In the previous times, not even a single investor could be found that in his senses would have agreed or shown a desire to invest in any sort of market in Dubai. The policies at that time were quite rigid and were not the desirous policies for any foreign business and investor. However due to the changes in policies and culture of the city of Dubai, the city has become the most favorite investment place for the investors relating to all parts of the world. The change in policies by the government of Dubai threw open the gates for foreign investors in the business world of the city of Dubai. Gradually, Dubai has become one of the most successful and popular business and commercial hubs in the world.
The policies implemented by the government included the formation of many free zones throughout the city. These free zones provide many incentives to the businesses operating from these zones such as no corporation tax, very low import duties, seaport with in close reach, great infrastructure and the permission of the companies belonging to these zones to be 100% owned by the foreign investors. The business environment and working conditions in the city of Dubai is quite good. Also the economy of Dubai is growing at a rapid rate and the political condition of the city is stable. The living standard of the people of Dubai is also high. All of these factors have helped in making Dubai a successful business hub and a lot of businesses and companies in Dubai are being formed.
Here the question “how to set up a business in Dubai” arises for the foreign investors who are seeking to invest their sums in this lucrative investment opportunity and to earn a lot of profits from this investment. The overall process related to the incorporation of a business in Dubai is very simple and easy. These procedures although simple and easy are still legal and have to be strictly followed while forming a company. To form a business and start trading, all one has to do is to register a company’s name and obtain a trading license for the type of business activity he/she is planning to perform through it. There are three types of license available to the businesses operating in the city of Dubai. These licenses are commercial licenses which cover all kinds of trading activities, professional licenses which deal with the professions and services and industrial license which contend with industrial and manufacturing activities. All of these licenses are issued by the Dubai Economic Department however some sort of licenses may require approval from specific ministries and other authorities.
The types of businesses that can be incorporated include Limited Liability Companies which are the most common type companies in Dubai. A minimum share capital of AED 300,000 is required for the formation of this kind of companies in Dubai. Other form of businesses that can be incorporated Is Joint Venture which is formed as a combination of two companies that share profits and losses on a predetermined basis. Sole proprietorship business is also included among the types of businesses that can be incorporated in the city. This type of business can be formed by foreign investors in all parts of the city of Dubai without making a local resident partner in the business but the owner has to make a local person service agent in order to operate in the city.
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Hosam Habib is an expert Media consultant and Journalist associated with Dubai Media City, a Dubai-based international company that host all Media related companies. He wrote many times about how to set up a business in Dubai and also writes News Channels, Print Media etc.
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