Many foreign entrepreneurs & investors want to start a company in Dubai Because of its great location, business-friendly atmosphere, modern facilities, and tax-friendly rules.
The UAE offers a variety of programs and facilities that focus on promoting company growth, which is supported by simple legislation that makes this easily possible.
As a result, the Emirates consistently ranks in the top 10 of the World Bank’s Doing Business Index, showing how simple it is to start and run a company in the UAE. It is important to know how you can set up a business in Dubai’s mainland, free zones, or offshore jurisdiction and all the benefits these structures provide.
In this blog article we will guide you through all aspects of the company formation process, with rules and regulations, expenses, and requirements, so you can quickly start your company and reap the benefit from Dubai’s growing market.
Let’s discuss how to make your business idea come to life in Dubai!
Dubai’s economy is based on trade, real estate, tourism, banking, and financial services, and it works as a gateway to worldwide business markets.
Thousands of entrepreneurs from all over the world come to the Dubia, and UAE to start their businesses.
The following are the key benefits:
Strategic Location: Dubai connects Asia, Europe, and Africa, making it easy to travel and conduct business for entrepreneurs. Buying, selling, and carrying things is easy because UAE’s airports and seaports are well-linked.
World-Class Infrastructure: Dubai has cutting-edge infrastructure for enterprises of all kinds, including innovative office spaces and tech parks, as well as international airports and seaports.
Growing Economy: The economy of Dubai is growing, especially in banking, tourism, and online shopping. Investors can get long-term growth from these professions that are doing very well.
100% Foreign Ownership: Investors may have 100% control over their company in free zones, offshore, and mainland areas without a local sponsor.
Full Repatriation of Profits: Business owners can send their earnings and deposits to their home country.
Tax Incentives: The UAE offers 0% personal income tax, 5% capital gains tax, and 9% corporate tax to allow businesses to work profitably.
UAE offers three main business structures to start a company. All these structures have different trade benefits and rules.
Setting up a business in the Dubai mainland can run business anywhere in the UAE and do various commercial activities without any problems. The Dubai Department of Economic Development (DED) controls all the mainland businesses and helps them to access local and international markets.
Companies registered in the mainland have an effective presence in Dubai freedom with complete foreign ownership in several industries and prospects to gain lucrative government contracts.
Mainland companies can conduct business in the UAE market but must follow all requirements and other regulatory restrictions. It is required that at least 2% of the company employees consist of Emirati nationals.
Starting a free zone company in Dubai is an excellent choice for businesses seeking 100% foreign ownership, tax benefits, and a simple business setup process.
The UAE government presented the free zone concept to bring foreign investment to start businesses in the city. The businesses have some limitations on directly dealing within the UAE market, Free Zone companies can enjoy unparalleled access to global markets and efficient business operations.
Free zone companies are ideal for many fields like E-commerce, consulting, logistics, and technology businesses. Free Zone companies must operate within the selected free zone.
The Popular Free Zones authorities are Dubai Internet City, Dubai Multi Commodities Centre (DMCC), Dubai Airport Free zone and Jebel Ali Free Zone (JAFZA).
An offshore company in the UAE provides a discreet and tax-efficient structure for international business dealings. Offshore business structure is the best choice for asset protection, investment management, and global trade due to its adaptable structure and minimal regulatory supervision.
Offshore companies don’t need an office in Dubai, and are not allowed to do business in the UAE market. However, they give a cost-effective framework for worldwide operations while maintaining total secrecy and safe financial management.
The popular Offshore Jurisdictions are JAFZA Offshore and RAK International Corporate Centre (RAK ICC).
The company setup process in Dubai can be difficult, but don’t worry! Our team of Dubai business setup consultants simplifies the process for you.
We handle everything from registering your company to getting relevant permits and office space. If you wish to start a business in Dubai, there are several steps you should follow.
People can select the activities your business will participate in from a list that the UAE authorities provided according to jurisdiction.
This will decide your license type and costs. The Department of Economic Development (DED) in Dubai has a list of more than 2,000 activities, so choose one that fits your vision and is legally permitted.
