There are several steps to starting businesses in Dubai from scratch. Many entrepreneurs choose to launch businesses in Dubai and other United Arab Emirates (UAE) locations because they’re in Asia as well as near Europe. Additionally, the application and business launch process often takes less than a week. As an entrepreneur, starting a business in Dubai offers lower taxes and complete capital repatriation without currency restrictions. Read on to discover a step by step guide on how to start a business in Dubai.
Designate A Business Activity
Designating an activity, product, or service for your business is the first step to starting one in Dubai. Establishing your business activities early in the process provides necessary direction and helps narrow down your options. The direction provided by this decision helps you make future considerations, as well. For instance, if you’ve decided on a structure that relies heavily on imports and exports business, your location considerations should be near airports or sea ports. Surely, designating a business activity and plan provides necessary direction to the rest of the process.
Decide On A Business Name
The second step is starting a business in Dubai is to decide on a business name. Dubai and the UAE have several restrictions that business names must adhere to. You can’t name your business anything that would be considered offensive. Additionally, you can’t refer to any religions. If you’re naming the company after a person, that person needs to be the owner or at least a partner in the company. Absolutely, adhering to the naming requirements set by Dubai’s government ensures you avoid time in foreign jails and the continued operations of your business.
Third, you’ll need to provide various documents required to start a business in Dubai. Depending on your location and whether it’s a free zone, you may need to provide a completed application form and business plan. Additionally, you need to provide a copy of any existing trade licenses or registration certificates. Colored passport copies and signature samples of all shareholders as well as appointed managers or directors are also required. Thus, make sure you’ve completed your passport renewal. Finally, you need audited financial reports for corporate entity or certificates of reference from the personal banks of shareholders, as well as NOCs from sponsors. Certainly, providing the required documentation gives Dubai’s government a record of your business.
Select A UAE National Sponsor
You’ll need to designate a UAE national as a sponsor for your business unless you’re operating in one of the several “free zones” found across Dubai. While you won’t need to share company equity, these zones are often restrictive due to their limited geographical locations and the inability to operate outside their borders. To access the best selections of business locations, you need to give a UAE national 51% equity in the company. Additionally, your sponsor must be paid a yearly fee for their services, which can often be negotiated. In fact, strengthening your relationship with your sponsor significantly increases the quality and profits of your business. Definitely, designating a UAE national sponsor provides access to all locations within Dubai.
Registration & Trade Licenses
Applying for trade licenses and registering your business is a simultaneous process that finalizes your business’s creation. The UAE has four types of trade licenses to choose from outside of free zones. They are commercial, professional, industrial, and tourism licenses. Additionally, the documentation and approval process is done in stages. At this final stage, you’ll have to get approvals from the relevant authorities designated by the Department of Economic Development. These often differ depending on your business type or performance management structure. Of course, registration and trade licenses cement your business in Dubai and allow operations to begin.
Starting a business in Dubai from scratch can be done in a myriad of ways. One way involves designating a business activity and plan as the first step, to give the rest of the process direction. Second, you’ll need to decide on a business name that adheres to the UAE government’s rules. Third, provide the government with the various documents required for starting new businesses. If you’re not operating in a free zone, a designated sponsor is needed. Finally, registering your business and obtaining relevant trade licenses finalize the process and allow operations to begin. When searching for steps to starting a business from scratch in Dubai, consider the steps described above.