How To Set Up Business In Dubai? (Correct answer)

Here are the key steps to set up a business in a free zone.

  1. Determine the type of legal entity.
  2. Choose a trade name.
  3. Apply for a business licence.
  4. Choose an office space.
  5. Get pre-approvals, register your business and get your licence.

How much does it cost to start a business in Dubai?

The exact fee will be determined according to the company’s legal structure, and of course, the chosen free zone. The costs for registering a company in a Dubai free zone is not exceptionally varied; it is usually around the range of AED 9,000 to AED 10,000.

Can a foreigner start a business in Dubai?

Yes, a foreigner can start a business in Dubai, and many do. Dubai actively welcomes investors and business owners from overseas. The emirate is home to many company formation experts and setup agents, created to help guide foreign entrepreneurs through the license, visa, and business incorporation processes.

How can I start a business with no money in Dubai?

Low cost business ideas in Dubai, UAE

  1. Pet sitting. An increasing number of UAE residents now own pets.
  2. Tutoring / Instruction.
  3. Consultancy.
  4. Cleaning Services.
  5. Build websites.
  6. Social media expert.
  7. E-commerce store.

How can I open a small shop in Dubai?

Below are few of the procedures that are mandatory for a retail business setup in Dubai:

  1. Local Support. Streamline your business plan before you open a retail shop in Dubai but partnering with a UAE national is a must.
  2. Business License and Registration.
  3. Business Jurisdiction.
  4. Shop on Rent.
  5. Added Paperwork & PRO.

Which business is profitable in Dubai?

1. Import & Export. Import and export business in Dubai is such a lucrative sector and is, of course, #1 on our list. Given Dubai’s central location and economic diversity, starting an international trading business in Dubai can be rewarding in terms of expansion opportunities and profitability.

How can I get business license in Dubai?

DED trader license: It is a sole establishment license that can be obtained by Dubai home-based businesses issued with the trade name. It can be applied through “ Invest in Dubai ” platform with a fee of AED 1070 (license fees and knowledge and innovation fees) + AED 300 (Dubai Chamber membership fees).

How do I open my own startup in Dubai?

Here are the key steps to set up a business in a free zone.

  1. Determine the type of legal entity.
  2. Choose a trade name.
  3. Apply for a business licence.
  4. Choose an office space.
  5. Get pre-approvals, register your business and get your licence.

How much does a business license cost in Dubai?

From small and medium enterprises to multinational companies – all types of businesses need to be licensed to operate legally. If you are wondering how much a small business license cost in Dubai, then the quick answer to that is minimum AED 8000 to AED 10000 (approx.).

What is the cheapest business to start in UAE?

List of Low investment Business Opportunities in Dubai

  1. Food Business. Restaurant business has always been in the limelight as one of the most profitable businesses in Dubai.
  2. Consultation Service. People lack information and awareness of many things.
  3. Content Writing and Copywriting.
  4. Real Estate.

Is Dubai good for startups?

As the leading city in the UAE, Dubai has grown to become a global business hub over the last four decades. Out of 198 global economies, the UAE ranked 11th in ease of doing business and 25th in starting a business on World Bank’s 2019 ease of doing business report.

What is the cheapest Freezone in UAE?

Ajman Media City is the cheapest free zone in UAE. This freezone offers investors a range of business activities and business license types at the lowest cost.

Which small business is best in Dubai?

Top 10 Successful Business Ideas in Dubai, UAE

  1. Construction Sector. Dubai is continuing the growth with the establishment of infrastructure facilities, skyscrapers, industrial units and so on.
  2. E-Commerce Solutions.
  3. Travel and Tourism.
  4. Real Estate Agency.
  5. Health Sector.
  6. Handyman Business.
  7. Consultancy Service.
  8. Beauty Salon.

Do I need a license to sell online in Dubai?

The law stated that online activities carried out for commercial purposes must have a trade license in Dubai. The trade license in Dubai must be sanctioned by the Department of Economic Development (DED) and the National Media Council (NMC).

What is best business in UAE?

1. eCommerce. eCommerce is one of the fastest-growing industries in the world. In Dubai, the online market has taken customers by storm, which means many customers across the UAE love to shop via the internet.

The How-To: Forming A Company In Dubai

Entrepreneurcontributors express their own opinions, which are not necessarily those of Entrepreneur. Entrepreneur Middle East is an international franchise of Entrepreneur Media, and you are now reading it. When it comes to business creation in Dubai, there has never been a more favorable time. Those are words that might have been said at any point in the last decade or so, but the signals are particularly encouraging right now. An ambitious project is announced or delivered almost every week, and the UAE’s growth expectations imply that it is a bandwagon that is well worth hopping on at this point in time.

Shutterstock These results, together with the country’s outstanding development in past years, have contributed to the country attracting an ever-increasing number of firms.

There are a variety of different alternatives for the kind of businesses that may be established in the UAE, whether onshore or offshore, but free zones are particularly popular with international entrepreneurs, and for good reason as well.


