In the UAE small and medium enterprises constitute nearly 99,2 % of all the businesses currently registered in the country.
UAE has more than 50 free zones and other authorities for company setup. That’s why it is very important to understand the essentials of company registration to keep the businesses afloat.
It is necessary not only for the first year but for the subsequent years too.
The most important factors to consider when setting up a small business in the Dubai is the business model of the company. In other words, you have to have a clear picture of how your company would operate.
The key questions to ask yourself are as follows:
Do I need a physical office space in the first year of running the business?
Renting an office for a small company might significantly increase the total cost for setting up the business in the UAE.
It is not mandatory to rent a physical office space. In most free zone authorities or in the mainland area you have an option to start with a virtual office / co-working space/ flexi-desk facility.
In the majority of the free zones the cost of this virtual office comes as a part of a total package. It includes the license and incorporation fees too.
In Dubai free zone company formation some business activities might have a mandatory requirement for a physical office space. We recommend checking it with your business setup consultants in Dubai.
In overall, you can start your business with the basic shared desk at the first stage. As the business grows you can always upgrade your package from a virtual desk to a physical office space.
How many employees do l need for a start?
It is not mandatory to start out with employees from the beginning. You can be a sole proprietor initially for a small business setup in Dubai. When the business grows, you can hire employees and expand.
In case the employees are necessary for the day to day running of your business, you should add in visa cost, medical insurance and salaries to the business maintenance expenses.
What are the requirements to get the bank account of the company?
After the company is registered, a corporate bank account becomes a vital thing. A business cannot run without it.
One important factor is to understand the current requirements of the UAE Central Bank. They change from time to time and all banks have to follow.
This is where a professional consultancy firm like Emirabiz would come in. Experienced advisors can help to make a proper setup solution that satisfies the banks.
Consultants will evaluate if your activities are high risk for the banks or if they might require more supporting documentation for the compliance department. It means that from the moment you decide to proceed with the incorporation of the business we would have laid a very strong foundation. It will help to make all the other stages easier.
How much annual maintenance costs?
The company in the UAE needs to be renewed on an annual basis. Resident visas are usually renewed every 3 years for business owners and every 2 years for employees.
It is very important to understand the future expenses and renewal fees in the beginning of the company setup. Also check if there are any annual audit requirements.
What is the role of the business setup consultant in Dubai.
Choosing the right consulting company who has your business needs at heart is key. More so, you will need a very reliable, transparent and efficient company. Such a firm can handle all your requirements: from the company registration, up to resident visas and bank account opening support.