Dubai, UAE has long been known as a thriving business hub and attracting entrepreneurs and investors from around the world to Start a Business in Dubai. According to recent reports, Dubai welcomed over 30,000 new businesses between January and June of 2023 alone. But the growth doesn't stop there. Dubai Ranks First Globally in FDI for Cultural and Creative Industries 2023. Starting a business in Dubai comes with a multitude of advantages. From its tax-free environment to its diverse economy and skilled workforce, Dubai provides a fertile ground for growth and success.
The city's geographical location also offers easy access to markets in the Middle East, Africa, Asia, and Europe, making it an ideal base for businesses looking to expand globally. In 2024, the city continues to be a beacon for ambitious individuals seeking to establish their own enterprises.
Therefore, we at Shuraa Business Setup are here to explain everything you need to know about how to start a business in Dubai in 2024, including the benefits, the latest business license costs, and other essential information. But first, you need to understand why to start a business in Dubai in 2024.
Top 8 Reasons to Start a Business in Dubai in 2024
Dubai has a lot to offer entrepreneurs in 2024. Here are some of the key benefits and opportunities:
1. Tax Advantages
Dubai boasts a tax-free haven with no personal income tax or limited corporate tax. You can reinvest a larger portion of your profits back into the business and potentially see faster growth. There are also exemptions on import and export duties, and full repatriation of business profits.
2. Lower Set-up Costs
Compared to other business hubs, Dubai offers relatively lower costs for setting up a company. Additionally, some free zones offer further incentives like no minimum share capital requirements.
3. Ease of Doing Business
The UAE government has streamlined the process of starting a business. There are efficient procedures, government support programs, and free zones catering to specific industries and offering additional benefits.
4. Free Zones
Dubai has multiple free zones catering to specific industries. These zones offer additional tax benefits, streamlined regulations, and world-class facilities to help businesses flourish.
5. Strong India-UAE Ties
The long-standing relationship between India and the UAE makes for a familiar business environment. This includes established trade routes, cultural understanding, and a large Indian expat community that can provide support and networking opportunities.
6. Business Incubators and Accelerators
Numerous business incubators and accelerators in Dubai offer valuable support services, including mentorship, office space, and access to funding for startups in various sectors.
7. Thriving Freelance Ecosystem
Dubai is a hub for innovation and technology, with a growing demand for skilled freelancers across various sectors. This includes web development, graphic design, content creation, marketing, and blockchain expertise. Freelancers with these skills can find a wealth of project opportunities.
8. Emerging Crypto Hub
Dubai has ambitious plans to become a global leader in the cryptocurrency and blockchain space. This translates to a supportive regulatory environment and a growing number of crypto exchanges and blockchain businesses operating in the city.
There are currently no regulations imposing taxes on capital gains from cryptocurrency trading in Dubai.
Starting a Business in Dubai: Mainland Vs Freezone
Dubai offers two main options for setting up your business in 2024: Dubai Mainland and Free Zones. Each offers distinct advantages and caters to different business needs.
1. Dubai Mainland
A Dubai Mainland business refers to a company registered with the Department of Economic Development (DED) and operates within the geographical area of Dubai itself, outside of any special Free Zones. This is ideal if you want to serve the domestic market or establish a physical presence in Dubai.
Benefits:- Full ownership of the company for most business activities
- No personal income tax
- 9% Corporate tax only for taxable income exceeding 375,000 AED
- Access to a wider range of business activities compared to free zones
- Greater flexibility in hiring employees (no restrictions on nationality)
2. Dubai Free zones
Dubai Free Zones are designated areas within Dubai that offer significant benefits to businesses looking to set up shop. These zones operate under a different set of rules and regulations compared to the UAE mainland. It is ideal for businesses in sectors like manufacturing, trading, consultancy, or technology.
Some popular Free Zones in Dubai include:- Jebel Ali Free Zone (JAFZA)
- International Free Zone Authority (IFZA)
- Dubai International Financial Centre (DIFC)
- Dubai Multi Commodities Centre (DMCC)
- Dubai Media City (DMC)
- Dubai World Trade Centre (DWTC)
- Typically offer 0% corporate and personal income tax
- Faster and simpler business setup process
- 100% foreign ownership allowed
- Excellent infrastructure and world-class facilities within the free zone
- May offer specific benefits depending on the free zone (e.g., exemption on import duties)
Besides Mainland and Freezone, Dubai also offers offshore business setup options. Offshore is suitable for companies not planning to operate within the UAE and aiming for complete tax exemption and confidentiality. Ideal for holding companies, investment vehicles, or intellectual property management.
It's wise to consult with a business setup specialist in Dubai at Shuraa to determine the most suitable option for your specific needs. They can guide you through the legalities and processes involved in establishing your business in Dubai.
