Business Setup Consultants in Dubai
Business setup in Dubai is a challenging yet rewarding endeavor that allows you to bring your ideas to Dubai life. With the increasing popularity of entrepreneurship, more individuals are realizing the potential for growth and financial stability that comes with owning a business.
Dubai has seen a significant surge in new business registrations, with over 8,000 businesses being registered each month. This not only showcases the entrepreneurial spirit within the community but also contributes to economic development and job creation in the country.
By starting a business, you have the opportunity to pursue your passion and make a positive impact. Dubai, with its strategic location, thriving economy, and favorable business environment, has become an attractive destination for business setup.
What Is a Business?
The term business refers to an organization or enterprising entity engaged in commercial, industrial, or professional activities. The purpose of a business is to organize some sort of economic production of goods or services. Businesses can be for-profit entities or non-profit organizations fulfilling a charitable mission or furthering a social cause. Businesses range in scale and scope from sole proprietorships to large, international corporations.
Start your business
The first step is to decide where to establish your business, and what form it will take. You can set up a company either in “mainland” Dubai, or in one of its 20+ free zones.
Steps for business setup in Dubai:
Setting up your business in UAE or a new country can be a daunting task. Although setting up your business here in Dubai is very much easier as compared to other countries. But only if you have good professional advisors with you.
Let’s discuss some of the key points or steps for setting up a business in Dubai. Here are the steps involved in setting up a business in a free zone:
1. Determine the type of legal entity
Now let’s discuss in detail the three common legal forms of business available:
Free Zone Limited Liability Company (FZ LLC)
This legal structure allows for the formation of a separate legal entity with limited liability. It requires a minimum of two and a maximum of 50 shareholders, who can be individuals or corporate entities. The shareholders’ liability is limited to their share capital in the company. FZ LLCs are often preferred by businesses that intend to have multiple shareholders or partnerships.
Free Zone Establishment (FZE)
A Free Zone Establishment is a legal structure where a single individual or corporate entity is the owner of the company. The owner has full liability for the company’s obligations and debts.
LLC (Limited Liability Company)
An LLC is a popular choice for foreign investors in Dubai. It requires a minimum of two shareholders and allows for the distribution of profits and liabilities among shareholders. Meanwhile, the liability of each shareholder is limited to their respective shares in the company’s capital.
Sole Establishment/ Civil Establishment
A Sole Establishment is a business owned by a single individual. The owner has unlimited liability for the company’s debts and obligations. It is a suitable option for small businesses or professional service providers.
Civil Establishment
A Civil Establishment is a business structure for professionals such as doctors, lawyers, engineers, consultants, etc. It allows individuals to practice their profession under their name. The owner has unlimited liability for the company’s obligations.
When deciding which type of establishment is right for you, consider factors such as the nature of your business, liability protection, ownership structure, and long-term goals.
2. Choose a trade name
Select a unique and appropriate trade name for your business. Consult with the concerned free zone authority or the Department of Economic Development (DED) to ensure that the name is available and complies with the required regulations.
3. Choose an office space
For the first year, you can work without any office space, but it depends on the business activity and type of business area. For the second year, it is mandatory to have an office space that suits your business requirements. Free zones often offer flexible options for office spaces and facilities.
4. Apply for a business license
Submit an application for a business license to the free zone authority. The license will specify the activities your business is allowed to undertake within the free zone.
5. Obtain your license
Complete any necessary pre-approvals and submit the required documents to register your business in UAE. This typically includes providing the necessary legal documents, lease agreements, and shareholder information. Once approved, you will receive your business license.
Types of business licenses in Dubai
In Dubai, there are several types of business licenses that you can obtain based on the nature of your business activities. The license you require will depend on the specific industry, the scope of your operations, and the location of your business (free zone or mainland).
Business Setup in Dubai Free Zone
Setting up a business in a Dubai free zone involves several steps. Here is a summary of the process:
Determine Your Business Activity
Identify the nature of your venture and choose a business activity from the list of over 2,100 options available on the concerned free zone authority.
Select Your Area (Freezone)
Research and choose a free zone area in Dubai that suits your business needs and sector. Proximity to businesses in the same industry can be advantageous.
Decide on a Company Name
Ensure that your chosen business name complies with the UAE’s naming conventions. Avoid offensive language, references to religion, and politics. If naming the business after a person, provide proof of their ownership or partnership.
Apply for Initial Approval
Submit an application to the concerned free zone authority for initial approval. This step verifies that there are no objections to starting your business.
Simplified document requirements for business registration:
- Completed application form.
- Business plan.
- A clear scan of the passport copy in jpeg or pdf is required.
- White background studio photo for Emirates ID and visa purposes.
- Old entry stamp photo in the passport when last time visited Dubai (if you have, if you don’t, please mention it).
Further details required:
- Decide three trade names and mention them for your license.
- Email address.
- Phone number (UAE if you already have one or your home country).
- Home address (UAE if you already have one or your home country).
- Any other nationalities (If Freezone requests more details please do advise)
10 reasons to start your own business in the UAE
1. The Burgeoning Economy
2. Legal framework
3. Infrastructure and Amenities
4. Manpower Availability
5. Tax Exemptions
6. Business Ownership
7. Global Position
8. Exciting Opportunities with Dubai Expo 2020
9. Strong Healthcare and Education Policy
10. Strategic Location
Ease of Doing Business
The UAE created a modern investment environment and set policies that facilitate and speed up the establishment of companies through electronic platforms, and promoted its attractiveness by issuing amendments to the Companies Law. These efforts resulted in maintaining an advanced position in the ‘Ease of Doing Business’ index, ranking 16th out of 190 countries in 2019. The country also ranked 1st in terms of business efficiency, 2nd in terms of government efficiency, and 7th on economic performance index.
Our company AHG can help you establish your company or investment, by providing integrated and specialized services, which ensure the success of the project and the achievement of its goals. Therefore, contacting us is an essential step to achieving success in business.