Dubai offers countless benefits to business owners, including 0% income tax and a central, strategic location. If you are curious about how to start a business in Dubai, Company In Dubai uses a time-tested process to get your idea to market as soon as possible
The process of starting a business in Dubai is actually quite straightforward. There are some things to watch out for though. It can be tedious and time-consuming with multiple steps and important considerations along the way that you should know about.
Whether you decide to undertake the process yourself or hire business setup experts to fast-track your setup, make sure that you get good advice about the implications of your decisions. After helping over 60,000 entrepreneurs get started in business, we have put together the ultimate roadmap for how to start a business in Dubai.
Dubai and the UAE are incredibly welcoming and supportive business environments. In fact, over 20,000 new businesses launched in Dubai last year alone. Not surprisingly, many of these were registered by overseas entrepreneurs. Somewhere between 80% and 90% of the UAE workforce are foreign nationals.
There are many compelling reasons why thousands of entrepreneurs the world over flock to the UAE and Dubai to start a business. The main benefits are:
The future of business in Dubai is looking very bright too. According to the International Monetary Fund (IMF), the UAE is expected to lead economic growth in the Arabian Gulf this year, increasing by 2.5%. This is significantly ahead of the region’s biggest economy, Saudi Arabia, which is forecast to grow by 0.4%.
If this makes you curious about how to start a business in Dubai, you aren’t alone. The good news is that company formation in Dubai does not need to be difficult if you follow the steps in this guide.
There are many industries in the UAE and plenty of opportunities for innovation. You might be tempted to jump ahead to the actual setup process straight away, however, we recommend that you decide on the nature of your business up front.
In Dubai and the UAE, many locations only permit specific business activities. Be careful not to start a business in Dubai, only to realize that you can’t operate in your chosen location!
For example, certain free zone locations cater to specific activities or industries, such as media, finance or tech. Let’s take a look at Dubai Media City. As its name suggests, it is a free zone dedicated to media companies, or businesses operating media-related activities. Dubai Media City is home to globally renowned media companies, such as BBC, CNN and Thomson Reuters. Another example is Dubai International Financial Centre (DIFC), where large global financial services companies like Credit Suisse AG, Goldman Sachs International and Morgan Stanley have offices.
Over the years, however, a number of sector-specific free zones have started to welcome general business activities, and not just the ones they are intended for.
Having settled on an industry, your next big decision is whether to launch in the mainland or in a free zone. If you opt to set up in a free zone, you’ll benefit from:
However, if you wish to trade directly with the local market in the UAE, you’ll need to work with a mainland company who will charge a fee.
On the other hand, if you choose to set up in the mainland, you are free to trade directly with the local and international markets. However, unless your business activity falls under professional services, you will need to work with a local partner who will hold 51% of your company’s shares.
The UAE has some strict naming conventions, so before you commit to a company name, make sure it is legally acceptable.
Any names that include offensive language are forbidden, as are any company names that refer to Allah, Him or any other religious, sectarian or political groups such as the FBI or Mafia. If you choose to name your business after a person, that person must be a partner or owner of the company and their full name must be used – no initials or abbreviations.
When considering how to start a business in Dubai, if you have made it this far, you are now past the most crucial decisions. At this stage, you will want to deal with the appropriate paperwork.
You will be required to complete an application for your chosen company name and activity, to be provided along with copies of shareholders’ passports to the relevant government authorities. Some free zones will require additional documentation, such as a business plan or Non-Objection Certificate (NOC) – a letter from a current sponsor confirming that you are allowed to set up another business in the UAE.
Once your application has been processed, the government will issue you with your company licence. Regardless of setup location, you’ll usually only require a few standard documents: a completed application form, shareholder passport copies and the like. Some free zones may also require you to provide a business plan.
Once your paperwork has been returned, you will have all the documentation you need to open your corporate bank account. The UAE is home to many banks, both local and international, including;
There are also global names such as HSBC, Citibank and Barclays. Choosing the one that’s right for you will depend on your specific requirements.
You will need a bank account before you can begin trading in the UAE.
It generally takes between two to four weeks to open a bank account in the UAE. The bank will want to know:
Once your paperwork has been returned from the government you will have all the documentation you need to approach the bank of your choice.
