vk101
Is it possible for someone who works in Dubai as an employee for another company to eventually leave that job and start their own business? What are the rules around this, and what would someone need to keep in mind when making such a move, from a legal perspective?
Which Dubai government authority should I speak to regarding starting a business?
RobbyG
One tip: If your newly created company can't pay the bills after a while, make sure you're Company is not registered in Dubai. According to my knowledge (summier though) you will be locked between two smoking barrels...
They surely don't have a chapter eleven safety valve ;)
vk101
I'd imagine for a company to be operating in (i.e. selling to) Dubai you'd need to be registered there, or is that not the case?
RobbyG
Yes you have to register, but if your main activities are based in another country, you keep the right to travel out of the country if things don't work all that well as you hoped it did.
I would recommend to take advice from a professional advisor and not from people like me on a forum. Its for your own advantage.
brgds.
dbxsoul
first get a book called "company law of the uae", it is published every year (well revised at least), it lays out all legal aspects regarding the formation/ establishment of businesses within the UAE.
you would also need to speak to the Department of Economic Development as well as the Dubai Municipality regarding the licensing issues of the company.
If you have specific questions ask them here, as the topic is very broad and could run into volumes.
start off with the type of business that you are proposing, as well as the current employment situation you find yourself in
vk101
Thanks for the tips. One business prospect that I've been asked about getting involved with is an online niche job board. My question is with regards to whether it would even need to be registered in Dubai.
If it's not based in the UAE, and all that's happening is employers in the niche it's operating in were to pay online to post a job, would it even need to be registered? If not, I wouldn't want the hassle of a 51% UAE National partner, and it seems to be difficult to get into a free zone (to avoid the 51% problem).
I think it'd be the same case as if you were sitting in North America and owning/running an Ebay business that sold exclusively to customers in Dubai - those customers would use their credit cards to pay you, you'd ship to them, and you wouldn't be registered in Dubai or UAE. The differences in this case are no physical goods are being shipped (because the product is a niche job posting), your customers aren't individuals but rather hiring companies, and it's not Ebay but your own website.
What conditions need to be met for a company to require registration in the UAE or Dubai specifically?
RobbyG
Try asking on a professional business forum.
You'll get a much broader reply to your serious questions.
brgds.
dbxsoul
- vk101 wrote:
Thanks for the tips. One business prospect that I've been asked about getting involved with is an online niche job board. My question is with regards to whether it would even need to be registered in Dubai.
no; you don't have to be registred in the UAE - although there are already a number of on-line placement agencies (for dubai), most are viewed with a deal of scepticism if they do not have a local office - jobsindubai being one - postal addess and web is registred in canada.
If it's not based in the UAE, and all that's happening is employers in the niche it's operating in were to pay online to post a job, would it even need to be registered? If not, I wouldn't want the hassle of a 51% UAE National partner, and it seems to be difficult to get into a free zone (to avoid the 51% problem).
not difficult at all, costly yes
I think it'd be the same case as if you were sitting in North America and owning/running an Ebay business that sold exclusively to customers in Dubai - those customers would use their credit cards to pay you, you'd ship to them, and you wouldn't be registered in Dubai or UAE. The differences in this case are no physical goods are being shipped (because the product is a niche job posting), your customers aren't individuals but rather hiring companies, and it's not Ebay but your own website.
What conditions need to be met for a company to require registration in the UAE or Dubai specifically?
grey area - physical products would require registration as there would be import taxes etc. to be paid on them - in additon hiring of staff, visa sponsorship etc. etc..
there are a number of companies who actualy make use of outsourced (out of country) services, mainly IT, web development, consultation, drafting offices etc. the Microsoft Help Desk is a prime example, there is no way to regulate this or for the goverment to effectivly try and generate revenue through this - as the services ore off shore or cyber-based.
if you wanted a local office the 51/ 49 split (with a limited involvment partner could work), free zone or simply run it from your home country.
you would however have to look at the practicalities, interviewing staff and clients etc.
(sorry about the spelling, my spell check is not working) :)