Dubai is the attraction of entrepreneurs and businessmen from all over the world right now. This is facilitated by the fact that the authorities in the UAE are in the long-term plan of changing the economic focus of the country from the oil and gas industry. To accomplish their goals, they are offering various incentives and benefits for foreigners to invest in the country.
As a result, Dubai is attracting talents and investment from all over the world.
Dubai has a culture of its own and it can catch first-timers off guard. Language is one of the barriers foreign entrepreneurs face when starting out in Dubai. However, the culture and the language barriers can be easily tackled with the help of Company Setup Consultants who have started businesses in Dubai for foreign entrepreneurs from all over the world.
Step by Step Guide for Business Setup in Dubai
There are a few things you need to know before setup a company in Dubai. Even if you are doing so with the help of business consultants, there are a few choices you need to take for yourself. If you end up making the wrong choice, you will feel like you missed out later on. So, here is a step-by-step guide on how to start your business in Dubai:
1. Select an economic jurisdiction
Before starting a business in the UAE, you need to understand the three different types of economic jurisdictions that exist in the country. They are the mainland, the free zones, and the offshore companies. When you set up your business in the mainland, you can perform your business activities anywhere inside and outside the UAE. That means that you can sell your products and services anywhere in the UAE.
If you set up your business in one of the free zones in Dubai, then you can perform your business activities within the jurisdiction of the free zone and outside the UAE. While offshore companies can only perform their business activities outside the UAE.
2. Select a business trade license
You need to determine all the business activities you want to perform in Dubai. After that, you need to select a business trade license that allows the business activities that you chose. There are a lot of business licenses offered by various economic jurisdictions in Dubai. But the most popular types of business trade licenses are the commercial trade license, the professional trade license, the industrial trade license, and the tourism trade license.
Each of these licenses lets you perform the business activities just as the names suggest. Without a business trade license, you cannot perform your business activities legally in Dubai.
3. Select the legal structure
Before moving on to the registration stages, the last thing you need to select is the legal structure of your business. The legal structure of your company will determine the rules and regulations your business is subjected to in the future. That is why it is suggested that you select the legal structure of your company carefully.
So, The most popular types of legal structures in Dubai are Limited Liability Company, Sole Establishment, General Partnership, Civil Company, Local Company Branch, Holding Company, etc.
4. Trademark your company’s name
You need to select a trading name for your company. The name you have in mind needs to be unique in the UAE. The name may be in use in other countries in the world. As long as it is not registered for a trademark in the UAE, you can go for it. There are various online tools that you can use to check for the validity of the trade name you have in mind.
You can select three or four names and provide them to the experts at Company Setup Consultants. They will check and let you know which of the names you selected are available.
5. Get the initial approval
The Department of Economic Development in Dubai is responsible for handling the registration of new businesses in the city. You need to get the initial approval from them before you can move on to the next steps. To get the initial approval, you need to fill up a form that they will provide.
6. Get an office space
After you have received the initial approval, the next step is to acquire office space in Dubai. The EJARI and tenancy agreement are mandatory documents for the registration of your company. If you do not require a physical base of operations, you can opt for a virtual office for your company.
7. Get the external approvals
You need to get various external approvals depending on the business activities you have selected to perform. You will also need to get the office space approved by the Planning Section of the Dubai Municipality. The external approvals you need to obtain will be mentioned by the officials at the Department of Economic Development in Dubai.
8. Submit the required documents
After you have completed all the previous steps, you will need to submit the required documents and pay the required fees. The documents that you will need to submit will depend on various factors like the legal structure of your business and the business activities you selected.
9. Open a corporate bank account
After you have received your business trade license, you need to open a corporate bank account for your business. Ensure that you research the financial institution thoroughly before opening an account. Also, ensure that you read the contracts carefully before signing anything.
10. Apply for the visas
The last step is to apply for visas. As a business owner in Dubai, you can sponsor the visas of your immediate family members and a domestic worker. Depending on the size of your office space, you can sponsor the visas of a few of your employees as well.
How can Company Setup Consultants help you?
If you are looking for someone experienced to help you start your business in Dubai, then you are in the right place. The experts at Company Setup Consultants have started businesses for foreign entrepreneurs all over the UAE. Contact us today and hit the ground running.