Setting Up a Business in Dubai

Are you considering setting up a business in Dubai? If yes, then it is the best time to do the business setup in Dubai. The United Arab Emirates is a federation of 7 emirates, out of which Dubai is one of the most famous and populated emirates. Dubai has become a leading business hub in the Middle East. Company registration in Dubai offers a range of benefits, from tax advantages to access to a diverse market. 

Dubai has consistently ranked high in global competitiveness indices, and its non-oil economy has grown by a significant percentage in the last 10 years. Now, if you’re wondering whether it is easy to set up a business in Dubai or not, the answer is yes. The process for business registration and setup is straightforward and hassle-free. 

From selecting the right business structure to obtaining the necessary licenses and permits, we will cover everything you need to know to successfully establish your business in Dubai. 

Why set up a business in Dubai? 

Setting up a business in Dubai offers a wealth of benefits and opportunities that make it an attractive destination for entrepreneurs and investors alike. Here's why company setup in Dubai could be advantageous: 

1. Easy Business Setup 

The streamlined business setup process, with various options like mainland, free zones, and offshore, makes it efficient to establish a company. 

2. Expat-Friendly 

Dubai is renowned for its welcoming atmosphere for expatriates which makes it easy to attract and retain international talent. 

3. Government Support 

Dubai provides strong support to businesses through initiatives, incentives, and a proactive approach to regulatory frameworks. 

4. Corporate Tax Exemption 

While the UAE government has recently introduced a corporate tax of 9% effective from June 1, 2023, this will only apply to taxable profits exceeding AED 375,000. This threshold means that many small and medium-sized businesses will continue to enjoy tax-free status. 

5. 100% Foreign Ownership 

In many sectors, foreign investors can own 100% of their businesses. 

6. Beyond Oil 

Dubai has successfully diversified its economy, creating opportunities in sectors like tourism, finance, real estate, and technology. 

7. Growing Consumer Market 

Setting up a Business in Dubai: Step-by-Step Process 

Setting up a business in Dubai involves several key steps and requirements. While specific details can vary depending on the type of business and chosen jurisdiction (mainland, free zone, or offshore), here's a general overview: 

Step 1: Business Plan  

The first step is to prepare a detailed business plan. Do your research, learn who your competitors are, the best location for you, how you will execute your business activities, etc. Moreover, decide the nature of your business and select your business activities.  

The Department of Economic Development provides over 2000 business activities to choose from. Select the activities and submit them along with your business registration application.  

Step 2: Choose Your Business Structure 

• Mainland Company: Operate within the UAE, engaging in trade with both local and international markets. 100% foreign ownership is permitted for certain business activities. 
• Free Zone Company: Operates within a designated free zone, enjoying tax benefits and 100% foreign ownership. 
• Offshore Company: Primarily for holding assets and tax planning, with limited operational activities within the UAE. 

If you choose to set up a business in any one of the free zones, you might not be able to do business outside that particular free zone. However, if you do business in a mainland region, you can do business anywhere in the country and internationally. Choosing the location solely depends on the type of business activities you select. 

Step 3: Choose a Business Name 

Select a unique and memorable name for your business that complies with Dubai's naming conventions. Ensure the name is available for registration. 

Step 4: Obtain Initial Approval 

Apply to the Department of Economic Development (DED) or the relevant free zone authority. Provide required documents, including passport copies, visa copies, and a business plan. 

Step 5: Office Space 

You need to rent an office space to carry out your business activities or can work on a virtual address depending on the Business. Make sure to check for all the hygiene and dimension conditions. Also, secure the property paper and location maps. Once you rent the space, register it with Ejari and get your tenancy contract. Free zones often provide office space options within their designated areas. 

Step 6: Obtain Business License 

The Dubai government offers different types of business licenses, including professional, commercial, industrial, and tourism licenses. Apply for essential licenses and permits based on your business activity. This process may involve multiple government departments and can take time. 

You may also require additional permits and approvals, depending on your business activity. 

Step 7: Open a Corporate Bank Account 

Select a suitable bank in Dubai and provide the necessary documents to open a corporate bank account. 

Step 8: Visa and Residency 

Obtain appropriate visas for yourself and your employees, if applicable. Explore residency options based on your business structure and investment. 

Step 9: Comply with Legal and Regulatory Requirements 

Adhere to UAE labour laws, tax regulations, and other legal frameworks. Maintain proper documentation and records. 

It is highly recommended to consult with Shuraa's business setup experts for accurate and up-to-date information regarding business setup in Dubai. 

Documents Required for Business Setup in Dubai 

Here's a general list of essential documents required for setting up a business in Dubai: 

For Business Setup: 

• Passport copies of shareholders and directors 
• Visa copies (if applicable) 
• Business plan outlining the company's objectives, operations, and financial projections 
• Memorandum of Association (MOA) 
• No Objection Certificate (NOC) from the sponsor (if required) 
• Lease agreement for the office space 
• Bank reference letters for shareholders 

For License Application: 

• Completed application form 
• Business plan 
• Passport copies of shareholders and managers 
• Lease agreement for the office space 
• Initial deposit (as required by the licensing authority) 

Post-Setup Documents: 

• Emirates ID for shareholders and managers 
• Establishment card 
• Trade license 
• Tax Registration Certificate (if applicable) 

Please note that our professional business setup experts can assist you in gathering and processing the required documents. 

Cost of Setting up a Business in Dubai 

The base license cost for setting up a company in Dubai typically starts from AED 12,900 to AED 30,000. However, the exact cost of setting up a company in Dubai varies significantly based on several factors: 

• Type of business structure: Mainland, free zone, or offshore 
• Business activity: The specific license required will influence costs.    
• Office location: Prime locations tend to be more expensive. 
• Number of visas: The cost will increase with the number of employees. 

Dubai Free Zone often offers more flexibility and lower setup costs, but specific fees vary depending on the free zone. It's advisable to consult with business setup consultants at Shuraa for accurate estimates based on your specific requirements. 

Let’s Build Your Dubai Business Together 

Setting up a business in Dubai is an exciting opportunity with many benefits. From its great location and tax perks to its top-notch infrastructure and business-friendly environment, Dubai is just the perfect place for your business to grow.  

However, starting a business can be complex, especially if you're new to the local rules and processes. That's why getting help from an experienced business setup consultant like Shuraa is a smart move. With over 23 years of experience, Shuraa Business Setup can handle all aspects of setting up your business, making the process smooth and stress-free at every step. 

At Shuraa, our experts take care of everything for you, including company registration, licensing, visas, office space, and paperwork. Don't let the challenges of business setup in Dubai hold you back. Take the first step today and contact Shuraa Business Setup.