Questions & Answers
Setting up online food ordering business in Dubai
Hi,
We are a startup in Canada. Our business is online food ordering system that connects customers to restaurants. We receive payments from customers, restaurants and at the same time we pay back money to restaurants. We are planning to operate in Dubai.
Questions:
1 - Do we need to set up a company in Dubai to have a legal agreement with the restaurants or, our Canada branch is allowed to do that kind of legal agreement with local restaurants in Dubai?
2 - Are we allowed (as Canadian Company with Canadian Bank Account), to operate in Dubai, receive and send money from/to restaurants and customers?
3 - In case setting up a company in Dubai is mandatory, in which free zone can we set up the company? DIC, Sharjah, or Fujairah, knowing that we don't have physical delivery inside Dubai?
4 - In case setting a company in Dubai is not required, which court (Canada/UAE) will be in charge of the agreement?
5 - Do you have a lawyer who is specialized in writing online startup contracts?
Dear,
Kindly find below answers to your query:
1 - That should not be a branch but a franchise/chain of your restaurant and you can transfer money for the purpose of investment etc.
2 - Each free zone has different setup procedures.
3 - Jurisdiction will be as per Agreement.
4 - Yes, we do have.
Regards
Dear Questioner,
Answering your questions I will quote the numbers mentioned above:
1. Your company will be deemed operating in the UAE. Therefore, you will have to establish a company, subsidiary or a branch of your Canadian company deploying e-commerce business. You need it to have a local bank account for easier transactions between your end customers and the restaurants.
2. As a Canadian Company, you can do business in Dubai through a Branch or Subsidiary. The Branch or the Subsidiary should have its own bank account for financial transactions with the end customers and the restaurants.
3. The UAE has more than 30 Free Zones, most of them are in Dubai. You may establish yourself in any of them. However, we will need to understand more about your local operations and how many employees will be hired, how are you planning to market your company here, where do you want to be located, how much is the investment you are willing to do in Dubai to be able to advise you the best free zone for your case.
4. I think this question is not relevant knowing that a company in Dubai is mandatory to deploy this business. In any case, since the contracts will be executed in the UAE, the UAE courts will always have jurisdiction.
5. Yes, we have. We can assist you in drafting all sorts of legal documents needed to establish, run, manage your company in the UAE. And additionally, to draft the terms and conditions of use for your agreement with the end customers and with the restaurants as well.
Regards,
Ahmed Elnaggar
