How to Start your Business in Dubai

It’s a big step to decide to start your own business in Dubai. It requires you to step outside your comfort zone and try something new. If that concept excites you, why wait? You’ve decided to start your own business. Dubai is the best opportunity for starting a business because this city is the commercial capital of the United Arab Emirates. This “golden city” provides a diverse range of business opportunities and cutting-edge commercial modules to international companies. Dubai attracts entrepreneurs for a variety of reasons, including international exposure and a government that is friendly to investors. Dubai startups benefit from tax breaks and investment incentives compared to other countries.

However, regardless of how simple the procedures for setting up a business are, it can be difficult for a new entity to understand them. Do you have no idea where to start? This guide will show you how to start a business in Dubai.

Business set up in Dubai.

Setting up a business in Dubai is very attractive for many entrepreneurs. The city offers a great mix of opportunities, infrastructure, and a favorable tax regime.

However, there are a few things to bear when setting up a business in Dubai. Firstly, businesses are required to have a local sponsor. This is usually a UAE national or a company majority-owned by UAE nationals. The sponsor will hold a majority stake in the business and be responsible for its day-to-day operations.

Secondly, businesses are required to have a trade license. This can be obtained from the Department of Economic Development. If you need complete guidance, you can comment below this blog. We will follow up with you for more guidance.

Benefits of Starting a Business in Dubai:

There are many compelling reasons why thousands of entrepreneurs worldwide flock to the UAE and Dubai to start a business.

The main benefits are;

  • Low taxation:

Both personal and corporate incomes are tax-free in the United Arab Emirates. The only significant tax to be aware of in the Emirates is the 5% VAT, which was implemented in January 2018.

  • A growing economy:

The economy of the United Arab Emirates is the second largest in the Arab world. It is second only to Saudi Arabia in terms of GDP, with around AED 692 billion. It is as large as it is diverse. You can start a business in various fields, including healthcare, hospitality, technology, and trade.

  • Excellent living conditions:

In the Best Countries Index, the UAE was ranked 23rd, just behind Spain and Ireland and ahead of Portugal and Greece.

  • Startup guidance:

There are numerous startup incubators and funding initiatives in the UAE to accelerate business growth.

The necessary things to start your Business in Dubai are:

  • Before starting, think about your business niche;

When doing business in Dubai, you should be aware of some restrictions. In the United Arab Emirates, not all business activities are permitted! Before starting a business in Dubai, you must obtain several permits. As a result, the first step in doing business is determining whether your company’s niche meets Dubai’s standards.

  • Choosing the appropriate jurisdiction:

Dubai’s business jurisdictions are divided into zones to improve a company’s competence and productivity. Dubai can help you form a mainland company, a Freezone company, or an offshore company. Your business activity and the type of business you want will determine which jurisdiction is feasible for you.

  • Collaboration with a dependable UAE national:

To start a business on the Dubai mainland, you must partner with a UAE national. The challenge is finding a trustworthy and reliable UAE business partner. According to the agreement, the UAE local partner will own 51 percent of the partnership. In a free zone, a company would need a local service agent who would work for a small fee. To ensure security and complete control over your company, it is best to partner with a silent partner.

  • Company registration and Business license procedure:

Company registration and business licensing are handled separately in Dubai. The business license will be processed and collected once the company has been registered with DED. Business licenses are granted primarily based on the nature of the business activity and the business’s jurisdiction. Commercial, industrial, and professional licenses are the most common licenses for establishing a business in Dubai. Getting your initial approval takes about a week or more to get your trade license. The nature of the business and the external documentation largely determine this. The following is a general list of documents and certifications needed to start a business in Dubai.

  • LLC Agreement Attested License Application
  • Forms of government
  • Certificate of Name Reservation
  • Certificate of initial approval
  • Approval from external departments
  • tenancy agreement
  • Certificate of EJARI registration
  • partners’ passport copies and NOC for partners (if any)
  • Registration with the Dubai Chamber of Commerce and Industry
  • Governmental agencies’ endorsements (For Gas and Oil Companies)
  • Approval and License from the UAE Central Bank (For Financial Institutions)
  • Ministry of Finance and Industry Certification (For Manufacturing Companies)
  • Ministry of Economy and Commerce Certification (For Insurance Companies)
  • Ministry of Health Certification (For Medical & Pharmaceutical Firms)

Final approval from DED:

After all these processes, you must get approval from Dubai’s DED(Department of Economic Development). Then you can start your business at this stage and continue with the process of acquiring your trade license.

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