In addition to being one of the world’s fastest-growing economies, Dubai is an excellent location for ex-pats seeking to improve their professions. The unique chance to broaden one’s horizons, along with the possibility to make a good living, is what attracts the vast majority of ex-pats to Dubai.
Have you found yourself sitting at your same-same desk, doing the same old thing, and counting down the hours till Thursday? Do you wish you could be your boss? It could be time for you to start thinking about company formation in Dubai!
The process of starting a company in a foreign nation might be intimidating, especially if the country’s laws, regulations, and criteria vary from those in your own country. So, for all aspiring entrepreneurs out there, here is everything you need to know about Business Setup in Dubai.
Business setup in Dubai: mainland vs. Free zone
Those interested in Company Formation in Dubai might do it on the mainland or free zones. The regulations governing ownership are the most significant distinction between the two.
Foreign nationals wishing to establish a business in Dubai’s mainland districts were required to have a UAE citizen serve as a sponsor, holding a 51 percent stake in the company. Subsequently, this regulation has been modified to implement the 100 percent foreign ownership legislation in 2018. Foreign nationals can now explore establishing a new company in Dubai without a UAE resident to serve as a sponsor.
Foreigners can do a business setup in Dubai’s free zones or free trade zones and have 100 % ownership as well. However, these firms will only trade with corporations outside the United Arab Emirates.
How to start a business in Dubai
Let us take you to step by step through company formation in Dubai.
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Choose an industry
Choosing an industry name is the first step in the company formation process. Whether it’s commercial, professional, or industrial licenses, they’ll be the foundation of your business. However, keep in mind that some businesses, such as food trade, jewelry veterinary practices, and legal advising services will require a separate license from other government offices. In the United Arab Emirates, not all economic operations are permitted! Before you can start doing business in Dubai, you’ll need to obtain several permits. As a result, the first step in doing business is determining whether your company meets Dubai’s standards.
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Select a location
Dubai’s commercial jurisdictions are divided into zones to improve a company’s competence and productivity. Dubai provides mainland, Freezone company formations, and offshore company formations. If you choose to set up shop on the mainland, you will have direct access to domestic and international markets.
The proper jurisdiction to choose relies on the type of business you want to do and the type of business you want to do.
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Choose your trade name
It would be best if you named your business by the Department of Economic Development’s guidelines (DED). The trade name serves as your company’s identification. Thus, the DED prioritizes matching the name to the license type. A trade name can be registered in as little as three days and is valid for six months. The UAE has stringent naming laws, so double-check that your business name is legal before committing.
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Incorporation paperwork
You must complete an application for your chosen company name and activity, which you must submit to the proper government agencies together with copies of shareholders’ passports. Generally, these permissions are acquired by non-governmental & semi-governmental bodies. Sometimes, you may require external approvals to start your business in Dubai.
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Check and submit your paperwork
Before you file for company registration, double-check that you have all the necessary documents. Although it is not a very time-consuming operation, all paperwork should be completed in the correct order to guarantee that it is completed without delay. It is best to hire our business consultant in Dubai to get the documents ready as per the guidelines. Our consultants will assist you in getting all the paperwork done in no hassle and time. We have assisted 1000+ investors in company formation in Dubai.
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Apply for a license
The Dubai DED is responsible for deciding, regulating, classifying, permitting, and licensing all economic activity, according to Law No. 13 of 2011. This does not apply to free zones or offshore business formations, though.
Business licenses are granted primarily based on the type of business activity and the business’s jurisdiction. Commercial, industrial, and professional licenses are the most common licenses for establishing a business in Dubai. When you receive your initial approval, it takes around a week or more to secure your trade license. The business license will be processed and collected once the company has been registered with DED.
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Open a bank account
Double-check the minimal requirements and fees before you open a local bank account. It is advisable to open an account in a bank that provides you with the flexibility, convenience, and freedom you need to run your business at a reasonable cost. To do the business setup in Dubai, you must first open a corporate bank account, whether you are a foreigner or a UAE resident. Always go with a reputable bank that provides a variety of banking services and long-term benefits.
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Get a Visa
Applying for a visa is the final step in business setup in Dubai. The visa can be valid for two to ten years, and it can be renewed as many times as necessary. You can apply for a visa simultaneously as you apply for a business license. You’ll be able to get your company license and visa simultaneously. The best way to get a business Visa in Dubai is to hire our business setup consultant in Dubai to outsource your PRO services and avoid the headache of the documentation process.
Conclusion
As a prominent business setup consultant in Dubai, we will support and guide you through establishing a company in Dubai. Our team of professionals will assist you in streamlining your operations, which will result in the smooth establishment of your company in Dubai. With our leading industry practices in construction, retail, logistics, and information technology, as well as a broad spectrum of experience, you are guaranteed the greatest help in the industry when it comes to company formation in Dubai. Call us now to know more.