Dubai, a land known for the perfect blend of modernity and cultural richness, is a place loved across the globe. Every year, millions of tourists visit the city to explore its beauty, and moreover, thousands of businesses are making Dubai their base of operations. The infrastructure, strategic location and fast-growing economy provide a pleasant environment for the conduct of trade and business.
It is no wonder that Dubai has become an economic hub where you can find all kinds of brands, big and small, thriving across range of industries. If you are looking to start your venture in the city, read along. This blog covers all the essential details along with process, key requirements and cost of business setup in UAE.
Dubai as a global business hub
Emirate of Dubai is known to be liberal in terms of business setup regulations and taxational policies. The ease of business setup and less administrative hurdles make it an attractive choice for foreign entrepreneurs and investors.
According to the Dubai Chamber of Commerce, in the year 2024, there was 24% increase in company registration in the nation as compared to the previous year. This continuous increase is a testament of nation’s efforts of being a pro-business landscape that welcomes foreign investments with open arms.
Getting a business license in UAE
Starting a business in the UAE is easy, but it involves certain requirements set by the government. All entrepreneurs must adhere to these rules, and one major requirement is obtaining a business license.
A trade license, also called a business license, is a permit issued by the UAE government that grants a business setup in UAE legal permission to operate in the country and conduct business activities. Based on the type of activities you pursue, there are three main types of business licenses in the UAE:
- Commercial license:
Businesses involved in trade, import, and export of products and commodities require a commercial license in the UAE.
- Industrial license:
Companies engaged in manufacturing, industrial production, or assembly operations must obtain an industrial license.
- Service license:
Professionals who provide services based on their expertise, skills or special qualifications need a service license in the UAE.
These are the broad categories of business licenses in the UAE, and each has its own specific requirements and application process. It is advisable to consult UAE business setup experts like Dubiz Business Setup for professional guidance and assistance.
Process of business setup in UAE
Here is the step-by-step process of company formation in Dubai:
- Finalize the business activities: Choose from the DED-approved list of business activities. You can choose from a wide range of industries such as healthcare, education, finance, IT, science, marketing, and so on.
- Location selection: You must decide the jurisdiction for your business: Mainland, Free Zone, or Offshore company formation in the UAE. Each zone has its own regulating body, rules, and requirements.
- Legal entity selection: The legal form of the company you choose will have implications on tax, operational flexibility, and control of your business setup in UAE. It can be Sole Establishment, LLC, Joint Stock Company, Civil Company, Partnership, Branch, etc.
- Trade name reservation: Select a trade name for your business. It must be unique, market-friendly, and at the same time, conform to UAE naming rules.
- Initial and additional approval: For conducting any type of business, an initial approval from the government will be needed. In the case of Mainland, DET (Dubai Economy & Tourism) and for Free Zone, the respective Free Zone Authority will issue initial approval.
- Office space: Next, you must look for office space suitable to your business needs. You can choose from warehouse, private offices, shared workplaces, furnished and unfurnished spaces as may be available. Alternatively, some businesses are also permitted to operate through virtual office addresses.
- Additional approvals: For some business operations, additional permits may be needed from specific concerned government department. For example, healthcare businesses need permission from health department.
- Business license application: Finally, you can apply for the business license with the concerned authority. On mainland, DED issues the license and in freezones, the respective freezone authority. The licensing process needs application submission and payment of fees.
- Bank account opening: For your business, you will need a corporate bank account. You can request the account with bank of your choice in UAE.
- Visa application: Being foreigner, you would need visa to stay and work legally within the nation. Similarly, if you are hiring foreign staff, you must get employee visa for them. Once you get your residence visa, you can also get family visa for your spouse, children and parents.
Key requirements for business setup in UAE
To start and run a business in Dubai, you must get it registered and obtain the business license and visas as required.
Here are some documents that are generally needed for business license in UAE:
- Filled application form
- Passport and visa copy of shareholders/directors
- A detailed business plan
- Articles and Memorandum of Association
- No objection certificate from current sponsor, if applicable
- Initial approval from DED
- Addition government approval receipts
- Trade name registration certificate
- Financial statements
- Tenancy agreement for rented office space
There may be additional documents asked for by the government authorities. You can contact expert business setup consultants like Dubiz Business Setup for more details.
Cost of company setup in UAE
The cost of company formation in Dubai mainland starts from AED 17,900* (professional license) and AED 22,900* for LLC company setup. Freezone company formation in UAE starts from AED 6,000*.
For more details on costing, you can reach out to experts like Dubiz Business setup.
Conclusion!
UAE offers one of the most vibrant ecosystems to entrepreneurs and investors. Its appealing geographic location coupled with the tax benefits and ease of business setup make it an exciting choice for businesses.
If you are also planning to launch your dream venture in heart of UAE, you must be aware of the processes and the legal requirements. Dubiz Business Setup is trusted setup advisory operating in UAE. They have helped countless entrepreneurs establish successfully in Dubai.
They handle every detail of business setup in UAE such as business license, registration, business bank account, visa applications and more. Their team of experts offer clear and transparent communication throughout the establishment journey. Book a free meeting with them to know more!
