Starting a company and operating the company successfully is an always task. But if you have the right human resource, supporting entrepreneurial system, right infrastructure facilities, right mentorship and consulting firms, right market place , investor friendly banking system , your job is half done .
In this blog we are discussing the major points to be considered prior to open a company in Dubai, United Arab Emirates.
1. Activity of the Company
For all startup it’s very important to identify the right activity for the company as per laws and regulations of country you decided to register. If you are compromising on finding the right activity, it will end up with a big trouble during the time of operation. Choosing right activity will make you a hasslefree business operations in the legal aspects related to that.
2. Choose the Marketplace
Choosing the right marketplace for your products and services makes your job half done . While we discuss the market place in the context of the business setup in United Arab Emirates should be considered as mainly two points
a. Local Market Target
b . International market (mainly exports/ reexport of products and services)
if the product and services if you are selling directly to your end users / B2B in this case we can consider the operation mainly in local market. Moreover, to advise to register the company in mainland rather than freezone since the main intention to sell the product and services locally.
If the company is targeting the international marketplace, (exports/ reexport) the suitable option is register company in free trade zone in the United Arab Emirates.
3. Entity of the Company
It’s very important to choose the right entity for the proposed company. Whether should be registered as freezone company or offshore company or the mainland company – /branch of foreign company / professional firm. The entity of the company should be decide based on the activity, marketplace and the international tax implication.
4. Bank Account Opening of Company
Bank account plays a vital role in the operation of the company. Without bank account, daily operations of the company is not impossible in this era. Personal bank account as well as corporate bank account opening have lot of compliance procedures globally. To fulfill the requirements of the bank account opening, the investors should aware of the compliance and KYC requirements of the bank account opening procedures in United Arab Emirates. Hassle free bank account opening in Dubai for the companies depends on entity of the company, activity of the company, KYC and profile of the shareholders, targeted clients and their countries , location of the company registered etc. It always be advisable to seek bankers opinion prior to choose the freezone or offshore or mainland entities registered (especially which freezone and which offshore jurisdictions to be consider)
5. Office / Warehouse Location
Choosing the right office / warehouse in the right place is very important. Have to consider your line of business prior to deciding the premises. The infrastructure facilities, rent, electricity, parking facilities etc. are to be also considered.