HOW TO START A BUSINESS IN DUBAI

The process of starting a business in Dubai is quite straightforward. However, it can feel overwhelming with many steps and important considerations. With BizVibez, you can start a business with confidence.

Our consultants provide guidance about the implications of your decisions. After helping thousands of entrepreneurs, we have created a clear roadmap for how to start a business in Dubai.

Why start a business in Dubai?

Dubai and the UAE are incredibly welcoming and supportive environments for businesses. In fact, a significant number of new businesses were registered last year. The UAE’s workforce is largely composed of foreign nationals. For this reason, there are many compelling reasons why entrepreneurs from around the world choose the UAE.

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:

• Low tax: The UAE maintains 0% personal income tax. However, a low corporate tax rate of 9% applies only to profits above a certain threshold, supporting small businesses.
• Vibrant economy: The UAE is home to the second largest economy in the Arab world. Moreover, it is also diverse and resilient.
• High quality of life: The UAE is highly ranked globally for its quality of life. This is a key benefit.
• Startup support: The Emirates offers numerous startup incubators and funding initiatives. Therefore, the future of business in Dubai is very bright.

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.

How to start a business in Dubai? The Company Formation Process

1. Choose an industry

There are many industries and opportunities for innovation in the UAE. First, we recommend deciding on the nature of your business.

For example, some free zone locations cater to specific industries, like media, finance, or tech.

Consider Dubai Media City, a free zone for media companies. As a result, it is home to global companies such as BBC and CNN. Another example is the Dubai International Financial Centre (DIFC), where large global financial firms operate. Over time, many sector-specific free zones have also begun welcoming general business activities.

There are numerous business sectors thriving in the UAE. In 2022 and beyond, the commitment to diversifying beyond the oil economy means that new businesses that contribute to this vision will be looked upon favorably.

2. Choose a location

After settling on an industry, your next big decision is a mainland or free zone setup. If you opt for a free zone, you will benefit from:

• 0% corporate and personal tax on qualifying income
• 100% company ownership
• 100% repatriation of capital and profits
• No currency restrictions
• 100% import and export tax exemption

However, if you wish to trade directly with the local market, a mainland company is the best choice. Furthermore, mainland companies can trade directly with both local and international markets. Moreover, you can also have full foreign ownership in most mainland business activities.

3. Choose your company name

The UAE has strict naming conventions. Therefore, you should ensure your company name is legally acceptable. Names that include offensive language are forbidden. Additionally, any company name referring to religious or political groups is not permitted. Finally, if you name your business after a person, that person must be an owner, and their full name must be used.

For a full rundown of how to choose a company name, visit this guide.

4. Apply for a licence

Once your application is processed, the government or Free Zones will issue your company license. Typically, you will only require a few standard documents, such as a completed application form and shareholder passport copies. In some cases, free zones may also require a business plan.

5. Open a bank account

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 local and international banks, including:

• Mashreq bank
• Dubai Islamic bank
• Emirates NBD
• First Abu Dhabi Bank
• Habib bank Zurich
• Misr bank
• Ajman Bank
• Al Hilal bank
• City bank
• Commercial bank Dubai CBD
• Emirates Islamic bank
• Bank of Sharjah
• Invest bank
• National bank of Fujairah
• Rak bank
• United Arab bank
• Abu Dhabi Islamic bank ADIB
• ADCB
• Standard chartered
• HSBC
• Barclays.

Therefore, choosing the one that’s right for you will depend on your specific requirements. We can assist you with this crucial step. Ultimately, you will need a bank account before you can begin trading in the UAE.

6. Apply for a visa

The final step is to apply for a visa. You can apply for your own visa as well as visas for staff and dependents. For this reason, the exact number of visas you can apply for depends on your chosen jurisdiction.

The visa process is made up of four simple stages:

• Entry permit
• Status adjustment
• Medical fitness test
• Emirates ID registration and visa stamping

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!

Let's do business!

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.

Conclusion: How to start a Business in Dubai

The city of Dubai is an appealing challenge for any ambitious business owner. The business landscape is flourishing, with a supportive government and an ease of setting up new businesses. Ultimately, Dubai rewards those with ambition.

We provide the professional advice you need throughout the process. As a result, starting a business in the UAE is very straightforward, as the country is ranked highly for ease of doing business. In the end, it's an excellent opportunity to grow your enterprise.