As many investors and buyers are contemplating of doing business in Dubai, the rules and regulations need to be understood by them before making attempts. The emirate has recently renewed its policies and reframed existing laws. Get an update on entry and permits required to work and do business. As per the government laws there are seven business set ups permitted.

1. Private unlimited company
2. Joint liability company (general partnership)
3. Limited liability company
4. Private joint-stock company
5. Simple commandite/liability company
6. Public joint-stock company
7. Share commandite company

Except for those business allowed solely in the free trade zone, the others require the participation of local people also. The local businessman can have equity in the foreign company’s share wanting to do business. A branch office of a company can also be based in the emirate. Most of the foreign investors chose the Dubai free zones to start the business. But all the designated free zone areas where these businesses are conducted need to adhere to the law of the land. They should be able to get forex for the country. Every respective industry has a set of laws. For example a real estate developer wants to do business in Dubai or any other state of the emirate and then he has to become familiar with the Dubai Real Estate Regulatory Authority and Dubai Land Department. They will have to be well versed with the property laws. Similarly anyone wanting to enter the medical industry will have to get all information from the Health Ministry before doing business.

Most foreign investors prefer to work in the free zone setting up a limited liability company (LLC). They cannot have public shares of this company. They cannot do business in banking, insurance or invest for third parties. The UAE currency can be converted and is secure because of the country’s free trade practices. Once business is doing well there are no restrictions on profit transfer or capital repatriation. The import duties in the country are low (4%). This is also an added advantage of doing business here. In the free trade zone items like foodstuffs, agricultural products and medicines there is almost no restriction or duty. Businessmen who are already operational in Dubai know that the labor is cheap and there are no corporate and personal taxes. This is a sign of relief in this booming economy.

Dubai facilitates many business activities in tourism, real estate, telecom, construction, franchises, education, IT, media, hotels, hospitality, transport and medicine. The railways are also coming up. More immigrants and companies will benefit from this sector also. The infrastructure supports all business. Business cannot be good unless the living conditions are good. Dubai and other surrounding regions offer excellent residential complexes, resorts, recreational facilities and eating places also. It is also all round development that is making Dubai the business hub for many ventures. The region is also safe for family living. Would anyone wish to miss a chance of improving their lifestyle?

Nivedita Nagpal works as a freelance property correspondent with Dubai Property.

Dubai Real Estate.

Dubai Real Estate.