  1. So, what is the best way to go about it?
  2. We have assisted a large number of enterprises in establishing themselves in various free zones and can break the process down into the six phases outlined in this article.
  3. Decide on a business activity to engage in.
  4. For example, certain free zones only permit specific categories of activity, such as media, medical, or transportation, and aside from the limits, it is frequently advantageous to be in close proximity to other firms in the same industry.
  5. If your company is significantly reliant on import and export, you will almost certainly want to locate it in one of the free zones that are located near an airport or port.
  6. The ultimate decision can be made later in the preparation process.
  7. 2.

The United Arab Emirates has very severe naming practices, so before you commit to a firm name, be sure it complies with these rules and regulations.

The individual who inspired the name of your firm must be a partner or owner of the company, and their entire name must be used – no initials or abbreviations are permitted.

Taking the time to run your suggested name by them can save you a lot of time and effort.


You will be asked to complete an application for your selected business name and activity, which will be sent to the appropriate government authorities together with copies of the shareholders’ passports as proof of ownership.

Even though it is the most time-consuming of all of these stages, the paperwork does not have to be too onerous if it is completed with the assistance of a professional.


This is the simplest of all the steps.

When our clients’ papers are ready to be picked up, we notify them by email or phone.

Open a bank account As soon as your paperwork is returned, you will have all of the documents necessary to create your corporate bank account.

You may either approach the bank of your choice directly or ask your business setup partner to organize meetings with a variety of financial institutions in order to assist you in determining the most appropriate solution for your situation.

Complete the visa application process.

In addition to submitting visa applications for yourself, many free zones enable you to submit visa applications for your employees and dependants — the actual number of applications you may submit will vary depending on the free zone you choose to establish your business in.

Assuming everything checks out, the process is comprised of four straightforward steps: obtaining an entry permit, adjusting your status, taking a medical fitness test, registering for an Emirates ID, and finally getting your visa stamped.

After you’ve completed these six procedures, you’ll be ready to start doing business in your selected UAE free zone.

Company creation in Dubai is not only straightforward, owing to the accommodating conditions of the free zones, but it can also be finished in less than a week with the assistance of qualified professionals.

Each phase might provide challenges that could cause the novice candidate to lose their footing, which is where a business setup partner such as Virtuzone comes into play.

Related: The Formation of an Offshore Corporation: A Springboard to Success

Steps to start a business in Dubai, UAE

The choice to establish a firm in Dubai, or anyplace else in the globe, is a significant one. It entails a variety of tasks such as planning, conceptualizing, researching, budgeting, setting up, and making decisions, among others. If you are a new entrepreneur, you will also want direction and support in acquiring the appropriate trade license for your company, as well as other services. You will learn about the necessary actions to take in order to start a business in Dubai, United Arab Emirates.

The country’s low tax rates and ease of doing business have not only made it a popular investment destination, but they have also helped to solidify its status as a corporate hub in the Middle East.

To start a business in the UAE, follow the steps mentioned below:

Choose a type of company activity. Remember to consider the feasibility of the chosen business activity in respect to the UAE market when picking a business activity for your entrepreneurial enterprise. Before establishing a business in Dubai, conduct extensive study about the viability and profitability of the proposed venture. Then determine when you want to establish your business in Dubai, United Arab Emirates. Select the appropriate jurisdiction. In the United Arab Emirates, the market is separated into three main economic zones: the Mainland, Free Zone, and Offshore.

  1. Each jurisdiction has its own set of rules and regulations that apply to the establishment of a business.
  2. The choice of a jurisdiction for your company is based on your company’s requirements as well as the nature of your business activity.
  3. When founding a business in the United Arab Emirates, selecting the appropriate legal structure for your organization is critical.
  4. During the first phases of planning, you should decide on your legal structure or the structure of your firm.
  5. You will not be able to apply for your business license until you have determined the legal structure of your organization.
  • The following terms are used: limited liability company (LLC), sole establishment, civil company, branch office of a local corporation, branch office of a GCC corporation, branch office of a foreign corporation, branch office of a free zone corporation, holding company.

Obtain authorisation for the name and operation of your firm. Before you can proceed with the process of establishing your company in the United Arab Emirates, the Department of Economic Development (DED) must approve the trade name you have chosen for your firm. During this step, in addition to the approval of your company name, the approval of your chosen business activity is also required. Once you have received the necessary permissions, you will need to submit the necessary documentation in order to apply for your UAE trade license and begin the process of forming a business in Dubai.

Fill out an application for a trade license. There are four different categories of trade licenses in the UAE, which are sometimes known as business licenses, from which you can choose:

  • Commercial licenses, professional licenses, industrial licenses, and tourism licenses are all available.

