Dubai is a dreamland for many business aspirants because of the vast entrepreneurial opportunities it offers. The entrepreneurs will need to juggle endless tasks and competing priorities in order to bring their dream business to reality. If you’re a business aspirer trying hard to organize, this article is for you.
1. Create a business idea
This is the primary and pivotal step in the formation process of your business. It is really easy to fantasize about owning a business of your own, or dreaming about kicking off your startup. The real work of fulfilling your dream begins with taking baby steps by making a viable plan of business while taking all the pros and cons into account. This could be quite challenging since it demands a comprehensive and broad market study by analyzing the respective markets and the target audiences. Along with this, you will need several brainstorming sessions across the board. This includes steps like noting down and expanding upon your ideas. This helps you to find the definition of your business niche with added clarity.
2. Build on your business idea
Since you have finalized the business idea, now it's time to move on to the next step, ie, drafting a proper business plan from the business idea you now own. This is a groundlaying step as this conjures up the bottom line of your business. The business plan details what your company is, your mission, vision, values, business description, business functions, products and services description, customer service standards, market analysis and strategy, competitive analysis, financial plan, projections, expected revenue sources, and other key points.
3. Find financing sources for your Business
Capital is paramount for the execution of any business plan. Finding the appropriate financing sources can help you develop an estimate of your business, as this will determine your way forward. This could help you to have an idea of all sorts of possible expenses and also keep a check on unnecessary expenses. Clearly layout your financing sources while developing your business plan. Create a comprehensive list of all the financing sources you have access to. If you find that your initial capital or personal funds cannot make it to your expected expenses, you need to look for alternate financing options for your project. You can secure business funding by means of a potential partnership, bank loans, angel investors, local funding and outreach programs, venture capitalists, institutional investors, business incubators, etc.
4. Make an Abstract of your Marketing Strategy
Marketing is the way and means to build a bridge of communication between you and your customers. That is why marketing should not be neglected in any business setup. It aids the business to uphold an ever-lasting and permeating bond with their audience. Clearly delineate your intended audience and try to have more specific and clear-cut definitions of the target audience either by means of their gender, age, educational level, income level, etc., or by means of their lifestyle and habits of consumption. Once you have a clear illustration of the potential audience, keep on further research to know them better in close proximity. What are their needs and aspirations? What are their consumption habits? What means of communication do they frequently use? Decide on which communication platforms and channels are most relevant to your services or products, and look into their details and potential costs. Getting to know your customer more can help you to achieve more leads and more business. And subsequently, this guides you to be more strategic while making marketing strategies in the future.
5. Choose the Right Legal Structure for your Business
At this stage, you need to select the legal structure and the suitable jurisdiction for your business. Choosing the right jurisdiction for your business needs an extensive range of information on the various advantages each jurisdiction offers. Having an expert business consultant by your side will help you to find a suitable jurisdiction for your firm. Whether it be free zone, mainland, or offshore, each comes with different and distinctive privileges for the firms in the respective jurisdiction.
When coming to the legal structure, the most commonly adopted legal business structure by small businesses and entrepreneurs is the Limited Liability Company (LLC). This is because of the operational flexibility it offers to the firms when setting up their companies in Dubai. The most beneficial feature of LLC companies is that they can trade across the UAE and the GCC. They also benefit from several advantages, including no minimum capital and no restrictions on real estate ownership.
Sole Proprietorships, Civil Companies, Private Shareholder Companies, Public Shareholding Companies, Branch & Representative Offices, Free Zone Companies, etc. are the other adopted legal business structures in the UAE.
6. Register Your Company Name
Count this as the first official step of your company formation. Choosing the right name for your company can take some effort since it should go in alignment with the company formation rules of the government. In Dubai, you are required to choose a name that does not contain any kind of offensive language or religious, political, or criminal references. Additionally, your business name must be relevant to your type of business activity and it should be available for use. Once you finalize the name of your business, you are required to register it at the Department of Economic Development (DED). This step is mandatory as it preserves your ownership rights. Also, it serves as a necessary step for incorporating your company.
7. Complete the company formation paper works
This is a crucial step and you have to be careful here. Be keen to include every file and document at once. Submitting an incomplete file might delay your business setup process. Some of the key documents that you will be needed to submit include the name registration certificate, copies of your passport and UAE residency, copies of any partnership or sponsorship agreements with a local agent or partner, your company incorporation certificate, etc. Having a business setup consultant by your side can help you in organizing your paperwork and submitting it in the prescribed time. Delay in the submission can cause you penalties too.
8. Get your business location right
Docking your business in the right location is cardinal since it reflects on the accessibility, connectivity, reach, and activities of your company. Before picking up the location, you must know that whilst companies can benefit from various tax exemptions, their trade elsewhere in the UAE is restricted. On the contrary, Mainland companies can operate their business activities anywhere in the UAE along with flexible visa terms. Consider the exact advantages and disadvantages of each location and choose accordingly.
9. Obtain a business license
For starting a company in mainland business setup Dubai, you need to earn a business license from the Department of Economic Development (DED). For Free Zone businesses, the Free Zone Authority will be responsible for issuing the license. The business license is your official business permit. Once you obtain it, your business becomes legal.
Endeavour Corporate Solutions can be your one-stop destination if you’re looking for a trusted ally for setting your business up in Dubai. With its 100% success record, Endeavour extends business setup services, PRO services, visa services, local sponsor services, business solutions, mainland business setup Dubai and office solutions.