HOW CAN INDIANS START A BUSINESS IN DUBAI? WHAT ARE THE LEGAL REQUIREMENTS FOR THE SAME?

Before starting a business anywhere, it is important for a businessman to scrutinise the profits and losses along with the kind of laws and policies applicable in that country regarding taxation and other business activities. Dubai, UAE being the hub for profitable opportunities to the Indian investors constitutes a large population of them. The Dubai government provides great opportunities to Indian nationals by allowing them to set up their business within a span of three days with the required documents and approvals. Indian nationals have been given this benefit because they have been the most productive international investors in many parts of UAE including Dubai for centuries. They have contributed a lot in creating business avenues and employment opportunities in Dubai. It is not just this mere factor that pushes Indians towards starting a business in Dubai, but, the fact that there is no personal or corporate taxation system plays a huge role too. The low import duties, free trade system and smooth taxation policies open doors to a lot of Indians every year. However, no businessman thinking with a right mind would start his business without knowing about the legal requirements. There are certain important aspects that have to be kept in mind before starting a business:

1. Visa eligibility: The visa eligibility of both, the businessman and his employees, is of paramount importance. Usually, visas are granted to all types of business activities, however, their number varies according to a variety of criteria affecting the business. It is to be kept in mind, that visa applications are not strict in Dubai. Although this factor is very important it is not equally difficult.
2. Hiring a business agent: Expertise is very important before starting a business. An agent will not only provide his expertise in the field with the right ideas but will also help in the registration process. He can prove to be very helpful in providing various other nominal services like providing knowledge about the potential costs involved, opening a bank account etc.
3. Trade name registration: Before starting the business, it is mandatory to register a business name or trade name for the company. A trade name is something which acts as a trademark and is used to identify a particular company or business. It helps in building trust and goodwill among the clients along with certain exclusive rights enjoyed by the company over the trade name.
4. Registration of the company:  It is mandatory to register the company with the Department of Economic Development before starting any business in Dubai. The company’s Memorandum of Association has to be notarized by the Department of Economic Development. The company has to submit and sanction all its documents with the department before getting access for smooth functioning of the company.
5. Trade License: A trade license allows a person to commence business in a particular trade.  So, a trade license has to be acquired after registration with the Department of Economic Development to commence the startup. It is to be kept in mind that the trade license should be well fitted within the jurisdiction of the business activities involved as it does not permit access to other trade or business opportunities.
6. Membership Registration: A membership at the Dubai Chamber of Commerce and Industry (DCCI) is needed before starting any commercial or industrial business unless it is a very small scale business. The membership with the DCCI is valid for one year and provides protection to the business community in various forms. However, the Free Zone companies may or may not choose to register with the DCCI. Since, this is the most important certificate before starting a business in Dubai, it is very crucial to get acceptance. The applicant must keep in mind certain objectives before applying with the DCCI, i.e. he must be having a trade license, he must have commercial or industrial premises, his business should be in operation and he should have a sound credit rating 10 years prior to the application.
7. Ministry of Labor: An application at the Ministry of Labor is needed for receiving an establishment card. The labour unit of a company has to be registered with the Ministry of Labor before commencement of the business. The ministry enforces rules and regulations for both, employers and employees to maintain stability and peace among them.
8. General Authority for Pension and Social Security: The employees have to be registered with the General Authority for Pension and Social Security to protect them from any sort of exploitation before, after or during their employment in the company.
9. Rent/Lease an office:  After all the applications and registrations are completed, an office has to be rented or taken on lease for beginning the business.

It has to be kept in mind while starting a business in the United Arab Emirates that forming a company in a Free Trade Zone is highly recommended. A Free Trade Zone is a zone where goods can be received and stored without payment of duty. Hence, in Dubai it is highly beneficial and profitable as it provides 100% ownership to Indian nationals and they are exempted from paying capital gain tax or personal income tax. However, until and unless all the aspects of the office are confirmed the registration in a free zone is risky as it can throw the budget into disarray due to unavailability of the premises.

  Keeping in mind the above mentioned benefits to the Indian businessmen, we can conclude that a large portion of the population of Dubai comprises of Indians and huge Indian business tycoons like Mr. BR Shetty, Dr. Raghav Pillai and many more who contribute a lot to the economy of Dubai as a whole.

The pie chart roughly represents the population distribution of Indians in UAE, USA, Saudi Arabia and Pakistan for the year 2019. It clearly shows that the number of Indians in UAE has increased and is the highest than any other country. Hence, the population of UAE itself comprises a majority of Indians giving them the advantages for the same to boost the economy.

-Ridhika Kapoor.