Dubai has been making great efforts to encourage and assist start-ups and SMEs since they deliver better goods and services, create more jobs, and stimulate innovation in society. Dubai boasts more than thirty free zones that enable 100 percent ownership of the firm to foreigners, making it the most popular city to start business in dubai. Even if you are a full-time working employee in a company, you can start your own business in the region. Let us understand the prerequisites for starting up your business while being employed in a corporation.
1. Receiving a No Objection Certificate (NOC)
• The most significant step for working workers to start up their enterprises in Dubai is obtaining a NOC from their employer and applying for a trade license under their visa.
• According to the UAE labor regulations, an employed individual may establish his own business while working full-time by acquiring a No Objection certificate from the firm where he is already working. However, it is the employer’s choice whether to approve or reject the NOC application filed by its employee. So, this is the toughest aspect since most firms decline to grant a NOC owing to compliance and security standards.
• The following is a step-by-step approach for workers to receive the NOC:
o File a request for NOC through Dubai Trade Portal
o Submit the documentation necessary for NOC
o Pay AED 500 towards the NOC issuing costs
o Get NOC permission from the Department of Economic Development (DED) (DED)
o Once acquired, store the NOC document in the company’s record.
2. Documents Required for NOC:
The following papers need to be presented by an employee to their business to receive a NOC:
• The copies of passport of all partners in the new firm
• A copy of the new company’s name reservation
• A copy of the new company’s Memorandum of Association (MOA) and Articles of Association (AOA) (AOA)
• Bank or cash guarantee of AED 50,000
• An Undertaking Letter signed by the UAE partner
3. Action when you Obtain the NOC Successfully:
• Once the employee has secured the NOC, he/she has the liberty to start up the new firm in any area of the UAE.
4. Options when the NOC is Denied:
If the employer opposes giving a NOC to the employee, then he/she might exercise one of the following options:
• Choosing an Appropriate Free Zone: The employee may opt to start up his/her business in any of the UAE’s free trade zones which do not need a NOC from the employee’s firm.
• Using Spouse’s Visa: Working personnel might start their new firm in the name of their spouse or a relative and name them as a partner cum Managing Director. While you do so, you may preserve all the control of the firm under you.
• Obtaining a DED Instant Licence: An employed individual may apply for a DED instant license to carry out your company operations within the unique criteria set by the UAE government. For this license, you don’t need to present any physical documentation. Here is the step-by-step process:
1. Visit a DED desk to acquire an immediate license. To apply yourself, you need to acquire the UAE pass.
2. For the UAE pass, you need to register on the official DED site using your Emirates ID. Once done, you need to visit DED’s website and edit your company profile.
3. Create your account on DED’s website by supplying the essential data.
4. Follow the step-by-step procedure on the DED website to acquire your immediate license. You will have to supply your company’s trade name, the list of stakeholders, intended business activity, and the information of your UAE sponsor and also apply for Best PRO Services in dubai. You may accomplish this step manually too.
5. Sign the electronic MOA and submit it for DED’s approval.
6. Provide the permission of your business partners. For this, automated notification of permission is delivered to all the parties.
7. Lastly, produce the payment voucher for your license. Once the voucher is operational, you need to make the appropriate payment, and then you are all done.
• Obtaining a DED Instant Licence is not that straightforward. Therefore, it is important to obtain expert advice from experienced company setup consultants in Dubai like Connect Middle East.
Starting a company in Dubai is feasible for working workers, whether you acquire a NOC or not. Some workers may find the procedure to receive the NOC cumbersomely and onerous. That is where a professional business setup consultant can help and Professional Employment Organisation can help you in Expanding in dubai.