Dubai is the most rapidly growing business hubs with state of the modern facilities for international and local business. Dubai has become an essential part of the business world and is leading with the latest technology. Dubai is stable on the political front and has strong economic culture and the government of Dubai dune buggy rental provide friendly business rules which attracts the businessmen from all over the world. This article will provide you an Compaq guide on business setup in Dubai. Before you begin your business in a strong economy such as Dubai first you need to understand the culture of Dubai. Dubai is an international city that is a multi-cultural city where people from all over the world reside in Dubai. After familiarizing yourself with the various cultures, you will need to know about the rules and regulations , as well as kind of the business that you will be able to begin.

Legal structure of business setup in Dubai is as per UAE Federal Law No. 8 of 1984, and after the amendments in Federal Law No. 13 of 1988 - that the Commercial Companies Law, and its by-laws regulate the activities of foreign business within Dubai, United Arab Emirates. In wide terms the conditions of these regulations are as follows: The Federal Law requires a total local equity of no lower than 51% in any commercial business . It also identifies seven business categories that can be set up in the UAE. This regulation outlines the rules regarding shareholders, directors, minimum capital requirements and incorporation procedures. The law also outlines the requirements of governing the conversion, merger as well as dissolution of firms and businesses.

In Dubai, you are given numerous opportunities. You get benefits of best economy based on strong administrative bases. The authorities of Dubai have divided the city in different economic jurisdictions. There are many kinds of businesses in Dubai depending on the type of business and location; types are divided in three major categories that are Mainland, free Zones as well as Offshore. Another thing to remember is that Dubai welcomes foreign investment but there are regulations and rules that must be followed. For you to enter in Dubai, UAE you need to have a sponsor. A sponsor will take your responsibility. The importance of a sponsor may be established by the fact that no matter if it is business or you are just visiting you must have an official sponsor. If you want to begin a business in Dubai there is a requirement for the support of a sponsor. Any kind of business requires a sponsor (or agent for service). On the mainland, a resident or a United Arab Emirates based company is a sponsor. for professional services you will require a service agent as sponsor and in order to establish an enterprise in a free zone, there is also a need for sponsors, in this instance, free zone serves as sponsor.

Business setup within Dubai mainland requires that you be issued a valid business license by the administrative authority. The official name is Dubai Economic Development (DED) which is a government entity with the responsibility of issuance of business licenses. Renewal of the license, cancellation and up-gradation are also managed through Dubai Economic Development (DED). In order to ease the investor's burden, Dubai Economic Development (DED) has different localities in operation, thought scrutiny process of the application is strict but department assures quick processing of applications. In Dubai mainland Dubai Economic Development (DED) issues four types of licenses, professional, commercial Branch office, industrial and professional licenses.

In order to establish your business in Dubai mainland under commercial license, you are under law required to get the assistance of a local UAE resident, often referred to as local sponsor. Local sponsors are required by law to holding 51% of the shares of your business and the company will only own 49% of the shares. You are however granted full administrative rights. You can negotiate contracts with local sponsors and set an annual fee for being an official sponsor. Local sponsors sometimes function on behalf of silent partners. Local sponsor can be a person or could be an UAE located company or group.

However, if you are starting a business that includes professional services, you don't need to have an local sponsor. In that case you only need a service agent. Service agent works on your behalf and helps in dealing with local administration authorities to establish your business. You can have 100% of your company's professional status and service agent will only be paid once for the service provided by him.

Free zones are special economic zones in Dubai that are specifically designed to draw foreign investors. Free zone based business are owned entirely by the investor and there are numerous options available. Each Free zone within Dubai has an authority that governs it or a authorities for the free zone. If you are planning to establish a business in Dubai you will need to negotiate to the Free Zone Authority. You may be asked by the authority to submit various legal documents before you accept the approval in the form of license by that authority.

Free Zone offers a variety of attractive options for investors from abroad like the possibility of receiving 100% of ownership of your business. There are several options that are free of tax that you can take advantage of including no personal income tax, the exemption of corporate taxes. There are a variety of business setup options in Dubai free zones. For instance, you can start of your business as a restricted liability company or service provider, there are different options for licensing. Businesses in free zones are permitted to carry out international trades. If the time comes, you can simply close your business. There's less paperwork required to end your business from the safety of a zone.