements, and overall pleasant registration process.

What Documents Are Necessary to Register a Business in Dubai if They are from the UK

As a first step of starting any business in Dubai, UAE you are required to get your business registered and to obtain relevant approvals. So, the essential documents required include: 

• Completed application form
• MOA (Memorandum of Association)
• Original and photocopies of your shareholders’ passport that must be valid for at least six months.
• Trade name approval
• Business Plan
• Office contract which is popularly referred to as Ejari in the UAE.

Obtain your license

The next procedure for the establishment of a business in Dubai is to apply for a business license. The kind of business license to acquire depends on the kind of business you intend to venture into. There are three types of business licenses in Dubai: The three being the commercial license, the professional license and the industrial license.

Associated Costs

Closely related to timing, evaluation of the costs, which are predictable in the same proportion as the benefits realized, is also of importance. Whether you have an extravagant budget or you are searching for a startup business with a mere budget in Dubai – the expenses are essential to be comprehended earlier. 

This means that if the right approvals are not made, at the right time they increase costs; If the staff in charge of approvals are not familiar with the procedure in place they may also increase costs. So, business people should find out about the requirements, and in case of any complications; they should seek the assistance of professionals in the most efficient way in cutting costs incurred in the registration process.

Responsiveness to cultural differences and business from etiquette

As such, if such cultural factors are understood and appreciated, you can be able to foster a healthy working environment in business. Here are some key aspects to remember:

• Communication Style: In contrast to most business-oriented cultures, it is rather important to work on the process of establishing rapport in the UAE. Establishing rapport before getting down to business is very important; and as you wait for your counterpart to show readiness the longest time is one hour. An example of this is that all parties should use indirect communication as it is often the local form of establishing trust.
• Dress Code: This is, however, a fashion hub, and while dressing for business in Dubai, the dress code remains rather conservative. Avoid wearing ‘sexy’ clothes and short clothes that reveal the upper part of the shoulders or the knees, especially in areas where you’re not likely to meet tourists. This is evident as dressing neatly demonstrates due respect for the traditions of the other people.
• Building Relationships: Leadership and business in UAE or any other country for that matter, is much more than transactions because, at its core, it is a concept of building relationships. Thus, go out and capitalize on building relationships and engage in benign chat for compilation of the long-lasting business relations.

Take Charge of Your Business Growth

Intending entering the Middle Eastern market especially Dubai should not be minimized by the legal issues that come with it. Hire the services of a good company formation agent in Dubai, UAE.

All matters related to Free Zone company registration are very complicated and it involves a lot of issues, including searching for the necessary business licenses, so the company will need our team of professionals. With their guidance, you can: With their guidance, you can:

• Streamline the Registration Process: Minimise costs, time, and delay and make certain of observing all the laws in the United Arab Emirates.
• Focus on Your Business: Finally, save a lot of your time and money so you can focus more on the growth of your brand and the identification of more consumers in Dubai.
• Gain Local Expertise: Leverage the subject-matter expertise of academics with proper credentials and real-world experience in doing business in the UAE.

Business Incorporation specialist services are a worthy investment that can guarantee your firm or business a successful future. Give the BizDaddy team a call today to speak to one of our agents about your Dubai business vision and what we can do for you.