Are you ready to start a business in Dubai?
The UAE is a great place to start a business, but it’s also a very strict country with many legal regulations that you need to be aware of. That’s why we’re here—to help you get started on the right foot.
There are many ways to start a business in Dubai. You can open your own business, join a franchise or become an independent distributor. In this article, we’ll go over everything from how to choose a business name to what kind of licenses you’ll need and what paperwork needs to be filed with the government. We’ll talk about things like tradename registration, legal documents, and setting up an office space for your company. And we’ll also give some tips about what kinds of paperwork are necessary when opening a business bank account in Dubai.
Simple steps to start a business in Dubai:
- Registering your company: The first step towards starting a business in Dubai is to register the company ie. trade name registration or trademark registration. The registration process is quite simple and all you need to do is fill up a form(make sure your company name should follow the UAE tradename guidelines)pay the required fees and submit all the relevant documents to the Ministry of Economy Department. Also, you would need to provide some basic details about your company such as its name, type of business activity, and the legal type of a company. there are two options you can choose from to start your business, either as a sole proprietorship or a limited liability company (LLC). If you do not have any knowledge about the legal aspects of starting a business and registering it in Dubai, then it is recommended that you meet a business setup consultant in Dubai like us, who will guide you through the procedure of starting your own business.
- Business Location: The second step is choosing a suitable location for your business. You can select any place in Dubai as long as it meets certain requirements set by the government authority. You must choose an area that is easily accessible and has good infrastructure facilities such as transportation etc. Depending on your interest you can set up a business in Dubai mainland, free zone, and offshore. Each location has its own benefits.
- Applying for initial approval or pre-approval: The third step is you will have to apply for initial approval before setting up a company in Dubai. The Department of Economic Development (DED) is the government body that issues the approval. The application process is straightforward and can be completed online within five minutes. You just need to provide your contact details and attach some documents such as passport copies and photos of yourself and any partners who are involved in the business. If you are a non-GCC or foreigner, then you might require a local sponsor or local service agent from UAE.
- Legal Documentation: The fourth step in starting a company in Dubai is to draft a Memorandum of Association (MOU) and Power of attorney (POA). The MOU is the document that outlines the purpose, nature, and activities of your company. It also determines who can become shareholders and board members. A local service agent agreement should also be drafted between you and your agent to ensure that he/she complies with all local laws and regulations.
- Certificate of License: After successful verification, document, and payment submission you will get the license., Depending on your business activity DED will issue the relevant license such as commercial, industrial, trade license, professional, e-commerce license, etc.
Advantages of starting a business in UAE:
There are many reasons why you should start a business in UAE. Here are some of them:
- Tax-free environment: One of the biggest perks of starting up a business in Dubai is that you can enjoy tax exemption on profits up to 100% of your income. Moreover, if you have a limited liability company (LLC), there are no taxes on your personal income until it crosses Dh100,000.
- Innovation and creativity: The Arab world is an ancient civilization that has been home to many innovators and inventors throughout history. The region is known for its pioneering role in science, technology, and medicine. There is no better place to innovate than Dubai, which is at the forefront of innovation and creativity.
- Easy access to resources: Dubai has one of the largest ports in the world, making it easy for you to import or export goods from around the world. It also has an excellent transportation system with a good road network and an efficient public transport system. The city has excellent telecommunications infrastructure with reliable internet connectivity that makes it easy for businesses to communicate with their clients around the globe.
- Great infrastructure: Dubai’s infrastructure is among the best in the world, thanks to its rapid development over recent years. This includes well-built roads, airports, and public transport systems that make moving around easy for residents and tourists alike. With all this great infrastructure, starting a business here will be easier than anywhere else on earth!
- Legal and Financial Services: The UAE has a strong legal system in place that provides adequate protection for foreign investors and businesses. It also has its own currency, the Emirati dirham (AED), which is pegged to the US dollar at a fixed rate of 3.67 AED per US dollar. This means that there will be no fluctuations in the value of your money while you are operating your business in the UAE.
How to start a business in Dubai as a foreigner?
Starting a business in Dubai as a foreigner is a viable and straightforward process. Firstly, decide on your business activity and legal structure, which can be a Limited Liability Company (LLC) or a Free Zone Company. Next, secure a local sponsor or partner if required, depending on your chosen structure. Register your business with the Department of Economic Development (DED), obtain the necessary licenses, and fulfill all legal obligations. Finally, choose an appropriate business location, and you’re on your way to establishing a successful venture in this business-friendly city. Dubai’s free zones also offer attractive incentives for foreign investors, making it an even more appealing destination for entrepreneurs from around the world.
How we help you:
We have helped thousands of people to start their own businesses. We provide you with all the necessary information and assistance that you need to start your own business. Our Dubai Company incorporation services team can help you set up your business quickly and easily by providing you with advice on how to set up a company in Dubai or elsewhere in the UAE. We can help you find a suitable office space or premises for rent or lease, arrange visas for foreign employees, obtain permits and licenses required by local authorities, register your company with the relevant authorities, and assist with accounting matters such as tax and VAT. If you have any queries, then feel free to touch with us.
Frequently asked questions on setting up a company in Dubai:
The cost of setting up a business in Dubai depends on the type of business activity you are going to do. and also depends on the location you choose.
The most common documents are Passports, photocopies, Ejari, MOA, POA, etc.
Yes, UAE always encourages foreign investors to do business in all emirates.