Back in the days, there was not much that Dubai was famous for. However, things have changed with the passage of time as the Government of Dubai has shown a strict dedication to the development of the Emirate. To increase interest in the country, the Government of Dubai has introduced a number of investor friendly policies. With advancements in terms of the infrastructure of the country and the government’s passion to offer top-of-the-line facilities to all those who visit Dubai, the Emirate has managed to become not just the best tourist spots in the world, but a business hub as well.
Due to the investment opportunities that Dubai has to offer, a number of investors from around the world have established their business presence in this Emirate. Here is a look into a few basic elements that you should know before setting up a business in Dubai.
You need a sponsor
If you wish to establish your business on the mainland then one thing for sure is that you will need a sponsor for it. For those who don’t know, a sponsor is basically a look Arab who takes the responsibility of the business and the investor in general. in return, you will need to offer him 51% partnership in the business. the local Arab sponsor that you choose for this purpose will need to be given a majority share of your company.
If you do not wish to work with the local sponsor you can focus an offshore company formation in Dubai in one of its many free zones.
Where do you wish to establish your company?
This point is somewhat associated with the one mentioned above. If you run the sort of business that regularly requires hold meetings with your clients or needs a lot of customer interaction, then it is highly recommended for you to establish your business in the mainland of Dubai. What you must remember is that to be able to do so you will need to work with a local sponsor. The other option that you have is that of establishing your business in a free zone. this choice works well for businesses that do not require much interaction with the clients and is actually the right choice for offshore companies. The best part is that it will not require you to work with a local sponsor. However, make sure that you acquire proper licensing.