EASY STEPS TO SET UP BUSINESS IN DUBAI

If you are looking to start a business in Dubai and wondering whom to reach for your small business setup in Dubai? Dubai sees significant demand for setting up a business in Dubai. As the hub of attraction for different investors and entrepreneurs to set up a business in Dubai, it is no wonder that the Dubai government is going the extra mile to facilitate every step of the way. So if you plan to set up a business in Dubai and are looking for more valuable details, this guide is for you.

10 Easy Steps To Set Up Business In Dubai

Discover the vibrant business landscape of Dubai and learn how to establish your enterprise with ease through these 10 simple steps to start a business in Dubai.

Step 1: DETERMINE YOUR BUSINESS CATEGORY 

Understanding your business category is a crucial step when setting up a business in Dubai. It will significantly influence the type of license you need, the location options available, and the specific regulations you must adhere to. Some Business Categories in Dubai include:

• Commercial: Retail, wholesale, trade, real estate, etc. 
• Industrial: Manufacturing, construction, logistics, energy, technology, engineering, etc 
• Services: Hospitality, tourism, education, healthcare, consultancy, etc 
• Government: Public sector organizations, government agencies 
• Non-profit: Charities, foundations, NGOs 
• Special Economic Zones: Free zones with specific regulations and incentives (e.g., Dubai Media City, Dubai Internet City, etc)

Step 2: BUSINESS SETUP CONSULTANTS IN DUBAI

Dubai has a lot of highly skilled experts and businesses set up in Dubai consultants with a proven track record in offering professional guidance regarding company formation in Dubai South and UAE as a whole. So, all you have to do is start looking for good and well-known business setup advisories.

Step 3: TYPES OF BUSINESS LICENSES IN DUBAI

You can set up a small business in Dubai mainland, offshore, and free zone companies in Dubai. There are different trade license kinds in Dubai. The most familiar being commercial, industrial, and professional. Once you learn which category to plan your business, you see the required license type.

Step 4: BUSINESS SETUP IN DUBAI FREE ZONE

Generally, free zone registration offers an exquisite collection of benefits. In the UAE, most people are trading businesses; a free zone business setup is always favored. It is the most effective option for potential investors who wish to make the most profits in company formation in Dubai. In the free zone, you can business set up Dubai one of the two types of companies:

• Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.) 
• Free Zone Establishment (FZE)

Step 5: MAINLAND COMPANY FORMATION IN DUBAI

The mainland is a highly preferred choice where you can start a business in Dubai. Business opportunities and facilities make it an excellent destination for real estate business setup in Dubai. The impressive fact behind this process is that it avoids paying personal and corporate taxes. These technical features make the mainland a good place for people who plan to do business setup in Dubai South and open their branch offices. However, as 100% foreign ownership of mainland startup businesses is allowed in many cases, overseas entrepreneurs are mainly more alert to starting a free zone business. In this zone, you can have 100% ownership.

Step 6: OFFSHORE BUSINESS SETUP IN DUBAI

Following the overseas jurisdiction is essential for protecting the total assets from the lawsuit to set up an offshore company. In addition, following the entire jurisdiction for company setup could take advantage of growing investments overseas and international tax breaks.

Step 7: COST OF SETTING UP A BUSINESS IN DUBAI

There is no minimum capital requirement. However, you can expect a trade license to cost AED 15,000 to AED 75,000.

Step 8: OFFICE SETUPS IN DUBAI

You can decide between buying or renting office spaces in free zones. Office necessities rely on the number of workers and the type of business conditioning of your firm. However, finding appropriate offices for sale in Dubai at reasonable rates and good locations is not easy, especially for those new to Dubai who have little or no knowledge of the Dubai property market. Driven Properties offers you a lifetime chance to make the crucial decision about selecting the right commercial property for sale in Dubai without hassle. Browse our online catalog and find hundreds of exclusive offices available across the length and breadth of Dubai. Commercial property for rent in Dubai and Dubai industrial city apartments for rent are some solid options to consider when leasing search.

Step 9: REQUIRED DOCUMENTS IN THE BUSINESS SETUP PROCESS IN DUBAI

So once you are done with the essential steps, now you must gather all the documents required to set up the business in Dubai.

Some types of business licenses are:

• Commercial/trade 
• Consultancy/services 
• Industrial 
• Educational 
• Media 
• eCommerce 
• Offshore 
• Freelancer 
• Warehousing 
• Manufacturing

Step 10. SUBMIT YOUR APPLICATION

Once you`ve gathered all the necessary documents and completed the required paperwork, it`s time to submit your business application. This typically involves either submitting your application in person to the relevant government department or through its online portal.

Key points to remember: 

• Double-check your application: Ensure that all information is accurate and complete before submitting. 
• Pay any necessary fees: Some applications may require fees to be paid upfront. 
• Follow up: After submitting your application, follow up with the department to inquire about the processing status.

Step 11. GET YOUR BUSINESS LICENSE

There are different rules for different parts of the free zone. To make the application, you need to provide your company setup agent with some essential documentation and details about your business. They will take care of the rest.

