Business Setup in Dubai
As explained, Dubai’s business ecosystem is thriving and is one of the most prosperous areas to setup your business. Hence, business setup services are a must for any foreign investor owner to get the local information, government rules and regulations and for a smooth process of setting up without any hassle. Some of Dubai's powerful industries are Media, Shipping, IT, Banking and Retail. It is also a major hub for Gold and Diamond. Hence, it is important to rely on professional’s advice for business setup services in Dubai.
Business setup in Dubai has led the government to implement new policies. These are aimed at streamlining the business registration process and offering incentives to entrepreneurs from across the world. Are you looking for new opportunities to set up a business in Dubai? We at BSW are going to help you set up a business in Dubai with a smooth application and documentation process.
Reasons for Company Setup in Dubai
Let us understand why entrepreneurs are rushing to Dubai business setup:
Ideal Location
Dubai's strategic location enhances connectivity between Europe and Asia. It is feasible for businesses due to the huge ports and airports, allowing them to explore a larger market.
Business-friendly Regulations
The government is initiating favourable regulations to promote businesses. It helps provide entrepreneurs with a secure environment in which to invest.
Top-notch Infrastructure
The establishment of different free zones and access to good infrastructure has enabled Dubai to attract business people from across the world.
Types of Jurisdiction for Setting up a Business in Dubai
There are three types of jurisdiction in Dubai which can be considered for business formation. They are mainland, freezone, and offshore. Let us understand these jurisdictions in detail:
Dubai Mainland | Dubai Free Zone | Dubai Offshore |
The mainland is an economic zone regulated by the Dubai Department of Economic Development (DED). A mainland company has access to the local market. | Free zones are designated economic zones with 100 percent foreign ownership. Companies in a free zone have the leverage to conduct all kinds of business, such as trading, services, and industrial activities. | Offshore is an allotted jurisdiction barred from business operations. The company cannot have a physical presence inside the Emirate. Dubai has one offshore location called JAFZA (Jebel Ali Free Zone). |
Process of Setup a Business in Dubai
To set up a business in Dubai, you must go through the steps listed below:
Finalise a Business Activity
The initial step is to determine a business activity you want to conduct in the Emirate. Dubai provides many business opportunities across different industries. Choose the appropriate activity based on your business goals and the target audience by evaluating current market trends.
Select Jurisdiction
The next step involves finalising the jurisdiction. You have to select among the mainland, freezone, or offshore.
Trade Name Registration
Registering a trade name with the Dubai Department of Economic Development (DED) is mandatory. Ensure the name complies with the UAE trade name regulations.
Documentation
Prepare all the documents and submit them to the authorities. You must obtain initial approval to register with the company in Dubai.
Obtain License
Once the application is processed, you are eligible to apply for a business license in Dubai. You need to pay the requisite fee to obtain the relevant license.
Open Bank Account
Once you apply for the license, you need to open a bank account to maintain the financial transactions. Dubai has numerous banks which offer top-notch services. Based on your business requirements, select the appropriate bank.
Apply for Visas
The final step is to apply for a visa to sponsor the stay for yourself, your family, and business workers, among others. There are no restrictions on the number of visas which can be availed for the formation of a company in Dubai mainland, unlike in a freezone.
Advantages of Business Setup in Dubai
There are certain benefits to setting up a business in Dubai. These depend on the jurisdiction where the business is set up. Let us take a look at them:
In Dubai Mainland
Some of the advantages of establishing a Dubai mainland company are:
No Trading Restrictions
Dubai mainland companies can conduct business without any restrictions across the Emirate.
100 Percent Ownership
Complete foreign ownership is allowed to set up a Dubai mainland business. You are not required to appoint a local sponsor for most business activities conducted in the Emirate.
Access to Government Contracts
Mainland companies can undertake government projects. The UAE government approves huge amounts for certain industries. With a mainland company, you can easily access these opportunities.
Business Flexibility
With a Dubai mainland company, you can do business anywhere in the country and access the local markets. Additionally, there is no cap on minimum capital requirements to start a mainland business.
In Dubai Freezone
You enjoy several benefits from establishing a free zone company in Dubai. Some of them are listed below:
Complete Foreign Ownership
Dubai Free Zones allow you to have 100 percent ownership of the company.
Low Tax Rates
A Dubai free zone company is subjected to a 9 percent corporate tax, which is lower than in other countries.
Full Profit Repatriation
You can fully repatriate profits to your home country by setting up a free zone company in Dubai.
Multiple Business Activities Permitted
Dubai Free Zones allow you to conduct a wide range of business activities. The Emirate has designated free zones for particular business industries. Dubai Healthcare City, for example, is designed to promote the health and wellness industry.
In Dubai Offshore
Advantages of business formation in Dubai offshore include:
100 percent Foreign Ownership
You can enjoy complete ownership when setting up a company offshore in Dubai.
Confidentiality
The personal information of the shareholders and directors is not disclosed to the public registers.
Ease of International Transactions
A Dubai offshore company allows you to open multi-currency bank accounts to carry out international transactions.
Ability to Hold Shares in Local Companies
Though you are not allowed to conduct business with resident individuals, offshore companies in Dubai are permitted to hold shares in mainland and free zone companies.
Documents to Submit for Business Setup in Dubai
You must submit the documents mentioned in the table to the Dubai Department of Economic Development (DED), the governing authority for business setup in Dubai:
Dubai Mainland | Dubai Freezone | Dubai Offshore |
Receipt of initial approval | Completed application form | A certified copy of the applicant’s passport |
Memorandum of Association (MoA) and Articles of Association (AoA) | Copy of Business plan | Copy of Bank reference letter |
Copy of lease contract | Passport copies of the shareholders and appointed managers | Proof of Address |
Copies of the applicant's passport | Information on share capital | Copy of Curriculum Vitae |
External approvals (if required) | Specimen signature of the company’s shareholders and appointed managers |
BSW Business Setup Services in Dubai
Complying with the regulatory requirements is essential for a successful business setup in Dubai. Seeking guidance from business setup consultants in Dubai can help ease the process and ensure seamless company registration in the Emirate.
We offers comprehensive solutions to cater to entrepreneurs' various business needs. Our consultants will guide you throughout the application process and assist you with allied services such as bank account opening and visa services, among others. Contact us for more information.
Frequently Asked Questions
The different types of legal entities in Dubai mainland are the sole establishment, civil company, limited liability, branch of a GCC company, public/private joint stock companies, representative office of a foreign company, and holding company.
Three types of legal entities in Dubai freezones can be opened. They are - free zone limited liability company (FZ LLC), free zone company (FZCO), and free zone establishment (FZE).
The kind of office space selected will determine the number of resident visas. For a Virtual Office/Flexi-Desk option, you can typically avail two to three, but the number of visas offered for a physical office space will depend on its size (often it is one visa per 10 square metres).
