Dubai is great for people who want to start or grow a business because of its strategic location, state-of-the-art infrastructure, and business-friendly policies. But a business setup in Dubai can be complex, especially if you don’t know the rules and laws of the area. In this guide, we’ll show you how to set up a business in Dubai and give you some tips and ideas to help you get around the city’s complicated business landscape.
Different Kinds of Businesses in Dubai
Before setting up a business in Dubai, you need to decide what kind of business entity you want to set up. There are several choices, and each has its pros and cons.
1. One-person business
The easiest and most common way to run a business setup in Dubai is as a sole proprietorship. It is owned and run by a single person, who is also responsible for all of its debts and liabilities. This business entity is good for small businesses with low investment and risk.
2. A company with limited liability (LLC)
An LLC is a standard business entity in Dubai, especially for foreign investors. It is a separate legal entity from those who own it, and its shareholders have limited liability. An LLC needs at least two shareholders but can have as many as 50.
3. Company in a Free Zone
A business in one of Dubai’s many free zones is called a “free zone company.” Foreign investors can own 100% of the businesses in these free zones and don’t have to pay taxes or other fees. Businesses that want to work in a particular industry, such as media, technology, or logistics, can use free zone companies.
Branch Office: A branch office in Dubai is part of a company based elsewhere. A branch office needs a local sponsor who is a citizen of the UAE and can act as a link to the government and help with paperwork.
How to Get a Business Started in Dubai
To set up a business in Dubai, you need to follow these steps once you’ve decided what kind of business you want to start:
1. Pick A Name for Your Business
Choosing a business name is the first step in starting a business in Dubai. The name should be unique, fit your business, and not break trademark or copyright laws.
2. Register the Business
Register with Dubai’s Department of Economic Development (DED). To finish the registration process, you must give the name of your business, what it does, and other information.
3. Obtain A Trade License
After registering your business, you must get a business license from the DED. A trade license is a piece of paper that lets you do business in Dubai. What business license you need will depend on what you do for a living.
4. Find A Sponsor in Your Area
If you want to set up an LLC or a branch office, you must find a local sponsor who can talk to the government and help with the paperwork. The local sponsor will own 51% of the company’s shares, but you will run everything about the business.
5. Open A Bank Account
To run your business in Dubai, you need to Open a corporate bank account with a local bank. To open a bank account, you must bring your business license, passport, and other documents.
6. Obtain A Residence Visa
It would help to have a residence visa to live and work in Dubai. How you get a residence visa depends on your country of origin and the type of visa you want.
Legal Activities of Your Business
Once you’ve decided how your business will be set up legally, the next step is to get the licenses and permits you need to do business in Dubai. The type and number of licenses you need depend on what kind of business you run and where you do business. The Department of Economic Development (DED) in Dubai gives all business licenses in the emirate. Different licenses, such as commercial, professional, and industrial, can be obtained from the DED.
Depending on what your business does, you may also need other permits and approvals on top of the DED license. For example, if you want to import goods, you must get a customs clearance certificate from the Dubai Customs authority. In addition, the Dubai Municipality will give you a food permit to open a restaurant or café. You might also need permits from the Dubai Health Authority, Dubai Municipality, Dubai Civil Defense, and the Dubai Chamber of Commerce and Industry.
Decide Your Business Setup Location
Finding the right place for a business setup in Dubai is one of the most important things. Businesses in Dubai have many options, from free zones to onshore locations. Free zones are special economic zones where businesses can have 100% foreign ownership. Moreover, they must pay no taxes or customs duties and have less strict rules. In Dubai, there are more than 40 free zones. Each one serves a different industry, like technology, media, healthcare, or logistics.
On the other hand, onshore locations are places where businesses can operate with the help of a local sponsor. For example, in Dubai, a local sponsor is a citizen of the UAE who owns 51% of the business. Some businesses might see this as a drawback. But it’s important to remember that having a local sponsor can be helpful. In terms of getting access to local knowledge, networks, and markets, it can provide significant help.
Factors to Consider and Commercial Properties Available
When looking for the right location, it’s essential to think about how easy it is to get to. How close is it to customers and suppliers, what infrastructure is there, and how much will it cost? Moreover, Dubai has many commercial properties, including offices, stores, warehouses, and factories. Depending on your budget and business needs, you can buy or rent commercial properties in Dubai.
Conclusion
Ultimately, a business setup in Dubai requires careful planning, research, and following all laws and rules. But, even though the process may seem scary initially, you can start and grow your business with some help and guidance. Dubai is an excellent place for businesses of all sizes and types, from small start-ups to multinational corporations, because it has a dynamic business environment, a strategic location, and a diverse market.