A fast growing economic hub- that’s what, Dubai may be called. The growth of business, architecture and tourism and hospitality has been tremendous in past few decades. The economy of Dubai is deliberately made simple so as to encourage more and more investments and making it a global market. Instead, this effort has proven successful to experiment with this globalizing economy. There are man people who seek to establish their name and fame in Dubai markets.

Markets of Dubai are regulated by individual emirates and federal government as well. Markets being featured with free from hustles of undue restrictions boost the business men to get attracted and operate in a liberal way. The free flowing of goods and services has been the major reason contributing to the emergence of Dubai global markets.

For setting your own business in Dubai, it is important for any business men to get aware of the formalities to comply with and the way to start with.

Licensing:

This is the basic requirement for all business activities to be carried out in Dubai.

Dividing them among three categories, they are enlisted as below:

• Commercial licenses: they are issued for all kinds of trading activities. It covers any business form to be started with.

• Professional licenses: these licenses are issued to professionals including doctors, lawyers and so on. These basically include licenses for the people who render their services including craftsmen and artisans. For any person to practice his profession, need a professional license.

• Industrial license: this category includes licenses issued to people willing to set up a manufacturing unit in Dubai. It covers all factory and manufacturing companies’ owners.

Well, these licenses are issued by Dubai economic department. However, some other activities including banking and financing institutions may require complying with other formalities. They need to get an approval from various ministries and authorities including Central Bank of Dubai and others. Moreover, each trade activity has its own departments t o get the permission through. For example, jewelry and insurance providers need to submit a financial declaration issued by any bank operating in Dubai. This document is listed as a guarantee from bank on behalf of the trader.

Ownership status:

For all UAE established companies at least 51% participation of UAE nationals is must. However, there are certain exceptions that are excused but have to comply with other rules and regulations. In case of foreign companies of professional or artisans, branch establishments or a representative office, 1005 foreign ownership is allowed.

Legal status of structures:

There are many companies that are covered under the laws of Dubai government.

• Partnership companies: Dubai government does not encourage these partnership ventures.

• Joint venture companies: joint ventures are allowed with 51% participation of local nationals with foreign investor. As such, there is no need of license too as the deals with third parties are carried out under the name of the joint venture of local national.

• Private Shareholding Company: in any private share holding company, the board of directors must contain a majority of UAE nationals including the chairman. However, it is allowed to announce share with the huge amount of capital investment of near about Dh. 10 million.

• Professional companies: 100% foreign ownership and sole proprietorship are allowed in professional firms. But, there are some legal procedures that are to be followed in case of staff appointment. It is necessary to devise a UAE national as a local service agent. However, this local service agent does not have any ‘say’ in the management but he may assist in legal formalities like visas, licenses and so on.