Setting up a Company in Dubai

START A BUSINESS IN DUBAI, UAE: STEP-BYSTEP GUIDE IN 2023

START A BUSINESS IN DUBAI, UAE

TostartacompanyinDubaior anywhere around the world is an important decision. It involves planning, conceptualising, research, budgeting, set-up, and decisionmaking among other things. It also requires guidance and assistance on selecting the right trade license for your business,especiallyifyouareanewentrepreneur.Here,you will learn about the important steps to start a business in Dubai,UAE.

The UAE is a popular destination among investors and entrepreneurs. Not only is it an investor-friendly country, but its low tax policies and ease of doing business have helped strengthen its position as a business hub in the Middle East.

Thegovernmentalsohasinplacerulesandregulationsthat favourandencouragebusinessowners.

HOW TO OPEN A COMPANY IN DUBAI – THE FORMATION PROCESS

Although, setting up a business in Dubai is relatively easier. Experts at Shuraa Business Setup can make creating a business account easier. Additionally, they will handle the paperwork and other issues on your behalf.

KEY STEPS TO START A BUSINESS

Selectabusinessactivity

Selectthejurisdiction

Finalisethecompanystructure/legalform

Getapprovalforyourcompanynameandactivity

Applyforyourtradelicense

Registeryourcompany

Findalocalagent(ifrequired)

Getyourexternalapprovals

PrepareyourMemorandumofAssociation

Rentanoffice

Getthetenancycontact&ejari

Gettheinitialapproval

Collectyourtradelicense

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

1. SELECT A

BUSINESS ACTIVITY

When selecting a business activity for your entrepreneurial venture, keep in mind the practicality of the chosen activity in relation to the UAE market. Before you openacompanyin Dubai, do a thorough research on the feasibility and profitability of the activity. Then decide on whentostartabusinessinDubai,UAE.

2. SELECT THE JURISDICTION

The UAE market is divided into different economic zones – Mainland, Free Zone, and Offshore.Theseeconomiczonesarealsocalled jurisdictions.Eachjurisdictionhasitsownsetof laws and regulations pertaining to business setup. They also cater to different business needs.However,selectingajurisdictionforyour business depends on your business requirementsandyourbusinessactivity.

3. FINALISE THE COMPANY STRUCTURE/LEGAL FORM

Choosing the legal form for your company is an important decision when starting a business in UAE. It sets the tone and structure for dealing with profitsandlossesandhowyoushouldorganiseyourresourcesandassets. Decidethelegalformoryourcompanystructureduringtheinitialstagesof planning.Following are some of the legal forms or company structures underwhichyoucanregisteryourbusinessintheUAE:

Limitedliabilitycompany(LLC)

Soleestablishment

Civilcompany

Localcompanybranch

GCCcompanybranch

Foreigncompanybranch

Freezonecompanybranch

Holdingcompany

4. GET APPROVAL FOR YOUR COMPANY NAME AND ACTIVITY

The Department of Economic Development (DED) must approve the trade nameforyourcompanybeforeyoucanmoveaheadandstarttheprocessof your company set-up in the UAE. Along with your company name, your selected business activity also goes through an approval during this stage. Once you receive the approvals, you will have to submit documents to apply for your UAE trade license and begin the process of opening a company in Dubai.

5. APPLY FOR YOUR TRADE LICENSE

There are four types of trade licenses in the UAE, also called business licenses, that you can choose from:

CommercialLicense

ProfessionalLicense

IndustrialLicense

TourismLicense

Youcanalsoapplyforanyofthesetradelicensesif

you plan to start a business in UAE mainland. The licensingstructureinUAEfreezonesisdifferentand is also dependent on the business activity your companydecidestoundertake.

6. REGISTER YOUR COMPANY

Company registration and licensing is a simultaneous process. However, the entire process of documentation and approvals goes through various stages. In this step, you also have to get all the approvals from relevant government authorities as requested bytheDepartmentofEconomicDevelopment. And ,the documents required are different for eachcompanytypeandactivity.

7. FIND A LOCAL AGENT (IF REQUIRED)

Earlier, opening a business in Dubai, required to mandatorily find a local partner. An Emirati partner/agent must be a UAE national only. As Finding a trustworthylocalagentcanseemtiring,especiallyforanaspiringentrepreneur lookingforbusinessstartupinDubai.Abusinesssetupconsultantcanconnect you with companies that offer corporate sponsorship where you will be given documentedauthorityand100%ownershipofyourbusiness.

8. GET YOUR EXTERNAL APPROVALS

DED may request additional approvals from other government or non-government agencies, depending on your business activity. For instance, some businesses may be asked togetapprovalsfromthemunicipality,specific banks,embassies,etc.

9. PREPARE YOUR MEMORANDUM OF ASSOCIATION

ItisimportanttounderstandthecomplexitiesofaMemorandumofAssociation (MoA) to start a business in Dubai. Therefore, before drafting the MoA, make sure to get expert advice. The MoA should be drafted in accordance with the UAE government’s mandates. It should also take into consideration your businessinterestsbeforeyoustartacompanyinDubai.

10. RENT AN OFFICE

Dependingonyourbusinessneeds,youcanchoosetorent an office unit or opt for a shared workspace in a business centre. An office space can also determine the number of visas you can request for from the Department of EconomicDevelopment(DED).

11. GET THE TENANCY CONTACT & EJARI

When you start your own business in Dubai, you might need an ejari. This tenancy contract is the agreement between you and the real estate agency whose office unit or shared workspace you intend to rent. Ejari is an online system governed by the Real Estate Regulatory Agency (RERA). It also ensures fairness and transparency between both parties involved in the tenancy. Furthermore, you must submit your tenancy contract and a few more documentstoactivateyourEjariaccount.Ejariisvery important because you need it to get or renew visas foryourfamilymembersand/oremployees.

12. GET THE INITIAL APPROVAL

Before getting your business license to start a business in Dubai, you must get the initial approval from DED. This approval indicates that the UAE government does not object to youstartingabusinessinUAE.Ifyoudonot receivethisapproval,youcannotproceedto thenextstepsintheapplicationprocess.