7 Key Steps for Setting Up a Business in UAE
When you are planning to expand of your businesses and set up your office in the Middle East, the UAE is the location that comes into your mind. Business owners seeking to establish a business in the United Arab Emirates or UAE have access to a plethora of opportunities to explore.
Once you have selected a business setup in UAE, it becomes crucial to ensure no regulation is ignored and the requirement is met. However, the process of setting up a business in Dubai is complicated and requires one to follow the right steps in order to succeed.
If you are among those who are planning to begin your own business in UAE, then you should read this article. In this article, we are going to provide you with 7 key steps for business setup in UAE. Furthermore, we will disclose some useful information that will help you to set up your business in the United Arab Emirates.
Types of Business Entities Permitted in the UAE
When it comes to start business in UAE, it is crucial to understand which types of business entities are allowed in the United Arab Emirates. Let us take a look at the types of businesses that are allowed in the UAE:
- Establishment or Sole Proprietorship: This type of business entity is owned by an individual who makes all the decisions for the business and bears both profit and loss.
- General partnership company: This business entity is owned by two or more partners who hold limitless liabilities. In short, these company partners are responsible for the debts and liabilities of the business.
- Private Joint Stock Company: This business entity is a company where the number of stakeholders is at least two but not extra than 200.
- Limited Liability Company: The Limited Liability Company or LLC is a company where the number of partners lies between two and fifty.
- Public Joint Stock Company: The public joint stock company is a company where shareholders are at least 5.
- Limited partnership company: This type of business entity comes with at least one general partner and limited partners.
We recommend you to consult Flying Colour in order to get more information about legal Business entities in UAE.
Top 7 key steps for setting up a business in Dubai
It is very crucial to follow the right path in order to start a business in UAE. The right direction will ensure a higher chance of success. So, let us take a look at the key steps for business setup in UAE:
1. Choose the Right Business Activity
The first step that you have to take in order to start business in UAE is deciding what type of business you want to conduct in the UAE. The economy of the UAE is varied and a broad range of commercial is allowed in this emirate. However, there are numerous business activities that are restricted and require unique kinds of licenses.
It is very crucial to research the market demand for business activities that you have decided to operate. Furthermore, you should also ensure that you have the required qualifications and experience in order to conduct these activities in the UAE.
2. Select the right legal structure.
After choosing the activities for your business, you need to remember to select the proper legal structures for your business. The following are 3 legal systems from which you ought to choose:
- Mainland company: A mainland company is registered with the Department of Economic Development or DED. These companies have the potential to operate anywhere and have interaction in any form of business interest in the UAE.
- Offshore company: An offshore company is a company registered inside the UAE but does now not have any bodily presence inside the country. These businesses can be used for a number of purposes, like international trade and asset protection.
- Free zone company: A free zone company is an organization that is registered with a free zone authority. These zones are precise economic regions that provide groups with uncountable blessings, like a hundred percent foreign possession, streamlined visa tactics, and extra.
3. Develop a business plan.
Creating a reliable business plan is among the crucial key steps for business setup in UAE. A compelling business plan has to potentially outline elements, like your business goal, financial projection, and advertising strategies. A well-written business plan comes with the ability in order to attract investors and secure funding. Furthermore, it provides your businesses with a roadmap for the success of your business.
4. Choose a name for the business.
Selecting the name of the business or name of trade is an additional crucial step for business setup in UAE. You should check the trade or business listing on DED’s official website. However, a company in the UAE may not have the same name. Offensive or religious comments should also be avoided.
5. Choose the location
there are uncountable business districts and free zones in the UAE. The best part about these places is that they provide you with multiple benefits for your business. When selecting a suitable location for your company, you have to consider factors like transportation, availability of staff, and more.
6. Get the required permits and licenses.
In an effort to legally start a business in UAE, you have to get the necessary permits and licenses from suitable authorities of the Government. The license process might require extra effort and time. So, it is helpful to contact professional assistance from Flying Colour to ensure a smooth license process.
7. Open a bank account.
The final step to begin the operation of your business in UAE is to open a corporate bank account in any bank in the UAE. This bank account will let you manage the transactions of your company in a more efficient manner.
Why you should choose Flying Colour?
Flying Colour comes with a team of experts to provide you with help in setting up your business. Furthermore, they can help you in completing all legal requirements more efficiently.
To learn more about 7 Key Steps for Setting Up a Business in UAE, book a free consultation with one of Flyingcolour team advisors, simply call +971 50 5585305 or send WhatsApp messages to +971 4 4542366. you can also drop an email to info (at) flyingcolour (dot) com.
*Please note that this article has been published on 20/12/2023 in accordance with the federal policies and updates at the time of writing. For the latest info please talk to our consultant.
