Last updated on January 26, 2023
Setting up a business in Dubai
Starting a business in Dubai is a great idea. Starting the process of setting up a business in Dubai is a journey of devotion, courage as well as patience. Furthermore, an international exposure for all business deeds as a benefit and enhance in building brand value. Dubai, one of the world’s most lively city and has count itself in business building. And has successfully recognized itself with a lot of options. That is reaching from job opportunities to business formation. It has been rank 21st for the easiness of doing business. The city also offers a number of free trade zones; which provokes everyone in the city to direct their thought towards setting up a business in Dubai. And is a great platform for both startups as well as establish firms; that motivates the working class to come up with their own fantasy business.
The good thing about setting up a business in Dubai; is that overseas investors can hold 100% control of his own company. They can either starting a business in Dubai or open up branch offices as essential. They must always make sure that they have a National Service Agent of their own. That agent must be residing of UAE appointed who will do as their liaison. Without local agent registration will not be complete.
Setting up a business in Dubai
LLC company formation in Dubai is one of the most common legal business forms for setting up a business in Dubai. LLC company in Dubai needs to have a UAE national. That is as a local sponsor owning 51% of the company shares. And you can only own the rest of 49% of the shares.
Setting up a business in Dubai as an LLC you need at least of two or a maximum of 50 shareholders. There is no need for any minimum paid up capital. Setting up a business in Dubai as an LLC is very straight forward and very easy to incorporate. However, it needs certain documentation, paper work and special approvals required depending on the selected business activities.
Here are the steps to know how to start a business in Dubai as an LLC. Our team will help you in all steps with expert consultation as well as committed PRO service support for a hassle-free LLC Company Formation in Dubai.
- Picking the Business Activity as well as a Trade name Reservation for Setting up a business in Dubai as an LLC
- Receiving approvals for the Trade name and Legal Business Form
- Getting the compulsory supplementary approvals from the DED Dubai for the chosen activities
- Preparing the Memorandum as well as LSA; Find a local sponsor in Dubai, shareholder resolution along with required agreements
- Submit the documents for review as well as primary approval
- Acquire your Physical Office space and Tenancy Contract
- Submit the Tenancy Contract and the initial approval documents to get the License for Setting up a business in Dubai as an LLC
- Apply for Residence Visa and Emirates ID as well as Open a Corporate Bank Account in Dubai
How to start a business in Dubai
Let discuss how to start a business in Dubai if the directors are outsider. You may know how to register LLC Company; JV or Branch setup in Dubai under FDI Law. Every year overseas firm come to Dubai for setting up a business in Dubai. Dubai is one of the major business hubs in the world with a mixture of multi culture. It has great markets along with spectacular products of Middle East. For setting up a business in Dubai you must need to register the company with the gov’t of Dubai. Starting a business in Dubai is very relaxed; but you need to follow a few simple steps. The entire set up process will complete within short period of time. Following are the main step to know how to start a business in Dubai
Select a Business Activity for how to start a business in Dubai
To know how to start a business in Dubai you need to understand the feasibility of your business setup in UAE; while choosing the activity; you would like to start and do a thorough research on the practicability of the business in the UAE
Select the Jurisdiction for Starting a business in Dubai
The selection of zone for setting up a business in Dubai is very important; Dubai Market is divide in to different zones; so that to increase the efficacy of each and every business setup. These zones are main land, free trade zone and Offshore choosing a jurisdiction totally depends on your demands; requirements as well as business activity at large.
Decide the Company Structure for Starting a business in Dubai
If want to know how to start a business in Dubai; then you first need to decide the type of legal form; or the company structure for your business at starting stage. Do it before licensing the company as it will support you to offer a proper layout for your company. UAE companies are under the company structure of Limited Liability, General Trading, General Partnership; and Partnership in Commendams, Public Shareholding, Private Shareholding as well as Joint Venture and Share Partnership. These can be decided founded on your jurisdiction as well as business activity.
Name and Activity Approval for Starting a business in Dubai
The Economic Department approves the trade name for you before you move forward and start the process of the company formation in UAE. The activity is also approved at this stage and required documentation is separate for the process of licensing.
