In Dubai, foreign investment is welcomed and encouraged in free trade zones as well as onshore or mainland companies when the business has a 51% sponsor who is a Dubai national.
The process of company formation in Dubai is also streamlined and relatively easy to complete provided the application is completed correctly, and all the necessary steps are completed in the correct order. As there are several steps in the process, working with an attorney specializing in company formation in Dubai as early in the process as possible can help to avoid these common mistakes.
- Choosing a free zone online – while the free zone areas are ideal for foreigners wanting 100% ownership of their business, they are not universally controlled and regulated. Each free zone has its own Authority, and various free zones have different rules, regulations and accepted business models and types. Most of the free zones are not set up for “walk-in customers” so choosing the best combination of specialization and location will be critical for the success of the business.
- Selecting the wrong bank to deal with – each business in a free zone will need to have a business bank account in Dubai. Different banks and financial institutes have various fees and charges. Understanding which bank is the best option for your business will be essential before opening an account.
- Not considering the business category – as part of company formation in Dubai, each business needs to choose a business category as well as a legal form. The business category will designate what the business can do with regards to trade, processing, manufacturing, industry or for professional services. Selecting the wrong category will limit what you can do and what services or products your business can provide.
The biggest mistake is to try to form a company without informed legal support. Choose an experienced law firm in Dubai to avoid common errors and to streamline the business setup. Visit the website www.stalawfirm.com for more information.