How to Start Business in Dubai | 10 Simple Steps

Introduction

Starting a business in Dubai can be a rewarding endeavor, but it requires careful planning and adherence to specific steps. In this guide, we’ll walk you through the 10 simple steps to set up your business in Dubai successfully.

Setting up a Business in Dubai

• Identify the nature of your business activity, as the UAE offers six main types of licenses including occupational, tourism, industrial, commercial, agricultural, and professional.

• Determine your company’s legal structure based on the needs of your business, which will determine the laws and regulations your company must follow in Dubai.

• Decide on a trade name for your business and get initial approval from the Department of Economic Development (DED) in Dubai.

• Prepare the company’s Memorandum of Association (MOA) and get it notarized at the Dubai Courts Notary Public.

• Choose a suitable office space for your business and get it leased or purchased, considering the requirements set by the DED.

• Obtain approval from relevant government authorities for specific business activities, such as healthcare, education, etc., if applicable.

• Submit the license application along with all required documents to the DED and pay the necessary fees.

• Once the application is approved, collect the trade license and the establishment card from the DED.

• After obtaining the trade license, you can proceed to set up your business location, get any additional approvals, and start operating.

• Comply with the ongoing legal and regulatory requirements, such as visa processing, labor contracts, employee visas, and other obligations for running a business in Dubai.

Setting up a Business in Dubai: A Step-by-Step Guide

• Registering a trade name in Dubai is an exciting process, where you need to choose a unique and one-of-a-kind name that is not being used by any other companies.

• Dubai’s government bodies have user-friendly apps that allow you to complete various services and processes, making it convenient for entrepreneurs.

• After selecting a unique name, entrepreneurs need to apply for initial approval, which is like getting a ‘thumbs up’ from the government to proceed with business setup.

• Next, depending on the type of company, entrepreneurs will need to create a Memorandum of Association (MOA) or a Local Service Agreement (LSA) as a rule book for the company.

• Every business in Dubai requires a physical location, unlike in the USA where some businesses can operate from home or a garage, and this location needs to meet specific criteria set by the Department of Economic Development.

• Additionally, the business office or warehouse needs to be registered through the Ajari portal, which records all rental contracts officially.

• Certain businesses may require additional government approvals, such as health impact scores for industries like healthcare or law firms, before proceeding further with the setup.

• Once all the necessary documents are collected, entrepreneurs need to submit them to the government office and pay the required fees to obtain the business license.

• After acquiring the business license, the company must be registered with the local Chamber of Commerce in the respective Emirates.

• Free zones in Dubai are special areas that offer distinct benefits and rules for businesses, providing a conducive environment for international trade and investment.

Benefits of Setting up a Business in Dubai Free Zones

• Setting up a business in one of Dubai’s free zones comes with numerous benefits. There are over 40 free zones, each specializing in different industries such as e-commerce, aviation, and more.

• Businesses in free zones enjoy perks like exemption from certain taxes, 100% ownership regardless of the owner’s nationality, and no import or export duties. Additionally, they can easily repatriate profits to their home country and operate in multiple currencies.

• The free zone option is especially attractive for businesses that mainly operate outside the UAE, as it allows them to leverage the infrastructure and favorable tax laws without being physically present in the country.

• The process of setting up a business in a Dubai free zone can take around three to four weeks, with an initial investment ranging from five to twelve thousand dollars. While the mainland also offers similar perks, the choice between the two depends on the nature and target market of the business.

Benefits of Golden Visa in Dubai

• The Golden Visa in Dubai provides long-term residency for either 5 or 10 years, offering stability for investors and the opportunity to put down roots in the UAE.

• Holders of the Golden Visa do not require a sponsor, providing them with autonomy and flexibility in their activities without the need to start a company or rely on an employer.

• Another significant advantage is the ability for extended stays outside of the UAE without jeopardizing the validity of the residency, allowing individuals who travel frequently to maintain their residency status.

• The Golden Visa also extends the opportunity for family sponsorship, enabling visa holders to sponsor their family members to live with them in Dubai.

Benefits of the Golden Visa in the UAE

• The Golden Visa in the UAE offers the holders the ability to sponsor their family members, including spouses and children of any age. This makes it easier to bring the whole family over to the UAE.

• Another perk of the Golden Visa is the ability to sponsor unlimited domestic helpers for the family. This includes helpers such as nannies, cooks, and drivers, which can significantly ease the family’s daily life.

• In the unfortunate event of the primary holder of the Golden Visa passing away, family members are allowed to stay in the UAE until the permit expiration, providing security for the family for the remaining duration of the visa.

• Additionally, obtaining the Golden Visa is not necessary for living in the UAE, but it is a valuable option for those who want to contribute to the country’s vision and development, such as starting a business or investing in real estate.

• The Golden Visa also reflects the willingness of individuals, like the speaker and his wife, to step outside their comfort zone and embrace new opportunities for personal and professional growth.

Conclusion

Setting up a business in Dubai requires careful consideration of the legal requirements, location, and business structure. By following the 10 simple steps outlined in this guide, entrepreneurs can navigate the process successfully and leverage the benefits of Dubai’s free zones and the Golden Visa for long-term residency.

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