The UAE is a popular destination among entrepreneurs and investors. It is not only an investor-friendly country but also its low tax policies and ease of doing business have helped strengthen its status as a trading center in the Middle East. Business setup in UAE is a vital decision. It includes planning, conceptualizing, research, budgeting, set-up, and decision making among other things. If you are a new entrepreneur and want to establish your business here. Then, here you will learn about the vital steps to start a business in Dubai and UAE.
The Process of Start a Business in Dubai and UAE
To start a business in Dubai, UAE, you need to follow the vital steps are:
Select a Business Activity
When you choosing your business activity for your entrepreneurial venture, bear in mind the practicality of the chosen activity in relation to the market of the UAE. Do thorough research on the profitability and feasibility of the activity before you decide on company registration in Dubai.
Select the Right Jurisdiction
The UAE market is classified into different economic zones – the mainland, Free zone, and offshore. These economic zones are also called jurisdiction. Every jurisdiction has its own rules and regulations about business setup. They also cater to different business requirements. Selecting a jurisdiction for your business depends on your business needs and your business activity.
Finalize the Company Structure/ Legal Form
Selecting the legal form of your company is a vital decision when starting a business in Dubai, UAE. It sets the tone and structure for dealing with losses and profits and how should organize your resources and assets. decide on the legal form or your company structure throughout the initial stages of planning. This will help provide a layout for your company. you can’t apply for your business license unless you decide your legal form of the company.
Get Approval for Your Company Name and Activity
The Department of Economic Development must approve the company name before you can move forward and start the procedure of your company set up in Dubai, UAE. along with your company name, your chosen business activity also goes through approval throughout this phase. Once you get the approvals, you would have to submit the documents to apply for your UAE trade license.
Register Your Company
Company registration and licensing is a simultaneous procedure. Although, the whole procedure of documentation and approvals goes through different stages. In this phase, you would need all the approvals from concerned government authorities as requested by the Department of Economic Development. The documents needed are different for each company type and activity.
Find a Local Sponsor
Earlier, setting up a business in Dubai, compulsory required to find a local sponsor. A local sponsor or local partner should be only a UAE citizen. According to the commercial law of the UAE, the local partner would hold 51% shares in your company. finding a reliable sponsor can seem tiring, especially for an aspiring entrepreneur looking for a business startup in Dubai. A business setup consultant can connect you with companies that provide corporate ownership where you will be given documented authority and 100% ownership of your business.
Get the Tenancy Contract and EJARI
When you start your own business in Dubai, you can require an EJARI. This tenancy contract is the agreement between you and the real estate agent whose office unit or shared workspace you intend to rent. EJARI is an online system governed by the Real estate Regulatory Agency (RERA). It ensures honesty and transparency between both parties included in the tenancy. You should submit your tenancy contract and some more documents to begin your EJARI account. EJARI is very crucial because you require it to receive or renew visas for your family member and employees.
Documents Required for Start a Business in Dubai
A there are different forms of businesses in Dubai, there will be a different set of documents for each business. The following documents will be needed for company registration in Dubai :
- Application form of the business
- Business plan
- Memorandum of Association and Article of Association which is duly notarized by the authority
- Passport of the managers of the business
- Passport of the sponsor to prove that he/she is a UAE citizen
- Stamped visa from the Immigration Department
- Trade name certificate
- Certified copy of Tenancy contract
- No Objection Certificate from the sponsor
- Bank reference letter for each stakeholder
Get Expert Guidance and Support from Start Any Business
Start Any Business is a leading business consultant in the Dubai market. We help entrepreneurs and firms establish their companies through UAE company registration, incorporation, and legal consulting services. Our specialists take care of the banking, visa, legal, and licensing formalities, as per the UAE laws. We guide you every step during your company formation, with your business objectives at the hub of our ecosystem, all the way.
If you are thinking of setting up a business in Dubai, Start Any Business can help you with strategic consultation, legal and documentation formalities, and regulations with local shareholders. We have liaisons that help us handle the whole process of company formation cost-effectively in an efficient and timely manner.