7 Steps to Start a Business in Dubai

by Zaara 06, May 2020

Before setting up a company in Dubai you have to go through various legal entities of the company. Once all the legal procedures sorted it would hardly take a week for setting up the business in the UAE. The legal obligatory can be a troublesome procedure if not considered properly. So before settling the legal formalities, you need to consider some of the basic elements for staring a business in Dubai.

1.Determine the Type of Business

The type of business will be the determining factor of the kind of license you need. The basis of the company and operation defines the license would be commercial,  industrial, or professional. However, while choosing, remember that certain activities such as food trading, oil, and gas business, ornament trading and legal consultancy require further approvals from other governmental departments. You can choose from the list of more than 2100 activities of the  Department of Economic Development (DED) in Dubai. While selecting remember that each free zone has its own rules and regulation that you should obey.

2.Ownership Selection

As an outsider, if you'd like 100 percent ownership of your company, you need to go for a license and location in one of the many free zones of the UAE. There are more than 45 free zones in the UAE with different categories of operations, so you have enough options for choosing among them.

If you need to operate your business locally or that you need a local license. Then you have to get a permit from the Department of Economic Development (DED). The DED license comes with specific regulations and restrictions on the share of ownership for foreigners, based on different legal structures under DED.

3.Entitlement of Trade Name

Your trade name is a major part of the legal procedure. The company name should ideally indicate the nature of the business unless it is a branch of another company. Trademark registration is a very crucial entity for avoiding the imitation of the company. All the rules regarding trade names can be seen on the DED official website.

4.Legal Proceedings

Depending on your location of the business and type of company, there are specific rules and regulations regarding the make-up of your firm. If you plan on a legal consultancy firm, this can be done only as a stand-alone company or a branch of the company. A sole proprietor in Dubai is not permitted to take up for the legal consultancy activity. Each free zone has its restrictions regarding company structure, and you can look these up on the official website of the region.

5. Share capital

For setting up a company, a minimum amount of share capital should be planned out in the Memorandum of Association of your proposed organization. In most cases, you do not have to pay minimum capital at the time of setting up. If you are planning for a bigger organization, then you must have to figure out the employee structure and according to that, fix your capital investment.

6. Recruitment of Employees

A business startup can be done when employees get hired according to the various departments. In most legal forms of the DED, you need to hire a manager to oversee operations and analyze the cash flow structure. The manager has to be ready to be on board before your registration is approved. For the recording of all the transactions of the organization, an accountant is to be recruited.

7. Local support

According to DED regulation, it is compulsory to have a local agent, sponsor, or partner, and this is excellent support for foreign nationalities. For free zones, this is not mandatory for having support. But local contact can help to take the business forward easily and effectively. Dubai, as a business hub, boasts easy set-up for all businessmen regardless of the nationality of the businessperson.


Business incorporation is not a difficult task in Dubai because of its liberal rules and regulations. Commitbiz business setup services provide every kind of assistance for the establishment of the business in Dubai. Registration of a company, licensing, document verification are some of the prime services of our company. Contact us to get a brief overview of our company and its beneficial and useful functions.