Starting A Business in Dubai: Your Step-by-Step Guide in 2022

BySakina Burhan
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Dubai provides one of the best business ecosystems for your novel endeavor. Apart from being a city of architectural marvels, it is one of the most industrious grounds for new businesses. Whether it is small-level start-ups, medium sized enterprises, or huge corporate firms, Dubai provides all the benefits required for an entrepreneur. Currently, it houses millions of companies of different verticals. Hence, starting a business in Dubai can be a profitable option for investors who want to accommodate all the technical, administrative, and financial features in one go. 

Nevertheless, it isn’t as easy as it sounds. When you are planning to start a business in Dubai, you need to be well-armed with all the right information and business growth strategies. Besides, you must be able to detail your project idea with your potential clients and authorities. An expert’s assistance can definitely make this effortless. 

So, if you want to explore how to set up a company in Dubai, learn all the necessary aspects in this blog and approach Shuraa to assist you with the formation process. 

Advantages of starting a business in Dubai 

Setting up a company in Dubai has several significant advantages, such as – 

  • Quick incorporation 

Dubai offers quick incorporation of business with a simple procedure yet speedy operation. This enables entrepreneurs to launch their ventures in a short time. Moreover, the business laws and policies in Dubai are very flexible which allows business owners to enjoy more freedom in exercising their functions. 

  • Variety of activities 

There are over 2000 economic activities permitted by the UAE authorities to carry out in Dubai. Hence, investors can choose the ones they want to operate in Dubai and also obtain a license for the same. 

  • Advantageous tax system 

Dubai allows companies full exemption from paying any kind of taxes such as income tax, corporate tax, or personal tax. Similarly, offshore companies are exempted from VAT(Value Added Tax) as well. Also, no withholding tax can affect you or your business operations. Thus, this taxation system attracts many entrepreneurs from all around the world to start a business in Dubai with reduced costs and increased profits. 

  • Full ownership 

As per the foreign direct investment regulations, the foreign investor can hold 49% of the total shares, while the local partner is entitled to the rest 51%. However, foreign investors in the UAE can hold 100% of the company shares and be the sole owner of their businesses. 

  • Stable country 

The United Arab Emirates is a country with political, economic, as well as banking stability. Its rapid growth, dynamism, and international recognition make it popular among other developed nations. In fact, the banks in Dubai are so supportive of foreign investors and businesses. The banking network is wide-ranging as well as flexible to entrepreneurs. 

Other major advantages include – 

  • The commercial capital city
  • One of the highest earning countries in the world 
  • Location flexibility 
  • No control over foreign exchange, quotas, or trade barriers 
  • A global business hub 
  • A vibrant and highly competent economy
  • Modern infrastructure 
  • Diverse population 
  • Presence of major multinational companies and big brands 
  • Well-equipped transportation system 

Types of licenses available for Dubai Company formation 

  • Commercial license 

Companies in Dubai that are involved in trading, product buying, or selling activities must obtain a commercial license. This particular license covers activities like import & export, sales, logistics, travel & tourism, real estate, etc. 

  • Professional license 

Professional service providers, artisans, and craftsmen require a professional license in order to deliver their services legally in Dubai. Professional services include activities one is proficient at, such as beauty salons, medical services, repair services, etc. 

  • Industrial license 

An industrial license is issued to those companies that carry out manufacturing activities that transform raw natural materials and resources into the final product. It can either me manually or with the help of machines. Textile manufacturing, metal manufacturing, paper manufacturing, etc. are some of the businesses covered under this license. 

Procedure for starting a business in Dubai 

Here are some basic steps to follow in order to set up a company in Dubai – 

  • Upgrade your business idea 

Before you step on to starting a business in Dubai, you need to have a unique business idea and a clear knowledge of what you want to do. This will further help you to achieve your organizational goals. While refining your business idea, you need to consider the following pointers:- 

  • Beginning of the project 
  • The target demographics 
  • Types of products and services
  • Availability and accessibility of the products and services to the potential consumers 
  • Utility and efficacy of the products and services 

  • Define the nature of the business 

The nature of the business refers to the kind of activities you wish to perform in your company. There are more than 2000 options of business activities one can choose from under the industrial, commercial, professional, and tourism categories.  Then accordingly, you apply for a business license based on the nature of your business. 

  • Do market research 

Once you identify the nature of your business, the next step is to do market research to identify the winning strategy. Ensure to sort out the hobbies, likes, and interests of your potential consumers. Also, try to identify the gap and fill it in with your resources and schemes. This will enable you to identify your target market and penetrate it, which will further facilitate the creation of appropriate policies and marketing strategies. 

  • Create a business plan 

One of the primary components of a business plan is the business funds or capital. Once you have analyzed the market, it’s time to arrange for the requisite funds. The most common way to arrange those is by taking a loan or credit from any individual or institution. Nonetheless, it can be possible only if you have a detailed plan for your business project. Therefore, make sure to include every vital information in your plan, including the pitch, the benefits, target audiences, solutions, marketing strategies, SWOT and environmental analysis, and overall financial projections. 

  • Choose a company name 

Selecting a brand name is the most challenging part of business formation. The name of the company is the brand identity which helps the customers to recognize your business and eventually develop the brand. However, there are certain rules to follow while choosing a brand name for your company. For instance, 

  • No clashing name or brand
  • No use of obscene or derogatory words 
  • Unregistered name 
  • No references to any religion, community, or group. 

  • Decide the jurisdiction 

When you fix Dubai as your business base, you need to determine whether you wish to establish your company in the mainland, free zone, or offshore. Each of these jurisdictions has its own unique set of pros and cons. So, based on your requirements, trading activities, product and services, and business type choose a jurisdiction that fulfills all your corporate preferences. 

  • Determine the legal structure of the company 

You can determine the legal structure of your business according to the jurisdiction you choose. There are different corporate structures available for company formation in different locations, i.e., Dubai Mainland, Dubai Freezones, and Dubai Offshore. Hence, choose the one which matches your business activities and preferences. 

Once you fulfill the above requisites, you need to further follow some basic simple steps for business registration as well as license acquisition. 

  • Draft the MOA 
  • Acquire prerequisite approvals and permissions 
  • Apply for a license 
  • Find office space for rent 
  • Submit the supporting documents
  • Process the required visas 
  • Establish a corporate account in the bank

You may like it: Steps to Acquire a Residence Visa in Dubai

Documentation requirement for starting a business in Dubai 

While submitting your application to the DED, you must include the following documents as well – 

  • Application form for registration 
  • Passport copy of the business owner and the local partner, if any 
  • No Objection Certificate (NOC) 
  • Emirates ID 
  • Attested Memorandum of Association
  • Tenancy contract 

Starting a business in Dubai can be a tedious task, but Shuraa Business Setup has the answers to all your queries. So, reach out to us at +971 44081900 and avail our services at reasonable prices. Visit www.shuraa.com for more details.