When deciding to set up a business venture in Dubai, we found various business formation types to consider. Initially it can seem complex, especially as you start to dive deeper into the formation types. The 2 formation types that we explored (and generally the most common formations that you’ll hear about) are i) Mainland Entity via Department of Economic Department (DED) and ii) Free Zone (FZ).
A mainland license issued by the DED refers to the jurisdiction in which an entity can do business in the United Arab Emirates (UAE). Generally, we found the key benefit of establishing a mainland license was a) the increased opportunities in working with other mainland companies, b) the larger geographical jurisdiction in which we can work and c) the flexibility of opening offices or retail outlets as we grow.
Whilst considering formulating the company with the DED, we also considered viable FZs that could match our business requirements. A substantial benefit of starting a FZ entity is the total start-up fees, which we found considerably lower than DED and a key factor for any start-up with limited capital.
It was important that we established Bookanyboat.com with the authority that could offer multiple business activities, lowest start-up costs and flexibility in the jurisdiction of doing business, since our plan is to work with different customers, including tourists, residents, and corporates. We chose Meydan Free Zone to establish our business for the following 4 reasons:
- Huge selection of business activities (1500+): this was important for us, as we need to work within several business activities for the markets we plan to target. With Meydan FZ, they offered up to 3 activities which was perfectly aligned with our business requirements across events, vessel management and online business.
- Efficient service with speed: as a start-up business, we required an efficient service at speed for us to start generating revenue at the earliest. With Meydan FZ, we received our company license and business documents within a few weeks and started trading soon after.
- Ease and flexibility of onboarding: like most start-ups, we have investors and shareholders. One of our shareholders is not based in the UAE, however, Meydan FZ offer a convenient and simple onboarding process to complete a company formation via their online portal. This is helpful, especially when we consider future investors and shareholders who are not based in the UAE.
- No Objection Certificate (NOC): Meydan FZ is unique from other FZs in the UAE whereby we can request a NOC to operate outside of the FZ. Our customer base is broad and requires us to consider different channels where we can target international tourists, UAE residents and corporates. The NOC enables us with the flexibility that we need.
We found that Meydan Free Zone had quick response times to our queries when contacting them direct via phone and email. Generally, a representative responded within a few hours on the same day. Meydan FZ was quickly on hand to give us the information for any queries we had. Their website is also user friendly with detailed information related to costs, business activities and other benefits within the FZ, which we also found very useful.
‘’Recovering tourism performance coupled with Dubai’s strategic objective to attract 20 million international visitors by 2023 were both significant factors contributing in our decision to establish in Dubai and I am excited to establish Bookanyboat.com with Meydan Free Zone,” said Essam Naji, Founder of Bookanyboat.com.
About Bookanyboat.com
Bookanyboat.com is a marketplace for boat rentals, yacht charters and water activities in Dubai, Ibiza and Miami. Customers can choose from a selection of boat rentals, luxury super yachts, fishing boats, jet skis – all in one place!
