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I hope I get good response that will help me.

I am planning to start business in Beauty Salon. I have all finance and support that I need. But I don't know where to begin. I checked the DED site of Dubai, and there were some online steps (more like a DEMO) on how to register with the DED and it showed that it would cost me around AED 8000 for a month registration. Now I don't know how far that is correct. I have local sponsor. I just want someone to provide me with details or sites or anything from where I can start.

Thanks and appreciate any response.
 

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Hi there


Believe it or not, until about a month ago, I was working on setting up a salon myself! However, I decided not to proceed any further due to personal reasons.

I'm not a legal professional, but I'll tell you what the process is like, and where you can start.

Firstly, you need to decide WHERE you are going to open the salon.

If it's a free zone, like JLT, DIC, DMC, DSO, etc., you won't need a local sponsor, and you'll have a 100% ownership. However, the downside is that getting the initial approval from the free zone authority isn't going to be so easy. They're going to need to review your application submitted along with a detailed business plan, including financial forecasts, and then depending on how saturated the free zone is with similar businesses, your application might be accepted/rejected.

Now, if you do obtain the initial approval (usually at a small fee), the next step will be finding a retail space. In JLT, I believe the DMCC gets to decide in which cluster/building you can set up.

After you find a suitable space, you can proceed with the tenancy contract. Most landlords/real estate companies WILL ask for the initial approval, before drafting the contract. Once the contract is signed, you can apply for the trade license. For DIFC, I know it is USD 3,400 for registration, and USD 5,100 (renewed annually) for the trade license.

If you decide not to open your salon in a free zone, then you will need to approach the DED. Getting the initial approval is a piece of cake. You will need to submit passport/Emirates ID copies of the owner, sponsor and investors, if any. I got the approval and name registration done real quick through an acquaintance, and I don't think I spent more than AED 5,000, including his fees. He went to the court, submitted all the required documents, and obtained the approvals, on his own. I can give you his contact details, if you like. Or else, you could check the classifieds, and find a firm that handles trade licenses/business registrations, if you're unfamiliar with the paperwork, or prefer not to deal with all that hassle. :)

Once you get the approval, you can look for a retail space. I believe the initial approval from the DED has a validity of 6 months, and you need to find a space within that time. Once you've found a suitable space, finalize the tenancy contract, and then apply for the trade license. I'm not sure how much that's going to cost, but probably not more than AED 20,000 (for your business).

Once the trade license is ready, you can proceed with the fit-out contractors. You might need to get the drawings and details of the MEP approved by the landlord/free zone authority before commencing work.

I hope this helps. Good luck! :)
 
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