Open a Business in Dubai

Starting a company, whether in Dubai or anywhere else globally, is a significant decision that involves various crucial steps. These steps encompass planning, conceptualization, research, budgeting, setup, decision-making, and more. Additionally, new entrepreneurs often require guidance and assistance, especially in selecting the appropriate trade license for their business.

Dubai, UAE, is renowned among investors and entrepreneurs for several reasons. It is known for its investor-friendly environment, low tax policies, and a streamlined process for doing business, all of which contribute to its status as a prominent business hub in the Middle East. Moreover, the government has implemented regulations that are supportive and encouraging for business owners, further enhancing Dubai’s appeal as a business destination.

1. Choose a business activity

When choosing a business activity for your entrepreneurial venture, consider its practicality within the UAE market. Before establishing a company in Dubai, conduct comprehensive research to assess the feasibility and profitability of the chosen activity. Once you have gathered sufficient information, make an informed decision about when to commence your business in Dubai, UAE.

2. Jurisdiction

The UAE market comprises various economic zones known as jurisdictions, including Mainland, Free Zone, and Offshore. Each jurisdiction has distinct laws and regulations governing business setup, tailored to different business needs. Choosing the right jurisdiction for your business depends on factors such as your business requirements and the nature of your business activity.

3. Settle on the company structure or legal form

Selecting the legal form for your company is a critical decision in launching a business in the UAE. It establishes the framework for managing profits, losses, resource allocation, and asset organization. It’s crucial to determine your company’s legal form early in the planning process as it provides a structural outline for your operations. Moreover, you cannot apply for a business license until you have decided on your company’s legal structure. Here are some of the legal forms or company structures available for registering your business in the UAE:

Limited liability company (LLC)
Free zone company
Local company branch
Foreign company branch
Free zone company branch

4. Initial approval

Prior to obtaining your business license and commencing operations in Dubai, it is imperative to secure initial approval from the Department of Economic Development (DED). This approval signifies the UAE government’s acceptance of your intention to establish a business in the UAE. Failure to obtain this approval will hinder progress in the application process.

5. Obtain approval for your company name and business activity

Prior to initiating the company setup process in the UAE, it is imperative to obtain approval for your company’s trade name from the Department of Economic Development (DED). This approval also extends to your selected business activity. Once these approvals are secured, the subsequent step involves submitting the required documents to apply for your UAE trade license, marking the commencement of the company opening process in Dubai.

6. Engage a local agent if necessary

Previously, starting a business in Dubai necessitated the mandatory involvement of a local partner who must be a UAE national. This requirement of finding a trustworthy local agent can be challenging, particularly for aspiring entrepreneurs seeking to establish a business in Dubai. However, a business setup consultant can facilitate the process by connecting you with companies that provide corporate sponsorship, granting you documented authority and 100% ownership of your business.

7. Obtain the necessary external approvals

The Department of Economic Development (DED) may require additional approvals from various government or non-government agencies based on your business activity. For example, certain businesses may need approvals from the municipality, specific banks, embassies, and other relevant entities.

8. Memorandum of Association

Understanding the intricacies of a Memorandum of Association (MoA) is crucial when initiating a business in Dubai. Prior to drafting the MoA, seek expert advice to ensure compliance with the mandates set by the UAE government. The MoA should be tailored to reflect your business interests effectively before commencing operations in Dubai.

9. Office Location

Consider your business requirements when selecting office space, whether opting for a dedicated office unit or a shared workspace in a business center. The type of office space can impact the number of visas you can apply for from the Department of Economic Development (DED).

10. Obtain the tenancy contract and Ejari

When establishing your business in Dubai, acquiring an Ejari is often necessary. This tenancy contract serves as the agreement between you and the real estate agency providing the office unit or shared workspace you plan to rent. Managed by the Real Estate Regulatory Agency (RERA), Ejari operates as an online system ensuring fairness and transparency in the tenancy arrangement.

Activation of your Ejari account requires submission of your tenancy contract along with additional documents. This process is crucial as Ejari is essential for obtaining or renewing visas for your family members and/or employees.

11. Submit your application for the trade license

In the UAE, there are four types of trade licenses, also known as business licenses, that you can opt for:

1. Commercial License

2. Professional License

3. Industrial License

4. Tourism License

These licenses are applicable if you intend to establish a business in the UAE mainland. However, it’s important to note that the licensing structure in UAE free zones varies and is determined by the specific business activities your company plans to undertake.

12. Complete the registration process for your company

Company registration and licensing occur simultaneously, although they involve multiple stages of documentation and approvals. At this juncture, obtaining approvals from relevant government authorities as specified by the Department of Economic Development is crucial. Furthermore, it’s essential to note that the documentation requirements vary depending on the company type and business activity.

The journey to start a business in Dubai can be made seamless and efficient by partnering with the right business setup company. Whether you’re interested in company formation in Dubai mainland or need help securing a business license, these professionals have the expertise to set you on the path to success.

If you would like to set up a company in Dubai, contact ANUVI Business Solutions today.

For more information, speak/chat with our experts on +971506472494 or email us at info@anuvibs.com.