The business regulations of Dubai divide operations into different categories such as Commercial, Professional, Industrial, retail, finance, tourism, real estate and IT.
Ensure that your chosen activities are appropriate for the jurisdiction (mainland, free zone, or offshore).
Select a business name that describes your company well and follows the UAE trademark standards. There shouldn’t be any religious or offensive words in the name, and it has to be unique in Dubai.
The Ministry of Economy registers the trademark, whereas the local Department of Economic Development registers the trade name.
To get initial approvals and permits, submit the necessary paperwork to the appropriate authorities (DED for mainland, free zone authority for free zones, and offshore business formation agency for offshore).
Depending on your company’s activity, you may need extra permissions. For example, some businesses may require permission from certain government offices.
In several industries, mainland firms need a local sponsor or agent. Sponsorship is not required for free zone and offshore companies.
If you want to start a business on the mainland, prepare an MOA document with the help of a local sponsor or agency. This document describes the company’s ownership.
Renting a physical office space or choosing a virtual office (in free zones or mainland) is required. A tenancy contract or Ejari certificate is submitted as a legal document.
Get your company license through the mail as soon as you have submitted the necessary paperwork and approvals. Your selected business activity specifies the type of license you need: commercial, industrial, or professional.
Once your documents have been accepted, You must open a corporate bank account. There are several local and international banks in the United Arab Emirates and you have to choose a bank that meets your company requirements.
After starting your company, you can apply for residency visas for yourself, your employees, and your dependents. The size and kind of your company determine how many visas you are eligible for.
The following documents are required to start a company in Dubai!
Dubai has many different types of business licenses to help a variety of professions and businesses. Let’s have a look at the most common types:
A trade license, which is also known as a commerce license, is issued by the Department of Economic Development (DED). It allows you to start a business in Dubai that includes trading, buying, and selling items. This license is perfect for online sales, bulk, and retail companies.
This license is issued to service-based businesses like consulting firms, IT companies, and other specific fields, and it usually allows 100% foreign ownership.
Businesses that make things from natural materials and resources into finished goods, either by hand or with machines, are given an Industrial License. Industries that produce textiles, metals, petrochemicals, and papers are all included under this license. These firms must have physical office space or warehouses.
A tourism license is necessary for businesses that deal with travel and tourism, such as travel companies, travel agents, and hotel services.
The Freelance License is ideal for self-employed people in education, journalism, technology, and design.
Choose the appropriate license based on your business activity to successfully register your company and comply with local legislation in the UAE market.
The cost of establishing a company in Dubai varies by jurisdiction and kind of business. The following are the typical expenses:
Trade license fees: AED 10,000 to AED 25,000.
Office space lease rates: Vary between AED 15,000 to AED 50,000 per year, depending on location.
Local Sponsorship Fees (if applicable): The fees are between AED 10,000 and AED 25,000 per year.
Visa Fee: The fee for each visa is between 4,000 and 7,000 dirhams.
Document Attestation and Translation: It requires almost AED 1,000 to AED 3,000.
Free Zone Packages: Free Zone Packages start at AED 12,000 annually and possess licenses and flexi-desk space.
These are just estimated costs. Your company license, jurisdiction and economic conditions will determine the exact pricing.
Dubai Business Setup Services helps people who want to start a business in Dubai. We simplify the company formation process in UAE, from selecting the proper jurisdiction, (mainland, free zone, or offshore) to managing documentation, trade name & licensing, and legal requirements.
Our experts help businesses in VAT and Corporate Tax Registration, getting the necessary approvals, and offering custom solutions such as office space, hiring teams, and visa help, so your path to business success in Dubai is smooth and stress-free.
Entrepreneurs and investors come from all over the world to Dubai because of its strong economy and friendly business environment. It is critical to understand the establishment process, whether you plan to establish an offshore company, a free zone business set up, or start a local venture. Starting a business in Dubai is a smart move because of its low taxes, high-tech facilities, and easy access to markets worldwide.
Contact us today to make your business dreams a reality in Dubai’s booming economy.
