How To Start A Business in Dubai, UAE?
Setting up a business in Dubai, UAE? Why not? It’s no secret that there’s a lot of information to consider when selecting the best Dubai free zone to start a company in Dubai, including location, price, type of business, Flexi-desk or office options, auditing, accounting, and share capital requirements, among others. We walk you through it step-by-step how to start a business in Dubai, steering you in the right direction, saving you money, and ultimately making the entire experience as stress-free as possible.
In Dubai and across the UAE, we offer niche services to start a company in Dubai, UAE. We assist multinational companies and SMEs to enter the UAE markets quickly. In addition to meeting the initial needs of new business setup in Dubai, we also create a broader scope for your business. When and how to start a business in Dubai, it’s vital to take into account the scope of the company, so we develop your company so you can focus on growth and attract new prospects.
Company Formation
The UAE offers investors three options for registering a business: mainland (onshore) free zones (self-regulating emirates) or offshore. Choosing where to locate your company’s presence in the UAE will be easy when you work with us.
Why Set up a Business in Dubai, UAE?
Setting up a business in Dubai, UAE has now been made easier by ongoing and ambitious reforms aimed at making it as easy as possible for entrepreneurs, entrepreneurs expanding, and service providers. Due to aggressive legal reforms such as long-term visas and introducing free zones, Dubai has been steadily ascending as a global commercial capital and simplifying business operations for foreign owners. Due to all of these factors, It’s an extremely attractive place to start a company in Dubai, especially for foreign nationals. We take a look at the top reasons for why to start business in Dubai, UAE.
In recent years, Dubai has solidified its position as a regional hub for trade and business. According to a recent survey of global business hubs, the UAE is now ranked 15th. A well-connected transportation system, the absence of business taxes, and the development of Dubai’s financial sector are cited as factors contributing to the city’s global prominence in the survey. Located between the established economies of Europe and Asia, as well as those emerging from Africa, it is a great place to start a business.
Other than oil, the emirate has been trying to diversify its economy. History shows that this strategy has mixed results, resulting in the 2008/09 debt crisis. However, it also contributed to a widespread business-friendly reputation, courtesy of the government’s encouragement of regulations across different sectors.
UAE government passed foreign direct investment (FDI) law in 2018 to stimulate investment. Those changes will not only make it easier for businesses to set up shop here, but will make things so much easier for those businesses that already do so. The law allows foreign companies to own up to a 100% share of their companies, among other provisions to benefit foreign investors.
Direct foreign investments swelled by 41% last year in Dubai. The emirate achieved US$10 billion in foreign direct investments in a fiscal year for the first time. According to the state agency responsible for foreign investment promotion. There is no doubt that this economy is open and receptive to foreign investors and business owners.
How to Start A Business in Dubai, UAE
The answer to how to start a business in Dubai has never been easier. This statement would have been true at any point over the past decade or so. But right now, the signs are especially promising for a new business setup in Dubai. A new ambitious project is announced or delivered almost every week in the UAE. The country’s projected growth makes it a trend worth following.
The process of company setup in Dubai is both simple and fast, with strong incentives. Notably in the form of the UAE’s free zones. While you start a business in Dubai, you may open a business onshore or offshore. It is particularly popular with foreign entrepreneurs that you do so in a free zone. The government offers 0% corporation and personal taxes, 100% company ownership, 100% repatriation of capital and profits, and no currency restrictions.
Although the technical, administrative, and financial aspects of company setup in Dubai can seem intimidating. However, if you follow the simple, step-by-step process with the right support, it is far more straightforward. We have assisted many companies in establishing themselves in various free zones and can break down the 6-step process into six basic steps.
What Dubai offers for entrepreneurs
Dubai is a great location if you have been looking for the opportunity to start a company in Dubai one of the UAE’s thriving metropolises. With its amazing business climate and easy process, you can expand your business to a wider market. Entrepreneurs can start their businesses in management, consulting, finance, marketing, human resources, real estate, and legal advisory. Moreover, businesses of all sizes have the opportunity to thrive with 100% ownership. Therefore, unlike other locations, Dubai is a safe location for business entrepreneurs.
