10 Things to Focus on Before Doing Business in Dubai

by Zaara 12, Mar 2020

10 Things to Focus on Before Doing Business in Dubai

Dubai is one of the preferable places to visit in the world. It is a successfully diversified city and one of the emirates in the UAE. Most people look forward to setting up a business in Dubai since it is a tax-free city. The government is very supportive, and it also encourages people from all over the world to start a business in Dubai.

On the other hand, it is not so easy to set up a business in Dubai. There are some complications which are to be considered by the businessman although, there are a lot of benefits. It might not be easy for outsiders to understand the complete functioning and to set up a business in Dubai.

1. Supportive Approach Government

The UAE government is the most harmonious in the world. It has set a fabulous benchmark in the world as well. The government give a great opportunity to start a business in Dubai from time to time.   It also encourages a variety of investment from all over the world.

2. Selection of the License Category

In the UAE if you are planning to start a business in Dubai the first and most crucial step is to choose the license very wisely, like for which license you have to apply for your business, and it should be a valid license. So just don't choose a license randomly.

There are different types of licenses few of them are as follows.

3. Clarity About the Zonal Distribution

Before setting up a business in Dubai, you should always have clarity about the zonal distribution. There are mainly three zones which are free zone, offshore, mainland respectively. These zones areas are separated based on their business activities, taxation and many more.

4. Ensure Compliance with Legal Work

The government of the UAE is very delicate about the legal and paperwork of the company. So it is always better to complete all the legal and paperwork on time, as otherwise there will be more chances of heavy fines on the company.

 5. Different Ownership Options are Available

To start a business, you should know about the variety of ownership option available in Dubai. If you want to own your business, 100% then always set up a business in a free zone area. If you choose to maintain partial ownership, then you must have a local sponsor and a local sponsor should a UAE national only who will have a 51% in your business. It depends on exactly what type of business you want to start a business in Dubai and in which zone you are planning to open.

6. Understanding the Tax Regime

You should have a great understanding of the tax regime in Dubai if at all planning to start a business. In Dubai, the free zones have zero taxes and the mainland area contain 5% VAT. So if you start a business in a free zone, you don't have to pay any corporate taxes, no personal taxes and many more but if you start a business in the mainland then have to pay 5% vat.

7. Benefits of Free Zone

If you start up a company or business in Dubai, then you should know the benefits of free zone it allows you to own 100% foreign ownership. You won't be bound to keep and local partner (UAE national). The other important benefit of free zone area is that there are no customs duties on import and export. You will also have full control over your assets. Another significant advantage is that there is 100% repatriation of capital and profits from your business.

8. Registration of Trade Name

You must have a trading name of a company and select a trading name which resembles what type of business you are going to do. After choosing the trade name, you must go for the registration of the trade name, which will be done by the Department of Economic Development (DED). You should have a prudent approach to legal work.

9. Cost of Setting Up a business

To start a business, it is essential to know the cost of starting up a business in Dubai. It makes you easier to start any business if you get the idea about how much it will cost.

It depends on which area of the zone you are going to start a business and also depend on what type of business you are going to start. Each of the zones whether it is a free zone or mainland each have their benefits and have a different cost to start a business.

10. Get Business Experts Advice

It is essential to approach and get business advice from experts. There are plenty of local business advisors in Dubai who will help you to start a business in Dubai. Business advisors consultants will guide you in each step to reach the right path in setting up the business. They will guide you up from the first stage to the last stage of starting up the business.

Are you confused about how to manage all this? From where to start and what to do and whom to approach? Then sit back and relax, as Commitbiz business setup services are right here to help you to start your business in Dubai. Our experts will guide you from the first step of the documentation to the final stage of the working of the company. We will be glad to work with you. To know more about Commitbiz consultants, please contact us.


Is Dubai the right place for doing business?

Yes, Dubai is an ideal place for doing many business activities.

What are the different kinds of business activities that can be done in Dubai?

The different business activities one can do in Dubai are,

  • International trading

  • Import and export business

  • Logistics

  • Tourism

  • Hospitality

  • Event management

Which is the best freezone for starting a business in Dubai?

The Dubai South Freezone is the best freezone for starting a business in Dubai.

What are the top five industries for a start-up business in Dubai?

  • Import & Export

  • Healthcare

  • Real Estate

  • Information Technology

  • E-commerce

Does a license required for setting up an onshore company in Dubai?

Yes, depending on the activities you want to develop, you need to apply for a specific license.

Do you need a business license for an offshore company?


Can the offshore company conduct any commercial activity with persons within the UAE?


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