Dubai is the commercial capital of the United Arab Emirates. This “city of gold” provides vast business opportunities and commercial modules for enterprises from around the globe. International exposure and an investor-friendly government are just two of the factors that motivate entrepreneurs to start a business in Dubai. Startups in Dubai also get perks on investments and tax advantages when compared to other countries.
But irrespective of the approachable business setup procedures, it can be hard for a new entity to understand the process of setting up a new business. Wondering how to get started? Here’s a idea on what you need to know about starting a business in Dubai.
1.You will need to decide your business activity beforehand
When you decide to do business in Dubai, you need to know that there are certain limitations, Not all business activities are allowed in the UAE. Various consents are required before you start your business in Dubai. Thus, the first thing to do business is to decide whether your business fits in as per the Dubai standards and laws.
2.Your trade name needs to be registered with the DED
You need to give a name to your company as per the standards mentioned by the Department of Economic Development (DED). The trade name acts as an identity of your business, and thus DED emphasizes on associating the name as per the license type. It takes around three days to register a trade name, and it is valid for a period of 6 months.
3.Your business activity needs to be approved
Dubai, only a few commercial activities are not permissible, some activities have restrictions, while others are completely prohibited, According to the Law No. 13 of 2011, the Dubai DED is the accountable body to decide, regulate, classify, permit and license all the economic activities. However, this is not applied to free zones and offshore business setups.
4.You need to pick the right jurisdiction
Business jurisdictions in Dubai are segregated zonally to increase the competence as well as productivity of a business. Dubai offers mainland business setups, free zone company formations, and offshore business establishments. Opting for the right jurisdiction depends on the business activity and the nature of the business you would like to conduct.
5. You need to rent a business premise
Having a physical existence is obligatory for every business in Dubai. The tenancy agreement, Real Estate Regulation Authority (RERA) documents, and EJARI needs to be submitted, following which the initial approval is granted by the DED.
6.You need to collect your business license to start your activity
A payment voucher or transaction number will be provided by the DED on submission of the all the listed documents. The final payment needs to be made to collect the business trade license, Once you collect your trade license, you become a full fledged business entity.
Based on the above details, it is evident that Dubai company registration is an extensive process! Nevertheless, you can make it fast and cost-effective by appointing a business setup consultant. With a knowledgeable business consultant, you won’t waste your money on unwanted documents.
Also, as they are well-versed with the procedure, company formation can be instant.