• Completed application form 
• Business plan 
• Copy of existing trade license/registration certificate (if you are an existing company, applicable for a local company only) 
• Colored passport copies of the company’s shareholder/s and the appointed Manager/Director for the new company 

• Specimen signature of the company’s shareholder/s and the appointed Manager/Director for the new company 
• Two years’ audited financial reports for a corporate entity or certificate of reference from a personal bank of the individual shareholder 
• NOC from current sponsor (for individuals) 
• Freelancers need to submit fewer documents: 
• Application for registration 
• CV 
• Bank reference letter 
• Registry Identification Code Form (RIC) (Original and notarized)

Step 12. SET UP YOUR OFFICE AND START OPERATING

Congratulations! Once your business license has been issued, you`re ready to establish your physical office and commence operations.

Here are some key considerations for this final step: 

• Budgeting: Dubai business setup costs can vary significantly depending on several factors, including the type of business, legal structure, location (mainland or free zone), and specific licensing requirements. While there are base fees for company registration and licensing, additional costs may arise for activities like office space rental, visa sponsorship, and other services. 
• Choose a suitable location: Consider factors such as accessibility, proximity to your target market, and available infrastructure when selecting a location for your office. 
• Lease or purchase a property: Depending on your budget and long-term plans, you can either lease or purchase a property for your office. 
• Set up your office space: Arrange your office space to meet the specific needs of your business. This may involve decoration, installing furniture, work equipment, and other amenities. 
• Obtain necessary permits: Ensure that you have all the required permits and licenses to operate your business in your chosen location. 
• Hire staff: If applicable, recruit and train the necessary staff to support your business operations. 
• Market your business: Promote your business to attract customers and clients.

Conclusion

Establishing a business in Dubai can be a rewarding venture, but it requires careful planning and execution. By following the 10 steps outlined in this How To Setup Business in Dubai Guide, you can increase your chances of successfully setting up your enterprise.

Remember to conduct thorough research, gather the necessary documentation, and comply with all legal requirements for business in Dubai. With dedication and perseverance, you can turn your business idea into a thriving reality in Dubai`s dynamic economy.

FAQs about Business Setup in Dubai

1. How to set up a business in Dubai?

Firstly, there are many steps that you need to follow before starting your business in Dubai:

• License Application. 
• Attested LLC agreement. 
• Governmental forms. 
• Name reservation certificate. 
• Initial approval certificate. 
• Approval by government authorities. 
• Contract of the lease. 
• Certificate of approval with EJARI. 

2. Which business is best for Dubai?

Real estate is one of the most profitable markets in Dubai. Next is financial services; the UAE has an organized and advanced economic system to support large-scale businesses there. Coming up are retail, tourism, schooling, and healthcare.

3. Can a foreigner own a business in Dubai?

Forming a company in one of Dubai’s free zones is better. A free zone business in Dubai allows foreign companies to own the firm 100 percent. A limited liability partnership in Dubai (Dubai LLC) permits foreigners to own up to 49 percent of the business. The remaining 51 percent of shares will be owned by a UAE national.

4. What types of business can we start with 50,000 AED in Dubai?

Depending on the budget, you can choose from starting in the heart of the city, i.e., Sheikh Zayed Road, or sticking to the Free Zone. A simple trading license of any particular product such as Food Stuff Trading, Hardware trading, Building Materials Trading, Any equipment or machinery trading, etc. can be started with 50000 AED in Dubai.

5. How much does it cost to start a business?

Approximately Dubai business license will cost around AED 15,000 to AED 50,000, or even more.

6. Is Dubai a good place to start a business?

Taxation–There is no vast majority of tax (personnel, private, capital gains, VAT) in Dubai, making this region approvingly business-friendly.

Transportation – it has a high-quality road transportation network and the world-famous Dubai Metro. So you can get anywhere without any problem.

That concludes our guide to the essential information about setting up a business in Dubai that investors, entrepreneurs, and businessmen should know. Like the information? Stay up-to-date with the latest Dubai Real Estate News at Driven Properties.

7. How do I choose the right location for my business in Dubai?

When selecting a location for your business in Dubai, several factors should be considered. First, determine your target market. If your business caters to tourists, a location in a popular tourist area like Downtown Dubai or Jumeirah Beach might be ideal. For businesses targeting the corporate sector, areas such as Business Bay could be more suitable. Second, consider the specific requirements of your business. For example, if you need specialized infrastructure or a large warehouse, certain areas might have more suitable options. Finally, factor in the cost of doing business in different locations. While some areas may have higher rental costs, they might also offer other advantages, such as better accessibility or a more established business community.

8. Can I open a corporate bank account in Dubai as a foreign investor?

Yes, foreign investors can open corporate bank accounts in Dubai. The process typically involves providing documentation such as proof of business registration, company bylaws, and identification documents for the company`s authorized signatories. It`s advisable to consult with a local bank or financial advisor to understand the specific requirements and procedures involved.

9. What taxes do businesses in Dubai need to pay?

Dubai has a relatively low-tax environment, which is attractive to many businesses. There is no corporate income tax, and personal income tax is generally not applicable to expatriates. However, businesses may need to pay other taxes, such as value-added tax (VAT) and municipal fees. The specific taxes and rates can vary depending on the nature of the business and its activities. It`s important to consult with a tax professional to ensure compliance with local tax regulations.