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How easy is it to start a business in Dubai?

In the world of business, Dubai is the place to be! There are no taxes in the city, and the infrastructure is world-class. Dubai is a great place for entrepreneurs to start a business for many reasons. A company can easily get started in Dubai due to its high level of ease of doing business. However, The process of establishing a company is fairly straightforward despite some restrictions for foreign investors. 

It is a city of gold that offers huge opportunities for businesses all over the world, as well as innovative commercial modules. There is no fee to establish a company in the UAE, and the process is extremely straightforward. Although regional knowledge and a broad understanding of the many customs and regulations is required, it will be worth it in the end. Therefore, to ensure that your business is properly set up, it’s advisable to hire an organization that is not only able to assist you with the process but can also suggest the best licenses and setup types based on  your needs.

By using business setup services, you also eliminate the risk of errors and omissions that can delay and lead to rejection of your license applications and visa applications. Additionally, having to provide the requisite documentation and some basic information about your business is all that you’ll need from an UAE company formation specialist. That’s how simple it is.

Start a business very easily in Dubai with these simple steps

As a foreigner or expat in Dubai, you will need to follow these steps

  • Dubai Visa Application

If you’re a foreigner who wants to start a business in Dubai, you must consult an embassy to get a visa. For business owners wishing to open a company in Dubai, the UAE offers several incentives. The formation of a business is quick and easy. Getting a Dubai visa will be a prerequisite to setting up your business. The country will allow multiple entries. For immigration purposes, you must present the following documents:

  • Submit the Completed visa application
  • Color photographs
  • Passport
  • Details of tickets
  • Information about your visit
  • The security amount
  • Statement of bank accounts
  • It may be necessary to provide additional details
  • A license is required

A license from Dubai’s Department of Economic Development(DED) is required to set up your company there. Commercial licenses, industrial licenses, and professional licenses make up the three types of business licenses.

  • Business Plan

Setting up a business in a new country, especially if it’s a whole new region, can be challenging for foreigners. The process of owning a business isn’t complicated. The planning and preparation process requires a lot of time and effort. Business plans outline all of the basic formats of your business and are necessary to start a company. 

In order to form a business, you need to take the following steps:

1. Choose an entity for your company

Choose the type of business that will best suit your needs. Your business license requirements will be determined by this.

2. Name your company

It is crucial that the company name reflects the business’s nature.

3. Locate local partners

A local sponsor requires if you choose to set up a business on Dubai’s mainland. Your company will mainly own by the sponsor. For those planning to establish a business in a Free Zone, this step is not necessary.

4. Obtain preliminary approval

Please submit your application along with any supporting documentation for initial approval.

5. Draft your Memorandum of Association

A Memorandum of Association (MOA) outlines how the company’s external activities will be conducted. Dubai courts will have to notarize this document.

6. Process your payment

A payment voucher will be provided to you when all your paperwork is in. Once you receive the payment voucher, you have 30 days to pay for your license.

7. Register your business

The Chamber of Commerce and Industry of Dubai welcomes you to register your business. If you engage in certain business activities, there may be additional steps to take.

8. You need a business location to run your business 

It is a requirement for every business in Dubai to have a physical location. Interested parties must submit the tenancy agreement, the Real Estate Regulation Authority (RERA) documents, and the EJARI application before the DED can give its initial approval.

The process of starting a business in Dubai will be easier if you do so in a free zone

It is relatively easy to start a business in a free zone. Documentation and duration requirements for free zones are minimal. Your business should form under a legal entity. One of the following types of companies can establish in a free zone:

  • Limited by Guarantee (FZ LLC) or Limited by Guarantee (FZ Co.)
  • Established by FZE (Free Zone Establishment).

In addition to the number of shareholders, there are differences in whether the shareholder is an individual or a company. Some free zones may not accept companies of both types. Individual free zone authorities will be able to inform you of the type of company they can register. Your company’s legal entity and trade name both need to be decided before you start the business.

To determine if your intended trade name has already registered, you should contact the Department of Economic Development or either the free zone authority.


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