There is a specific set of steps for business setup in Dubai. The UAE government is very strict with adherence to these business formation procedures, as it maintains the healthy corporate environment that the Emirates is known for.
Hence, if you plan of starting a business in Dubai, it is important that you are well acquainted with the steps. A specialist business setup consultant in UAE can help you in this regard. Moreover, here are the steps for business setup in Dubai:
1. Business Activity and Region
The first step is to determine business activities you wish to carry out. For instance, for import and export business, you should select a location with easy access to sea and airports.
You must also choose a region for your business. Dubai offers Mainland company formation, Free Zones and Offshore for company formation. Free zones offer 100% ownership but limits you to operating within that area. In contrast, mainland setup will allow you to operate wherever you please, but you will require a local sponsor to hold 51% of your company’s shares.
2. Pick Company Name
Next, select a company name that is both unique and falls under the regulations of allowed names by the government. Keep in mind that the government maintains the quality of all companies having objective names. Meaning that you cannot pick a name that has ties to any religious or political group. A business set up consultant can help you narrow this down.
3. Initial Paperwork
After establishing the business activity, region, and name, you can proceed to fill out the initial paperwork and send it to the DED (Department of Economic Development). If you wish to set up in the mainland, you will also need a Memorandum of Association with your local sponsor.
4. Office Space
A tenancy contract is a prerequisite to obtain a trade license in Dubai. Hence, find an office space that suits your businesses’ requirements and your budget. A business set up consultant can help you find the best options, such as business centers or co-working spaces.
5. Apply for License and Pay Fee
After you have all the required documents and an office address, you may proceed to apply for your trade license from the DED. Pending approval, all you have to do is pay the license fee and register your business in the Dubai Chamber of Commerce.
6. Open Bank Account and Apply for Visas
The final step is to open a corporate bank account and apply for your own visa and visas of your employees and dependents. The visa is mandatory in order to legally live and operate your business in the Emirate.
These are the steps for business setup in UAE. It is worth mentioning that setting up your business in Dubai may not be difficult, but the process may be arduous if you are not familiar with the laws and regulations. It is for this reason that we recommend the assistance of business set up consultancy in Dubai to guide you through it.
Contact us for more information.