Business Startup in Dubai, UAE: A Step-by-Step Guide

Starting up a business in Dubai can be very beneficial due to friendly tax rules, diverse markets, and strategic location. Initiatives of Dubai’s government are also playing a great role in the growth of new investments that are taking place in Dubai, making Dubai a popular choice among entrepreneurs to start their businesses. However, you can find it challenging to start a business in Dubai because of governmental rules and regulations. In this blog, there is detailed information about the main steps to follow which are very important for a business startup in Dubai. These steps will make the process of business startup in Dubai easier for you.

What is the Business Startup Process in Dubai?

Choose a Business Activity

Choosing an activity for your business is an important first step. It helps to make sure exactly what type of business license you need to run your business activities so that achieving your business goals can become easier. Choosing the right activity helps your business run smoothly because what type of license you need depends on your chosen business activity. So it is important to make sure what kind of business you want to start, whether it is related to retail, hospitality, manufacturing, IT, or healthcare. You can get professional guidance to choose the right business activity from business setup consultants in Dubai. These consultants are professionals in providing business setup guidance to entrepreneurs.

Select a Business Type

There are three types of business setups in Dubai you can choose from. These are mainland, free zone, and offshore setup. Each business setup has its own advantages.

Free Zone Business

If you set up a free zone company, you don’t have to follow some of the rules that are important to be followed by mainland businesses. You can also enjoy 100% ownership over your business. But you will be restricted to trade with the mainland businesses unless you have a local partner. However, you can trade with free zone companies as well as internationally, just not with mainland companies.

Mainland Business

Mainland businesses allow you full freedom over your trading relations. You can trade in the entire UAE and internationally without any restrictions. However, starting a mainland business requires a local sponsor who will get 51% ownership over your business and you will be left with 49% ownership.

Offshore Business

Starting an offshore business in Dubai comes with great benefits if you only want to focus on international trade. These companies don’t have to follow local regulations and taxes making them perfect to run international operations.

Choose the Legal Structure

You need to decide the legal structure for your company since is a very important part of your business startup in Dubai. Make a smart decision whether your business is based on a sole partnership or it is an LLC (Limited Liability Company). Also make sure whether it is a civil company, a local company branch, a foreign company branch, or a GCC company branch. Each type has different benefits.

Choose a Trade Name

After completing these first three steps, it’s time to think about a unique name for your business. Choose a name that clearly reflects what your business is based on. While choosing a name, make sure to comply with the guidelines and don’t choose a provocative name.

Choose a Business Location

Choosing a business location where you are going to operate your business is the next step of business startup in Dubai. For the success of any business, choosing a strategic location is very important. So choose a location where the environment is business friendly.

Apply for a Business License

Depending on your business activity, you need to choose a specific type of license for operating your business under the regulations of Dubai. You can choose from industrial license, professional license, tourism license, and commercial license. Submit all the documents that are needed according to your chosen license type. Each license type requires different documentation. So make sure what documents that are needed to submit for your specific license choice.

Open a bank Account

After all these steps, you need to open a bank account for your new business. It is important so you can handle all your business-related transactions separately. That way you can manage your business expenses in a better way.

Required Documents for Starting Your Business in Dubai

For a business startup in Dubai, the documentation depends on the type and activity of your business. However, here is the general list of documents that are needed for every type of business:

Passport sized photographs
Passport companies of all the shareholders of your business
Application form
LSA
MoA
A Detailed business plan
Ejari number

These are the main steps that are important for freshers to know if they want to start their businesses in Dubai. To avoid any hassle, the help of business setup consultants in Dubai can be very valuable. This will make your business startup process smooth and easier.