1. Tax exemptions
You have a chance to increase your revenue because there is no corporate or personal tax. This will enhance your chance to invest in business activity further. This saves a large part of your income, which you can use to expand your business. Therefore, it becomes a strategic location appealing to entrepreneurs from around the world.
2. Easy license process
With easy approval from the Department of Economic Tourism (DET), you can avoid the complexity of setting up a business in Dubai. With this, you can engage in various economic activities. Company setup in Dubai is not an easy task; it involves necessary approvals and licenses. But don’t worry; once you have secured the license approval from DET, there is plenty of opportunity for you to be involved in economic activities.
3. Skilled workforce
The vibrant and diversified economy has accommodated talent from around the world. This further allows you to fill the void of a skilled workforce for your business. You can have a strong team of people with several areas of expertise. This gives you a golden chance to hire talented experts and increase your company’s ability to fulfill its goals.
4. Financial opportunity for Entrepreneur
Dubai provides easy access to capital. Profitable events and workshops like the Dubai Venture Capital Summit and Dubai Investment Week give you a chance to expand your network with successful investors. This gives you a chance to secure safer funding, acquire knowledge from industry experts, and make more connections.
5. Expert industry
The dynamic world of expertise will give you a chance to connect with mentorship programs and build your networks. Exposure to the expert industry will improve your chances of finding better connections and staying ahead in the competitive market. Dubai’s business climate is conducive to every entrepreneur from around the world. The key industries are technology and innovation, tourism and hospitality, real estate and healthcare and wellness.
6. Multicultural market
The dynamic market of Dubai has various opportunities for companies that give you access to regional business centers. You have the opportunity to fulfill the requirements and tastes of the increasing consumer market.
7. Strategic location
Dubai has a reputation as a leading economy that attracts entrepreneurs to start a company in Dubai. It also allows you to connect with international clients and reach a global market. You can have endless possibilities.
Steps for setting up a business in Dubai, UAE
1. Plan your business activity
You need to have a business plan, activity, and nature decided beforehand. Visit the official website of DED, where you will find 2,100 business activities, including commercial, professional, tourism, and industrial. This will simplify your ideas for business.
2. Choose a suitable free zone location
The UAE has over 40 free zones available to choose from, which gives you the benefit of choosing your preferred location according to your business nature.
3. Name your company
Decide on a name for your company and be aware of all the prerequisites according to the UAE’s naming conventions. Your company’s name should be free from malaise allegations and should be in tandem with religious and government authorities.
4. Get your initial approval from DED
Prepare your essential documents, such as the article of association, passport copy, residence copy, and business registration form. Make sure that you are not missing out on any information. Your initial approval will be from DED because it will be decided that you are free from legal obligations and can now start your business.
5. Opening a bank account
Once you are done with all the essential form submissions, you can proceed with the process of opening a bank account.
6. Payment of license fee
Prepare all the necessary documents, such as the initial approval receipt and the lease contract from the Real Estate Regulatory Agency and approval from government authorities. Submit all these documents to get the final approval. Now the next step will be to pay the license fee, and you are set for your business venture.
-
Choose your business activity
A business’s nature affects which free zones it can or should operate in. A free zone that primarily permits certain businesses, such as media, medicine or transport, is often a good idea, regardless of the restrictions. Also consider the transportation links. Your business will probably benefit greatly from free zones located near airports or ports if it relies heavily on imports and exports.
-
Choose your company name
Identify a company name that adheres to UAE naming conventions before you commit. It is forbidden to use names with offensive language, as well as names that refer to Allah, Him, or to any other religious, sectarian, or political group, such as the FBI or Mafia. If you are naming your business after a person, it must be their full name and not an initial or abbreviation.
-
Finalise all incorporation paperwork
As part of your application, you are required to provide a copy of shareholders’ passports along with your company name and activity. In some free zones, you will need more documentation, such as a business plan or a Non-Objection Certificate (NOC), which you can obtain from your current sponsor. Our business setup consultants in dubai can assist with the paperwork and advise you accordingly.
-
Receive your license notification
Upon processing your application, the government will issue you your company license. Our business consultant dubai will notify our clients when their documents are ready for collection.
