19 Jul How to Set Up a Business in Dubai
The UAE is not just one of the top-rated destinations on the bucket list of many people but it also provides tremendous business opportunities. According to the IMF’s World Economic Outlook, the UAE’s economy is expected to grow 3.3 percent in 2021.
These figures along with impressive growth in previous years have attracted a lot of people to set up a business in Dubai. If you are thinking of joining them too, the good news is, the process to set up a business is simple and speedy.
You can set up a business in Dubai in a matter of 3-4 days if you have all the paperwork and necessary approvals from the government. You can connect with Shuraa Business Experts to help with your business setup in Dubai alongside all the other business formation activities in the UAE.
Steps to Set Up a Business in Dubai, UAE, follow the steps below:
Step 1. Define the Nature of Your Business
As in any other country, you first need to define the nature of your business. Depending on the nature of your business, you will have to obtain the necessary license, approvals, and permissions for your business setup in Dubai.
There are different business zones in Dubai, namely the mainland, free zone, and offshore. You can choose to set up a business in Dubai in any of the three zones as per the nature of your business and the one that offers maximum benefits.
Step 2. Decide Your Company Name
The next step is to choose an appropriate name for your company. Dubai has certain requirements when it comes to deciding on a name for your company. You are not allowed to use a name that is offensive, refers to Allah, or to any other religion.
Avoid using abbreviations in the company name. Another thing to keep in mind is that if you name the company after the name of a person, that person should either be the owner or a partner in the company.
Once you have settled on a name for your company, register it with DED (Department of Economic Development). The DED reserves the right to reject the name if there are other companies with similar names.
Step 4. Obtain the MoA
An MoA (Memorandum of Association) is a contract stating the set of clauses. You need to draft one and get it signed by all the shareholders in your business. An MoA states the nature of the business, capital of the company, shares issues and the related business details.
Step 5. Acquire Preparatory Approvals and Permissions
Depending on your business type, there are certain initial approvals and permissions that you need to obtain from several legal authorities. It is advised that you should let your lawyer or your business consultants get the necessary approvals, as they are familiar with the process to do a business setup in Dubai.
Step 6. Apply for Trade License
To apply for a trade license, you first need to find out if your business activities are allowed under the licenses provided by the government of the UAE. The UAE offers 3 types of licenses namely, professional license, commercial license, and industrial license. LLC’s are said to be perfect for training and industrial activities. To know more about the licenses in Dubai, read here.
Step 7. Rent an Office Space
To set up a business in Dubai you will need to rent a suitable office space for your business needs. Select the locality and the office space according to the nature and activities of your business. Once you rent the space, register with Ejari to obtain a tenancy contract and generate your unique Ejari number for future references.
Remember, that you cannot obtain a license without a valid office address. In terms of offshore companies, the address of the registered agent becomes the official address of the company.
Step 8. Finish and Submit The Documents
In order to complete the process for your business setup in Dubai, you need to complete all the documentation work. Submit copies of the passports and visas of you and your business partners. Also, submit and acquire the necessary final approvals, permissions, and certifications from the DED (Department of Economic Development).
Once your application is processed and approved, you will be notified by the government about where and when to acquire your license. At last, pay the required fee and get your trade license!
The process to set up a business in Dubai is simple and straightforward. We are sure that if you follow the above-mentioned steps, you will be able to set up your business in Dubai within just 3-4 days. We highly recommend you to connect with the expert business consultants at Shuraa
They will help you throughout the process of setting up a business in Dubai along with taking care of all the necessary paperwork, your license, and other business activities in the UAE. All you need to do is get in touch with us and we’ll take care of the rest.