Are you thinking of starting your business setup in Dubai? Congratulations, you have chosen one of the world’s best business systems for your new endeavor. Dubai is more than just a city of architectural masterpieces – it is one of the most fertile areas for new business. This is just one of the many things that make the commercial capital of the UAE the best place to live and also work.
What you need to know before starting the Business Setup in Dubai
When you get started with the actual process of registering your business, here’s what you should be aware of beforehand to make things less complicated.
Economic Zone and Property: Once you are ready to set up your company, you should know the business district or type of property that is most suitable for you. The Dubai Department of Economic Development has a list of over 2,100 activities (jobs) that you can choose from.
To decide on the zone, you should know that Dubai offers different types of economic zones for running businesses: free zone, offshore and mainland, all of which offer different benefits depending on your type of business and activities. Here are two main areas commonly used by entrepreneurs in the emirate:
Mainland: If you want to work in Dubai, you need to register with the Department of Economic Development (DED), which will then issue you a Dubai business license.
Types of Licenses: Depending on the type of business, you will first be asked to select the type of license you need. Again, the Department of Economic Development is responsible for issuing the license. There are basically three types of licenses that you can look at: a business license (for an LLC or LLC), an industrial license, and a professional license.
Need for local sponsors: To start any type of business in the UAE under a license from the Department of Economic Development, you need a local sponsor, agent or partner. However, this is not mandatory, but getting local support can help you in many ways. So, do a little research and find out how your business will benefit from this addition, in case it is not mandatory for your type of business.
Get your business registered For Starting Business Setup in Dubai
1.Decide on a Business Category: The first step you need to be sure of is the type or category of business you have. In the event that you find it difficult to identify your business and do not find your gender in the official lists of business activities according to the Department of Economic Development, you can inquire directly at: Department of Economic Development (DED).
- Find the right legal form: Contrary to what the name suggests, this is not a legal document or form to be filled out. The location and type of your business determines the look of your company and this depends on the free zone or business area you choose. You will have to check which businesses match the legal forms.
- Choose a business name: This is an important part of the complete business setup cycle in Dubai. You are expected to select a business name that matches the type of services your company plans to provide. You must then pay the Trade Name Reservation Fee within 72 hours of receiving this voucher.
- Minimum investment: Different businesses have different requirements. However, it is not mandatory in the majority of companies to have an initial investment.
- Start with Initial Approvals: At this point, you should get some kind of ‘No Objection’ from the Department of Economic Development and use a number of channels for that.
- Set up agreements and choose workplaces: Depending on the legal form of your business, you may need to create and sign a Memorandum of Association (MOA) or Local Service Agent (LSA) / Corporate Agent Agreement with Local Support (UAE Nationals). Also, at this point, you will have to finalize the physical address of your company.
- Submit Documents and Get a License: Before heading to the last step of your business registration journey, make sure that your type of business does not require any additional approvals. Once everything is done, you just have to submit all the documents and process the payments.
Key Points of UAE Free zone Company Formation
The UAE Freezone company formation is still the most sought after company structure among foreign investors due to the many advantages of the investors such as:
- 100% foreign ownership
- Tax Free Income – No corporate or the income tax
- 100% profit transfer and capital transfer
- Quick and easy business setup with minimal documentation requirements
- 3-year residence visa and multi-year license
Some of the Free Zones in Dubai are exempted from VAT – VAT does not apply to commercial transactions within the free zone
Access to world class infrastructure facilities (fully furnished office spaces, 24/7 access, security, and more)
Most of the free zones in the UAE have gates and have an internal customs checkpoint that allows easy passage of goods
There are no customs duties on imports into free zones. The perfect choice for commercial companies operating locally as well as in international markets
World-class warehousing facilities for warehousing, packaging and light manufacturing
Proximity to one of the world’s busiest airports and ports
Global Connectivity – Direct connection through the airport and seaports of more than 180 countries in the world
Easily scale business by taking advantage of massive business opportunities through networking, meetings and events in free zone.