If you want to start a business in the UAE mainland, you can apply for any of the trade licenses listed above. The license system in UAE free zones differs from country to country and is determined by the type of commercial activity that your firm chooses to engage in. Create an account for your organization. The registration and licensing of a company take place at the same time. The paperwork and approval procedure, on the other hand, is divided into several stages. In this stage, you will be responsible for obtaining the necessary clearances from the appropriate government agencies, as asked by the Department of Economic Development.

Setting up a Business in Dubai: Your Step-by-Step Guide in 2020

Looking to establish a company in another country? Look no further than Dubai to get started. Due to its status as a well-known commercial hub in the Middle East and North Africa (MENA) area, Dubai offers several advantages to organizations and corporations seeking to flourish, develop, and connect with the rest of the globe. Within the first six months of 2019, Dubai’s economy had a 2.1 percent increase in growth, with total GDP reaching USD 56.7 billion in the first six months of the year. Furthermore, it is expected that the GDP would increase to 3.8 percent by 2020.

Fortunately, if you’re considering establishing a company in Dubai, the procedure is rather straightforward – particularly in the shape of the UAE’s free zones.

What you need to know before setting up

In general, there are a few things you’ll need to be aware of before you begin the process of establishing your company in Dubai. Let’s take a look at each of them individually.

Economic Zone: Free Zones vs Offshore

Before you begin, you’ll need to pick whether you want to operate in a Free Zone or an Offshore location. Depending on your requirements, each choices have their own set of advantages and disadvantages to consider.

Free Zone

If you want to be the only owner of your firm, you might consider asking for a license and a site in one of Dubai’s free zones, according to the company. The notion of a free zone was created by the Dubai administration in order to attract international investment and encourage foreign companies to locate in the city. Essentially, it is a special economic zone where business owners can take advantage of a variety of ownership and taxation benefits, including zero percent taxation. However, one of the most significant drawbacks of establishing a business in a free zone is that you are not permitted to conduct direct business with the UAE’s domestic market.

In general, each free zone is organized around a certain industrial group and only grants licenses to businesses that fall within that area.

  • Dubai Multi Commodities Centre (DMCC)
  • Dubai International Financial Centre (DIFC)
  • Dubai Internet City (DIC)
  • Dubai International Financial Centre (DI


Offshore enterprises can also be registered in a free zone and benefit from many of the same advantages as their onshore counterparts. However, it is not a substitute for the services of a free zone corporation. The primary distinction between a free zone company and an offshore company is the way in which the firm is operated. Offshore corporations are permitted to conduct commercial operations only outside of the United Arab Emirates and not within the country.

Additionally, there are no restrictions for a minimum amount of capital to be placed prior to formation. However, unlike establishing a business in a free zone, a sponsor is necessary, which limits your foreign ownership to only 49 percent of the company.

Types of Licence

It will be necessary for you to choose the sort of license you require in addition to choosing on a zone. The Department of Economic Development (DED) is in responsible of awarding licenses, and there are three primary sorts of licenses you may apply for: business, professional, and special.

Commercial licence

In order to start a business in Dubai that involves trade operations or the purchasing and selling of products, you must first get a commercial license from the Dubai Economic Department. Business activities such as import-export, sales, logistics, travel-tourism, general shops, and real estate are all covered by this license.

Industrial licence

A business license for this type of activity is provided to companies that are involved in manufacturing operations that turn natural resources and raw materials into finished goods, either manually or mechanically. Businesses such as textile manufacture, metal production, and paper manufacturing are covered by this license, among others.

Professional licence

Businesses that offer services, are artisans, or are craftsmen are eligible to apply for a professional license. A few examples of businesses that could be interested in applying for this sort of license are medical services, beauty salons, and repair services.


When establishing a business in a free zone such as DMCC, no local sponsor is necessary. It is one of the primary advantages of forming in a free zone since it allows for the establishment of a company with 100 percent foreign ownership without the necessity for a UAE person to act as a partner or sponsor.

Dubai free-zone company setup process

Among international entrepreneurs who are starting up a firm, free zones are extremely attractive. For good reason: they provide zero percent corporate and personal tax, 100 percent company ownership, 100 percent repatriation of capital and earnings, and no currency limitations. In order to establish your business in the free zone, you must complete the following seven steps:

1. Find your business activity

The first step in starting a business and obtaining a license is determining the type of your endeavor and the appropriate licensing requirements. In all, there are over 2,100 business activities to select from, all of which are classified into distinct areas within the industries of manufacturing, commerce, professional services, and tourism. The entire list may be seen on the DED’s official website.

2. Decide on a free zone

As previously indicated, there are more than 30 free zones in Dubai from which to pick. The type of your company may have an impact on the free zone in which you choose to establish yourself. Generally speaking, it makes sense to locate a firm in close proximity to other businesses in the same industry. The Financial Times’ fDi Magazine has named DMCC as the Global Free Zone of the Year, recognizing the company as the world’s flagship Free Zone and the Government of Dubai Authority on commodities trade and entrepreneurship.

