In Dubai, a Local Partner Is Good Business and Is Required by Law
When you’re travelling to a location with which you’re not familiar, it always helps to have a local expert to lean on for guidance and advice. This is true even when on holiday, which is why people usually learn some of the details about their destination before they leave home. While it’s certainly important in a personal holiday setting, consider how much more important it is in a business situation. Some would say that it’s crucial to commercial success to have local expertise on your team.
One of the areas in which you must be perfectly accurate is when you register with government authorities whether it’s on a national, regional, or local basis. If you make significant mistakes while completing the necessary documents, miss a file-by date, or fail to file important information altogether, the establishment of your business could be significantly delayed. More importantly, you may not be able to start your business operation at all without a local citizen as a partner.
What about Dubai?
To put this in basic terms, as a foreign national, you could start your business venture in a non-free zone if you have a UAE national or an Emirati citizen as a partner. Essentially, you need a local sponsor in Dubai. This means that you have a local agent who will represent you to the government and will help you connect to networks in that location. He or she will also be able to help your company expand and grow with the assistance of resources that he or she knows about. You can get started on the journey to business success by learning more about the specific programs offered.
The Dubai government is certainly welcoming to foreign investors but you should know a few basic facts before you start. First, it will be extremely helpful if you know the business model that you’ll be working with. This might be a direct sales operation, a branch of an existing business, a separate limited liability company, and so on. With this general idea in mind, you’ll need to have a good knowledge of the region in which you’ll work. You can prepare by doing your own research, of course, but you’ll be a step or two ahead if you have knowledge to rely on as well.
Required by Law
Make sure that you’re comfortable with your business plan and with the level of investment that you will depend on. Don’t assume that you’ll be able to find financing in the new location. As mentioned, you should have a capable local partner. Not only is this good business; it’s required by law. Make sure that you’re working with an experienced and reliable partner, not only because you’ll have a better chance at success but because he or she will own a significant part of the operation.
Once the business is registered, you must show the government that you have a significant amount of money to invest. This amount will vary, as will the cost of working with a local partner. The sum required by the government is treated as a guarantee against liabilities. Your local partner will be able to guide you through this part of the process.