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Things you need to know before starting a business in Dubai

Owner's Profile

Chirag Agarwal

Published on August 17, 2023, 18:54:07

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starting a business in Dubai, business setup, how to start a business in dubai

Dubai has become an attractive destination for international trade and investment due to its stable economy, business-friendly legislation, and strategic position. Dubai offers various investment options that appeal to the demands of investors of all types, from real estate to tourism, infrastructure and technology.

 It may be seen in the rise of foreign investors and venture capitalists visiting the nation. In 2021 compared to 2020, there were 54% more investors supporting start-ups and early-stage businesses in the UAE, while in 2022 compared to 2021, there were considerably more investors from outside the country.

Businesses can be started in the mainland, free zone or offshore. The sponsorship guidelines of the UAE only apply to Mainland businesses. As a result, a local sponsor will only be necessary for companies looking to consume resources.

A local sponsor's primary duty is to have the company verified and approved by the government, assisting it in establishing its business. Individual local sponsorship refers to a local person who meets the same conditions and goals. The person who wishes to be the sponsor must be at least 21 years old.

Furthermore, the sponsor would have the majority (51% of the total shares). However, earnings from the country would still be in the name of the firm, not the local sponsors.

Corporate sponsorship is where a corporation or group of persons will make the registration and other processes easier for you. The sponsors will manage the company's total shares in this sponsorship. At the same time, the foreign group would be able to obtain labour, visas, and other benefits from these corporate sponsors. Entrepreneurs can obtain this 100% share from the sponsor by offering set fees or profit shares in exchange for managing the 100% earnings themselves.

There are a variety of options for you to select from to start a business in the UAE. Neither is perfect or worst; it all depends on the type of operation required. You do not even need a sponsor for your company if you do not intend to sell your goods directly or indirectly in the UAE. If you’re someone looking for the best business opportunities, Dubai is your best option.  

 For any legal queries or information, contact ask@tlr.ae or call us on +971526443004 

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