Starting a Business in Dubai Free Zone

There are three major considerations to be made by those thinking of starting a business in Dubai free zone. However, keep in mind that Dubai welcomes foreign investment greatly, so their restrictions are amongst the most liberal around the world.

The Dubai government offers different types of business models to be chosen from by foreign investors, such as direct sale, commercial agency arrangements, branch or representative office, Limited Liability Company and special free zone investment. Here are the three things you must know before starting a business in Dubai.

You must have a good knowledge of the region. Be prepared to undertake extensive research into the business sector you aim to operate within. You must have a viable business plan, which includes a study of the market conditions, the competition and your forecast results. You must be prepared to find the necessary investment from your own resources or through your bank and preferably by other means than applying locally, particularly if you’re new to the region and without a track record. A credible plan might attract local support, possibly government support.

Take into account that if you want to own 100% of your company and do not want to have a local partner, the only possibility is to starting a business in Dubai free zone. However, if your business requires being near the city, it will probably go bankrupt quickly in the Free Zone as it is a faraway place. Additionally, rental costs in the Free Zone are most likely to be higher than regular rental prices within the city.

 

 In order to start you business, you must be aware that the process is complex and financially risky, meaning that local knowledge is crucial. You must also consult a good lawyer from the outset. An experienced lawyer will guide you through the registration complexities and his help will be vital in protecting your interests. This applies whether you’re opening a modest shop or a major enterprise. As is the case all over the world, there are unofficial businesses operating in the region, but if anything goes wrong or you’re ripped off, you have no legal recourse whatsoever.

When doing business with Arabs, you will probably meet with hard but polite bargaining and find them expert at it. You need to be completely confident about the contents of your contractual agreement. If there are gaps, Arabs are brilliant at finding and exploiting them. Nevertheless, in the vast majority of cases, Arab businessmen meet their obligations fully. The experience of doing business with them is likely to be pleasant and friendly, and the trust built up on both sides will be long-lasting.

Incidentally, Arabs rarely say a direct ‘no’ to a proposition, so you must listen and observe carefully. Look out for signs that tell you that someone is accepting without really wanting to do much, as there’s a good chance that the project will go nowhere.

Before starting your business and looking into everything, make sure you meet your visa eligibility and requirements. You will need a visa that allows you to live and work in Dubai. If you plan on bringing on more foreigners onto the project, you need to work closely with your local partner in order for them to sponsor your employment visas. For more information visit the site http://www.dubai-setup.com/ .