Type of Business License for Starting Business in Dubai
When starting a business in Dubai, it's essential to obtain the appropriate business license that aligns with your business activities. Here are the main license types:
1. Commercial License
This is the most common license type, ideal for businesses involved in trading activities (buying and selling goods) or general contracting.
Read More: Commercial License in Dubai2. Industrial License
This license is required for companies involved in the manufacturing, production, or processing of goods.
Read More: Industrial License in Dubai3. Professional License
Designed for service-oriented businesses, professionals, artisans, and craftsmen offering services based on their expertise or skills. Besides, there are other specialized licenses such as E-commerce licenses, freelance permits, tourism licenses, etc.
Read More: Professional License in DubaiDocuments Required to Start a Business in Dubai
Here are the general requirements to apply for a business license in Dubai:- Copies of passports for all company shareholders, directors, and the manager
- Passport-Size Photographs
- Business plan
- Tenancy Contract (Ejari)
- Completed application form
- Memorandum of Association (MoA), if required
- Local Sponsor NOC (if required)
- Bank reference letter
How to Start a Business in Dubai?
A step-by-step guide on how to start a business in Dubai, UAE from selecting the right business structure to obtaining the necessary licenses and visas. Here's a general process:
1. Identify the Nature of Your Business Activity
Research the market to identify gaps and potential business opportunities. Decide on the specific business activities your company will engage in, ensuring they are permissible in Dubai.
2. Determine Your Company's Legal Structure
Decide on the legal structure of your business (sole proprietorship, limited liability company, etc.) based on factors like ownership, liability, and future growth plans. Mainland LLC is the most popular choice among entrepreneurs.
3. Select a Jurisdiction (Mainland or Freezone)
Consider your target market, business activities, and desired level of ownership control to determine if the Dubai Mainland or a Freezone better suits your needs.
4. Register the Trade Name
Follow Dubai's naming conventions, avoiding names that include offensive language or references to religious or political groups. Ensure your chosen name is available and not already registered by another entity.
5. Prepare Documents
Prepare necessary documents like the business plan, passport copies of all shareholders, Memorandum of Association (MOA), etc.
6. Apply for Your Trade License
Submit your application with all required documents to the DED for trade license issuance. This may involve additional approvals from relevant authorities depending on your business activity.
For free zone business, apply for approval from the specific free zone authority you've chosen. Complete the company incorporation process as per the free zone's regulations.
7. Choose Your Business Location
Depending on your location choice (Mainland/Freezone) and business needs, secure physical office space or a virtual office address. For a physical office, obtain a tenancy contract (Ejari) which is a registration certificate with the relevant authorities.
8. Open a Corporate Bank Account
Choose a bank and open a corporate bank account to facilitate business transactions. Provide necessary documentation, such as the company’s trade license, MOA, and shareholder information.
9. Visa Applications
If operating on the mainland and sponsoring employees, apply for their visas. The number of visas might be linked to your office space size. Complete medical testing and apply for an Emirates ID for all visa holders.
Dubai has streamlined its business setup process, but it can still involve some bureaucratic procedures. Therefore, we highly recommend consulting with a professional business setup specialist in Dubai at Shuraa to ensure a smooth and successful journey in starting your business venture.
How Much Does it Cost to Start a Business in Dubai?
The business license cost of starting a business in Dubai in 2024 generally starts from AED 12,999*. However, there are other costs involved such as:
- Government registration fees
- Visa fees
- Bank fees
- Initial approval fees
- Ejari registration fees
The overall cost of starting a business in Dubai in 2024 can vary significantly depending on several factors, including:
- Business Location: Setting up in Dubai Mainland generally involves more costs compared to Free Zones.
- Business Activity: The license type required for your specific activity will have its own associated fees.
- Company Structure: Sole proprietorships might have lower initial costs compared to Limited Liability Companies (LLCs).
- Office Space: The size and location of your office space can significantly impact costs, especially in the Dubai Mainland.
Consult business setup experts at Shuraa for accurate cost and cost-effective personalized business setup packages to kick start your business journey in Dubai.
How Shuraa Business Setup Can Help
Starting a business in Dubai in 2024 is an exciting opportunity. With its great location, friendly business environment, modern infrastructure, and diverse economy, Dubai is the perfect place for entrepreneurs to grow their ventures.
The process of setting up a business involves several steps, from doing market research and picking the right business structure to getting the necessary licenses and visas. While it might seem complicated, the benefits of having a business in Dubai are worth it.
For aspiring entrepreneurs, getting expert help can make starting a business much easier and more successful. At Shuraa Business Setup, we specialize in guiding business owners and entrepreneurs through the process of setting up a business in both Dubai mainland and free zones. Our team of business setup consultants, lawyers, PRO executives, and company formation experts is ready to help you every step of the way.
By partnering with Shuraa Business Setup, you can focus on building and growing your business while we handle the paperwork and details. Take the first step towards your business dreams in Dubai with confidence. Contact Shuraa Business Setup today!
