Starting a business in Dubai has become easier now. With its great location, tax benefits, and supportive business environment, Dubai is a top choice for entrepreneurs and investors worldwide. However, setting up a business here involves some steps that can be tricky without the right help.
In this guide, we’ll walk you through the process of business setup in Dubai. From choosing your company type to getting your business license, this guide will help you understand what to expect and how to start smoothly.
Why Dubai Is a Great Place to Start a Business
Before jumping into the steps, let’s look at why Dubai is such a great place to start a business:
- Prime Location: Dubai is a global hub, connecting Europe, Asia, and Africa.
- Tax Benefits: Businesses in Dubai require no personal income taxes, and corporate taxes are very low or non-existent.
- World-Class Infrastructure: Dubai has modern office spaces, ports, airports, and digital connectivity.
- Business-Friendly: The government of UAE has made the setup of running a business easy with simplified rules.
Step 1: Choose Your Business Activity
The first thing to do is decide what type of business you want to run. Dubai allows various business activities, including:
- Trading (e.g., importing and exporting goods)
- Professional services (e.g., consulting, legal, or marketing services)
- Manufacturing (e.g., creating physical products)
Your chosen business activity will decide what kind of license and approvals you need later. Be sure to pick the right category that fits your business plan.
Step 2: Select the Right Business Location
You can set up your business in different areas or jurisdictions in Dubai. The main options are:
- Mainland: This allows you to trade anywhere in the UAE and internationally.
- Free Zone: Free zones give you 100% ownership but limit your trading within the free zone or internationally.
- Offshore: Offshore companies are used for holding companies, managing assets, or international trading, and you don’t need a physical office in Dubai.
Your business activity and goals will help you decide which jurisdiction is best for you. For instance, A mainland setup is the best if you want to trade within Dubai and the UAE. A free zone might be the better choice if you need full ownership.
Step 3: Choose Your Business Structure
There are different types of business structures in Dubai, such as:
- Limited Liability Company (LLC): This is the most popular structure for trading in the UAE. It requires you to partner with a local Emirati, who owns 51% of the business.
- Free Zone Company: If you want to keep full ownership (100%), setting up in a free zone is ideal.
- Sole Proprietorship: You can own 100% of the business, but you’ll be fully responsible for any business debts.
- Branch Office: If you have an existing business elsewhere, you can open a branch office in Dubai.
Choosing the right structure depends on whether you want local ownership or full control, as well as how much liability you want to take on
Step 4: Pick and Register a Trade Name
Your trade name is your business’s identity, so choose a name that represents your brand well. Dubai has some specific rules for naming your company:
- It should not include offensive or religious language.
- It must reflect your business activity (e.g., “Marketing Services”).
- It should not duplicate an existing company name.
Once you’ve picked a name, you can reserve it with the Department of Economic Development (DED) or the free zone authority where you plan to set up your business.
Step 5: Get Initial Approval
Before you can officially open your business, you need initial approval from the government. This approval shows that the UAE has no objections to you starting your business. Depending on your business type, you’ll either apply through the DED (for mainland businesses) or the relevant free zone authority.
Step 6: Apply for a Business License
Once you’ve secured initial approval, the next step is to get your business license. There are different types of licenses based on your business activity:
- Commercial License: For trading businesses.
- Professional License: For service providers and consultants.
- Industrial License: For manufacturing and production companies.
Adwise International can help you with company registration and licensing based on your business type. They take care of the paperwork and help you navigate the process, making things easier.
Step 7: Secure Your Office Space
You will need a physical office to complete the setup process. The size and location of your office will depend on your business activity and the number of employees.
There are a few options for securing office space:
- Physical office: If you set up on the mainland, you need a physical office to operate.
- Free zone office: Free zones often offer both office and warehouse spaces.
- Virtual office: Some free zones allow you to use a virtual office, which is a more cost-effective option.
Adwise International can assist you in finding the perfect office space that matches your business needs and budget.
Step 8: Finalize Legal Paperwork
To officially form your business, you’ll need to complete the necessary legal paperwork. This includes drafting your Memorandum of Association (MOA), which outlines the roles and responsibilities of business owners, or a Local Service Agent (LSA) Agreement if you’re setting up a sole proprietorship.
At this stage, you’ll need the help of a Public Relations Officer (PRO) to ensure all your paperwork is done correctly. Adwise International offers PRO Services to handle all the legal documents, approvals, and submissions, so you don’t have to worry about missing anything important.
Step 9: Apply for Visas
Once your business is registered, you’ll be able to apply for visas for yourself, your employees, and your family (if needed). The number of visas you can apply for will depend on your business structure and the size of your office space.
Adwise International provides sponsorship or visa services and can guide you through the process, ensuring everything is handled smoothly from start to finish.
Step 10: Open a Business Bank Account
The last step in setting up your business in Dubai is opening a business bank account. To do this, you’ll need to submit:
- Your trade license.
- MOA.
- Passport copies.
- Proof of your office space.
Dubai offers a range of banks, and Adwise International can provide bank account assistance so you choose the one that suits your business needs.
Why Choose Adwise International for Your Dubai Business Setup?
Adwise International is a trusted partner to kickstart your business. From company formation in Dubai to getting the right license, Adwise International handles everything so you can focus on growing your business. Here’s why you should choose them:
- Expert Knowledge: They understand local laws and regulations, ensuring your setup is smooth and stress-free.
- Full-Service Approach: From office space to visa applications, Adwise International covers all aspects of business setup.
- Hassle-Free: They handle all the paperwork, legalities, and PRO services, so you don’t have to worry about anything.
So, whether you are a UAE entrepreneur or an international investor, the process is simpler with the right support. Contact Adwise International today for a trusted and reliable business setup in Dubai!
