Dubai is among the top five worldwide cities for entrepreneurs. In addition to being a global centre of innovation and wealth, Dubai’s strategic international location provides quick access to a wide variety of potential markets. However, establishing any company requires careful preparation, critical financial choices, and a number of necessary legal steps.
Here’s what you need to know before starting a small business in Dubai. We cover everything from steps to forming to scaling once your company is successful. By the conclusion of this post, you will have a detailed understanding of how to proceed with your company formation in Dubai.
In this article, we cover:
- Steps to start a small business in Dubai
- How to scale a small business in Dubai, UAE
- The five stages of a small business
- Why start a small company in Meydan Free Zone?
Steps to start a small business in Dubai
To help you get your business up and running as quickly and efficiently as possible, here are a few essential steps to follow:
- Start with market research:Â Market research tells you whether your company concept has potential. It is a means to learn more about the people who could do business with you and the companies already established in your region. Find a way to put that knowledge to use for your company.
- Write a business plan:Â An organization cannot get off the ground without a solid business strategy. It is a guide on starting, running, and growing your company. It will help you persuade potential clients and investors that doing business with you is a smart decision.
- Choose a business structure:Â Dubai has two economic jurisdictions, the mainland and the free zone, each with its own commercial and business regulations. Consider the kind of company you are running, the proximity to your target market, and the location of your physical office when making your jurisdiction selection.
- Choose your business name:Â Choosing the right name is tricky. You need one that accurately represents your company’s values and culture. Also, you should check to see whether the name you have chosen for your company is available.
- Register your business:Â Getting a licence in the Meydan Free Zone is simple. To apply for a free zone, you must complete the formalities on our website, which are as follows.
- You must submit a completed Know Your Customer (KYC) form along with your application.
- Wait for the necessary government and security permissions, which typically come through in 24 to 48 hours.
- Youreceive your licence.
How to scale a small business in Dubai, UAE
Most businesses put all their efforts into staying afloat during their first years. However, prioritising your business’s growth is one of the best methods to ensure its longevity and contribute to your economic well-being and financial future. There is no magic recipe for success, but you may expand your firm using a variety of approaches.
Focus on social media
Building a presence on every major social media site is one way to expand your brand. An active presence on the most popular social media sites (Instagram, Facebook, Twitter) makes it easier for prospective customers to discover you. Providing your audience with a more engaging experience results in them spreading the word about your company to their friends.
Participate in trade shows
Maintaining a high profile at regional trade shows is an excellent way to expand your customer base and gain credibility as an industry expert.
When you exhibit at a trade show, you will likely meet potential customers interested in your offer. This lets you directly advertise to a broad set of target customers. Trade shows also let you talk to people in person, which makes it easier to connect with potential customers and sell to them. Another benefit of a trade show is meeting and networking with other company representatives. This may lead to exciting new partnerships, marketing efforts, and possibilities.
Attend networking events
When you attend a networking event, you may meet new people who share your interests and values and may also have helpful ideas for expanding your company. Participating in networking events may result in valuable contacts and partnerships that can last for years.
The five stages of a small business
Small businesses vary greatly in how big and fast they can grow. Their autonomy, unique structures, and management philosophies set them apart. However, upon closer inspection, it is clear that they all face the same five stages that a small business goes through.
1. Existence
As a startup, your biggest challenges are probably customer acquisition and fulfilling client orders. The business structure is pretty straightforward: the owner handles everything and works in the trenches with the employees (if any). Systematisation and strategic organising are mostly deficient or nonexistent as the company’s primary goal is survival. As the business owner, you are the company since you provide most of the firm’s energy, direction, and finance.
2. Survival
By getting to this point, your business has shown that it can work as a business. It has a sizable client base that it can reliably serve by providing goods or services that meet or exceed their expectations. As a result, the primary objective is to stay in business, and your name is still associated with the company. The structure remains simple: you may have a few managers who don’t make the big decisions but follow your directions. There is some systems development, and a formal plan is little more than a cash flow projection.
3. Success
At this time, you must decide whether to grow the firm or maintain its steady and lucrative support for other activities. The desire to create new businesses or focus on hobbies and other interests outside of work may drive you to disconnect from the company.
4. Take-off
In this stage, your primary concerns are how to develop quickly and fund it. As such, the following areas of delegation and money raise the most pressing concerns. To what extent can you distribute authority to others to boost management efficiency in a rapidly expanding, more complicated business? Will there be enough to meet the need for growth and maintain cash flow without poor spending controls or impatient owner investments? This is a critical juncture for every business. Your company may succeed if you address its financial and management obstacles. If not, it can often be sold for a profit if you quickly realise your limits.
5. Resource maturity
Companies in stage five have the resources to devote time and effort to comprehensive strategy and operational planning. The administration is decentralised, well-staffed, and led by seasoned professionals. And there are elaborate and well-developed mechanisms in place. Both your personal finances and the company’s operations are kept entirely separate.
Why start a small company in Meydan Free Zone?
At Meydan Free Zone, we believe in promoting an environment where businesses flourish and leaders emerge from the ranks of innovators and entrepreneurs.
Meydan provides several benefits for business owners. One such advantage is getting a premier location for a business address. With offices in the urban-style Meydan Hotel, you can view the world-famous Meydan horseracing track while you work. Additionally, a prestigious business address presents a high-end status and can help get top-of-the-line clients.
Of course, there are other benefits to setting up a business in Dubai’s premier free zone, such as no personal or corporate tax, complete foreign ownership, and full repatriation benefits on profits and financial assets. Additional services, such as our e-commerce support service, Meydan Commerce, and our Easy Payment Plans, enable you to stretch out the setup cost over a period of months and are also available to help your business develop and thrive.
Our consultants will support you with all aspects of your business setup in Dubai, including scheduling medical biometrics, Emirates ID registration, or opening your business bank account.