3. Choose a company name

When selecting a business name, it is critical that it adhere to the rigorous naming standards of the United Arab Emirates. Nominations that contain abusive language, have the potential to be seen as insulting to religion, or relate to political organizations or the mafia are strictly prohibited. If you’re named your company after a person, you’ll need to provide proof that the individual is a partner or shareholder in the firm (no initials or abbreviations allowed).

Choosing a name for your company may be a difficult task. You may save time and effort by talking with an expert who can guide you through the process of following norms and getting your name authorized.

4. Apply for initial approval

You’ll need to apply for initial clearance to confirm that the Dubai Department of Economic Development (DED) has no objections to your launching a business before you can proceed with the following stages toward obtaining your license. You can submit an application for this either online, in person, or through a third-party service (like through a law firm). The paperwork you’ll be required to give may vary depending on the type of your firm, but in general they are as follows:

  • Initial permission will be required to guarantee that the Dubai Department of Economic Development has no objections to your launching a business before you can proceed with the following stages toward obtaining your license. Online, in person, or through a third party are all acceptable methods of applying for this grant (like through a law firm). Depending on the type of your firm, you’ll be need to produce the following documents:

If you want assistance with your application, please contact one of our specialists who can walk you through the process and ensure that all of your paperwork are properly submitted and prepared.

5. Open a corporate bank account

You can now create a corporate bank account when you’ve been accepted and have gotten all of the relevant documentation back from the bank. There are several banks to pick from in the UAE, both local and foreign. Among these are HSBC, Citibank, Barclays, Abu Dhabi Commercial Bank, Commercial Bank of Dubai, and a slew of other financial institutions. Check out our most recent blog post, in which we detail a 5-step method for effectively opening a bank account in Dubai, to learn more about how to do this.

6. Set up your office location

All businesses in Dubai are required to have a physical location in order to operate legally. Fortunately, establishing your business in a no-fee zone will make it much easier to locate your new office space. A wide choice of commercial property, office buildings, and business center accommodation is available for rent, hire, or lease from DMCC to businesses of every size and type. Contact us now to learn more. All of our offices are well-equipped with wi-fi, access to conference rooms, support services, and all of the utilities that you could possibly need to work.

7. Apply for final approval

You’ll need to gather all of your paperwork, including physical addresses and legal information, and prepare them for submission to the final approval committee. In rare cases, you may be required to submit an application for license permission to other government agencies. When you’re finished, you’ll need to submit the following:

  • For final clearance, you’ll need to prepare all of your documentation, including addresses for locations and legal information. Some situations will need the submission of an application for license permission to other government agencies. You’ll need to enter the following information once you’re finished:.

Finally, you’ll need to pay for the license using one of many recognized payment channels – and then your business will be up and running.

Ready to set up your business in Dubai?

Although it appears to be a lengthy procedure, the actual time it takes to start up your firm will only be a few weeks if everything is done correctly. Get in touch with us at DMCC for assistance in establishing your company in the world’s first Free Trade Zone and global commodities trading hub. We’ll be there for you every step of the process, from creating paperwork to handling submissions and assisting with translations, to establishing up bank accounts, obtaining permission, and offering general assistance and consulting services.

To learn more about how we can assist you, please contact us now! Business in Dubai, Company Formation, and Business Opportunities are some of the topics covered.

Business Startup Dubai

Entrepreneurship has always been promoted in Dubai, and this has never changed. It is no surprise that Dubai is beginning to draw the attention of commercial investors now that the country has demonstrated its economic stability to the world market. Please take 2 minutes to view the video below on company beginning in Dubai. Thank you for your time. It explains exactly how you can profit from it. Alternatively, if you prefer to read, you may skip the movie and get right to the text below: Starting a business in Dubai: To begin the registration procedure, go here.

You must become familiar with the many facts involved with a company beginning in Dubai in order to avoid the pitfalls that are frequently faced while attempting to establish a lucrative corporation in the United Arab Emirates.

Dubai is a great place to start a business.

5 Do’s in business startup

1. Choose a local sponsor, preferably an Emirati national, for your local company beginning. Get familiar with the many facts related with a company beginning in Dubai to avoid the difficulties that have been experienced by others who have attempted to create lucrative enterprises in the United Arab Emirates. There are several business prospects accessible in Dubai, as well as the other Emirates of the United Arab Emirates. However, if you are serious about starting a business in Dubai that will maximize its potential, you will require a locally registered limited liability company (LLC).

  1. It is possible to place a business anywhere in the city when working with a local firm.
  2. A sponsor must be compensated on an annual basis, which might be negotiated.
  3. 2.
  4. a hundred percent Keep in mind that the only option for a business startup in the United Arab Emirates to get off the ground without using a UAE resident as a partner is to establish your company in one of the Free Zones.
  5. Additionally, enterprises that do business with the government must be registered with a sponsor from the local community.

