This article will discuss How a Business Setup in Dubai is like in 8 Easy Steps from Top Experts in OfficeHub.
Business Overview: To set up a business in Dubai, you will first need to understand the different business opportunities available like the Top 15 Profitable Businesses in Dubai to start and decide which is best for your needs.
Location: The location of your business will affect your financial stability and ability to scale, so it is essential to carefully consider your choices before launching. Find more information below.
Funding options: There are many funding options available when setting up a business in Dubai, but choosing the right one is crucial. Find more information below.
Legal structure: To start a business in Dubai, you must familiarize yourself with the local laws and regulations. Find more information below.
Dubai is the commercial capital of the United Arab Emirates. This city of safety provides limitless opportunities and innovative commercial modules for enterprises from all over the world. International exposure and an investor-friendly government are just two factors that motivate entrepreneurs to set up a business in UAE.
Startups in Dubai also get perks on investments and tax advantages compared to other countries.
This article will give you a heads-up on what to expect from your first business and provide valuable recommendations for setting up your first company in Dubai.
1- Decide your Permissible Activity in Dubai and Choose a Company Name.
When you set up a business in Dubai, you should know that certain restrictions exist. Some businesses are restricted from happening in the UAE! Various requisites are required before you set up your company in Dubai. Initially, you need to do is to determine whether or not your business needs to comply with Dubai regulations.
According to the Law, the Dubai Economic Council is tasked with considering, regulating, classifying, permitting, and licensing all economic activities in Dubai. A few commercial activities are completely prohibited, whereas others have only compulsory restrictions. However, this is not applicable to free zones and offshore businesses.
2-Determine the Appropriate Legal Jurisdiction for your Business Setup in Dubai.
Business jurisdictions in Dubai are segregated into various zones to maximize the effectiveness and productivity of a venture. Different company formations allowed in Dubai are
Deciding which jurisdiction to adopt depends on the type of business you want to run and the organizational policies commonly found in Dubai.
3- Choose the Suitable Investor Structures
Depending on the shareholding structure, business setup in Dubai is determined by your legal status. It will also determine your business’ legal form. Your business operation and legal jurisdiction should be based on this structure.
Here are the shareholder structures that you can choose.:
- Limited Liability Company
- Sole Proprietorship, aka a sole tradership,
- General Partnership (multiple owners)
- Partnership in commendam
- Public Shareholding
- Private Shareholding
- Joint Venture
- Shared Partnership
- SME License
- Representative Offices
- Branch Offices
- Limited Partnership
4- Register your Company’s Trade Name with the DED to Set Up in Dubai.
You ought to pick a name for your company forming in Dubai according to the standards specified by the Department of Economic Development (DED). Your business’s name serves as your business’s identity, and consequently, DED emphasizes associating the name as per its type.
It takes approximately three days to register this name, valid for six months after this.
5- You may need External and Initial Approvals for your DED Business Setup in Dubai.
DED provides companies and entrepreneurs with the legal permits they need to establish their business ventures. Non-governmental and semi-governmental entities generally authorize these. But sometimes, You may mandate additional external certifications.
The DED provides the first certification when sending out all necessary documents. The initial certification is also an official approval from the DED to open your business. You can begin your business at this stage and continue through the process of acquiring your trade license.
6- Get a Business Location Rented out for your Business Setup in Dubai
Each business in Dubai must have a physical presence. Your lease contract, the Real Estate Regulatory Agency (RERA) documents, and the EJARI need to be submitted and then receive the DED’s final approval.
7- Follow all the Company Registration Procedures in Dubai to Collect your Business License & Start your Business Activity.
Company registration in the UAE and issuing a business license are parallel steps. Once DED registers the company, then you can process your business license in a short time.
Business licenses are granted based on the nature of your business activity and the jurisdiction of the business.
The licenses for companies in Dubai and the most well-known of them are the following.
It takes around one week or two to get the trade license since you receive your initial approval. It mainly depends on the business occupation and the external documentation.
Here is the general list of documents and certifications required for business setup in Dubai.
- License Application
- Attested LLC agreement
- Governmental forms
- Name reservation certificate
- Initial approval certificate
- External departments approval
- Tenancy contract
- EJARI registration certificate
- Passport copies for partners and NOC for partners (if any)
- Dubai Chamber of Commerce and Industry Registration
- Endorsements from Governmental Agencies (For Gas and Oil Companies)
- UAE Central Bank Approval and License (For Financial Institutions)
- Finance and Industry Ministry Certification (For Manufacturing Companies)
- Economy and Commerce Ministry Certification (For Insurance Companies)
- Health Ministry Certification (For Medical & Pharmaceutical Firms)
The DED provides payment vouchers or transaction numbers upon submission of all listed documents. You will require the DED to make the final payment to collect the business credentials license. Once you receive your operations certificate, you become a legally established company.
Based on the above data, it is apparent that registering a company in Dubai is Extremely Extensive! Still, you can speed things up cost-effectively by hiring a business setup consultant like Office Hub Business Centre. With the help of a business management consultant, you won’t waste your money on files that aren’t useful. Also, since they are well-versed in business formation, your corporation can rapidly be founded. So, good luck with your corporate endeavours!
8- It is Essential to Compose the MOA LSA for your Company
Another vital task is drafting the Memorandum of Association (MOA) or the Local Service Agent (LSA) agreement. The MOA specifies the share of limitations and liberty every partner has within the company, while the LSA describes the agent’s role and fulfils the compliance it will perform. MOA/LSA are legal documents and should be drafted with the help of a legal advisor. That also needs to be translated into Arabic.