business setup in Dubai
How to do business setup in Dubai? Dubai is a world of its own for business makers, entrepreneurs, and investors.
On average, 200 new business setups happen in Dubai per day. Shocked? Yes, it’s true. A paradise for investors.
how to start business in Dubai for Indian
The government of Dubai has been preparing its state in terms of world-class infrastructure, transport connectivity, a tax-free environment, and transparent and simple corporate laws and regulations for business owners to come in from various parts of the world and start their businesses. Its very easy starting a business in Dubai as a foreigner.
A change in weekend holidays from Friday to Sunday has also brought smiles to investors as their business days are aligned with the rest of the world. With the stage set, it is certain the number of investors is going to increase year after year. If you are ready to start a business, let me show you in simple steps how to start a business in Dubai And minimum investment to start business in Dubai.
Setting up a business
Mostly nobody talks about the preparation before starting a business. To make sure everything goes soothingly, you need to check a few things ahead.
Check your passport; make sure your passport does not expire in the next one or two months.
Check that you have three to four empty pages in your passport for visa stamping if you want to become a resident.
If you are working as an employee in UAE and wish to start a company, you will need to have a NOC from your employer stating they do not have any issues creating your own company.
Since everything is digital these days, except for your passport, the other documents can be kept as properly scanned pdf files to show the authority if they ask for any additional details Dubai company setup packages.
Business Setup Process
1. Select License Type or setting up a company
There are three types of licenses available 1) Mainland, 2) Free zone, and 3) Offshore. Each has got its advantages.
You can do research on the above three licenses or get a consultation with one of the many business consulting companies; many companies do not charge for consulting. If you find the price reasonable, you can proceed with them or can do it yourself if you have a bit of confidence.
A mainland license allows you to have 100% ownership of most business activities. You do not need a local sponsor anymore. The advantage is also with the location and reasonable or minimal license and renewal charges.
Free zones are more expensive than mainland and offshore companies. 0% taxation is a boon to business owners. No corporate taxes for more than 40 years in many free zones.
Offshore companies are flexible to operate from any part of the world.
2. Company formation in Dubai or Set your objectives clear: Select your Business Activity.
Businesses have various activities. Once you are clear with which license complements your budget, location, and activity you can club one or more activities pertaining to your business and get ready for registration. Dubai Economic Department website https://eservices.dubaided.gov.ae/ gives you clear indications of activity code, group, type, and description. You can have ten business activities of the same group under one trade license.
3. Initial Procedures:
Now, since you have chosen which type of license and the business activity, let us start the procedure. Reach out to DED, free zone, or offshore management, and you can begin your company set up.
Get a name for your company. The name should be aligned with the activity group and as per government regulations.
Initial approval for your business. Fill in the initial approval form and submit the documents with external approvals if needed to be submitted.
4. Ejari/tenancy Contract:
Mainland license offers a wide location to choose from. Find a suitable location to run your business success based on your needs. You must have an Ejari/tenancy contract with your building owner, which must be registered with the Dubai Land Department.
This contract must be submitted to the Economic Department to continue the registration process. Free zones offer multiple options like Flexi desks, small office spaces, large office spaces, and warehouse spaces for you to choose from. Every business needs a valid address of operation.
5. Final Process:
To complete the final procedure, you need to have your passport, visa copy, or Emirates ID. A Memorandum of Association (MOA) will be made considering the number of partners, share capital, powers, terms, and conditions.
All these documents, including your tenancy contract, will wait for the final approval. The partners need to give their fingerprints for biometrics scanning. Once approved, you need to pay the license charges and get the vouchers and your trade license.
Now you get your trade license ready, and you can kick start your business formation.
You are the owner of a business now, and the next procedure is to form your company; the first thing would be to establish your company. You will apply for an establishment card; it usually takes around 2 to 3 working days to receive, with which you can apply for a bank account.
Bank Account Opening:
Bank account opening seems to be a daunting task for many business owners. Yet, you have many options with both national and international banks available in Dubai. You can check multiple banks and find the best corporate account that fits your business.
Some come with minimum balance maintenance, and some do not. Based on the criticality of your business, the days to open a bank account vary.
You need to submit your passport copy, Emirates ID, trade license, last six months of bank statement, and personal account. Dubai has got consultants who handle bank accounts. They suggest the best suitable banks, and they help you get it in no time for a service charge.
Even though you are an owner of a business, you still need to pick up a designation for your residence visa, which will be mentioned in your Emirates ID. You can choose from designations like Partner, Executive Director, and Director, whichever is available and best suits you.
An application needs to be filled with all your details like name, nationality, age, religion, and gender, whether inside or outside the country. If the business owner is on a visit visa, a change status should be made to a temporary employment visa, which will be valid for 60 days.
To make sure he/she does not carry any contagious disease, a medical test must be taken, and the department must certify that the person is fit. A chest x-ray and blood test are also obtained, and the results are given in a day or two.
Then your file moves to the immigration for a background check, and an entry permit will be issued after making sure the person does not have any criminal background, and you do not pose a threat to the country. This may take 3 to 5 days. You have 60 days to complete the visa stamping from the day you have been issued an entry permit.
Your passport will be handed over to the immigration, and you will get your visa stamped on your passport. Next, you need to proceed to the Emirates ID application procedure, which will be done in any authorized typing center. The authorities will issue a date, time, and center for your Emirates ID biometrics; once done, you will receive your Emirates ID and complete the procedure.
As illustrated above, the procedure of how to set up a company and its formation, you can also read more about Dubai’s business on my other blog pages.
We all know how Dubai has evolved into a major hub for trade, business, hospitality, and tourism over a very short span. Just five decades ago, Dubai was an unknown town in the middle of an unforgiving desert.
how to start a business in Dubai without money
But now, Dubai has transformed from a desert to a metropolitan high-fi city, and the transformation has not stopped yet. It currently ranks 3rd in the city with the most skyscrapers globally. What started as a humble town has now transformed into a business and tourism hub.
A home with 95% of a foreign population has brought in a mixture of unique opportunities. It is the best time to start a business in Dubai. Are you thinking of it still? Just take the first step.