Setting up a business in Dubai is getting more accessible and more straightforward than ever. This has allowed more and more companies from all over the world to come to the country in hopes of becoming the next big thing.
The various steps taken by the Department of Economic Development (DED) in Dubai ensures that the companies that are coming in Dubai do not face any problem while the company is being incorporated.
Tips for Business Incorporation in Dubai
Many considerations need to be kept in mind before your business setup in Dubai. A list of such factors is given below:
1. Conduct Market Research
Understanding the market is very important for the management of a company before entering into the market. It should be in-depth research comprising all the details such as the prevalent trends in the market, the demographics, competitors of the company, and various other factors that will affect the business.
Market research will help develop new and better products and services according to the current requirement, identify new opportunities in the market, and play a significant role in expanding your business horizon.
2. Select a Jurisdiction to Setup a Business
There are three leading jurisdictions which a businessman needs to consider while setting up a business in Dubai. They are:
- Mainland
- Offshore
- Free Zone
Each of these jurisdictions has its pros and cons. Considering the business’s requirement, you would opt for the type of authority in which your company will be set up. The previous step of conducting market research will provide us with the necessary data to make this significant decision.
3. Make a Business Plan
Developing a business plan will help in deciding the future of the company. A business plan should summarize the product or service you provide. A business plan should comprise of specific vital reports such as:
Feasibility Study
This report will allow the management to understand if the business will be profitable or not. Checking the feasibility is very important for a business. Conducting a company without reasonable possibility may lead to problems in the future.
Future Forecast
A forecast of the future trends will help in determining if the business will be economically viable. Making a realistic forecast will help the management decide if they should continue investing in the industry or look for a different business opportunity.
Cost Analysis
There are many different types of costs that will apply to the industry while conducting the business. The overall value of starting and running a business should be less than the total revenue made.
Strategic Reports
Preparation of the company’s marketing and sales strategy will help in the successful selling and marketing of the company’s product or services. These reports will mention how the offering of the company will be marketed.
4. Effects of VAT on the Business
The introduction of the Value Added Tax (VAT) on 1 January 2018 was a huge step taken up by the Government of UAE. This move will provide a new revenue source to the government, which will be utilized to provide public services and reduce its dependence on oil and gas.
The effects of VAT should be taken into consideration before setting up a business, and the company must develop the VAT implementation strategy.
5. Consult an Expert
It is always beneficial to consult an expert before setting up a business. An expert will provide many insights on which work should get a higher priority. With the proper consultation, the management of a company will be able to make decisions that will affect the company’s profitability.
An expert must possess the required qualifications and should have an excellent reputation among peers. These are some of the tips that will ensure that the company will not face any problem in the future if followed. Commitbiz’s business setup in Dubai procedure is hassle-free and straightforward, and you can kick-start your dream venture in just a week or two.
Interesting related article: “What is a Startup?“