Crucial Steps to Follow When Setting Up a Business in Dubai

Crucial Steps to Follow When Setting Up a Business in Dubai

Dubai is by far the leading emirate in the UAE when it comes to tech penetration. Besides, it is one of the most sought-after business setup destinations because of its top-class infrastructural facilities and connectivity with the major cities in the world. Dubai’s transformation into a leading trading hub and the business-friendly environment attract entrepreneurs and investors from around the world.

If you are an entrepreneur looking to set up a business in Dubai, you just have to follow the crucial steps discussed below:

Location

In Dubai, you can set up a company on the mainland or in the free zone. You can also set up an offshore company in Dubai.

Free Zone

In Dubai, free zones are special economic zones. The main benefits of setting up a business in a free zone are zero taxation, 100% ownership of the company, and 100% repatriation of capital and profits. A number of free zones have been built for the purpose of setting up specific industries. Some free zones allow entrepreneurs to set up all types of businesses.

Mainland

It is a good idea to set up a business on the Dubai mainland as well because ex-pat investors and entrepreneurs are allowed to have 100% ownership and there is no minimum capital investment requirement to be met. Furthermore, the registration process is easy and quick, and you can establish your office anywhere in the country. Besides, you can serve both private- and public-sector institutions.

Offshore Company Setup in Dubai

This is an ideal, tax-efficient, and cost-effective business structure if you are interested in international trading. An offshore company is also referred to as a non-resident company and one that does not have any administrative, tax, or accounting obligations. Offshore company formation is helpful for international trading, owning real estate, copyright and patent registrations, and providing international consulting services, as well as setting up a holding company or shipping company.

Steps for Setting Up a Business in Dubai

Identify your business activity

The first step is choosing a business activity from the list provided by the Department of Economic Development. Based on your activity, you can choose the location to conduct business. The office space requirement is also determined based on the activity chosen by you.

Choose a trading name

The trade name should comply with the Dubai government's rules. Furthermore, the trade name should not have foul, hurtful, or religious words. The trade name has to be approved by the DED.

Decide on your company’s legal structure

Your company’s legal structure has to be decided based on your business requirements. You can set up a limited liability company (LLC), a sole proprietorship, a partnership company, a branch office, etc.

Arrange all the required documents

Many legal documents need to be submitted along with the application for initial approval from the DED. Some of the important documents are:

• Copies of the Articles of Association and the Memorandum of Association
• Copies of passports of shareholders
• No objection letter
• Copies of the visas of shareholders and employees
• Tenancy contract

Rent an Office

The next step is to identify a suitable office space based on your business activity. After choosing office space, apply to Ejari to obtain the tenancy contract. The tenancy contract is essential to getting the business license. You need to note down the unique Ejari number for future reference.

Apply for the trade license

After completing all of the above steps, you can apply for the trade license along with all the required documents to the DED. Depending on your business activity, you may have to obtain approval from a few departments as well.

Receive your license

If your application and documents are in order, DED will issue the trade license in a few days. Once you receive your trade license, you can pay the required fee to the government.

Setting up a business in the UAE is easy because of the well-defined procedures and excellent support provided by the governing bodies. You just have to keep the above mentioned aspects in mind and seek the help of an experienced business setup consultant in Dubai.

Cig Dubai is the Best Business Setup Consultant in Dubai and a B2B industry offering a complete solution to Start a Business in Dubai. We offer freelance visa services, business incorporation services, and much more.