To assist you with your business setup in Sharjah freezone SPC, here has been developed a business setup checklist. This checklist guides you through the whole process of starting up a business.
Company registration: The company registration is mandatory for all newly established businesses. This will facilitate government authorities in assessing the liability and legitimacy of the company. In addition, this process also gives legal protection and shelter to the investors, directors and officers of the company. It is essential for every new business startup to consider company registration.
Business entity: After company registration, it is necessary to set up a business entity. In this regard, one can create any business entity that he/she desires. One can create an S corporation, an LLC, a partnership, a limited liability company and a sole proprietorship. In addition, one can also incorporate in accordance to existing laws such as those pertaining to general insolvency, bankruptcy and reorganization of companies etc. Generally, all these options bring lower tax rates.
Purchase of business facility: After company registration, the next step towards new business setup in Dubai is to purchase a commercial facility. A commercial property can be bought for a fixed or variable rate depending upon the capitalization of the deal. Also, you have to go through a commercial lease agreement. Basically, this agreement provides details such as the term of the lease, ownership structure, rent amount and other related terms.
To facilitate easier deal making, it is advisable to consult with a lawyer who is an expert with regards to business formation and other issues pertaining to business licensing and financial aspects.
Effective finance management: After purchasing any commercial property or company facility, ensuring smooth operations is required to ensure successful business setup. A good finance management plan is therefore mandatory. This helps in reducing risks associated with investment in case of failure to realize returns on investments. Moreover, this also helps in reducing financial obligations and liabilities and increasing cash flow. Hence, it is important that you take care of all the finance aspects of the business startup.
Capitalization option: It is always advisable to choose a structured option of capitalization in order to avoid sudden changes in tax income. You can either opt for a single-issue sale of share or issue funds in different forms as per requirement.