Not to mention the fact that the cost of purchasing or renting in a Free Trade Zone region may be prohibitively expensive for your budget to support. Free zones provide three significant advantages for new businesses starting up.

  • 100 percent ownership
  • Rapid start-up
  • Duty-free customs border
  • 100 percent ownership

Starting a business in Dubai: To begin the registration procedure, go here. please visit this site 3. Choose a location that balances appropriateness, convenience, and cost considerations. Another critical stage in the process of launching a new business in Dubai is determining the most appropriate place for the enterprise to be established. Settling down in a city and starting up a profit-based firm won’t do you much good if your customers and clients can’t find you, regardless of how strong the economy is doing.

  1. An appropriate site in the correct city might be chosen for a shop or an office that is well-known for the sort of product or service with which you are involved.
  2. It is necessary to sign a tenancy agreement.
  3. The range of other services provided in a business building might be quite diverse.
  4. A visa allowing you and your staff to live and work in the UAE is required for a company starting in the UAE in order to conduct your firm.
  5. It is true that their numbers vary depending on a variety of factors such the size of their office, nature of their business, employment category of their employees, and the type of investors they have.
  6. Business visa application in Dubai is not as difficult as many people believe since the bureaucracy is extremely accommodating to international investors looking to establish a presence in the city — the mantra here is “any business is good business” (any business is good business).
  7. Aside from your passport and other legal criteria, a letter from your sponsor is also required to emphasize his or her or your personal details, the purpose for the visa application, and other pertinent information before the application can be processed.


A business advice agency to assist you with registering your business beginning may be the best alternative for you.

In addition, we will assist you with creating a bank account, arranging for an auditor, processing your renewals, and providing nominee services.

As a matter of fact, most of these companies provide a team of experts to plan out your company registration from the ground up.

Additionally, they will take care of all of the essential criteria to assist you in getting your business officially registered with the least amount of hassle on your part.

If you are unable to cover the startup expenditures, it is possible that you should postpone taking this step. Dubai is a great place to start a business. Dubai is a great place to establish a business. To begin the registration process, click here. please visit this site

5 Don’ts in business start-up

1. Do not register your company in a Free Zone without first examining the available office space and preconditions in the area. Frequently, the published information for a Free Zone provides a large number of options for offices. The actual availability is subject to change. A business startup is typically concerned with finding the most cost-effective solution. It is possible that when you actually go through the process of registering your company, you will discover that only certain office sizes are available.

  • It’s possible that it will be too late to change your Free Zone by then.
  • As a result, wait until all aspects of the office have been confirmed before moving forward.
  • It is prudent to verify the validity of publicly available information before finalizing your plans for your business startup.
  • Do not proceed until you have confirmed your assumptions with a business setup consultant or by contacting the appropriate government agency directly.
  • Don’t blindly choose a license category without first checking to see if it allows your business model to operate.
  • Very often, a significant amount of change, or at the very least some tweaking, is required.
  • A license category that is too limited should not be selected.

Banks impose a variety of fees and levies.

Always double-check the criteria and costs before proceeding.


It is possible that your business launch may require a great deal of assistance at first.

Do not proceed with sponsorship unless both parties have reached an agreement on what they anticipate from the other and a formal agreement has been drawn up and attested in the appropriate court of jurisdiction.

Dubai is a great place to establish a business.

To begin the registration process, click here.

You may share it with your friends by one of the social networking links or by contacting us via the contact form on this page. Go from Dubai’s business startup to the Varal webpage. It was last changed on July 6th, 2021 by Do’sDonts

Ramapati Singhania

He strives for perfection in all he does, and he inspires the best in others by providing clear direction, a compelling vision, and unwavering support. With his words and deeds, he demonstrates remarkable open-mindedness, flexibility, dependability, understanding, and straightforwardness, and he fosters both personal and professional progress. ADDITIONAL POST-WEB SITEFOLLOW ME:

12 Things You Need To Know To Start A Business In Dubai

Dubai, the commercial capital of the United Arab Emirates, is located on the Persian Gulf. Businesses from all around the world may benefit from this “city of gold,” which offers a plethora of business prospects and cutting-edge commercial modules. Just two of the elements that encourage entrepreneurs to establish their companies in Dubai are international exposure and an investor-friendly administration. When compared to other nations, startups in Dubai are also eligible for tax breaks and incentives on their investments.

