08 Feb Setting Up a Business in Dubai
Are you in the phase of setting up a business in Dubai? If yes, then it is the best time to do the business setup in Dubai. The United Arab Emirates is a federation of 7 emirates, out of which Dubai is one of the most famous and populated emirates.
On its path to being a smart city, Dubai has now become one of the most technologically advanced, well constructed, and popular business hubs in the world.
It has also become a hotspot for global business events like Dubai Expo 2020, various corporate conferences, and meetings, which is why hundreds of entrepreneurs worldwide set up new businesses in Dubai every year.
Now, if you’re wondering whether it is easy to set up a business in Dubai or not, the answer is yes. The process for business registration and setup is straightforward and hassle-free. Once you get your visa and gather all the required documents, you must follow a few necessary steps to acquire legal permissions and your business visa. And then, you are all set to start your business and earn huge profits!
If you’re new to the business registration and setup process in Dubai, we suggest you read ahead. But first, let’s learn why you should set up a business in Dubai?
Why Set Up a Business in Dubai?
There are several benefits of setting up a business in Dubai. A few prominent ones of which are:
- Lucrative business environment.
- Advanced technology
- World-class infrastructure, allowing you to rent great office space for your business.
- Highly supportive government.
- Top security facilities.
- Ease of setting up a new business.
- Pay no personal, corporate, or income tax.
- Moreover, enjoy full repatriation of capital and profits.
- Strategic excellent geographic location, offering easy access to all the major ports in the UAE and neighboring countries.
- Highly talented and efficient support staff.
- Various global business events to help you expand your reach and network.
How to Set Up a Business in Dubai?
Although the process to set up a business in Dubai is quite simple, the paperwork can be tedious. We suggest you take the help of experienced business consultants to avoid blunders with paperwork and speed up the process. You must follow the below-given steps in order to complete the registration and get your business license.
Step 1. Business Plan
The first step is to prepare a detailed business plan. Do your research, learn who your competitors are, the best location for you, how you will execute your business activities, etc. Moreover, decide the nature of your business and, on basis of that, select your business activities. The Department of Economic Development provides over 2000 plus business activities to choose from. Select the activities and submit them along with your business registration application.
Step 2. Mainland or Free Zone
Now you must decide where you want to set up your business in Dubai? A free zone or mainland region. A free zone is an independent region with its own rules and regulations. At the same time, a mainland region is outside free zones. If you choose to set up a business in any one of the free zones, you cannot do business outside that particular free zone.
However, if you decide to do business in a mainland region, you are allowed to do business anywhere in the country and internationally. Choosing the location solely depends on the type of business activities you select.
Step 3 – Legal Structure
Next, you must decide whether you want your company to be a sole proprietorship, a public or private partnership, a local, GCC, international branch, or an LLC (Limited Liability Company). Selecting your company’s legal structure plays an integral part in completing the registration of your company and planning the further steps.
Step 4 – Trade Name
Settle on a suitable name for your new business in Dubai. While deciding a name for your company, make sure it abides by all the rules and regulations. A few important ones are to avoid using abbreviations, foul words, religious references, and the full name of the person you wish to name your company after.
Moreover, make sure that it ends with the abbreviations of your legal structure, for example, Pvt. Ltd. or LLC. Once you finalize a name, register it with the DED and get your trade name registration certificate.
Step 5 – Initial Approval
Draft and sign Memorandum and Article of associations, get them signed by all the business partners before a public notary. Once done, submit it along with the application form, business activities—national ID, and trade name reservation slip. The government officials will then inspect all the documents. If everything seems in place, they will grant you initial approval to set up a business in Dubai.
Step 6 – Office Space
You need to rent an office space to carry out your business activities or can work on a virtual address depending on the Business. Make sure to check for all the hygiene and dimension conditions. Also, secure the property paper and location maps. Once you rent the space, register it with Ejari and get your tenancy contract.
Step 7 – Business License
The Dubai government offers four types of business licenses. A professional license, commercial license, industrial license, and tourism license. You can choose to apply for any of the 4 licenses as per your business activities. Submit all the necessary documents and the application form with the Department of Economic Development.
All your papers will undergo a thorough inspection. If the officials find nothing wrong, they will give approval and issue your business license in a matter of 4 to 5 working days.
Step 8 – One Time Registration Fee
Finally, pay a one-time registration fee to the government. Once your papers are approved, the government will send you a mail with the payment voucher. Make sure to complete the payment within 24 hours of receiving your license of the government will cancel it. Note that this is just a one-time payment. But you will have to get your license renewed yearly.
Set Up Your Business in Dubai With the Help of Experts at Shuraa
With Dubai Expo 2020 ongoing, it is the right time for setting up a business in Dubai. This increases the opportunities further to expand your business and professional network in Dubai. Although after reading the whole process, you know that setting up a business in Dubai is easy, if you still need guidance, you can reach out to business consultants at Shuraa India Branch.
Our experienced business setup professionals will guide you at every step, help you with the paperwork and acquire your business license at a very low cost. Just give us a call to discuss your requirements, and we will manage the rest.