Dubai Business: Five Do’s and Don’ts to Make Your Business Profitable


Dubai is one of the world’s most economically stable cities. Foreign investors across the globe have eyed this city and came over in pursuit of various business opportunities that they could potentially start and grow.

However, starting up a business here in Dubai is not at all an over-the-counter transaction. If you are one of the investors planning to build your #MyDubai business, consider some do’s and don’ts before jumping into the loop.

Do these five things:

  1. Have a local sponsor

Starting your business is not as simple as going to Dubai Municipality, filling up some forms and going to a cashier for payment. For a more secure startup, you need to be acquainted with a UAE National who’s going to be your local sponsor.

Over half percentage of the equity must be given to the local sponsor who registers your LLC business. In doing so, your company will have the freedom to relocate anywhere in the Emirate. For some businesses with tight startup budget, being locally registered is beneficial for choosing locations that suit your price mark.

Of course, for inevitable future problems, your sponsor is there to sort out concerns with the authorities efficiently.

  1. Choose a Free Zone if you want 100% ownership

If having a local sponsor is out of your plans, you can still start your business and have full ownership through locating your market on Free Zones. In Free Zones, you own your business hundred percent; it is easy to start, and it is entirely tax-free!

However, for some businesses, Free Zones are not practical. Businesses like restaurants and retails are more feasible in big shopping malls such as City Centre that require local sponsorships. Likewise, rental and lease prices in Free Zone districts are significantly higher; it might not suit your budget.

  1. Give importance to your business’ location

A famous fast food chain once put up a mobile truck in a suburb to test the feasibility of a site they were trying to set up their business. That chain is already famous. Still, the company tested the waters before settling a hundred thousand business that can potentially return a triple fold.

Like that of an instance, it is much important for you to choose the right location for your business. No matter how good your enterprise is, when customers can’t reach you, it remains useless or insignificant.

Make sure that your setup is a place where revenue and customer’s convenience are assured. It entirely depends on upon the nature of the business you are putting up and its demand from the target consumers.

  1. Confirm your visa eligibility and other requirements

A valid UAE visa is required for you and your employees to stay in the country legally. Should your business start,  the number of visas required varies on the nature of business, categories of your workforce, and the investor.

Apart from your passport and other legal documents, your local sponsor has to issue a letter that certifies his personal information and other necessary details for processing.

  1. Hire a PRO

For fewer hassles and stress, having an advisory/consulting firm to work for you, will be your best option. This firm will not only help you through the tedious process, but also register your company on their behalf.

It is a great advantage that the people in these types of consultancies are experts in dealing with the local government and Free Zone Authorities for whatever startup and process your business may cost. They manage all requirements with legalities, which minimizes concerns on your part.

Here are the Don’ts

  1. Do not sign without checking

Very typically, new businesses opt for the cheapest alternatives. For an instance, Free Zones have comprehensive layouts of workplaces for potential lease. Before signing any paper, make sure to have scrutinized every detail of the space that you’re about to rent. Possibilities don’t limit to getting restrained on substandard units after getting hooked with signed papers you failed to check.

Before everything goes out of control, assess and check the details first before legalities take its toll.

  1. Do not decide based only on published information

Be prudent, jumping right into hasty conclusions is not a good trait to observe when starting a business. Although some materials are released with known references, some information changes without prior notice. Rules, for example, can alter from time to time.

Information which is not confirmed is considered an assumption; thus, make some validations before you give into deals. Consult authorities and verify all queries you have.

  1. Do not choose a limited license category

Before finalizing your business license, select a category that caters all possibilities your business might need. Widen your scope and confirm whether the license type that you’re about to get permits activities that your trade actually requires.

  1. Do not open a bank account without confirming the bank charges

Bank is a top priority when it comes to get funds on any initial trade. It is likewise the top concern when bank accounts are not dealt with appropriately.

Before opening a bank account, have time to sit with one of the bankers for thorough discussions about your business. Always be specific with your questions or doubts and always confirm charges and requirements before final affirmation.

  1. Do not sign a sponsorship without a written legal agreement

Sponsorship is one serious note in doing business in Dubai. Anything discussed shall be of futile purpose when not written under a legal agreement. A legal document must be comprehensive and specific to details which both of you have agreed. Verbal negotiations may be assuring, but whatever it cost you, a printed settlement has still the best guarantee. Have it attested by local courts for forthcoming complaints.

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