Business Setup in Dubai

 

Business Setup Packages in Dubai

Freezone
AED 11,900

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Mainland
AED 18,000

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Business Setup in Dubai

Dubai stands as a thriving nerve-centre for national and international business investors. It is a ground dedicated to extravagant luxury and high-tech facilities is one of the world's fastest-growing economies, with the most significant contributors to its GDP being real estate, trade, tourism, and financial services industries.

In 2021, the nation spurred the announcement of specific central performances to drive the economy. The overall strategy included five key pillars which hold:

  • Industrial strategy project worth AED 300 billion
  • Trading in the Murban crude oil
  • Launch of the Projects 50
  • Expo 2020 Dubai
  • Most significant legislative reform- President Sheikh Khalifa bin Zayed Al Nahyan

Are you an investor who is looking forward to business setup in Dubai? Then, glance through this guide and reap the benefits faster!

Cost of Setting Up a Business in Dubai

The business setup in Dubai cost structure varies depending on the business activity opted for. The below table highlights the respective prices.

Incorporation Duration Price (AED) Company Type Corporate
Tax
VAT Accounting
Professional Firm 1-2 Working Days 12,000 Mainland (DED) 0% 5% Yes*
Holding Company 5-6 Working Days 12,900 Free Zone 0% 5% Yes*
Dubai Silicon Oasis Free Zone 5-6 Working Days 12,900 Free Zone 0% 5% No*
Commercial Company 1-2 Working Days 14,000 Mainland (DED) 0% 5% Yes*
Branch of a Foreign Firm 3-4 Working Days 16,000 Mainland (DED) 0% 5% Yes*
JAFZA 4-5 Weeks 55,000 Free Zone 0% 5% Yes*

The freedom of hassle-free business incorporation has paved out numerous opportunities for SMEs. Have a glance at the Initiatives taken by UAE for SMEs to understand the same.

Business Setup Services in Dubai

The continuous spike in the mainland business setup in Dubai boomed the economy significantly. This has also escalated the requirement for the other compatible services. A few of the highly opted services include:

Business Incorporation Local Sponsor Legal Advisory
Accounting & Audit Services Tax & VAT Consulting Branch office
Intellectual Property Protection PRO Services  

Types of Business Incorporation in Dubai

Dubai offers different establishment zones to business folks to step in and convert their dream business into reality.

Mainland

This is one of the most lucrative options that investors can move forward with. The mainland companies can function and operate their business activities within the boundary of the Emirati jurisdiction.

The incorporation process gets completed when the relevant government authorities issue the approvals.

It is worth noting that one of the key aspects that govern the laws of the Dubai mainland business is the company equity share. As a part of the process, a local guardian (individual or entity) is appointed to hold 51% of the claims.

Business entities also can extend their branches in other parts of the Emirate and the nation.

Freezone

This is the next preferred option that is opted by the business investors whose primary concern is "Cost". These zones are defined jurisdiction that focuses on pre-defined or specific business activities.

One of the core advantages that the investors avail is the 100% ownership of the business. Apart from this, various tax benefits and 100% repatriation are relevant perks.

More than 30+ free zones in Dubai are dedicated to specific business activities, making it easier for business investors to step forward and invest.

Offshore

This is one of the widely opted segments by established business investors. Low or no-tax and overseas status are the essential pointers that grab the owners' attention.

The offshore destination is widely preferred by investors who want to safeguard their assets and wealth from competitors or experience tax exemptions.

Impact of COVID-19 on UAE Economy

There is no doubt that the pandemic had adverse effects on the global nations and UAE too was a part of the catastrophe.

However, the United Arab Emirates have bounced back with massive digital transformation in the business segments, which had a massive impact on the new business setup in Dubai.

The Emirate launched a Creative Economy Strategy to boost the GDP up to 5% by 2025. The zone has a wider opportunity for part-time business as well. Have a look at our latest guide on How Can You Start a Part-Time Business in Dubai.

As per a recent study, Dubai was one of the highly targeted investment zones in 2021, with a massive growth of 69% in the first ten months.

  • The tourism industry has seen a significant rise where 32,626 licenses were issued that proved Dubai's stronghold.
  • The e-commerce market is targeted to reach $8 billion by 2025
  • A total of 31,000 business licenses were issued in the first six months of 2021

Similarly, there has been a massive rise in the other business industries that collectively contribute to the overall economy's growth.

A new business entity has all the possible options of selecting the proper business structure to the dedicated business zones to meet the business requirements at ease.

To get a better idea of the Emirate's impact, follow our latest guide on the Impact of Dubai's Current Economy on New Businesses.

Advantages of Setting Up a Business in Dubai

The establishment of a business unit in Dubai comes along with a long list of benefits, which includes:

  • A strategic location to enter the international market
  • No limitation on visa
  • The easy business setup process
  • No restrictions on global hiring
  • Excellent opportunity to expand business in the form of branches
  • Flexibility to take government projects
  • Easy office space availability

Business Setup Company in Dubai Process

A business setup in Dubai turns out to be a fabulous choice if you plan to expand your business overseas. Knowing the advantages, limitations, and the process turns out to be a boon for the business investors.

Undoubtedly, it becomes a hassle for the new investors to understand the complete legal proceedings. Therefore, most business professionals prefer to get in touch with business professionals to process the same smoothly.

The steps to be followed are highlighted below:

1. Select a trading name for business

Deciding a business name might sound easy; however, it is not the same in reality. First, you need to understand that your trade name stands as the face of the organization, and before you finalize one, make sure to conduct groundwork and research on the competitors.

2. Finalize the type of business structure

The next step is to finalize the business entity type that entirely depends on the availability of the capital and the number of shareholders willing to enter the contract.

3. Draft & Submission of the relevant documents

Next, the documentation process is to be cleared, which marks the completion of the incorporation process.

The generic set of papers to be submitted involves:

  • Filled application form
  • Identity and address proofs of the business shareholders & investors
  • Business plan
  • Memorandum and articles of association

4. Obtain the relevant approvals

The documents then are handed over to the government authority, who takes a call to issue the license. If any rejection occurs, make sure to recheck the papers and rectify the errors accordingly.

Apart from the business license, an establishment card is issued by the Ministry of Labour (MoL)

5. Open a bank account

Lastly, you need to open a corporate bank account to carry out business transactions efficiently. The requirements might differ from bank to bank; however, the process requires a director and shareholder.

If it is offshore, an offshore bank account is to be opened accordingly in an offshore jurisdiction.

As a result, collaborating with specialists pays off because it streamlines the process. Commitbiz is one of the best business setup company in Dubai that has assisted innumerable business professionals in transforming their business dream into reality.

If you are looking forward to assisting, please discuss with our experts. Contact us now-we'd be glad to support you!

Frequently Asked Questions (FAQs)

1. What are the major business licenses in Dubai?

The major business licenses in Dubai include:

  • Industrial
  • Commercial
  • Professional
  • Tourism
  • Agricultural
  • Occupational

2. What is the statutory tax rate in Dubai?

The statutory tax rate in Dubai is 9% for income exceeding 375,000 UAE Dirhams ($102,000)

3. Who is eligible for a local sponsor in Dubai?

The individual has to be a UAE national and should be above 21 years & can be a professional, business owner, or government employee.

4. Which is the common business structure in Dubai?

Limited Liability Company (LLC)

5. Which is the most preferred jurisdiction for freelancers in Dubai?

Freezone