Wondering where the best place is for a business setup? You do not have to look too far as Dubai is the ideal place for enterprises of all sizes to set up shop. Dubai is an internationally-recognised trading hub in both the MENA region. Compared to other parts of the world, it remained largely unaffected by the global recession and pandemic. In fact, by 2023, UAE's economy will grow by 4.2%. Considering the favourable market and economic prospects that Dubai has to offer, it is attracting a large number of budding entrepreneurs. Fortunately, the procedure is simple if you want to know how to start a small business in Dubai. The free zones in Dubai are the most popular areas for businessmen and women for business setup because it offers low corporate tax and zero personal tax. In other words, you retain 100% business ownership and 100% repatriation of the profits, without currency restrictions.
Let's jump into the 7-step easy process for Company Formation in Dubai:
#1 Determine the nature of your business venture.
This is a crucial step in our 'how to start a business in Dubai for foreigners' guide. Whether you want to launch a salon or a crypto currency firm in the UAE, you must figure out your business type. You have the option of selecting from more than 2,100 business activities. They all fall into either commercial, professional and tourism, or industrial space.
#2 Select the free zone.
There are more than thirty free zones in Dubai. The type of business you want to launch will affect the free zone you choose.
#3 Choose your business name.
An exciting step in how to start business in Dubai is choosing the business name. However, it must adhere to the stringent naming guidelines of the country. If your name involves offensive language, is offensive to any religion or political group, it will be rejected by the authorities. Planning it to name it after someone? You must prove if the person is part of the company. Deciding on the most apt name is a tedious process, but it helps to hire a professional to save your time and money. The expert is well-versed with the rules and can help you get approved faster!
#4 Seek initial approval.
Once you complete steps 1 to 3, apply for approval to the Dubai DED. This can be done via a third party, online, or in person. You are required to submit documentation and this depends on the nature of your business but it generally includes the following:
- business's articles of association
- a copy of your visa or residence permit
- passport copy or ID
- licensing and business registration form
If you are unsure about the documents, we recommend talking to an expert who specialises in business setups in Dubai.
#5 Open a bank account.
Once your application is approved, you are well on your way to business formation company in Dubai. There are many banks in the UAE such as HSBC, Barclays, Citibank, etc. There are also many local banks like the Commercial Bank of Dubai.
#6 Choose an office location.
It is mandatory in Dubai to have a physical address for your business. Since you are thinking about how to start a small business in Dubai in a free zone, you will find a suitable space quite easily.
#7 Seek the final approval.
This is the last and most important step in our 'how can I start my own business in Dubai' guide. You must all the necessary documentation ready which also includes your location address. In certain types of businesses, you need to apply for special licenses. Generally, you require the following:
- receipt of initial approval and previous documents
- Real Estate Regulatory Agency lease contract
- Dually attested service contract
- approval notices from other authorities
After payment of the license, you will be ready to operate your own business setup in Dubai.
If you are unsure about how to start a business in Dubai for foreigners, get in touch with us at RAES Associates. We are your trusted partners in company formation, accounting & VAT, auditing, hs code registration and company formation.