Dubai has long been a global business hub, offering investors and entrepreneurs a vibrant location in which to build their companies. With its advantageous geographical position to an open economic model, Dubai provides several options for those seeking to setting up a company in dubai. Whether you are starting a startup or setting up an already established venture, knowledge of the local environment can help you make better decisions.
Why Dubai?
Dubai’s allure lies in its unique blend of global connectivity, diverse talent pool, and robust infrastructure. It is well-connected to major international markets through world-class ports and airports, making it ideal for trade and logistics businesses. The city's regulatory environment supports innovation and entrepreneurship, offering both Free Zone and Mainland business setup options.
Additionally, the availability of 100% foreign ownership in the majority of business sectors and the absence of personal income tax make Dubai highly appealing to international investors. Ease of doing business, cosmopolitan living, and sound financial system further contribute to its position as a global commercial center.
Key Business Jurisdictions
Before one sets up a company in Dubai, it is worth mentioning the three main business jurisdictions:
Mainland: Companies in Mainland Dubai can operate freely throughout the UAE. They can opt to take up government contracts as well as contract local clients directly. They are licensed by the Department of Economy and Tourism (DET).
Free Zones: Free Zones are the specially empowered areas that provide foreign investors with full ownership. Every zone is governed by a regulatory authority and has benefits like tax free status, simpler import/export facilitation, and access to readymade offices. However, Free Zone companies usually are not allowed to operate within the nation or abroad except when they hire a local distributor.
Offshore: Offshore corporations are generally used for asset protection, investments, or foreign trade. They can't conduct business in the UAE market directly but offer good privacy and tax advantages.
The choice of the best jurisdiction is based on your business activity, target market, and long-term strategy.
Choosing the Right Business Activity
Dubai provides thousands of licensed activities that range from trading and consultancy to manufacturing and e-commerce. Some activities come under specific regulatory bodies, while others require additional approvals from sectoral authorities. Appropriate activity choice is necessary for licensing and conformity.
For example, healthcare, education, and food and beverages companies require approvals from Dubai Health Authority, Knowledge and Human Development Authority, and Dubai Municipality, respectively.
Business Structure and Legal Forms
Your legal form will decide your rights of ownership, liability, and field of activity. The most popular ones are:
Sole Proprietorship
Limited Liability Company (LLC)
Civil Company
Branch of a Foreign Company
Free Zone Establishment (FZE) or Free Zone Company (FZCO)
These are the LLC, which is one of the most popular choices for setting up a business in Dubai, especially in the Mainland, as it allows for a wide range of activities and offers flexibility in operations.
Licensing Process
The process of setting up a business in Dubai involves several steps that are each regulated by different government authorities. The following is a general overview of what to expect:
Choose a Trade Name: Your company’s trade name must be unique and comply with Dubai’s naming conventions.
Determine Legal Structure and Activity: Based on your chosen activity, select the legal form and jurisdiction.
Apply for Initial Approval: This step confirms the government's acceptance of your business model.
Prepare Documents and Agreements: Documents like the Memorandum of Association (MOA), tenancy contract, and identification papers must be submitted.
Get External Approvals (if required): Depending on your activity, you may need clearance from external authorities.
Rent Office Space: A physical office is needed by most business establishments. Free Zones are more likely to have flexible office options.
Pay Fees and Get License: After verification of documents, you will get your business license and can start operations.
Visa and Bank Account Services
Once you have registered your company, you are entitled to apply for investor visas or employment visas for yourself and your staff. Dubai has a straightforward immigration system, with many Free Zones providing visa packages as well as other services.
Another crucial task is opening the company bank account. Banks are likely to demand documents of the company, license, and the particulars of shareholders. Every bank shall have separate requisites, therefore, doing preliminary research or hiring experts could help here as well.
Conclusion
It's a breeze to go through the setup procedure with a veteran partner to guide you. At A&H Consultants, we walk clients through each step of setting up a company in dubai, from choosing the optimal business jurisdiction to handling registrations, legal forms, visa processing, and more.
As individual entrepreneur or corporate entity intending to enter the region, our experts are here to serve your goals.
At A&H Consultants, our experts can offer complete support customized to your business setup process in Dubai.