How to Start a Small Business in Dubai – A 2021 Guide

How to Start a Small Business in Dubai – A 2021 Guide

by Zaara 15, Apr 2020

Dubai is known as the commercial hub of the middle east because of its enormous resources and tax liberalism by the government of the UAE. Dubai is the most expensive city in the UAE. Many seven-star hotels, ornamented malls, and hundreds of tourist places drive the attraction of millions of outsiders. Every year millions of investors incorporate their company in the UAE. To make it more feasible for foreign investors, the Dubai government classified the business center as the mainland, free zone and offshore. Investors can invest their capital according to their willingness for company formation in the UAE.

Initially, every business is considered to be a small business. After a certain period of time, the business tends to achieve its goal and create a name tag of the company. For a successful business, the first step for you is to move out of your comfort zone and make exposure to your business. The UAE is famous for its old tradition of doing business which has helped a lot of investors to incorporate their business and also helped the local economy to evolve in a great way.  With the vast competitiveness among the businessmen, every year the local GDP touches a new peak by breaking its own record. It is now easier for the small business set up in the UAE to establish their own local business incorporation. The formation of mainland and free zone areas in the UAE helps to develop or facilitate the better domestic economic growth of the country. So to set up a business requires a keen knowledge about the company formation in those areas. Based on the registration process and the approval of land businessmen prefer mainland areas in the UAE. Incorporating a small business under the mainland company formation requires the preferred business needs and business targets.

Mainland Company Formation

Mainland company formation includes 100% foreign ownership. The main purpose of the mainland company formation is the welfare of the local community. Some of the permissible business allowed are the business for the medical practitioners, legal attorney general, and some more professional services are allowed in mainland  Dubai. To manage various legal obligations and different administrative services, a local service agent is required.

Offshore Company Formation

In the offshore company formation, the parent company can opt to choose another branch company. Some of the legal obligations required for the formation of offshore companies are

  • Registration and licensing process form from the Department of Economic Development (DED)
  • A local Service agent is required to accommodate the administrative activities, guide through the local regulations, and company filling and registration process.
  • Permission from the ministry of the economy for company shareholder details.

Freezone Company Formation

a free zone or free economic zone free trade zone or is a designated geographical area by the government where certain restrictions and taxes on the company, employment or trade do not apply in the same manner as they apply to the country in which the business zone is established.

In a free zone, goods may be owned, landed, handled, manufactured, reconfigured or re-exported without the interruption of the customs authorities. They become subject to the regular customs duties Only when the goods are moved to consumers within the country in which the zone is located.

A free zone is often organized around major seaports, international airports, and national frontiers - areas with many geographic advantages for trade.

To start a small business one must be aware of the rules and regulations that the UAE has established itself as an investment attraction due to its trade free zones that permit foreign investors to open their own business. The nation has got more than 30 free zones for business purposes that have boosted the economy of UAE and have renamed this city as the investment hub.  For business incorporation, Any company must have at least one national member for fulfilling the legal obligation.

 The most significant step to initiate the process of setting up their business is, to obtain a No Objection Certificate (NOC) from their present company. This can be regarded as a complicated process because Most of companies don’t allow their employees to hold a NOC. To eradicate such a complicated process, the emirates have five zones that don’t require a NOC.

Cost of setting up a business

Setting up a small business involves estimating the overall cost of business and raising capital investment, paying for licenses and wedges for the employee. The cost of setting up a company depends on these factors:

  • The nature of the activity and permission the business owner required; whether it is an industrial, commercial, or service-oriented organization.
  • The legal form of the company; whether it is a company or a branch of a company.

Whether it is a small business or a larger venture, budget settlement and capital management are some of the prime factors that you should consider before setting up a business.

We at Commitbiz helps you to assist you at every step of your business incorporation. Starting from the registration for the business, licensing and document verification are some of the services provided by our company. Contact us to avail of all the services of our country for the business incorporation. We will be glad to assist you at every step of your business setup in the UAE.


Whether the government provided many incentives for growing business in UAE?


Which is the best location for starting a business in the UAE?


What benefits would you get if you started your business in UAE?

  • 0% corporation and personal tax
  • 100% foreign ownership 
  • import and export tax exemptions

Can I open multiple companies in UAE?

 The UAE’s lucrative business laws allow investors to incorporate more than one business into their name.

How long does it need to open a company in the UAE?

Depending upon choosing the right consultants may help you establish your business in the UAE in just three days.


Start your Entrepreneurship Journey Today in UAE from AED 5,760

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