The Basics of Business Formation
Starting a business in the UAE is a fairly simple process, thanks to the business-first policies of the country. There has never been a more suitable time to start a business in the country. Thanks to Expo 2020, millions of visitors are also set to enter the country and boost its economic growth. This alone stands as an opportunity lucrative enough to encourage many to start the business of their dreams. This article entails all the basics needed to successfully start your business in the UAE.
1. Select your economic activity
The very first step to starting a business of your own is to select the line of business your company will operate in. This choice can be based on a multitude of factors, including personal choice, professional qualifications, market size and more.
2. Select a name for your business
Naming your business is essentially creating its identity in the minds of consumers. The name you choose should reflect your business’ offerings and overall vision effectively. Additionally, it should be in accordance with the laws set by the UAE government. Once your business’ trade name has been decided, reserve the name and send it to the relevant authority for approval. The authority in charge may differ depending on whether you choose to set up your business on the mainland or in a free zone.
3. Select your business’ structure
Company formation procedures start with selecting the right structure for your business. The UAE provides businesses with a range of options to choose from, including limited liability companies (LLC), and free zone companies (FZE). Each structure has its own ownership structure and benefits. In the case of FZE businesses, entrepreneurs enjoy 100% ownership rights regardless of non-GCC status.
4. Licensing and Paperwork
Once you have the main details of your business down, it’s time to begin with the legal requirements to begin a business. One of the most important documents needed to start operations in the country is a trade license. A trade license serves as a permit that allows its holder to lawfully conduct business within the country. There are a wide range of licenses across a multitude of industries that allow for business activities within the scope of the license acquired. Applying for a trade license is simple and all you need to do is submit the paperwork to either the Economic Development authority of the emirate in which you will conduct business in or the free zone authority of the free zone your business will reside in.
SPC Free Zone provides over 1,500 business license activities with the ability to combine activities across different sectors. Moreover, they also provide entrepreneurs with dual licensing, which can allow businesses to have set-ups both on the mainland and free zone.
5. Location, location, location
This is one of the most important aspects of starting a business in the country. The location of your business has a direct impact on the resources you have access to and your venture’s reach in the market. There are two broad choices for location, which are mainland locations and free zone locations. You will need to select your location based on the type of business activities your company will engage in and the legal structure of your business, amongst other factors.
These are the five main aspects to consider when starting a business. Apart from these basics however, lies a multitude of formalities and decisions that can be intimidating for entrepreneurs who don’t know exactly where to start. Our experts here at SPC Free Zone can help you get on your feet and guide you along your journey to business success effectively. Contact us at 800 SPC FZ to get started today.