Congratulations on making it this far! Applying for a visa is the final step on how to start a business in Dubai. As well as applying for your own visa, many free zones allow you to put in applications for staff and dependants. The exact number you can submit will depend on which free zone you choose to set up in.
If you are looking to obtain visas for a spouse, child, maid or driver, it is best to seek expert advice to ensure that, firstly, it is possible to do so in your chosen free zone, and secondly, that both you and anyone you are hoping to sponsor for a visa meet all of the entry criteria.
Assuming that this all checks out, the process is made up of four simple stages:
There is no limit to the number of visas a mainland company can apply for, whereas free zone companies will have some restrictions, which vary from one free zone to another.
That’s it! With these eight steps completed, you’re ready to start your business in Dubai!
Once you have completed these steps, you will be ready to start trading. Compared to other parts of the world, setting up a company in the UAE is very straightforward – ranked 16th in the world in the latest World Bank Ease of Doing Business rankings.
Now that you know how to start a business in Dubai, it makes sense we should take a moment to examine some of the avoidable pitfalls of doing business in this complex, multicultural and fast-moving environment.
Yes, Dubai residents love their brands but it should also be noted that people here have also become very savvy about subtlety and sophistication. And while Dubai is very Western in some regards, it has strong Islamic roots. Add these factors together and it’s clear that whether you’re male or female, being smart, stylish and modest in your dress is a must. For example, a suit and tie is more or less compulsory for men attending meetings, especially if you’re in the process of looking for a local sponsor.
Happy, positive energy is also a major characteristic of social, entrepreneurial and even corporate trends in Dubai. No one moves here to immerse themselves in gloom. So top your outfit off with a smile.
When learning how to start a business in Dubai, it’s important to understand how to deal with local Emiratis. Firstly, you should know that it is customary to treat any introductions in meetings with utmost respect. You might not immediately know the ranks of the people in the meeting room so best be aware of etiquette when it comes to addressing people and social interaction: For example, never shake hands with the opposite gender unless they extend their hand first, and always use your right hand.
Finally, don’t dive too quickly into business matters. While you may be in a hurry, spending some time to enquire about a person’s day, health, and family will pay dividends. A good tip is to wait for the other party to start the business chat and keep any European corporate bluntness at bay. Small talk is more than just courtesy; it’s a non-intrusive way of finding out whether someone would be a suitable business partner.
Dubai has become crowded with show-offs who claim to have the first, the best, the only, the biggest, the wildest. Don’t add to the noise.
The city is now leaning towards modern minimalism, clean design and elements rooted in taste and humility, and quality over quantity. So when disseminating any business collateral – from pamphlets to online event invites – try to market yourself without using overused Dubai clichés.
When starting a business, you will not get very far with simple email introductions and online transactions.
Dubai is all about in-person networking events and meet-and-greets. Go to them, enjoy the cocktails, talk to anyone in the room and stay in touch afterwards. It’s a small network within each particular industry so close personal relations are key.
Word-of-mouth is also very strong here and making as many positive contacts as possible is key to expanding both your skills and client base. So join groups, networking sessions, conferences and always have a business card handy – with an Arabic language side printed as well.
Get into the heat, learn to live with it and embrace its many positive aspects. Complaining about the heat (which can become very intense at 45 degrees Celsius in the summer) is of no use to anyone. It is a desert after all… but this also means breezy nights in epic landscapes, dune bashing and a whole host of other activities to enjoy.
Find out about the region, show interest in the well-being of local populations, and try to learn a few words in Arabic – it is always appreciated.
With a flourishing business landscape helped by government incentives and an ease of setting up new enterprises, the city of Dubai is an appealing challenge for the business-minded dreamer. Dubai has its contradictions and relatively new social paradigms, but the country’s hospitality and progressive forward-thinking strategies reward those with ambition.
Whatever stage you are on during your Dubai journey, taking these points into consideration will help smooth the transition – although engaging with professional advice throughout the process is of course vital.
In the end, Dubai is a city with an unmatched “You can do it” attitude. So with that in mind, it’s over to you.
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