80% of ex-pats have had a significant impact on culture and business practices. The specificity of each office is multinationality. All cultures of the world and dialects exist here. Living in Dubai, you do not want to travel anymore – the whole world will come to you. Nationalities such as Indians, Filipinos, Pakistanis predominate. Recently, there are many ex-pats from Ukraine.
Your business, in which you will be 100% the owner of your company, can be opened within 1 hour – at the moment there is a simplified registration system. The State Department of Economics officially conducts the “License within 5 minutes” program – you can come to any branch of this state structure and after a short time left with a license for your own business. At the same time, you must have a local sponsor with you, who will be listed in the documents as your Agent, in this case, you will have 100% of the shares of your company.
If you want to get investments in your own project, you can agree with the sponsor for 51% – 49% of the shares, where he will have the majority of the shares – in this case, he will not be a nominee, but an actual sponsor – an investor for your business. Such a license is issued for the mainland, in contrast to the licenses that can be obtained in the FEZ. Many local businessmen offer business investments on very favorable terms.
In the case of registration in a FEZ, a prerequisite will be to open an office in the same FEZ in which you register your business. That is, you are tied to the place of registration and are required to draw up an office lease agreement or at least a workplace from the first day of the license. In case of registration with a local sponsor (“mainland”) – you do not need to draw up a lease agreement within the first year from the date of registration, and then you can open an office anywhere. You save money on office rent.
When registering a business, in any case, it is important to determine the form of ownership of the company – this will help you at the place of registration.
The approximate cost of registering a company is $ 5000. This cost includes mandatory registration of the name, license, opening a bank account, your visa for 3 years, sponsor services, office workplace (coworking), utility bills, Wi-Fi. The premium package ($ 800 more) includes secretarial services, legal address, conference room for negotiations, and parking space. This is all within 1 day.
By the way, parking is one of the most important aspects. In the Emirates, it is very difficult without your own car, especially in the hot season, when the thermometer reaches 50 degrees. The city is not suitable for pedestrians. Obtaining a driver’s license is another story. Even an experienced driver will need to take 20 driving lessons and pass exams. It stretches roughly 4-6 months and costs about $ 2,500. Gasoline is cheaper than water.
One such event is the World Expo 2020, which will take place in less than a year and will attract about 20 million tourists and, accordingly, capital to the country. To enter the Emirates market, it is worth ordering a marketing strategy for brand development to attract potential customers. This is the most demanded service. Strategy development will take 5 working days and will cost from $ 500 – in exchange, you will receive a guide to how to attract customers to your business.
In the Emirates, business is conditionally divided into the categories of “large, medium, small” – where Small and medium-sized enterprises (SMEs) are the widest segment. Trade, tourism, consulting, auditors, advertising, marketing, software developers, the service sector (beauty salons, hotel business) are the most popular areas, but today the conditions for doing business and opening a company in Dubai are so favorable that firms in all areas are opening every minute activities. For example, a psychologist will find his clients here and develop his business quickly enough – it is enough to be a professional in his field.
In the first year of the license, it is not necessary to open an office if you receive a mainland license. There are many coworking communities, in almost every business center, you can choose by field of activity, nationality, etc. Many work at Starbucks and Dubai Mall cafes.
A business plan and an accurate understanding of the financial side are required. That is, you need a specialist who will accurately prescribe your capital investments for doing business. You can attract an investor or run a business on your own, but there should be an understanding of how much and on what to spend (or not spend) money. There are also many options to save money – for this, you need to have a reliable partner and consultant. This will help reduce costs by 3-4 times.
For example, if you are a highly qualified specialist and are of interest in the quality of cooperation with companies, you will be offered a significant discount on business registration in exchange for your services. Or barter. With the ability to negotiate and bargain as in the east, you can achieve better payment terms.
A local partner is very important, who will tell you where the “advertising” is exaggerated – since the feature of advertisers to describe ordinary projects beautifully is the norm.
Minimal adaptation is needed – since the country has implemented international standards, all international business is represented, and new companies are opening every minute. The culture of the Emirates brings only a positive note and flavor, which is a plus. It is worth paying attention to the seasonality.
Summer is the hottest time of the year in the Emirates, the temperature reaches 50 degrees and this affects the influx of tourists, respectively, cafes and hotels experience a decline in the summer months. Ramadan is a 30-day fasting period for Muslims, the fasting dates are shifted from year to year and depend on the lunar calendar.
In 2019, Ramadan will begin around May 5th. During Ramadan, the working day is officially reduced by 2 hours for all employees of any nationality and religion, and for Muslims who observe the fast – by 3 hours, while the employer is obliged to pay full salary. The most profitable season is the New Year holidays, during which time sales in shopping centers reach record levels. Directly on New Year’s Eve, the roads are blocked, and traffic jams on some roads last 5-6 hours.