The biggest misconception about Dubai is that people believe it is solely a tourist destination. However, it is also a fantastic spot to start a business.
People tend to overlook the fact that while its stunning attraction draws visitors worldwide, the city’s vibrant economy, business-friendly environment and strategic location make it an ideal place for entrepreneurs.
However, to exploit the incredible opportunities of this underrated metropolis, you need to get familiar with a few things. The list includes laws, registration processes, visa requirements, and local market dynamics. Understanding these factors will help you navigate the business landscape and enable you to thrive in the economic hub.
Buckle Up & Start Your Dubai Company Now!
To all the people dreaming of a competent business setup in Dubai, here is the comprehensive guide that you need to take your professional ambitions to new heights.
Without a doubt, the land of opportunities is the place to be, but where do you start? Dreaming in one thing and turning that dream into reality is another. It takes guts and continuous effort, so jump in if you are ready to bear the mega risk for your passion.
This step-by-step guide takes you on a virtual journey, skillfully explaining how to start a business in UAE. It covers everything an aspiring entrepreneur like you needs to know
- Decide on Business Type and Name
The first step is to identify the type of business activity you plan to conduct in the big city. Knowing this is crucial because it helps you ensure the alignment of your venture with the DED—Dubai Economic Department’s regulations.
In-depth research is mandatory for this. Find out everything you must have or do for the chosen activity and make a list. Include all details of the required licences and approvals.
Then, select a unique and appropriate business name. Make sure the name you picked adheres to the DED’s naming guidelines because there are restrictions on using offensive language, religious references or existing trademarks.
- Initial Approval & Documentation
Next, you want to submit a detailed business plan and attach all the necessary documents. This submission report has to have the following official papers so that DED studies them and gives you the initial approval.
- A completed application form with all your information provided
- Photocopies of your passport, UAE residence visa and Emirates ID card
- Memorandum of Association (MOA) with all important information
- Tenancy agreement, if any
- No Objection Certificate (NOC) from the owner of office premises
- Business plan and name reservation certificate
- Bank reference letter that demonstrates your financial stability
- All external approvals (health and civil defence)
Once you get the approval, you will be allowed to proceed with the subsequent steps.
- Find a Comfortable Office Space
After this, it is time to find a nice and cosy workstation that meets your corporate needs. For example, if it is a B2B transaction, you might want a quiet place, but if it were a B2C transaction, a marketplace would be ideal.
This step is crucial because, without a physical space, you cannot operate in Dubai. Even the application form that you will submit to DED has to have a complete and accurate address of your office location.
So, make a fine decision by considering factors like accessibility, proximity to clients, and rental costs. In addition, ensure that you have an NOC, an office lease agreement that complies with local regulations and is signed by both parties.
- Handling the Payments & Submission
Once the paperwork is in the final stages, you need to focus on the financial aspects now. Start by making a list. Here is what you will be paying for in the next couple of weeks or months.
| Elementary Particulars | Estimated Costs |
| Initial approval fee | 120 AED |
| Name approval fee | 620 AED |
| Tasheel fee | 230 AED |
| Notarization of MOA | 900 AED |
| Yearly license fee | 10,000 AED |
| Market fee | Approx. 500 AED |
| Foreign name charges | If applicable, 2,000 AED |
| Office rent | Varies based on location & size |
| Additional approvals & licenses | Varies by business activity |
Note: consult with a business setup consultancy for a more accurate estimate tailored to your needs.
- Get Your Trade Licence & Bank Account
Congratulations! You just lifted some weight off your back, but there is still one last thing that you need to do: obtain your trade license from the DED and open a corporate bank account.
Yes, they are both necessary and equally important for legally operating a company. There are no hard and fast rules for the bank account. You may pick any local or international brand to facilitate the financial transactions.
Lastly, make your staff apply for employment visas and make sure you abide by the UAE’s specific regulations for mainland companies for smooth operations. After this, you can chill as you are at the tail end of setting up a business in Dubai, which is the ideal economic hub.
Everything You Were Too Shy to Ask
Q1. How do I choose the right business structure?
An appropriate business structure depends on factors like business size, activity and ownership preference. Hence, you must consult with a business advisor to determine what best fits your needs and product/service.
Q2. Do I need a local sponsor for this process?
If your business is established outside Free Zones, you will need a local sponsor. He is an Emirati individual or company that will hold a 51% share in your business. So, choose your company structure wisely.
Q3. What are the benefits of setting up a business in a Dubai Free Zone?
Setting up in a Free Zone allows you to have 100% foreign ownership, tax exemptions, simplified import-export processes, and full repatriation of profits. In addition, it provides a hi-tech infrastructure and streamlines business setup procedures.
Q4. Can a foreigner fully own a business in Dubai city?
Yes, a foreigner can fully own a business in Dubai, particularly within the Free Zones, but thorough research is mandatory before you take a major step.
Rounding off Everything about Setting up a Business in Dubai
The logical conclusion seems to be that starting a business in Dubai offers vast opportunities. From planning and approvals to securing office space and licenses, this guide simplifies each step for ambitious entrepreneurs. Here is what you need to remember:
- Dream big but plan smarter.
- Choose a compliant brand name for your venture.
- Get your Memorandum of Association notarized.
- Seek approval from the DED regulation by submitting all necessary papers.
- Obtain a physical office space and ensure a lease agreement.
- Gather enough funds to pay the dues.
- Then, receive your trade license.
- Open a corporate bank account.
- Apply for employees’ work visas.
Enjoy the successful sailing of your newly launched venture!