Are you planning to start a business in Dubai? But you have no idea where to start and how to bring your idea to market. If that’s what you are wondering about, you are in luck because today Prospr is presenting you with a detailed step-by-step guide on starting a business in Dubai UAE.
Start a business in Dubai – the ultimate guide
The complete process of business startup in Dubai is straightforward but it can be tedious especially when you overlook some essential steps or simply miss preparing some essential documents. We don’t want any hassle for you, thereby we are highlighting every step in detail. It’s time to follow this exact roadmap.
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Decide about your economic activities to start a business
It’s the first and the most important thing you need to do. There are a lot of business opportunities in Dubai for everyone. Tons of free zones seem pretty lucrative when you find out that you won’t have to pay any kind of tax. Tax-free income isn’t the only benefit, there are some other benefits of opening a company in Dubai.
However, you must know that certain economic activities are not permitted in specific locations. You may choose a location and try to do work there but find logistic or market barriers.
When you explore Dubai Free Zones, you find out that some free zones are good for some specific business activities such as finance, tech, and media.
Let’s say you decide for a company setup in Dubai Media City and later you realize that this zone is good for only media companies. It could be a good option when your business involves media-related activities such as advertising.
Although many Free zones are open for general business, you should try to choose your industry and then pick a zone that supports this specific industry. For example, if you are into trading, import/export, etc business, you need to choose zones that offer facilities for these specific activities.
Learn about: How to start a pharmacy business in Dubai
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Decide between a Free zone and a Mainland
The next step that can make or break a business deal for you is picking the right location for your business. When you set up a business in a free zone, you enjoy multiple benefits such as 100 per cent owners,100 percent exemptions on import/export tax, no currency restrictions and above all 0% corporate and personal tax.
But if you pick a free zone, your business activities will remain limited to this zone and you won’t be able to do business in other zones.
Now if we talk about setting up business in the Mainland, it offers you local market business opportunities. You are free to trade locally and internationally. However, you need to work with a local partner who will hold a 51 per cent share of your company. But if your business activity falls under professional services, you don’t need a local partner for company formation in Dubai.
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Select your company name
In this step, you will decide about your company name. In case you use a person’s name as your business name then you need to use the full name as initials or abbreviations won’t be accepted as a company name. UAE has some strict naming conventions. Thereby, you need to ensure that your business name is legal. You can’t use a name that means any offensive language.
If a company name refers to Allah, Home or any other religion, this name won’t be acceptable. In the same manner, you can’t keep your business name on the base of a political group or some agency like the Mafia or FBI.
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Complete the incorporation paperwork
One of the biggest steps certainly in the process of setting up a business in Dubai is to prepare all the paperwork. Your official documents should be in order. When you are going to open a business in Dubai, you will be required to complete an application form where you will mention the chosen company name, identify and mention your business activities, and attach copies of the shareholder’s passport.
The exact documentation requirements vary from one free zone to another. For example, some free zones require you to submit a comprehensive business plan or a NOC- a Non-Objection Certificate. It’s a letter from your current sponsor that allows you to setting up a business in Dubai UAE.
When you set up a company in the mainland, you need to meet the minimum capital requirement and provide the details in MoA-a Memorandum of Association.
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Apply for business license
Once all the documents are prepared, you will register your business activity and trade name with the DED– the Department of Economic Development of your chosen emirate. In case you need to contact the Department of Economic Development of your chosen emirate to register your business activity and trade name and then submit the required documentation. Once your application gets approved, the government will issue you a business license.
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Open a bank account
Once you have all your documents and business license, you can open your corporate bank account. The good thing is that you can find both local and international banks in the UAE such as HSBC, Citibank, Barclays, Abu Dhabi Commercial Bank, Commercial Bank of Dubai, RAKBANK, Mashreq, Noor Bank and many others. You can select the bank as per your business requirements and open your corporate bank account in Dubai.
If you want to trade business or start your business activities then having a bank account is a must.
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Visa application
The last step in the ultimate guide to how to start a business in Dubai is a Visa application. Once you complete the above step, the last one is to apply for your visa. It’s suggested to send visa applications for your dependents and staff as well.
There is a specific number of visa applications for free zone companies. This number varies from one free zone to another.
However, mainland companies don’t have any such restrictions. They can apply for as many visas as they want. The process starts with getting an entry permit, continuing with status adjustment and a medical fitness test. Once your application gets approved, you get your visa alongside your Emirates ID.
Final words on how to start a business in Dubai
After you read this guide, you won’t say I want to start a business in Dubai but have no ideas. Finally, you have a complete roadmap that you can follow to set up your business in Dubai as and when you like. Business setup in Dubai is indeed an overwhelming process and doing it all by yourself is a challenge. But if you get help from Prospr’s business consultants, you can easily overcome these challenges.
Read about: 17 easy business ideas for women in Dubai
We will stand by your side and provide you with guidance and assistance regarding every signal matter. Whether you need us for documentation preparation or getting a trade license Dubai, we will handle this task with speed and accuracy.
Still, do you have some questions regarding how to start a business in Dubai? Book a consultation now with Prosper!
