Dubai has established itself as a global business hub. It attracts entrepreneurs and investors from all parts of the world. From young entrepreneurs to established brands, this city provides countless opportunities for everyone.
However, the business setup Dubai process can be challenging, especially if you own a small company or a young entrepreneur. You have to follow a series of legal and procedural steps. Don’t worry! We are here with a stepwise guide to set up a business in this emirate. Let’s explore this guide.
A Stepwise Guide to Set Up a Business in Dubai
Step 1: Understand Your Business Activity
Before you start the registration process, you must understand the nature of your business activity. Dubai offers opportunities in multiple industries, such as tourism, trading, manufacturing, and technology. Your business activity will determine the type of license you need.
The Department of Economic Development (DED) in Dubai has a list of approved business activities. It is essential to ensure that your business falls under one of these categories. Once done with it, you can proceed to the next steps.
Step 2: Choose a Business Structure
Dubai offers multiple business structures. Each structure has its regulations, ownership rules, and benefits. You have to select the right structure as it affects your operational flexibility and ownership rights. Some of the common business structures in Dubai are:
- Sole proprietorships
- Limited liability companies (LLCs)
- Free Zone companies
- Branches of foreign companies
- Offshore entities
You have to choose a structure based on your future goals, target market, and the nature of your business.
Step 3: Select the Right Jurisdiction
Dubai offers three main jurisdictions for business setup:
Mainland: Businesses registered in the Dubai Mainland can operate anywhere in the UAE. However, some activities may require a local service agent. These companies should be registered with the Department of Economic Development (DED).
Free Zone: It offers 100% foreign ownership, tax benefits, and simplified setup procedures. However, businesses in a Free Zone can only operate within the zone or internationally.
Offshore: These companies are mainly used for asset protection, tax optimization, and international business. These companies cannot conduct business within Dubai.
You have to choose any one of them based on you’re your business requirements.
Step 4: Register Your Business Name
Now, you have to choose and register a business name. You should opt for a name that doesn’t contain offensive or religious terms and cannot include political references. The name should be unique and reflect the nature of your business activity.
Step 5: Obtain a Trade License
It is a mandatory requirement to operate legally in Dubai. You have to submit a completed application form along with all documents to apply for a license. You can partner with local consultants to get the cheapest trade license in UAE.
Step 6: Launch Your Business
Once you have the license, you have to follow the rest of the legal requirements, such as securing an office space and applying for work permits. After that, you can launch your business in Dubai.
Setting up your business is no longer a challenge. All you have to do is to follow the aforementioned steps. You can partner with local consultants to streamline the whole process.