I’m assuming you are interested in setting up a company in Dubai? Otherwise you would not be reading about this. Companies in Dubai have paid their fair share to establish get going. The abundance in the Dubai employment market has made it easier than ever to start a business today and run at full speed tomorrow.
I was also interested in setting up a business in Dubai not long ago. So this discussion is based on my personal research and experience from the time I was serious about the idea. If you want to start your corporation in Dubai you’ll have to go through the Dubai Department of Economic Development or the “DED” as most refer to it.
This agency was formed in order to stimulate economic activity which would grow the emirate of Dubai. Most cities, states, provinces have an agency of similar stature which reviews business applications, approves them and grants them licenses to operate.
Your cost of setting up a business in Dubai will include the following costs:
* License involved with the kind of business activity you engage in (service vs. manufacturing vs. intellectual capital)
* Business and liability insurance (still a comparatively weak infrastructure in comparison with the USA)
* Professional fees (legal and accounting)
* The cost of a local partner (this varies from UAE Dirhams 20,000 to 2,000,000 a year depending on their greediness)
The banks in Dubai are ever ready to give you the initial cash in order to establish your business concern. However, be prepared to sign for the loan with a personal guarantee. Even if the banking companies in Dubai ever lend money to you, it is crucial to show them the proper credentials and the economic performance of your corporation during the last several years. After all, everyone wants to protect their behind.
So as to avoid paying a local partner, various entrepreneurs begin their companies in one of the many free zones in Dubai such as the Jebel Ali free zone. These free zones were instituted by the Dubai Government in order to encourage business formation and foreign investment. These zones are treated as stand-alone entities and they could be your “silent partner” in business.
If you want to get an idea on the amount of money required to start a company in Dubai, check out the DED website Dubaided.gov.ae and choose the “English” option on the upper left hand side of your monitor. This is only if the website reads in Arabic. Once you’re in the English mode, navigate to the eservices menu where you could do the cost simulation.
As much as I’m an entrepreneur at heart who loves to take charge and execute things first hand, setting up a business in Dubai is something that I DO NOT RECOMMEND you do alone. There are several cracks to slip through and they can prove really costly for you both in the short short term and long term perspective.
You need to understand the legal structure and the general rules and regulations regarding finance and commerce in Dubai. Starting your company in Dubai all by yourself can also end up costing you way more than what it should.
If you’re serious about doing business in Dubai, I strongly suggest you consider the team at Global Office FZ led by Christine Orth. As of 2009 Christine has over 6 years with her team and is my single trusted point of contact with everything that has to do with doing business in Dubai. You can read more about their credibility and qualifications here.
This is a very serious move and you’d like to ensure you go about it the right way. Having the right business adviser in order to guide you will make all the difference while you get started and continue to require assistance along the way. I wish you very well and I’m certainly eager to hear about your experiences. Do come back and give us an update. We would be keen on featuring your success story in our Dubai personal stories section.
2010 UPDATE New – Virtual Office company set up with full business license and 3-year residence visa now available in Dubai. Costs begin at AED 18,000 per annum You as an Investor are entitled to get 5 visa for you and staff and can sponsor your family and a maid.
The set up is approved by Abu Dhabi High Court and is being licensed through a Northern Emirates Free Zone that is legally entitled to provide Free Zone business licenses in Dubai.
Their business center is conveniently situated at Dubai Marina with numerous restaurants, hotels and ample free parking in walking distance. To get to know more about our activities, please contact our business partner Christine.