-
Open a bank account
As soon as your paperwork is returned to you, you will be able to open your corporate bank account. A number of local and global banks operate in the UAE, including Emirates NBD, Abu Dhabi Commercial Bank, the Commercial Bank of Dubai, among others. During our business setup services in dubai, we’ll help you meet with financial institutions to decide which option is best for you.
-
Process your visa
Finally, Dubai company formation ends with the last step. Several free zones allow you to apply for staff and dependents as well as your own visa. The exact number will depend on which free zone you choose to set up your business in. The entry permit process includes four simple steps: status adjustment, medical fitness test, Emirates ID registration, and visa stamping.
Where to Start business in Dubai, UAE?
In addition to the friendly conditions of the free zones, starting a company in Dubai can be accomplished in less than a week with the help of our business setup consultants in Dubai. Each step can pose complications that could derail the inexperienced applicant. That’s where we can help. In addition to guiding you through all the steps, we can also assist you with your liaison with UAE government authorities and spot potential problems before they arise.
-
Expo 2020
Expo 2020 will likely attract 25 million visitors over 173 days, most of them foreigners. 11 million UAE residents and 14 million foreign visitors are expected to visit Dubai during the expo, resulting in an explosion of tourism, which will boost business in the city. The expo is also expected to be a hotbed of innovation in more than a dozen sectors, which will be of great benefit to businesses in Dubai.
-
Long term visas
New long term visa laws for foreigners, especially investors, will solidify Dubai’s position as a primary destination for foreign investors. New regulations will make it easier for foreigners who own a business in the country to secure a long term visa to live there. For foreigners, the UAE will become one of the easiest financial hubs in the world to settle and start businesses.
-
Silk Road Strategy
Global trade is also a goal of the Silk Road Strategy. Aiming to boost air and sea freight as well as logistics, the Road to the Future is named for ancient trade routes between east and west. Several policies, laws, and regulations make Dubai a great place to do business for foreigners.
FAQ
Can you start a small business in UAE?
Yes, it is possible to start a small business in UAE. The city offers various options and resources for entrepreneurs looking to establish small businesses. Whether you choose to set up as a mainland company or in one of the free zones, Dubai, UAE provides opportunities for small business owners to thrive.
Which business is most profitable in UAE?
The most profitable business in the UAE can vary depending on market trends, demand, and individual factors. Some sectors that have traditionally shown profitability in the UAE include real estate, hospitality, tourism, retail, healthcare, e-commerce, technology, and professional services. However, it is essential to conduct thorough market research and analysis to identify the specific business niche that aligns with your expertise and target market to maximize profitability.
How much does it cost to start a business in UAE?
The cost of starting a business in the UAE can vary depending on several factors, such as the type of business, location (mainland or free zone), office space requirements, license fees, visa costs, and other related expenses. The exact cost will depend on your specific business requirements. It is advisable to consult with business setup consultants or relevant authorities to get accurate information and understand the costs involved in starting a business in UAE.
Is starting a business in Dubai, UAE easy?
Starting a business in Dubai, UAE can be relatively straightforward, thanks to the city’s business-friendly environment and streamlined processes. The government has implemented various initiatives to simplify the setup procedures and reduce bureaucratic hurdles. However, it is important to note that the specific requirements and procedures can vary depending on the type of business and the jurisdiction (mainland or free zone). Engaging with business setup consultants in Dubai can greatly assist in navigating the process with all necessary regulations.
Is it a good idea to start a business in UAE?
Starting a business in the UAE can be a good idea for several reasons. The city offers a vibrant and diverse market, strategic location, world-class infrastructure, supportive government policies, access to a global network, and a robust economy. Moreover, the UAE has a strong entrepreneurial ecosystem and a favorable business environment that encourages innovation and growth. However, it is crucial to conduct thorough market research to develop a solid business plan. For this, understand the specific challenges and competition in your chosen industry before starting a business.
Is the business in UAE profitable?
The profitability of a business in the UAE depends on various factors, including the industry, market conditions, competition, business model, and management. The UAE provides ample opportunities for businesses to thrive and succeed, given its dynamic economy, growing consumer base, and strategic location. However, profitability is not guaranteed and will require careful planning, market positioning, effective marketing strategies, and ongoing adaptation to market demands. It is advisable to conduct a feasibility study and seek expert advice to assess the potential profitability of your business idea in the UAE.