To start a business, no matter where it is, has a lot of steps to be followed. Starting from proper research, conceptualizing, budgeting, and managing funds, a vast decision-making process is required with many actions to complete to start a business, especially as a new entrepreneur, can seem a little daunting. Adding on the whole process, starting a business in Dubai, UAE is no small feat, and that’s why the below steps will double as the perfect guide to help you business setup in Dubai
Dubai is one of the ideal places to start a business for two primary reasons. The first one is its tax policies, making it very easy for start-up owners to set up their businesses. The second factor that helps business owners in Dubai is how investor-friendly the place is because of which a lot of people are encouraged to start a business in Dubai. Apart from these factors, the government has other rules and policies that make it so much easier for business owners to choose Dubai as an ideal place for a business.
Steps to business setup in Dubai
Choose your product or service
Before deciding on a product or service for your business, think about its relevance to the UAE market to have a certain level of ensured profitability through the company. This is one of the most crucial steps as deciding on the business activity makes or breaks the entire plan.
Pick the relevant jurisdiction
Based on your product or service issues, an appropriate jurisdiction which is namely Mainland, Freezone, and Offshore. These jurisdictions can also be known as economic zones, and this zone decides what kind of rules and regulations are to be followed based on your business needs.
Get approval and license
Once the business activity and jurisdiction are chosen, approval is required from The Department of Economic Development for both the structure of the company and the business activity. After the approval, a license is to be acquired, either Commercial, Industrial, Professional, or Tourism.
- Registering the company and getting approval is a simultaneous process that requires various documents from various departments as requested by the DED. To register your company and business activity from the name to the actual product or service requires multiple verifications.
- The documents mentioned above can also be external approvals from municipality banks or even embassies if the DED asks. Make sure to get a license depending on your jurisdiction, as free zones in the UAE have different licenses based on business activity.
Get an office space
based on your business requirements, and you can either rent an office unit or get space at a business center. Your office space also determines the number of visas you can receive from the DED. In UAE, an ejari is required, an online system that ensures transparency between you and the tenant. This also helps you with visas for your family members or employees.
Get the initial approval and trade license
An initial approval from the DED is proof that the UAE government doesn’t object to you setup business in Dubai market. Without this, any possible business owner would be unable to proceed with the application process. Apart from the initial approval, A trade license is to be acquired, and the following documents are needed to get one.
- Memorandum of Association
- Relevant government forms
- Tenancy contract
- Ejari certificate
- NOC for partners
- Trade license application
- Passport copies
- Initial approval certificate
- External approvals
- Trade name reservation certificate
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