Who doesn’t want to be an entrepreneur, especially in such times when there are millions of business opportunities? Dubai is one of the leading business centers where without any discrimination anyone can start a business. However, it is easy to have a dream of business setup but starting a business in UAE is not so easy. You need to have a practical business structure to establish your company. With that, the UAE government has set some specific business requirements that new businesses have to follow to get license before starting a business in the UAE. If you want to know more about the company formation process, stick with us. Here is a step-by-step guide to help every entrepreneur like you start a business in Dubai, UAE.
The Most Profitable Business Setups in Dubai, UAE
You can open any business in Dubai by following legal steps but here are a few successful businesses that are making more profit than others.
- Trade businesses such as import-export
- Cloud kitchenettes
- Food processing
- Real estate
- Advertising and marketing
- Product management
- Design Business
The Steps to Set up a new business in Dubai
If you have all the required documents and initial approval, you can start your business in Dubai or any other emirate in just three working days. Dubai Business Setup can help you start your company in the UAE in any zone.
Step 1: Find a local sponsor
If you want to have a new company in Dubai’s mainland, there is a need for a local UAE national who can sponsor. With him, you will discuss your business activities and his responsibilities. You might have to pay a fee every year to have him on board as a sponsor.
Step 2: Memorandum of Association
An MOA is a preliminary contract that has all the set clauses, the nature of your business, and information about the startup and its shares. All the shareholders have to sign the paper to make its use efficient.
Step 3: Initial Approvals
One of the next steps of the company formation in Dubai process is to get approval from different UAE government entities such as the department of economic development to register your business and get a business license. Getting in touch with a local service agent or business setup services consultant will be more beneficial as they are well familiar with all the laws and regulations and can boost the registration process of the company in the UAE.
Step 4: Registration of trade name
Your trade name or your company name has to be unique as it represents your type of business. Make sure, your trade name is not matching with any other company. If it matches, the department of economic development has the right to reject it or they can ask you to change it. You will get your business license after the registration of the trade name.
Step 5: Trade license
Before applying for a trade license, do good research on all types of licenses available in the UAE market. There are many types of licenses in the UAE such as commercial license, industrial and professional license that allow specific business activities. If you are planning to start a business in Dubai’s mainland, then an LLC trade license is good for your business. But for business in a free zone area, a general trading type of license is a better option.
Step 6: Office Space
To start a business in Dubai or across the UAE, be it mainland, or free zone, you need to have office space. Office space acts as a physical address for your company. If you don’t have a valid office space or tenancy contract you will not receive your trade license to practice the business activity.
Step 7: Document Submission
Gather all the required documents and submit them to the Dubai department of economic development (DED) along with trade license fees. Keep the receipt of license fees as you might have to show them before obtaining your license.
The following are the documents required for license registration:
- EJARI registration copy
- Copy of tenancy contract
- Copy of valid passport
- MOA copy
- Initial approval copy of trade’s name from DED
The best practices to start a business in Dubai, UAE
There is no right or wrong time to start a business. In fact, Dubai is in a best economic position than it has ever been. So, to beat the competition now is the right time to start a business in Dubai. Investors have exceptional benefits of having a business in the free zone or other locations of Dubai and the UAE.
The local company setup in Dubai in the free zone or mainland can take up to two weeks for the visa processing, legal forms, and corporate bank opening. However, the procedure of business start-ups in Dubai is not similar. There are many things that need consideration. It would be hard for the foreign business owner to understand them all and comply with them. In this case, taking help from business setup experts in Dubai can be the right approach. Thus choose the business formation consultants wisely to get done with all the business formation steps in the right order.
Here are the best practices you need to apply to run your business
While making the business plan, you must adhere to your target audience or potential customers. While registering your company, discuss with the company formation experts on your team to make a well-executed and realistic marketing plan to approach people.
Business license type
Company name and business license are the whole things that decide your company type. Whether it will be an industrial company, commercial company, or professional. Your trade license decides your further business activities and operations. Based on the jurisdiction, every zone has its own regulations and limitation. If you want to open a cheap company then a free zone company is the right choice for you and also it is easy to start and operate.
Area of business
All the emirates of the UAE offer business opportunities to all locals and foreigners. You can open your business anywhere across the UAE. However, each location has different laws and formalities for company formation. There are two zones that have the greatest number of business formations. One is the mainland and the other is a free zone. There are more than 30 free zones in the UAE and Dubai has one of the most. While discussing with your business consultants, find the right location that suits your business type.
It was the law that no foreigner can have complete ownership of his company in Dubai if they are opening their business in the mainland zone. But now the law has permitted you to have complete 100% ownership of your company in the mainland. Except for a few businesses. However, the free zone has always been offering complete ownership of the business owners.
With zone selection, the entrepreneur also has to decide the legal structure of their company. The business consultants can guide you regarding this. Depending on the nature of your company, and location you have options to go with for trade license registration. The legal structure basically decides the function of your business. Or what is the type of your business?
- Either your company is a sole proprietorship
- Or it is a branch of a foreign company
- Branch of a local company
- Is there partnership
- Branch of free zone company
- Or it is a limited liability company also known as LLC
Name of your business
Only you or people in the business center can understand the legal forms and other business nitty-gritty oof your company. But for the target audience, you need to have a name to be remembered. Business consultants can offer you a list of suggestions or you can discuss with them if you already have any in mind. After this, you need to go for office space. The consultants can offer you the list with all the financial details then you can decide which goes better with your business budget.
Local sponsorship and support
Dubai’s business community is vast and diverse. Finding the people who can help or support your business can be a tough task for you in case you don’t already have a connection. The consultancy firm can help you connect with the business community and make productive business relations.
Dubai business setup services
Vigor corporate services are one of the most affordable business formation consultancy corporations that can help you in all the matters of business, visa, and company registration. Our team of experts who have the background of working and helping every kind of business in Dubai and across the UAE. We understand what it takes to start a business in Dubai and what are the legal requirements one has to follow to sail through the legal process smoothly and with ease. Contact us today for a free consultation to get help regarding how to start a business in Dubai and your desired area in the UAE.