License for Starting a business in Dubai
For company setup in Dubai there are largely four kinds of license; which you can pick from if you are looking how to start a business in Dubai. Those are Commercial License, Professional License and Industrial License as well as Tourism License. These licenses are mostly regulated in UAE mainland. However, the licensing structure in the UAE free zone is different as well as subjected to the business activity.
Register your Company
Company set up and licensing is an immediate process; yet the whole process of documentation along with approvals goes through several stages; and is known as registration of your company in the UAE. In this stage, you will have to acquire all the approval from the gov’t authorities. The documentation is different for each and every company type as well as activity.
Find a UAE Local Sponsor for setting up a business in Dubai
Finding a partner is one of the compulsory steps for setting up a business in Dubai. Finding a reliable partner who is a UAE national can be tedious for you. But there are a few good and trust worthy firms; who provide business setup services in Dubai they are partner with UAE local national. These business setup consultants in Dubai provide you a trust worthy sponsor; along with complete control over your business with zero interference.
Get your External Approvals for setting up a business in Dubai
DED demands on some external approval from some of the gov’t and non gov’t bodies. For example, you may need to get approvals from the municipality, banks and embassies etc.
Draft your Memorandum of Association
At this stage you need to draft an MOA. Before drafting the MOA also ensure to take expert advice; so that you can full fill the gov’t standards and your interests as well.
Rent an office and Get the Tenancy Contact and Ejari
Renting an office or getting a work space in a business center; is also one of the important stage of starting a business in Dubai. The office space need for some activities; as well as sanctions number of visas based on the office space.
It is central to acquire the tenancy and Ejari for your warehouse, factory or office space. You should exactly draft your agreement and makes a tenancy contract. It is also obligatory to be notarized as per the gov’t standards.
Finalize all company setup paper work
You need to complete an application for your company name as well as activity; which you need to provide it to the authority; along with the pass port copy of all the partners. Some free trade zones will need some more documents; such as a business plan or an NOC; which is a letter from an existing sponsor; confirming that you are allow to set up your own business in the UAE. While perhaps the most difficult of all these stages; there for you need to take an advise of the expert to complete your paper work. We can advise you on the paper work as well as help you to complete it.
Get an Initial Approval for starting a business in Dubai
Before receiving your Business License the Economic Department offer you an initial approval. It is basically a statement which allows you to perform your business until and unless you receive your Trade License. You need to submit the name reservation certificate, the passport copies of all the partners. And all the other approvals from the external departments. After that the authority will grants you the initial approval. The initial approval will allow you to start your business proceeding.
Collect your License
To get the license you need to submit the MOA; the License Application, name reservation certificate, external approval form; initial approval certificate, tenancy contract, EJARI registration certificate; pass port copy of all the partner, NOC for partners (if any); or all other specifications as per your business demands. You need to submit this to the authority along with the gov’t fee. You must get a license after in about a week from the authority.
Process your visa
And so we are in the final stage of company setup in Dubai. And applying for your own visa; most of the free trade zone allow you to put in applications for staff as well as dependents; the exact number you can submit will depend on which free zone you pick to form in. So, if you are searching to obtain visas for a spouse, child, maid and driver etc. It is best to search for an expert advice to make sure that firstly. It is possible to do so in your preferred free zone. And secondly, that both you and anyone you are going to sponsor. That is for a visa meet all of the entry criteria. Supposing this all checks out, the process is made up of four simple stages; entry permits, medical fitness test, status adjustment, then Emirates ID and visa stamping.
Open a bank account for starting a business in Dubai
Once you are done with setting up a business in Dubai. And you receive all the paper back. Then you will have all the docs that you need to open your bank account. The UAE is home to many banks, both local as well as international; including Emirates NBD, Abu Dhabi Commercial Bank and the Commercial Bank of Dubai; along with some global names, such as HSBC, Citi bank and Barclays etc. You can either approach the bank of your special or ask your business set up partner to arrange a meeting. That is with a number of bodies to support you choose the most suitable option.