  • Do you have any questions on where to begin?
  • 1.
  • When deciding whether or not to conduct business in Dubai, it is important to be aware of the restrictions that apply.
  • Before you can begin doing business in Dubai, you must get a number of permits.
  • 2.
  • Business jurisdictions in Dubai are divided into zones in order to boost the competence and productivity of a company.
  • The choice of the appropriate jurisdiction is dependent on the nature of the business activity and the type of the business you wish to undertake.
  • You have a choice between several ownership arrangements.
  • This will also allow you to distinguish between your company’s legal and non-legal forms.
  • The following are the several types of shareholding arrangements that you might choose from:
  • In the United Arab Emirates, Dubai serves as the country’s business hub. Businesses from all around the world may benefit from this “city of gold,” which offers numerous business prospects and cutting-edge commercial modules. Just two of the elements that encourage entrepreneurs to establish their businesses in Dubai are international exposure and an investor-friendly administration. When opposed to other nations, startups in Dubai are also eligible for tax breaks and incentives on investments. A new entity’s ability to comprehend the process of starting a business, regardless of how friendly the business establishment processes are, might be tough. Are you unsure where to begin? What you need to know about starting a business in Dubai is summarized in the following section. 1. You’ll need to settle on your business activity in advance of starting your company. When deciding whether or not to conduct business in Dubai, it is important to be aware of the constraints that exist. In the United Arab Emirates, not all commercial activities are permitted. Before you can begin doing business in Dubai, you must get a number of approvals. It is therefore necessary to determine whether your company’s operations are compatible with Dubai’s requirements before beginning any operations. 2. You must select the appropriate legal jurisdiction for your situation. Zone-based business jurisdictions in Dubai are designed to boost a company’s competency while also increasing its overall productivity. Dubai facilitates the development of mainland businesses, freezone company formations, and offshore business establishments in the United Arab Emirates. Choose the appropriate jurisdiction based on the type of your company’s commercial activity and the location of your company. The ownership arrangements are available for you to select from. The ownership structure of a company in Dubai determines how it is set up. Your company’s legal structure will be distinguished as well. In order for your ownership structure to be cohesive with your business operation and chosen jurisdiction, it must be designed specifically for it. Listed below are some of the possible shareholding structures:

4. You must form a partnership with a trustworthy UAE national. It is mandatory to collaborate with an Emirati national in order to establish a business on the Dubai mainland. Finding a trustworthy and dependable business partner in the United Arab Emirates is the problem. According to the agreement, the UAE local partner would own 51 percent of the partnership. In terms of a freezone, a corporation would require the services of a local service agent, who would operate for a modest charge on their behalf.

  • 5.
  • You must name your firm in accordance with the requirements established by the Department of Economic Development (DED).
  • A trade name can be registered in as little as three days, and it is valid for a period of six months after that.
  • Your business activity must be approved before it can begin.
  • According to Law No.
  • In the case of freezones and offshore business arrangements, however, this does not apply.
  • It is possible that you would want external permissions for your operation in Dubai.

However, you may be required to get external permissions in order to begin your firm.


Every business in Dubai is required to have a physical presence in order to operate.


The Department of Environmental Defense (DED) issues the initial permission upon receipt of all needed documentation.

You can begin operating your firm at this time and then proceed with the procedure of obtaining your trade license later on.

You must prepare the Memorandum of Agreement/Landlord and Tenant Act for your company.

When it comes to constraints and liberty, the MOA outlines what each partner has inside the organization, but the LSA describes what function the agent will play and how the compliance will be fulfilled by the agent.

In addition, they must be translated into Arabic.

You must adhere to all of the company registration and business licensing requirements and regulations.

Once the DED has approved the registration of the firm, the business license will be prepared and ready for collection when the time comes.

Commercial licenses, industrial licenses, and professional licenses are the most common types of licenses required for establishing a business in Dubai.

This is mostly determined by the nature of the business and the external paperwork. The following is a broad list of the paperwork and certificates that are necessary for the establishment of a business in Dubai.

  • Certificate of reservation of name
  • Certificate of permission for the first time
  • Approval from external departments
  • Tenancy contract
  • Certificate of registration with the EJARI Association Partners’ passport copies, as well as their letter of authorization (if any)
  • Registration with the Dubai Chamber of Commerce and Industry
  • Endorsements from government agencies (for gas and oil companies)
  • UAE Central Bank approval and license (for financial institutions)
  • Endorsements from government agencies (for telecommunications companies). Certification from the Finance and Industry Ministry (for manufacturing companies)
  • Certification from the Economy and Commerce Ministry (for insurance companies)
  • Certification from the Health Ministry (for medical-pharmaceutical companies)

12. Before you can begin your firm, you must first obtain a business license. The Department of Economic Development will provide a payment voucher or transaction number upon receipt of all of the required documentation. It is necessary to make the final payment in order to obtain the business trade license. Once you have obtained your trade license, you have officially established yourself as a legitimate company organization. Based on the information presented above, it is clear that the process of forming a corporation in Dubai is time-consuming!

You will not squander your money on unnecessary documentation if you work with an experienced business expert.

So, best of luck with your business endeavors!

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How to start a business in Dubai as a foreigner

Entrepreneurs from all over the world come to Dubai to start their businesses. Foreign investors and businesses continue to come to the emirate in growing numbers year after year, drawn by the emirate’s favorable economic climate. In addition to offering a 0 percent corporate tax rate, a key global position, and a straightforward formation process, Dubai now permits foreigners to control 100 percent of their company in the majority of circumstances. This is a recent development that has only recently become effective.

