Without a doubt the beautiful city of Dubai is an attractive and magnetic location for every entrepreneur and why wouldn’t it be, its strategic location, booming economy, and excellent and encouraging business-friendly environment are just ideal for those wanting to set up their business here.
Are you someone who’s looking forward to starting a business in Dubai? If yes, then this blog has you covered with everything that you need to know about business set-up in Dubai.
Understanding the Business Scenario in Dubai
Dubai, famously known as the business hub of the Middle East, offers numerous advantages for entrepreneurs. From its strategic location between Europe, Asia, and Africa to state-of-the-art infrastructure and tax incentives, this city certainly is a solid ground for any business’s growth.
Legal Structure Option:
When setting up a business in Dubai, the first decision you will need to make is choosing the right legal structure.
1. Free Zone
Free Zones in Dubai offer 100% total foreign ownership, tax exemptions, and very simplified business set-up procedures. Popular free zones include the Dubai Multi Commodities Centre (DMCC), Dubai Silicon Oasis (DSO), and Jebel Ali Free Zone (JAFZA)
2. Mainland
If you choose the mainland, then setting up a business in the mainland allow you to operate anywhere in Dubai and engage in a wider range of activities, However here, you must have a local sponsor that is a UAE national or company owned by UAE nationals) to hold a majority stake in the company.
3. Offshore
Offshore companies in Dubai are ideal for international businesses looking for asset protection, tax optimization, and confidentiality. These companies cannot conduct business within the UAE but can hold assets, open bank accounts, and invest in the region.
Registration Process:
No matter which legal structure you choose, the business registration process in Dubai follows a similar path:
1. Choose a Trade Name
Select a unique name for your business that complies with Dubai’s naming convention and also reflects your brand identity and business activities.
2. Get Initial Approval
Submit the asked documents, including the business plan of your business, and passport copies to the authorities and get an initial approval form filled.
3. Draft Legal Documents
Prepare the information Memorandum of Association (MOA) and other legal documents required for company incorporation.
4. Secure your Business License
Next, you must obtain the suited business license from the Department of Economic Development (DED) or the relevant free zone authority.
5. Open a Corporate Bank Account
Once your business is registered, open a corporate bank account with a local or international bank to facilitate financial transactions.
6. Seek Assistance From Experts
For better and smoother handling of legal matters and company formation, you can seek guidance from expert legal consultants from business setup companies in UAE, that will help you in every step of the process.
Visa and Residency
As a business owner in Dubai, you’ll likely need a residency visa to live and work in the city.
1. Employment Visa
You will have to apply for an employment visa through your company’s sponsorship. This visa allows you to reside and work in Dubai for a specific period.
2. Investor Visa
If you’re a shareholder in a mainland company or free zone business, then you may qualify for an investor visa, which provides residency benefits for you and your family.
Conclusion:
Setting up a Business in this city offers endless opportunities for growth and success. By understanding the legal requirements, and choosing the right structure, you can establish a thriving enterprise in this dynamic city. With its supportive ecosystem and advantages!
