How to Start a Small Business in Dubai?

BySakina Burhan

Starting a small business in Dubai is straightforward and offers lucrative business opportunities in various sectors. You can open a commercial business in the field of trading, foodstuff, etc. You can also provide professional services in the fields of grooming, repairs, tuition, and more.

Investors also have the flexibility to choose the business location of their choice and relocate whenever they wish to switch industries or expand their target audience. Furthermore, you’ll also get adequate support from the government to make a name for your brand in the marketplace.

How to Start a Small Business in Dubai?

Listed below are the steps to launch your dream venture in the UAE:

1. List Down Your Business Activities

You need to shortlist all the desired business activities required to carry out your company’s operations in the UAE. It’s important to note that be it a small business or a large enterprise – all need to submit this list to the concerned economic department for approval.

There are provisions to amend the

list once submitted. However, you shouldn’t rely on these options and ensure the list you submit covers all the required business activities needed to open your small business in the Emirates.

2. Trade Name Reservation

The next step to launch a small business in Dubai is reserving a trading name for your venture. The name you choose must be indicative of your business activities. Moreover, it shouldn’t be a gimmick of any other existing brand.

The naming convention guidelines a

lso state the business name you choose shouldn’t have any reference to a god or religion. Furthermore, the inclusion of derogatory terms or insulting words is also prohibited and punishable by law.

3. Finalize the Business Location

You might be thinking, “how to open a small business in Dubai at a low cost?” Well, the business location you choose plays a major role in this aspect. Therefore, it’s better to consult with the company formation experts at Shuraa.

We help you find the ideal business location that fits within your budget and doesn’t force you to confine your busi

ness aspirations. The local and foreign investors can launch their small business firms in the mainland region, in any of the free zones, or also in the offshore zones.

4. Apply for a Business License

You need to apply for a trading license based on your business type and associated activities. Investors can apply for:

  • Commercial License
  • Professional License
  • Industrial License
  • Tourism License

A business license is a document that affirms and legitimizes the permission to carry out the approved business activities in the UAE. Don’t forget that this license needs to be renewed annually. The best practice is to renew it at least one month prior to the expiry date.

5. Obtain External Approvals

It’s imperative to gather all the required approvals and consents from the various governing authorities in the UAE to enjoy risk-free business functioning in the country. These approvals can be obtained from the concerned economic department, municipality, trading regulatory bodies, transportation authorities, etc.

You don’t need to worry about obtaining external approvals when you collaborate with the legal advisors at Shuraa. We take care of the application process, document submission, and more for your convenience.

6. Open a Bank Account

Once you’re done with all the above steps, it’s time to open a corporate bank account for your legal entity in Dubai. You need to have an in-depth understanding of your transactional frequency, business model, and cash requirements to finalize the ideal bank.

Always choose a bank that’s reliable, and offers A-grade banking services. Remember, this corporate bank account will help you manage all the monetary transactions of your company for years.

Paperwork Involved in Setting Up a Small Business in Dubai

  • A descriptive business plan document
  • Duly filled application form
  • MoA and LSA agreements
  • Payment receipt of trade name reservation
  • Passport copies of all the shareholders in your company (if any)
  • NOC from your current sponsor/service agent
  • A valid tenancy contract

Launch your Small Business in Dubai Today!

Your decision to start a business in the Emirates is the right one, thanks to the endless benefits of commencing a company in this region. You can enjoy complete ownership of your business in a crime-free environment without being liable to pay any taxes (personal or corporate).

Moreover, the cost-effective business incorporation process and the right to repatriate 100% of your profits and capital gains make it a no-brainer to start a company in Dubai. All you need to do now is connect with the business consultants at Shuraa and get started with the legal procedures to establish your company in the UAE.