How to Start a Business in Dubai, UAE

Setting up a business is very easy in Dubai. It is one of the most sought after states for entrepreneurs because their economy is booming and robust, their taxes are really low as well as their infrastructure is top notch. People looking to expand businesses and change the nature of their work usually consider Dubai as a business hub. Dubai seems to be the answer for tens of thousands of new entrepreneurs and Indian ones. Indians have especially started loving Dubai due to its accessible relationship with India, its international business trades, open government policies and more. At the end of the day, the attempt to set up a new business is to earn successes and opportunities.

Indians have shown huge interest to set up in Dubai for its business culture, the state borders India. Currently, Dubai boasts a huge Indian community that welcomes businessmen from all over the world. Dubai is indeed a friend of all new businesses. In business alone, Dubai transforms into a beacon for multinational entrepreneurs. They live in hope that setting up a new base in Dubai will transition all their intent into gains.

How do you go about setting up a business base? What documents are needed and how many steps are there to get the necessary approvals in setting up a base? Everything, step by step, as filled with a lot of criteria and processes, from what we have learned, it becomes much easier when the right procedure is employed. With the help of various aids across different states, the hardest part Dubai is known for is setting the business up correctly through a startup being rather fast.

Chill out! Everything is explained in this blog step by step.

Step 1: Decide Your Business Activity.

The first step is to determine what business you want to establish.

In Dubai, some of the activities you can select from include:

• Trading and import-export

• Tourism and travel services

• IT and software services

• Real estate

• Healthcare services

• Online selling and e-commerce

• Education and training

Each business activity has various guidelines so it is very important to get the right one.

Some are only allowed in Mainland areas, while others are more suitable in Free Zones.

Advice: Ensure the business activity you choose aligns with your intended objectives!

Step 2: Choose between Mainland, Free Zone, or Offshore.

Dubai offers three main locations to set up your business from:

• Mainland: Freedom to operate anywhere throughout Dubai and UAE. Best suited for businesses intending to directly interact with the local market.

• Free Zone: Special neat and attractive areas that 100 percent ownership, low setup costs, and taxation. Suited for businesses that want to trade outside the UAE or service businesses.

Here’s how I would explain these two types of companies in different words while keeping the meaning intact.

1. Holding/Offshore Companies: Businesses that are based outside of the Dubai region.

2. Free/Zone companies: With these businesses, owners enjoy various benefits such as complete ownership and low setup costs.

If Free Zones are not your type, choose Offshore companies as they provide low maintenance cost.

Step 3: Choose a Company Name

After determining the type of your company, it’s now time to select a name.

While Dubai commercial law can sound tricky, it has very simple rules when it comes to names:

1. The name must not be inappropriate.

2. The name should portray the registered activities of the business.

3. No political or religious terms are allowed.

4. In case you want to include a person’s name, include the full title (first + last name) only.

Once you pick a name, a name verification process follows. It has to be sanctioned by the Dubai government authority.

Step 4: Apply for a Business License

As the saying goes, with every business comes a pre-requisite and license:

This list of licenses of Dubai businesses provides a variety:

1. Commercial License: For businesses that engage in trading.

2. Professional License: Services and consultancy work

3. Industrial Licence: For any kind of manufacturing and production oriented businesses

Once you pick and apply for a business type, Dubai has set authorities for mainland and freezone regions of the dubai.

Getting a driving license can sees a matter of a few days if you have all necessary documents at hand.

Step 5: Locate the Business Premises

For some business types, a physical location is a must. Having a virtual office will suffice in some cases.

Most Free Zones offer low cost flexi desk or shared office options for Free Zone businesses.

Mainland businesses on the other hand, typically require renting actual office space.

Tip: Some Free Zones permit commencement without a dedicated office space. This helps to save cost in the beginning phases.

Step 6: Gather the Necessary Documents, Make Initial Approvals

Issuing initial approvals is a necessity before full business registration is done.

The common documents required are:

• Passport copies of owners

• Passport size photographs

• Entry visa copy (if in UAE)

• Business plan (sometimes)

• NOC from current sponsor (if working in UAE)

Everything must be provided to the licensing authority for document verification.

Step 7 : A fixated verification period is recommended.

These documents, once approved, wherein license expense is bound to payment based on applicability criteria such as:

• Type of license

• Business activity

• Total number of needed visas

• Size of the office

These are required post document approval alongside, which you receive a business license instantly.

After payment, the license can be obtained thereafter.

Congratulations! You are now officially able to start your venture in Dubai.

Step 8: Get Your Visa

You can now apply for a UAE residency visa after securing your license.

Typical steps followed are:

• Entry Permit

• Medical Examination

• Emirates ID Issuance

• Visa Stamping on Passport

Upon the approval of your visa, you can also apply for family and employee visas.

Step 9: Open a Corporate Bank Account

The subsequent step involves opening a business bank account in Dubai.

To initiate the account opening process, banks will request:

• Copy of Business License.

• Copies of Passport and Visa.

• Company documents (MOA, AOA).

• A business plan (occasionally).

Depending on the bank you select, the waiting period for opening an account in Dubai may range from a few days to weeks.

Step 10: Start Operating Your Business

You are now good to go!

You can commence marketing, onboarding new employees, meeting prospective clients, and expanding your business.

You will find numerous business groups, networking events, and startup promotions in Dubai that will assist you in marketing your business.

Tip: Try to have strong local and international relations as it will help you enormously.

Conclusion

Opening a business in Dubai isn’t as complicated as many believe, especially when following set procedures. Opening a bank account, getting a license, and even selecting a business activity becomes easy when there is order in the plans.

For those who wish to get everything done quickly without having to go through long procedures, employing the help of an expert business setup consultant is recommended.

While you work on growing your business, they take care of documentation, approval, and various processes.

Frequently Asked Questions

Q1. How much capital is required for a Dubai based business?

As with anything else, this largely depends on the type of company and its location. The cost of a basic Free Zone company is AED 12,000, while mainland companies incur higher costs due to office rent and visas.

Q2. Is 100% business ownership by a foreigner in Dubai permitted?

Absolutely! Foreign nationals, including Indians, have been allowed to increasingly own fully functional businesses located in Free Zones and most Mainland activities.

Q3. What is the estimated time frame for getting a company registered in Dubai?

Assuming all required documents have been submitted, business license acquisition can be done anywhere from 3 to 7 working days.

Q4. Which in Dubai is the cheapest Free Zone I can set up a business?

IFZA, Meydan FZ in Dubai and SHAMS, SPC, RAKEZ in northern emirates are some of the most popular freezones for affordable business setup packages targeting small and medium enterprises.

Q5. Is it possible to start a business in Dubai from outside the UAE?

Yes, you can start your company completely online with the assistance of a business setup consultant. Certain Free Zones provide the option for full remote Company Formation.

Q6. Is there a requirement for a local sponsor for a Mainland business?

Currently, for several activities, a local sponsor is no longer required, and you can have complete 100% ownership. Nonetheless, some restricted activities still require a local service agent or partner.