Starting a Business in Dubai, Here is How to Do It

Dubai has a clear image as an economic powerhouse around the world. Businesses that want to set up shop in the Gulf Cooperation Council (GCC) and especially in the United Arab Emirates (UAE) will want to go there because of its great facilities, strategic location, and large pool of talented people. Starting a business in Dubai is easier with this guide because it walks you through the steps you need to take to make sure your business has a strong foundation for success.

Benefits of Starting a Business in Dubai

Below are some benefits to consider when choosing Dubai as your next business destination:

• Economic hub: Dubai’s strategic location serves as a bridge between Asia, Europe, and Africa, providing access to the global market.
• Diversified economy: The city has a strong presence in trading, tourism, real estate, banking, and technology.
• Tax advantages: Free zones provide benefits such as business and personal income tax exemptions, no import or export taxes, and complete foreign ownership.
• Streamlined setup: A business establishment is made easier using online portals and registration systems for some of the processes. Public and private organizations are available to provide support services.
• High quality of life: Dubai has exceptional recreational, medical, and educational opportunities, as well as an excellent quality of life.
• Strong legal framework: Dubai’s legal and regulatory systems adequately safeguard business rights and intellectual property.

Types of Business Setups to Choose From

Freezone: Putting up a business in the Dubai free zone has a lot of benefits. These 25+ free zones don’t have to follow some rules or pay business taxes like the rest of the mainland. There are a lot of great things about doing business in free zones, and companies that operate in those zones can be owned entirely by foreigners. These kinds of sets are especially helpful for foreign companies that want to target industries, get tax breaks, or find a great place to do business. Foreign businesses need Dubai’s free zones because they offer specialized facilities and good rules for many different types of businesses.

Mainland: Companies based on the mainland of the UAE can do business anywhere in the country and can own or rent property on the mainland. This set-up is perfect for businesses that want to deal directly with the UAE market. Businesses on the mainland can also bid on government contracts.

Offshore: Setting up an overseas company in Dubai is a great option for businesses that want to trade with other countries while keeping their assets safe. Because these companies offer a flexible and effective way to do business abroad, they are perfect for use outside of the UAE.

Steps to Start a Business in Dubai

It’s easier to start a business in Dubai than in many other places, and the professionals at Gatestone Group can help you make it even easier. Our professionals will make it easier for you to open a business account and will take care of all the paperwork and administrative tasks that need to be done, from registering your business to making sure you follow all the rules and taxes. To start a business in Dubai, follow these steps:

Choose an activity

Before you start a business in the UAE, you should look at the list of possible business tasks and choose the one that fits your company’s goals the best.

Choose a jurisdiction and the legal structure of the business

Three distinct economic zones or jurisdictions make up the UAE market: the mainland, the free zone, and offshore. Every jurisdiction has its own laws and rules about the establishment of businesses and meets various business requirements.

However, the requirements and activity of your business will determine which jurisdiction is best.

This will assist in creating an outline for your business. A business license application cannot proceed until the legal structure of the company is chosen. The following are some of the company structures or legal forms available to register your business in the UAE:

• Limited Liability Company (LLC)
• Public Joint Stock Company (PJSC)
• Private Joint Stock Company
• Civil company
• Branch of a foreign company
• Branch of a free zone company
• Holding firm
• Free Zone Limited Liability Company (FZ LLC)
• Free Zone Company (FZ Co.)
• Free Zone Establishment (FZE)

Select the business name and logo

Establishing your company in the UAE starts with the approval of your company’s trade name by the Department of Economic Development (DED). Once approved, both your company name and chosen business activity are authorised. Following this approval, the necessary paperwork is submitted to initiate business establishment in Dubai, after which the UAE trade licence will be issued.

Submit a trade licence application

In the UAE, trade licences come in four different varieties:

• Commercial licence for general trading businesses
• Professional licence for service-related businesses
• Industrial licence for manufacturing goods
• Tourism License for Travel and Tours

Select office location

The size of office space leased may impact the visa quotas offered by the DED.

Lease office space (physical or virtual)

When establishing your business in Dubai, you may require an Ejari, which is an official tenancy agreement between you and the real estate company that provides your office space or shared workplace. Ejari is necessary for applying for or renewing family member and/or employee visas.

File a visa application

It is equally important for the employer to apply for employee visas. There are four simple steps to applying for the visa:

•   Application for an entry permit
•   Modification of status
•   Examination for medical fitness
•   Registration of Emirates IDs and stamping of visas

Obtain your company licence

After getting your approval from the specific government authority, the company license and documents are issued.

Opening a corporate bank account

Once all necessary paperwork and documentation are complete, opening a bank account for your business is essential to make your business operational.

Documents Required to Establish A Business in Dubai

The following documents would be required for registering a business in Dubai:

•   Business plan
•   Passport-size photographs and passport copies and of all shareholders, directors, and general manager
•   Copies of Emirates IDs of directors, shareholders, and general managers (for UAE residents)

Conclusion

Launching a business in the UAE can be a thrilling adventure, offering access to a dynamic market, supportive infrastructure, and diverse opportunities. Staying informed about regulations and seeking professional guidance when needed can ensure a smooth and successful launch. For a free consultation with our expert team, contact Gatestone Group via email at [email protected] or call +971 4 450 1023 or +971 52 410 0849.