It’s easy to set up a business in Dubai, but it can be complicate to do everything yourself. Business setup in Dubai is for those who want to get their business started as soon as possible in a safe and secure environment without the hassle of dealing with the government by yourself.
In this article, we’ll walk you through the steps of how to set up a business in Dubai legally. We’ll give you all the information you need regarding Company Setup in Dubai.
Steps to Set Up a Business in Dubai, UAE
Define the Nature of Your Business
Before you set up a business in Dubai, you need to define the nature of your business. There are three main branches of business in Dubai: companies, limited liability companies, and branches. All three forms share similar characteristics and differ only in some aspects. To make it easier for you to decide on the best option for your business.
Decide Your Company Name
Your company name is an important part of setting up your business. Your business name is connected to your brand as well as your products or services. The name can be one of the most important factors in a customer’s decision to buy from you and should reflect the nature of your business accurately. This can be an important step in forming your company identity.
Choosing a name for your company is an exciting and fun task, but it can be daunting. Choosing a business name is hard. There are tons of other businesses with the same name and it can be hard to come up with something original and catchy. If you want your business to truly stand out, you need to think outside the box and come up with a great name that is not already being use.
Your company’s name will play an essential role in determining its image value and how people respond to it both internally and externally.
Obtain the MoA
Dubai is one of the most popular places for businessmen to set up their businesses. It is a hub that has been attracting many investors, businessmen, and entrepreneurs from all over the world and this has led to the growth of several free zones in Dubai.
Free zones are areas within a country that are designated as being outside the control of local laws and regulations, allowing companies to operate within them free from interference.
There are several free zones in Dubai. Each free zone has its own rules and regulations but they all operate under the umbrella of the Dubai World Trade Centre (DWTC). Companies can register their businesses in any of these free zones as long as they meet certain requirements.
An MoA is a document that describes the company and contains the company’s articles of incorporation. It should be displayed at the Registered Office and kept open for inspection by members, prospective investors, and any other person desiring to see it.
Drafting a memorandum is not an easy task and it requires a lot of time, effort, and money. You can hire an experienced lawyer to draft your memorandum or you can draft it yourself with help from friends or family members who have some knowledge about drafting such documents. To avoid mistakes or errors that could cause delays, later on, it is better if you consult an expert before drafting your own MoA. The DWTC will also assist you with drafting if needed but this service
These documents are needed by the Ministry of Economy and Commerce so that they can officially recognize your entity as a business within their jurisdiction.
Acquire Preparatory Approvals and Permissions
If you are unfamiliar with the business culture in UAE, you might be puzzled about what approvals and permissions you will require to run your business in Dubai. Every individual or organization looking forward to Company Setup in Dubai requires a license of operation by the Emirate’s local government, typically through a Commercial License issued by local authorities within designated commercial zones.
To set up your business in Dubai, you will have to acquire several preparatory approvals and permissions from the Dubai government.
Apply for Trade License
Business setup is one of the challenging tasks for a small business. Business registration is the first step to starting a new business in Dubai, you must have a trade license and commercial registration certificate to get start. I will show you step by step how to start up your business in Dubai with a trade license and commercial registration number.
The process for applying for a trade license is not a complicated one and does not take more than several weeks.
Open a corporate bank account
As a starting point, you need to apply for an operating license and/or trade license. Once you have received these, you will be able to open a corporate bank account. This page will guide you through this process and explain some of the services that are available to you.
Rent an Office Space
When you have decided to set up a business in Dubai, then you will definitely have to secure office space for your business. Office spaces are available in every kind of price range as per the location of your business and the facilities that you would want in your office.
Finish and Submit The Documents
Of all the tasks involved in starting a business in Dubai, completing all the documents is one of the most important, yet confusing. This is because there are many forms you need to read and submissions you need to complete.
Decide on a free zone
A free zone is an area within the city limits where businesses can register without having to pay taxes or tariffs. This would mean that all your costs such as salaries and rent would be significantly less.
UAE has established free zones that offer investors increased flexibility in setting up their businesses. If the investor chooses to establish their business in a free zone, the individual will gain additional advantages including a lower income tax rate for profits earned in the free zone. Also, investors do not have to be concern with rules and regulations because they are already define by the government of the UAE. These benefits attract thousands of business entrepreneurs each year to invest and set up their businesses in a free zone as it allows them to have an easier time managing their business activities.
Conclusion
In conclusion, setting up a business in Dubai is not as difficult as you may think, it just takes time. The UAE authorities have made the process easier by streamlining the registration procedures and introducing one-stop service centers to help you start your business. As companies expand and the investment environment strengthens, there will be a need for more businesses to set up shop in the Emirates.
There’s never been a better time to take the plunge and start your own business in Dubai. If you’ve got the skills and expertise, there’s no reason not to give it a go, especially given the relatively low costs and great business potential.
Speak with your lawyer, decide on the most appropriate structure and follow the steps below in order to successfully establish your business in Dubai Free Zones.
