Dubai is one of the most preferred business hubs in the world for the global business community. Every year increasing numbers of foreign investors move to the emirates to take advantage of its investor-friendly environment. Additionally, with its easy tax regime, strategic location, booming economy and ease of doing business, Dubai attracts foreigners to own 100% of their business in maximum cases. To make it even more enticing, this vibrant city of UAE has also introduced long-term visas. Therefore, Dubai is a perfect business location for overseas entrepreneurs.
While the process of starting a business for foreign investors is not as complicated as it looks, it is a good idea to hire a business setup professional with knowledge of local rules, regulations and other formalities to make the process smooth and hassle-free.
How Easy is it for Foreigners to Start a Business in Dubai?
Dubai offers an excellent environment for foreign investors. One can understand from the percentage of the local population that includes over 80% expatriates, with many running their own businesses.
Dubai is one of the choicest cities globally that purposefully invite investors and business owners from across the world for investment. You will also find several professional company formation experts and business setup consultants in Dubai committed to guiding foreign entrepreneurs through the business incorporation process. The services include everything starting from trade licensing, company registration, visa, company formation, liaisoning with government authorities, office for rent services and more.
Starting a Business as a Foreigner
As a foreign investor planning to establish a business in the UAE. Then your first job should be to understand the business environment, acquaint yourself with the local business customs and culture. There are many things in the company formation process that you will find unusual. Therefore, it is essential to familiarise yourself with each step for the smooth execution of all the functions. Hiring a company formation agent can be of great help for the right advice and support all through the way.
Types of business licenses in Dubai
The three most common trade licenses in Dubai are – commercial, industrial, and professional. All the licenses are self-explanatory and define your business category.
If you are buying and selling products or services, you will need a commercial license. Once your license is approved, you can make your application for company formation. Though 100% ownership of mainland businesses is possible in many cases. It is judicious for foreign investors to establish their business in a free zone area, where 100% ownership is confirmed.
Additionally, you can also take advantage of Dubai’s easy tax administration. Free zone companies are also exempted from customs tax, absence of currency restrictions, and the capacity to repatriate all capital and profit.
If you are convinced to set up your business in a free zone in Dubai, hire a professional business setup consultant instead of going here and there, and they will take care of all your worries.
Documents required to start a business in Dubai
Below listed are the documents that you may need for the process:
- Your Business plan
- Duly filled and completed application form
- Copy of existing trade licence/registration certificate (for a current company, applicable for local companies only)
- Coloured passport size photos of the company’s shareholder/s and the appointed Manager/Director for the company
- Specimen signature of the company’s shareholder/s and the appointed Manager/Director for the company
- Two years’ audited financial reports for a corporate entity or certificate of reference from a personal bank of the individual shareholder
- No Objection Certificate (NOC) from current sponsor (only for individuals)
What are the Dubai company formation costs?
Dubai has a lower cost of doing business compared to other cities in the world. The total price of incorporating a company includes many factors. However, the expected cost of a trade license is in the range of AED 15,000 to AED 25,000 (roughly, not exact). The company formation cost in Dubai differs depending on your business location, size of your business, business activity type, etc. For example, the cost of forming a company in a free zone is often lesser than in the mainland. Similarly, the cost of co-working space and permanent space also varies.
Are to Ready to Start a Business in Dubai?
In the UAE, the company formation process is straightforward and open to all. However, it requires investors to possess some knowledge of the region and its many rules and regulations. Therefore, for a smooth and hassle-free process, it is always advisable to hire a business consultant that can advise you on the process of business setup in Dubai and help you obtain the most suitable license and setup type for the efficient running of your business.
