How to Setup Business in Dubai

How to Setup Business in Dubai


Dubai is a land of opportunities for foreign investors. The greatest advantage of business in Dubai is the tremendous elevation in the tourist’s traffic as well as the developmental interventions of government authorities. Being the best place to provide ample infrastructure to any kind of business, Dubai is one of the favorite business destinations across the globe. Multiculturalism and the diversity of people in the UAE make every business possible in this land.

Business setup in the most competitive market like Dubai is not an effortless task. Thorough knowledge of trends in the market and the will power to handle healthy competition will take you to the decision of being an investor in UAE. You need to get acquainted with all the procedures and requirements on business startup in Dubai and always get updated with what is happening around UAE. Leaning best on scope and possibilities of new business set up will help to avoid the problems mostly encountered during establishment period or later.

Set up your business in Dubai

Dubai is an investor-friendly city which offers various options in regard to new business as It offers businessmen the most liberal operating conditions, asset protection, complete privacy, and limited liability etc. To set up a business in Dubai, it requires deep knowledge on laws and regulations of the UAE government towards business setup. This can be done through professional business consultants in UAE.

How to setup Business in Dubai?

Formal setup of a business in Dubai involves various procedures and approvals. Usually business setup company in Dubai do the same service for clients.

  • Submit the proposed company name and registration application to the Department of Economic Development (DED)
  • Get the company’s Memorandum of Association in notarized in the DED
  • File documents of the company with the DED to obtain a trade license from the Chamber of Commerce and Industry
  • Submit the application at the Ministry of labour for Establishment Card
  • Apply for the employment visas and also get the native workers registered with the Ministry of labour and General Authority for pension and social security

7 Major requirements to setup a business in Dubai

  1. Find a sponsor
  2. Choosing on the type of business
  3. Choosing a trade name and apply for approval
  4. Applying for investor and employment visa
  5. Finding or creating an office space
  6. Applying for license
  7. Company registration process

Finding a sponsor in Dubai

Any non GCC business aspirants looking for a Company formation in Dubai is not legally advised to begin an investment without any Emirati sponsor Whereas if you are setting up company in a free zone, or your business activity is covered by a professional services license, a local sponsor in Dubai is not required.

UAE Companies Law and UAE Civil Law, to start a company with limited liability in a mainland, that is, a non-offshore company in a non-free zone, a minimum of 51% local equity is a must. Despite foreign equity in such a company not exceeding 49%, the profit distribution from it can be mutually agreed upon by concerned parties. If the business setup is on any free zones, local sponsors are not required. Finding the right sponsor for your business will define the future of your dream.

  • Individual local sponsorship – The sponsorship is given by a local individual in UAE.
  • Corporate sponsorship – Sponsorship is given by a corporate sponsorship service provider.

Choose on the type of business

The next step in the business setup is to choose the location and type of company establishment. Based on the type of company you are planning to setup location varies. Dubai provides flexible and vast opportunities to potential foreign investors to setup following types of companies.

  • Free zone company
  • Mainland company
  • Offshore company

Business setup in Dubai Free Zones

Free zones in Dubai offers attractive foreign direct investment policies, making it best foreign investors as it entails complete ownership. The objective of business setup in Dubai Free zones, is to help foreign investors establish a business with full fledge capital share. Free zone setup is a highly profitable investment option for organizations because of incentives like:

  • 100% foreign ownership
  • Exemption of taxes
  • Customs privileges
  • Greater growth potential due to the strategic location
  • Well established transport network and road connectivity
  • Proximity to a large customer base
  • Affordable cost for high-quality labor

Offshore Company setup Dubai

If you are looking to start an offshore company to manage your affluence and keep it confidential, then offshore company formation in Dubai is an ideal option. An offshore company can hold shares of other companies in the UAE or abroad. The offshore company incorporation in UAE enables you to register company setup and open its bank account in UAE. Many businesses prefer to set up an offshore company, also known as the non-resident company, in Dubai as the income obtained from a holding company (offshore company) is not taxable.

Other than tax savings, people prefer having an offshore company as a holding company so that they can hold:

  • The interest of other companies in a separate jurisdiction
  • Licensing of franchises
  • Intellectual property rights like patent, trademark, copyright, etc.

Mainland Company setup Dubai

A business entity falling under commercialized geographical areas and directly registered under the Emirates government and its authorities are known as a mainland company. A mainland company in Dubai can carry out business across the UAE but permits maximum foreign shareholder equity capped at 49%. Mainland represents the most developed economy as it is set up directly in accordance with the legal structures of the Government policies.

How can you register a company in Dubai?

As per the Federal Law, it is mandatory for a commercial company in Dubai to have not less than 51% local equity and 49% from a foreign investor. Below are the types of companies permitted to establish in Dubai.

  • Sole Proprietor Company
  • General Partnership Company
  • Partnership Commendams
  • Limited Liability Company (LLC)
  • Joint Venture Company
  • Public Shareholding Company
  • Private Shareholding Company
  • Professional Company

How to apply for the trade name?

The trade name should be consistent and in proportion with the commercial activity of the firm. The firm name should be identical to the trade name. Both names must include one or more of the partners’ names and followed by the phrase “Private Shareholding Company”.

The trade name should be identical to its owner’s name followed by one person and ending with LLC. The trade name should follow its legal form. The name of the shareholder in the trade name can consist of two names at least, for instance, the first name + the second name or the nickname.

Find an Office for your business in Dubai

In order to get a license from the concerned authority, investors should find a suitable office for performing business activities. To set up an office, it requires a comparatively good amount in Dubai. Hence most of the investors of this time are going for rented office space or sharing office space with furnished or non-furnished option.  Getting an office arranged in prior is required to provide contact address and location. It is also required to complete inspection or any other procedures from the government towards the license issue.

Get your business license in Dubai?

The Department of Economic Development (DED), Dubai is the licensing authority that issues a license for major activities. A fundamental prerequisite for all business activity in Dubai is to apply for and procure one of the following 3 categories of licenses:

Commercial License

Usually given for business focusing on any kind of trading activity in Dubai.

Industrial License

For setting up a manufacturing or industrial activity, application to granny industrial license is required.

Professional License

Meant for artisans, craftsmen, and other professional service providers. Any professionals such as Doctors or Engineers can begin their own firm upon obtaining a professional license from the concerned department.

How can you easily set up a business in Dubai?

Hire a business setup consultant!!

Business setup consultants in Dubai is an agent in between the investor and the government rules and regulations. Professional consultants from this agency will ease several processes of documentation and other requirements of a firm on behalf of the investor. The effort taken by these kinds of consultants is mostly welcomed in the industry, as it is not feasible for a common man to get all these formalities done easily.

They will provide A to Z business setup services in Dubai conveniently at an affordable rate. Business setup company will be equipped with an expert team of employees who will guide even small business setup services in Dubai, to any sized or kind of related services. Following are the major business setup services, you can avail from these kinds of establishments.

Exploring the opportunities in the Dubai market is now easy with the professional business setup consultants in UAE. Getting a trustworthy business consultant for an organization ensure smooth and hassle-free business performance.

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