It is possible to start a business in Dubai as a foreigner, but doing so requires some local expertise and knowledge.

Can a foreigner start a business in Dubai?

Let us begin with the fundamentals. Yes, foreigners are permitted to establish businesses in Dubai, and many do so. The local population is made up of more than 80 percent expatriates, with many of those individuals having their own companies. Dubai aggressively encourages foreign investors and company owners to establish themselves in the city. The emirate is home to a large number of company formation specialists and setup agents, which were established to assist international entrepreneurs in navigating the licensing, visa, and business incorporation requirements in the country.

Starting a business as a foreigner

As a foreign entrepreneur starting out in the United Arab Emirates, your first order of business should be to become acquainted with local business conventions and practices. There are various aspects of the business creation procedure that are unique to this area and will be foreign to many people. Having a clear knowledge of these processes from the start will make the process go more smoothly. That is why your first step should be to choose a business formation agent that can walk you through the process step by step, providing guidance and help along the way.

For example, one of the peculiarities of Dubai’s business creation method is the way in which companies are named. When deciding on a name for your company in the United Arab Emirates, you could consider the following:

  • It is not permitted to offend public morality or the public order of the country
  • And Depending on the legal structure of the firm, such as LLC or FZE, the following steps must be taken: It is not permitted to have already registered
  • It must be consistent with the sort of activity and legal standing that are necessary
  • It is not permitted to include the names of any religion or governmental power, nor the names or logos of any foreign organizations.

Using your entire name in your company name, rather than simply your surname or initials, is required if you intend to incorporate your name in your company name. Your selected setup agent can assist you with each stage of the process, as well as in aligning your firm with one of the more than 2,000 approved business activities in the country. You can now proceed to the licensing procedure after taking care of the preliminary administrative tasks.

Types of business licenses in Dubai

In Dubai, there are various different sorts of trade licenses, with the most popular being commercial, industrial, and professional licenses. The sorts of enterprises that fall under each licensing category are self-explanatory and will be decided by the nature of your company’s operations. Generally speaking, if you are engaging in business activity – such as purchasing and selling items or services – you will be required to get a commercial license, among other things. Following your determination of the sort of license you require, you may submit your application for it.

Along with the opportunity to take advantage of Dubai’s 0 percent tax system, free zone enterprises also benefit from customs tax exemption, the absence of any currency limitations, and the option to repatriate any capital and profit earned in the zone.

Documents required to start a business in Dubai

Companies that are founded in free zones are subject to the norms and regulations of the individual free zones. As a result, the evidence necessary will vary depending on the free zone to which you are submitting your request. Documentation that may be required includes:

  • Application form that has been completed
  • Business proposal Copy of your current trade license/registration certificate (if you are an existing firm
  • This is only relevant to local companies)
  • A copy of your current business license/registration certificate (if you are an existing company)
  • Passport photos with color copies of the company’s shareholder(s) and the newly appointed Manager/Director for the new corporation
  • Formal signatures of the firm’s shareholder/s and the newly appointed Manager/Director for the new company are required. Two years’ worth of audited financial reports for a corporate entity or a letter of recommendation from a personal bank of the individual shareholder
  • A letter of recommendation from the existing sponsor (for people)

What are the Dubai company formation costs?

Dubai’s appeal among businesses from all over the world is also due to the fact that it has a comparatively low cost of doing business. Even though there are other variables to consider, you can expect a trade license to cost between AED 15,000 and AED 25,000 on the average. But keep in mind that this is only an approximate approximation. Company formation expenses in Dubai vary based on a variety of factors, including where you choose to establish your business, whether you lease or purchase property, how many workers you have, and other factors.

In addition, if you choose to use a co-working space rather than a permanent office, your startup expenses will almost certainly be lower.

The easy way to start a business in Dubai

The business registration procedure in the United Arab Emirates has been designed to be as simple as possible – and it is completely available to everybody. Having said that, it does need extensive understanding of the region, including its numerous customs and rules. That’s why it’s always a good idea to hire the services of a business setup organization, which can not only provide guidance through the process, but also help you find the most appropriate license and setup type for your company depending on your requirements and your financial budget.

In order to deal with aUAE company formation professional, all you need to submit is some basic documents as well as some information about the nature of your firm’s operations.

Then you can sit back and relax while the specialists handle the rest: administering your license and visa applications, connecting with the appropriate departments and authorities, and reporting back when you’re ready to begin doing business. It truly is that straightforward.

Doing Business in Dubai

Dubai is a welcoming country that welcomes travelers in large numbers. Tourism benefits greatly from it, as our numerous walking tours can attest to. Doing business in Dubai is also a fantastic experience. Starting a business in Dubai may be extremely advantageous because of the city’s strategic location at the crossroads of Asia, Europe, and Africa, as well as its access to a bright workforce and the allure of working in a nation with little or no government regulation. In this post, we’ll provide you with an outline of the procedures involved in establishing a business in the United Arab Emirates.

