Planning on doing business in Dubai? Its prime location, robust economy, and world-class infrastructure make it an ideal place for aspiring entrepreneurs.
In addition, Dubai has taken great steps to ensure that starting a business here will be an efficient and transparent process. It is no wonder that Dubai and the UAE in general have consistently ranked at the top of the World Bank’s Ease of Doing Business Index for many years.
Meticulous planning and familiarity with local regulations will help you get started in doing business in Dubai. Here’s how to start a business in Dubai.
Here are a few simple steps to follow for setting up a company in Dubai.
Types of business licenses in Dubai
Before setting up a business in Dubai, it may be worth getting acquainted with the different types of business licenses that you can get, including:
- Commercial license: This license is for trading activities, including buying and selling goods or offering specific services.
- Professional license: Service-oriented businesses, like consulting, healthcare, or education, must acquire a professional license.
- Industrial license: This type of license is needed for manufacturing, processing, or assembling products.
- Tourism license: Companies operating in the travel and tourism industries are required to have a tourism license.
- Agricultural license: Businesses focused on farming, livestock, or other agricultural activities need an agricultural license.
- Occupational license: This license is required for individuals working in specific professions or skilled trades.
Read: Could Dubai really become the next Silicon Valley?
How to start a business in Dubai
Want to learn how to start a business in Dubai? Follow these steps.
Step 1: Select your business sector
Before initiating the setup process, choose an industry that aligns with your business goals. Research your potential competitors to ensure that you understand your target audience and your local market. Additionally, evaluate the specific activities allowed in different locations in Dubai. Take note of and obey sector-specific regulations.
Step 2: Give your company a name
Choose a company name that adheres to UAE naming conventions, avoiding offensive language and references to religious, sectarian, or political groups. If naming after an individual, use their full name. Follow legal requirements to prevent complications during the incorporation process.Â
Step 3: Opt for a business location
Having decided on your industry, determine whether to establish your business in the mainland or a free zone. Free zones offer advantages such as the absence of corporate and personal tax, complete company ownership, repatriation of capital and profits, and import/export tax exemptions. If trading with the local market is a priority, explore a mainland set up with local partners.Â
Step 4: Complete incorporation documentation
Handle the necessary paperwork, including an application for your company name and activity. Provide copies of shareholders’ passports and fulfill additional requirements for certain free zones, such as a business plan or Non-Objection Certificate. Mainland companies must meet capital requirements outlined in a Memorandum of Association. Submit your paperwork to the Department of Economic Development and wait for the office to issue your company license.Â
Step 5: Apply for a business license
Upon processing your application, the government will issue your company license. Regardless of the setup location, prepare standard documents such as a completed application form and shareholder passport copies. Some free zones may require a business plan.
Step 6: Establish a corporate bank account
Utilize the returned paperwork to open a corporate bank account, a prerequisite for trading in the UAE. Select a bank based on your specific requirements and provide information on your primary business areas, anticipated currency volume, total deposits, revenue levels, and main customers and suppliers.
Step 7: Secure a visa
The last step is to apply for your visa. In some free zones, you must submit applications for visas for staff and dependents. The process involves an entry permit, status adjustment, medical fitness test, Emirates ID registration and visa stamping. Be aware of restrictions on the number of visas for free zone companies and seek expert advice for sponsoring family members or staff.
Frequently Asked Questions
Q: Can a foreigner own 100% of a company in Dubai?
A: Yes, a foreigner can own 100% of a company in Dubai whether a Mainland, Freezone or Offshore business.
Q: What are the costs involved in opening a company in Dubai?
A: The costs involved vary depending on the type of company, business activity, and location. Some common costs include company registration fees, business license fees, office rental fees, and visa fees.
Q: How long does it take to open a company in Dubai?
A: The time required to open a company in Dubai depends on the type of company and the chosen location. Generally, it can take anywhere from a few minutes (using the Basher online platform) to a few days.
Q: Do I need to be a resident of Dubai to open a company?
A: No, you do not need to be a resident of Dubai to open a company. Setting up a business in Dubai will enable you to obtain a residence or investor visa that will allow you to live, work and do business in Dubai.
Ready to enter the Dubai market?
Leverage the thriving business environment in Dubai to start a company in this dynamic market.
With its strategic location, diverse economy, and supportive government policies, Dubai offers fertile ground for businesses to thrive and achieve success.
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