Starting a business is a crucial decision, especially if it is in a business hub like Dubai. The entire process requires proper planning, exploring, budgeting, preparing, and finally coming up with significant conclusions. In addition, it also requires adequate knowledge and awareness in choosing the right license and activity for the company. So, the real concern that lies is how to start a business in Dubai, especially if you are a budding entrepreneur or a newcomer in the UAE market.
In this article, we will learn how you can set up your business in Dubai adhering to the rules and regulations of the government and what vital steps can you take to strengthen its position in the Middle East.
Benefits of starting a business in Dubai
Dubai offers a unique blend of strategic advantages to entrepreneurs starting a business in the Emirate. For example, the prime location of the city makes it a gateway between major global markets, a diverse economy, a stable and dynamic business environment, world-class infrastructure, a high quality of life, access to a skilled and multicultural workforce, and more.
So, here are some of the key benefits of considering Dubai as your next business destination:
- Dubai is home to one of the world’s busiest airports and seaports that facilitate global connectivity, international trade, and travel.
- Dubai has a diverse economy that is supported by different sectors such as trade, tourism, real estate, finance, and technology.
- The various incentives offered by the Dubai government such as tax exemptions and free zones attract foreign investment.
- Free zones in Dubai are tax-free. This means businesses are exempted from corporate and personal taxes as well as import or export duties.
- Dubai free zones boast world-class facilities, including advanced transportation, telecommunications, utilities, and a solid prominence on technological advancement.
- Apart from a business-friendly environment, the Dubai government also provides simplified procedures for setting up businesses.
- New businesses and startups can avail support services like business incubation, legal assistance, and financial services.
- Expat business owners can also enjoy a high quality of life in Dubai, with excellent healthcare, education, and recreational facilities.
- The legal and regulatory framework of Dubai is transparent which shields intellectual property and business rights.
- Business owners can have easy access to a skilled workforce and a diverse pool of talent.
Types of business setups in Dubai
There are three business setups in Dubai, each with unique features and benefits to different business requirements.
Free Zone
- Corporate tax exemption
- 100% foreign ownership
- Relief from certain mainland regulations
- Highly favorable business environments
- Businesses can operate from designated areas
- Beneficial for international companies seeking maximum benefits
- Regulatory aids and specialized infrastructure for various industries
Mainland
- Allows unrestricted trade across the country
- Permission to lease or own property in mainland areas
- Direct engagement with the UAE market
- Ability to bid for government contracts
- Different business opportunities and growth potential
Offshore
- An attractive option for international trade and safeguarding assets
- Ideal for operations outside the UAE
- Flexible and efficient structure for international business activities
How to start a business in Dubai?
Business setup in Dubai is relatively more straightforward. So, if you are worried about how to start a business in Dubai, then Shuraa experts are here to make this easier for you. They will handle all the paperwork and ensure transparency by walking you through the procedure step-by-step –
Choose an industry/activity
Foreign entrepreneurs and investors can find plenty of opportunities for innovation. Besides, the business license you choose needs to have a specific pre-defined activity. Hence, the primary task of setting up a business in Dubai is choosing an activity or industry you want to engage in. The authority governing your chosen jurisdiction has a list of permissible activities that you can select from.
Read also: How Post-Purchase Engagement Can Drive Customer Loyalty
Choose the right jurisdiction
Depending on the activity you choose, you get to decide the jurisdiction where you can register your business – Mainland, Free Zone, or Offshore. Each jurisdiction offers unique benefits and facilities. Therefore, your choice should be based on their provisions aligning with your requirements.
Choose a company name
This can be the most tedious step in the business setup process as business owners are required to follow the strict guidelines of the UAE while naming their business. Some of the common requirements are:
- The name must be unique and non-resembling to any existing company name within the UAE.
- It must conform to the cultural and religious values of the country.
- The name should not contain offensive or derogatory words.
- The chosen name must be applicable to the chosen activity.
- It must have an abbreviation of the legal structure you choose. For example, LLC, PJSC, etc.
Gather all the mandatory documents
This particular step may vary depending on the jurisdiction you choose. For instance, the business owners opting for a Mainland business setup are required to approach the Department of Economic Development (DED) for registration, whereas, for free zone company setup, they must approach the respective local authority. As part of the application, the business owners need to submit certain documents to support their registration request. These may include a business plan, NOC, passport copy, and initial approval certificate among others.
Get full details on the required documentation from the business consultants of Shuraa.
Get the license
Upon successful submission, the relevant authorities will review the documents. In case of any objections, the authorities may ask for additional documents which the applicant has to submit within the specified time frame. Nevertheless, if the application is approved, the applicant can receive their license within a short period.
Open your business account
Once you have your UAE business license in hand, you can unlock every service that you may need. For example, a business bank account. There are various options for the best banks in the UAE, such as Emirates NBD, Commercial Bank of Dubai, Mashreq Bank, Abu Dhabi Commercial Bank, etc. Additionally, there are various other global giants like HSBC, Citibank, and Barclays that you can consider for your corporate account opening.
This process also requires a few compliances which would be fulfilled by the experts of Shuraa. They will follow all the legal procedures of the bank authorities and make sure your business has a corporate account in the UAE without any penalties or disapproval.
Apply for visas
Visa application is the final step of the business setup process in Dubai. Depending on your chosen jurisdiction, you can determine the number of visas you can apply for. For instance, the Mainland has no limitations on the number of visas, while free zones have specific quotas. Apart from their own visa, business owners also need to apply for employee visas after registering with the labor department.
How to start a business in Dubai – Documents required
The general documents required to set up a business in Dubai are as follows:
- Passport copies of all shareholders
- Memorandum of Association (MOA)
- Office Tenancy Contract
- Trade Name Approval
Top businesses to start in Dubai with minimal investment
Looking for some promising business ideas in Dubai? We have got some of the best choices for you –
- Dropshipping
- Tutoring
- Social media management
- E-commerce
- Digital Marketing
- Tourism
- Consultancy
- Real estate
- Manufacturing
- Trading
Partner with Shuraa Business Setup
Shuraa Business Setup has assisted thousands of foreign entrepreneurs in establishing their businesses in emerging markets of the UAE. Their legal advisors understand the needs and challenges of the client and accordingly, provide solutions to address them. Get in touch with their experts at www.shuraa.com.
