Here’s How to Establish a High-Performing Startup in Dubai

Dubai is the largest and the most populous city which also happens to be the commercial hub of the UAE. Dubai is known as the city of opportunities and gold as it provides many business prospects and advanced commercial opportunities for startups from all over the world. Investment-friendly government and International exposure are two great reasons that encourage entrepreneurs to establish a startup in UAE. Businesses in Dubai also benefit from tax advantages and investments as compared to businesses in other countries.

However, despite its approachable and flexible procedural setups, it can still be strenuous for people to fathom the basic process of establishing a new startup. Thinking how to begin? Here's firsthand information on how to establish a high-performing startup in Dubai.

Choose Your Business Calling

The moment you plan to establish a startup in Dubai, UAE, you get to face certain limitations and restrictions. Not all kinds of activities can be enjoyed in Dubai!

Various legal and administrative consents are needed before you think of launching a business. Therefore, it is quite essential to decide and choose the type of business and see if it fits Dubai's criterions. And once you choose your calling, a performance appraisal can help achieve optimum productivity and engagement.

Choose Your Shareholding Structures

Business setups in Dubai are usually based on a shareholding structure. The structure helps you in distinguishing the legal aspects of your startup. Both business operation and shareholding structure go hand in hand. Following are some structures that could help you choose s shareholding structure that's right for you:

• Sole Proprietorship
• Limited Partnership
• Private Shareholding
• SME License
• Joint Venture
• Public Shareholding
• Branch Offices
• Representative Offices
• Shared Partnership
• Limited Liability Company
• Partnership in Commendams
• General Partnership

Get in Partnership with a UAE National

In order to establish a high performing startup in Dubai, you have to have a mandatory partnership with a UAE national partner. The trick here is to get your hands on a reliable and trustworthy UAE based business partner. As per the law, it is mentioned that the local business partner will get around 51% of the total partnership. According to freezone, a start-up would need a UAE based service agent – that services against will be given some fee. However, it is great to sign a silent partnership agreement. The agreement will ensure safety and security as well as a complete authority on your setup.

Trade Name Registration from DED

Giving your start up a name according to the required standards of the Department of Economic Development (DED) is very important. The name you choose works as your start-up identity. It normally takes around 3-5 days to get your company's name registered. This registration stays effective for a minimum of six months' period.

Secure Initial Approval from DED

The office of DED grants approval once all the required documents are duly submitted. This prior approval is sort of a certification given by DED to begin your own setup. Once a DED is secured, you automatically come in a position to start your own business set up and begin with the due process of getting your hands on the trade license.

Hire a Business Space on Rental Basis

In order to have a high-performing start-up in Dubai, the physical existence of business setup is obligatory. The EJARI, tenancy agreement and real estate regulation authority documents need prior submission, along with the DED.

Get the MOA and LSA Drafted for Your Setup

Drafting the agreement of Local Service Agent and Memorandum of Association (MOA) is an equally important chore. The Memorandum of Association briefs you about the liberty and limitation each partner has in the business, while the Local Service Agreement elaborates the part that the agent is required to fulfil. LSA/MOA are two important legal official papers that must be prepared using the expertise of an attorney or legal advisor. The documents then must be translated to Arabic which is their native language.

Follow all the Startup License Procedures and Company Registration

In Dubai, business licensing and company registration procedures go hand in hand. Once the start-up is registered with the concerned authority, your start-up license certificate will be sorted and would be available for collection. Some prominent licenses needed for establishing a high performing start-up in UAE are industrial license, professional license and commercial license.

It normally takes one to two weeks to acquire the trade and business license certificate from the moment you gain the initial approval. Following is the common list of certifications and documents needed to establish a high performing set-up in Dubai:

• Forms issued by the local UAE Government
• Application for License
• Certificate for reservation of business name
• Initial approval certificate
• EJARI registration certificate
• External departments approval
• NOC and Passport copies of partners
• Registration from Chamber of Commerce, Dubai
• Certification from Health Ministry
• Certificate from Industry and Finance Ministry
• License and approval from Central Bank of UAE
• Initial approval certificate
• Name reservation certificate
• Tenancy contract

Collect Your Trade License and You Are Good to Go

You will be provided with a transaction number or payment voucher by the concerned authority which is DED. The transaction details will only be provided once you manage to submit all the required documents. Once your business setup license is ready, you can collect it by making the last dues. Finally, when you get hold of your license, you are good to go as a business entity.