Since the turn of the century, Dubai has become a major player in the global trade and commerce. Dubai attracts a plethora of industries like technology, healthcare, hospitality, trading and manufacturing. Dubai and UAE’s commitment to facilitate trade, commerce and foreign investment along with its strategic geo-political location gives businesses a fair advantage over competitors. Starting a new business setup in Dubai is easy and exciting, considering the fact that you have done your homework.
Understanding the Business Landscape
Dubai offers unlimited opportunities to businesses. The business landscape of Dubai, like other emirates of UAE consists of mainland and free zones, both having their distinct advantages.
Mainland Business Setup
- Onshore or mainland business setup in Dubai is governed by state laws.
- Certain percentage of Emirati nationals share in the capital and board of directors is required.
- Mainland companies can deal directly across UAE and abroad without any restrictions or the need of a distributor.
Free Zone Business Setup
- Business setup in Dubai free zones can be 100% foreign investor owned.
- Companies can freely deal with other companies in UAE and abroad.
- Local distributors or branch offices on mainland required to sell their products across UAE.
- Companies established in free zones are exempted from any tax.
Both mainland and free zones offer advantages and opportunities to new businesses. Our legal advisors can also guide you with detailed analysis of how and where to setup your business to achieve maximum benefits.
Step by Step Guide for New Business Setup
- Identifying the nature of business
What kind of business would you like to start? Dubai provides opportunities to all kinds of businesses like technology, travel and leisure, hospitality, trade and manufacturing, real estate, development etc. It is crucial to choose activities that align with your business plan. Dubai authorities grant 6 types of licenses to new businesses, Industrial, commercial, crafts, tourism, agricultural and professional licenses. - Structure of your business
Select the legal structure of your company, such as a partnership, limited liability company (LLC) or a branch of a foreign company etc. This decision will greatly impact the operations and requirements of your business as the legal form of your company identifies the laws and regulations it needs to comply with. - Choosing a company name
Dubai has strict intellectual property laws. Choosing the right name for your business is crucial as it should comply with the laws and local traditions. Your business name must be registered with the concerned authorities. - Apply for a Business License
Now you’d need to apply for initial approval from UAE Government. Initial approval means the government does not have any objection in the establishment of your business but does not mean that the operations of your business can begin. If you have hired a legal consultant for this purpose, they would be able to guide you through this process as it sometimes requires approvals from different agencies and authorities. There are some requirements that need to be met before applying for an initial approval relating to legal matters, organizational structure etc. - Finding a suitable location for your business
All companies in Dubai are required by law to have a physical address for their commercial activity. Depending on your business nature, the location of your choosing must also meet the requirements by governing authorities. A lease contract must also be obtained for the office, warehouse, retail store, industry etc. Dubai has a vast real estate sector and finding a suitable location for your business will not be difficult. - Visas
Depending on the size and nature of your activity, you can now apply for visas for yourself and your employees. - Opening bank accounts
A corporate bank account is needed to manage your business activities in Dubai. - Obtaining additional Government approvals
In certain cases, obtaining special approvals from local or federal government authorities might be needed. Different ministries regulate different kinds of activities and such approvals will be needed from the concerned ministries. The process of obtaining additional approvals is not that long and can be dealt with on fast track basis. - Receiving the license
After completing all the above steps, you can receive your license from the concerned authorities after paying license fee.
After completing all the above steps and receiving your license, you can now start operations of your business activity. Setting up a new business in Dubai requires careful planning and understanding of the local laws and regulations which might be different from your home country. Businesses in UAE enjoy certain freedoms which is why the trade and commerce culture of Dubai and other Emirati states is thriving. The above information is a simplified guide and can be further understood by consulting a legal advisor specializing in setting up a new business in Dubai.