There are several reasons behind Dubai’s sudden rise in business popularity. Firstly, Dubai brings high foreign investment because of its astute strategic location and prudent business-friendly governmental policies. Second, Dubai hosts some of the finest business malls and hotels in the world. The city’s free zone offers even more business opportunities. In short, business owners want to set up their businesses in Dubai free zone for many reasons.
In this article, we discuss the main objectives of setting up a business in Dubai free zones. Following is the list of the objectives that one should keep in mind while setting up a business in Dubai free zones. All these objectives revolve around the promotion of business and employment. They help the foreign ownership to achieve both of these objectives. So, here we set them out:
o Promote employment. One important aspect of setting up a business in Dubai is promoting employment. This is because most of the people who work in Dubai are expatriates and they are mainly from low-income countries. Low-income earners usually cannot afford to set up a business of their own.
o Obtain necessary office space. Once the company has received the required approval from the emirate government, it will be easier for the owners to get office space. Owners can either obtain their own building or they can go for shared offices where they will rent out the unused rooms. A well-planned office space strategy can help save a lot of money in the long run.
o Obtain commercial license. Commercial license is essential for all companies that wish to set up a business in Dubai no matter what their size. To obtain this license, an entrepreneur has to submit the necessary documents which include a business plan, copies of financial statements, and a sound business plan.
Business setup in Dubai freezone. Unlike other countries, setting up a business in Dubai does not require a visa. Free zones are areas that are not controlled by any government agency. Free zones are great for business owners who do not have to secure a business license and are not restricted by any laws. This makes free zones a popular choice for new companies that are planning to set up a business in Dubai.
o Team up with industry experts. Another essential step in setting up a business in Dubai is to get help from experts in the industry. Dubai has a thriving market for all types of goods and services. In order to tap the market, entrepreneurs should form a strategic alliance with reputable companies that are located in the free zones of Dubai. These companies can provide training and advice to new and growing businesses in Dubai.
o Find a local sponsor. In order to successfully set up a business in Dubai, the entrepreneur must be able to find a local sponsor. This can be beneficial especially if the business owner has contacts in the local industry. Finding a local sponsor is important because this will ensure that the entrepreneur receives funds from the national treasury according to law. The national treasury in Dubai is willing to support all types of entrepreneurs regardless of their industry.
o Obtain a license. Before a business can legally operate in the free zone of Dubai, it must first obtain an initial approval from the concerned Dubai authorities. This is usually done through a license number known as an IEC 5+. The license number is then valid for three years and cannot be renewed. A commercial agent in the free zone can help a foreign entrepreneur secure an IEC 5+ license.
o Obtain a professional license. Once a business owner has obtained an IEC 5+ license, he/she may apply for a professional license. Like the IEC 5+ license, a professional license is also valid for three years and cannot be renewed. If you are setting up a business in Dubai, it is advisable that you find a local sponsor who has professional license and can act as your local sponsor.
o Submit your project. Once your application for IECs and professional licenses is approved, you are now ready to submit your plans and proposal for the development of your project. Please remember that the free zones of Dubai are considered as the pre-development stage. During this stage, no major commercial projects will be launched or constructed. In other words, the free zones are the period in which the companies are still in the stage of evaluating the feasibility of launching their business ventures in the free zones of Dubai.
Dubai Business Advisors 