Dubai is the business hub of the Middle East. With its liberal economic policies, double taxation treaties with most countries in the world, modest corporate tax rates, lavish infrastructure, and access to trade routes, Dubai has become a location of choice for companies and entrepreneurs looking to set up a business in Asia.
The main industries in Dubai are tourism, real estate, financial services, and aviation. These and many others are fortified by the presence of sectoral free zones in UAE, which provides for zero taxation, 100% foreign ownership, and full repatriation of capital and profits.
Considering these advantages, setting up a company in Dubai is indeed a very lucrative proposition. And it’s not that difficult either – if you have the necessary documents and approvals in place, setting up a business in Dubai can be done in less than a week. However, for a newcomer to Dubai, learning the ropes of setting up shop here can be quite something. But don’t worry – we are here to guide you through the process of setting up a business in Dubai. Just follow these steps.
How to start a business in Dubai?
1. To set up a mainland company in Dubai, a local sponsor is required. A local sponsor means a UAE national (or a company that is 100% owned by UAE nationals) who acts as a service agent for your company in the UAE, usually also acting as a sleeping partner of your company. A detailed agreement, setting out the responsibilities of the said sponsor towards the company as well as his annual fees, must be prepared. A no-objection certificate from the local sponsor is required to run your business operations.
2. Prepare a Memorandum of Association (MOA) for your business. This is a document listing the basic terms on which a business must operate, such as:
- The main objective of the company
- Capital investment
- Issue of shares
3. Obtain preliminary approval for the business by notarizing the Memorandum of Association (MOA) at the Department of Economic Development (DED), Dubai. This is best done through a lawyer or business establishment consultant.
4. Choose a business name and register it with the DDE. The name must be unique and relevant. The DDE has the power to reject or change the name in case a business with a similar name already exists.
5. Arranging an office space for the company – this is a prerequisite for obtaining a license for the company. The office rental or property contract serves as proof of a registered office address. In the case of an offshore company, the address of the registered agent (appointed by the company from the approved list of registered agents in the UAE) can be provided as the official address of the company.
6. Apply for a business license , which is also issued by the DDE. A license can be one of the following types, depending on the type of business activity your company:
- Industrial license, for manufacturing activities
- Professional license, for service companies such as law firms, educational establishments, or craftsmen
- Business license, for any type of commercial activity
7. Depending on the type and location of your business, submit the required documents to the DDE and the Commercial Registration Department, and pay the license fee.
With everything in place, your business should be registered within a week.
The above steps give a general idea of setting up a business in Dubai. For setting up a new business in Dubai, it might be beneficial to consult a local business consultant – who can help you with the nuances and details of business incorporation and registration. Commitbiz LLC help businesses and entrepreneurs set up their businesses in Dubai through incorporation, registration, tax advice, bookkeeping and accounting.
Our team of business consultants in Dubai is here to assist you with your business setup process. Our approach to company formation is centered around your business vision and goals. For any assistance or inquiries about setting up a business in Dubai, please do not hesitate to contact us – we will be happy to assist you.