As SMEs are believed to bring a lot of innovation and employment to the country, the UAE has made a relentless effort to promote small to medium-sized companies.
In a recent ‘Entrepreneurship in the Middle East and North America 2017’ study, the area’s population chose to be self-employed and start a company. Those who choose to pursue jobs in the country have been reflected.
If they are offered an option to choose, 55% of people living in the UAE prefer to have a business company and be self-employed. Even among people who are currently working in an organisation. 78% said they plan to start a company or have tried to do so in the immediate past.
Although 49% of them prefer self-employment to self-fulfilment, they were asked by the survey respondents why they choose to be self-employed. Some believed that self-employment gives them the freedom to choose what they want to concentrate on, and about 42% say that self-employment provides them with the freedom to balance decisions.
The same reason was stated by those individuals who have already started a company of their own. Other than that, the study found that entrepreneurship has an even more significant impact on economies and communities. In the UAE, entrepreneurs have an extremely positive reputation because they are believed to build jobs and introduce creativity to society. Some continue to say that entrepreneurs are also bringing in new goods and services to develop the country.
They are working and training in an organisation to help to an extent for the experience and skills required to start and operate your own company. It is assumed that a company is a career ladder for workers who want to create an enterprise. Regardless of the number of abilities a person has, working under an organisation will allow them to polish their skills, discover their secret talents, and unleash them.
In an organisation, day-to-day activities prove to be a learning opportunity, opening their eyes to new prospects and up-skilling their talents. It, in turn, strengthens the foundation of a potential employee and allows them to decide a successful path one day at a global or international level to incorporate their own company. So the first step in starting your own business is to work for a corporation.
An organisation, whether a new or an experienced individual, is a career ladder for an employee. The workplace helps workers discover their strengths and unlock their latent potential. The everyday tasks carried out to encourage them to up-skill every way and serve as an eye-opener. It builds the foundation of a potential entrepreneur and enables them to explore the path to create their business empire at national and global levels. So you are in the right direction if you are a working employee and want to start your business in Dubai.
Business setup in Dubai is a great decision. It is a journey of persistent determination, courage, and persistence to begin the process of building up a business empire. Also, for any business, international exposure acts as a boon and improves brand value formation. Dubai, one of the genuinely vibrant cities globally, has mastered itself in business building and developed itself successfully with a multitude of options ranging from job opportunities to company creation.
For the ease of doing business, it has been ranked 21st. The city also offers various trade-free zones that enable working people to guide their thinking process to create their own business. It is an excellent forum for both start-ups and existing companies that motivates the working class to grow their own dream business. Now you have to ask how? Are working workers willing to start their own company? Well, the answer is a significant ‘YES’ to your question.
How Can an Employee Start a Business in UAE?
Well, to begin with, one must know that the United Arab Emirates has established itself as an investment magnet because of its free trade zones that allow foreign nationals to open their businesses. Any business requires at least one national member to have it. The nation has more than 30 free zones that have enhanced and turned the UAE’s economy into an investment hub.
To start setting up their business, the big thing for working professionals is to acquire a No Objection Certificate (NOC) from their current company. It turns out to be a complicated process now. The majority of businesses do not authorise their workers to keep a NOC. The emirates have five zones that do not need a NOC to ease the operation.
The five NOC free zones are:
- Sharjah Media City (SHAMS) Free Zone
- Umm al-Quwain (UAQ) Free Trade Zone
- Fujairah Free Zone Authority
- Ajman Free Zone
- Creative City Fujairah
How to Acquire a NOC to Start a Business in UAE?
An employee who wants to acquire a NOC needs to undergo the following process:
- File a request through Dubai Trade Portal
- Submit the required documents
- Pay the NOC issuance amount of AED 500
- Acquire NOC permission from the Department of Economic Development
Once the NOC has been granted, the document is stored in the current enterprise’s record. In case a company doesn’t provide NOC, the individual still has a second choice of establishing a business in his/her spouse’s name and appointing them as the Managing Director.
Essential Documents for Acquiring a NOC
The documents required to be submitted for obtaining a NOC from the current business are:
- Passport copies of all the partners
- A copy of the business’s name reservation
- Copy of the enterprise’s Articles of Association and Memorandum of Association
- Bank or cash warranty of AED 50,000
- The UAE national partner wrote an undertaking document.
If one successfully acquires a NOC from the current business, he/she has got the flexibility to start their business in any part of the UAE. If not, one doesn’t need to stress – there still free zones that don’t require a NOC. So, whether an employee has a NOC or not is not the issue. The real problem lies in whether one is ready to lead the journey as an investor or not.
Does a Freelancer need to Acquire a NOC to Start a Business in the UAE?
There is an additional benefit for freelancers, as they do not need to receive any NOC from any local sponsor. By becoming a freelancer, one can start the journey and upgrade later to the stage of company formation.
Procedure for a Freelancer to Incorporate a Business in Dubai
- A freelance permit obtained in two ways: either from the Economic Development Department (DED) or from other free zones in the world.
- There is a broad array of choices for freelancers to start their journey
- An official setup is not obligatory
- If the visa is secured, it becomes easier to sponsor dependents
- There is no mandate for auditing or bookkeeping training
- One has the potential to own a bank account
Are you deprived of being an employee, and you want to start a company of your own? Yes? That’s great! You can also take advantage of a residency visa in Dubai by creating your own company. It would help if you had business consultants like Commitbiz at this stage that will ease out the entire employee for you to the investor journey. All the best!