What type of company to open for doing business in Dubai?

A limited liability company (LLC) and a free zone are the two most common forms of enterprises that international investors and entrepreneurs can establish in Dubai.


An LLC (sometimes referred to as a mainland company) is the most frequent and easiest type of business structure for small businesses. With an LLC, you will only be able to claim ownership of 49 percent of the company. One hundred and one percent of the remaining shares will be owned by an Emirati national or a corporation that is owned entirely by Emirati people. And, yes, Emirati partners are truly asked to submit their family book in order to establish their ancestors’ descent. An LLC will provide the foreign investor with the chance to secure resident permits for themselves, their family members, and a limited number of workers in the United Arab Emirates (UAE).

These consultancies are frequently the most effective means of establishing contact with an Emirati sponsor.

In most situations, you will be required to pay an annual fee to the Emirati partner in exchange for their support of your project.

In most cases, the partner will not seek a share of your company’s earnings, nor will he be expected to participate in your company’s decision-making processes.

Other Requirements to setup an LLC:

In order to form an LLC, you must also have a physical location where you may do business. As part of your license costs, you will be required to pay the government 5 percent of the market rent for that space, so keep this in mind while selecting a location for your business. Even if you want to work remotely from home, you will be required to have an office space. If this is the case for you, a consulting firm may assist you in locating suitable office space to lease in order to fulfill the licensing criteria.

Obviously, there are some regulations that must be followed.

The name of the firm should also represent the nature of the company’s operations.

Consider the following example: If you want to create a contracting business, your company name should be something like “‘XYZ’ Contracting.” Aside from that, using specific phrases in your trade name, such as ‘Emirates,’ ‘Gulf,’ East, West, or International, may result in an extra licensing fee, so be sure you’re prepared to pay it before proceeding.

Is there a minimum capitol requirement to setup an LLC?

In order to form an LLC, you must also have a physical location where you may conduct your business. As part of your license costs, you will be required to pay the government 5 percent of the market rent for that space, so keep this in mind while selecting a location for your company. If you wish to work remotely from home, you will still need to have an office. If this is the case for you, a consultant can assist you in locating suitable office space to lease in order to fulfill the licensing criteria for your business.

In order to be successful, you must follow specific guidelines.

In addition, the company’s name must represent the nature of its operation.

‘XYZ’ Contracting, for example, is an appropriate name for a contracting firm if you are starting one from scratch.

Free Zone

Instead of forming an LLC, overseas entrepreneurs might choose to establish a firm in one of the United Arab Emirates’ authorized Free Zones. For international enterprises, establishing a Free Zone corporation is typically an advantageous alternative. As a result, there is no requirement to collaborate with an Emirati sponsor. You have the option of owning 100 percent of your company. Aside from the obvious benefits of establishing a Free Zone firm, you will also have the option of acquiring resident permits for yourself, your family, and an unlimited number of workers.

They are regulated by a set of rules and regulations that are unique to them (with the exception of UAE criminal law).

Additionally, these corporations are immune from corporate taxes for a period of up to 50 years.

Each Free Zone is focused on a certain business industry or a group of related businesses.

Some of the most popular Free Zones are:

The Dubai Multi Commodities Centre (DMCC) is the largest and fastest-growing Free Zone in the United Arab Emirates. It is mostly concerned with the trading of commodities such as gold, diamonds, pearls, and tea. Furthermore, it provides permits to firms that deal in a variety of different items. This Free Zone, known as DAFZ (Dubai Airport Free Zone), offers three categories of licenses: trade (imports and exports, as well as storage and distribution of commodities), service, and industry (light industrial activities, packaging and assembling).

  1. It is also known as DIFC (Dubai International Financial Center).
  2. Consulting firms are also permitted to operate in this region.
  3. Dubai Internet City is a Free Zone dedicated to enterprises involved in the information and communications technology (ICT) sector.
  4. In Abu Dhabi’s twofour54 Free Zone, enterprises involved in the media industry can set up shop and grow their businesses.

Masdar City– This is another Free Zone in Abu Dhabi that is located in the United Arab Emirates. Its primary focus is on firms that are involved in the renewable energy industry. In a unique twist, the entire city was built to function entirely on solar power, making it a really unique destination.

Choosing the Right Freezone:

It is critical to select the most suitable Free Zone firm. It is dependent on the Free Zone you pick as to what the minimum capital requirement of your Free Zone firm is. For example, there is no demand for money while establishing a business in twofour54. The DMCC, on the other hand, wants AED 50,000 per business and AED 10,000 each shareholder in order to operate. Additionally, the Free Zone will determine the name you may use for your company, the set-up costs you must pay, and the amount of time it will take to incorporate your company.

Please contact us to schedule a private tour of some of your mainland and Free Zone alternatives, in order to assist you in making the best selection for yourself and your company.

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