Dubai is one of the most rapidly developing business centers, providing success-based opportunities, the proper geographical position, and a highly suitable business climate. For anyone to start a business in Dubai, they have to follow a set of steps that will make the business succeed.
In this guide, I outline some of the basic actions you need to take to get you on the right footing in setting up your business venture.
Choose Your Business Activity and Legal Structure
Identify Your Business Activity
- Determine the nature of the business you want to create (it can be trading, service, manufacturing, etc.).
- Understand that your chosen activity will dictate the type of activity chosen determines the nature of the license and permissions to be acquired.
- Research market demand and competition in Dubai for your chosen activity.
Select a Legal Structure
- Sole Proprietorship: Especially useful for those companies that are owned by a single person. Provides complete administrative authority and does not include a host’s legal responsibility exemption.
- Limited Liability Company (LLC): This is a limited liability form of business and is widely used amongst mainland companies.
- Free Zone Company: Allows 100% foreign ownership, tax benefits, and simplified setup within designated free zones.
- Branch Office: Suitable for foreign companies looking to establish a subsidiary in Dubai.
Choose a Business Name and Obtain Initial Approval
Choose a Unique and Available Name
- Choose a name that best describes the business activity of your company and which conforms to the guidelines put in place by the Dubai government concerning business names.
- Do not use a name that is rude in a certain language or has religious connotations; remember that it should be unique.
Obtain Initial Approval
- Submit your chosen business name to the relevant authority:
- For mainland businesses, file an application at the Department of Economic Development also known as DED.
- For free zone businesses, you can apply through the specific free zone authority.
- Get a no-objection certificate to exercise the next course of action.
Secure a Business Location
Find a Suitable Location
- If setting up a mainland business, lease or purchase office space that meets your operational needs.
- For the free zone establishments, you should consider getting pre-approved offices within the free zone only.
Obtain Necessary Approvals
- Make sure that your location is within local zoning and building code regulations.
- Make sure that Dubai Municipality or other related permission is acquired at your site.
Obtain Necessary Licenses and Permits
Apply for a Trade License
- Offer Business plan, a Shareholder Business Agreement, and other players’ identities.
- Choose from the three main types of licenses:
- Commercial License: For trading businesses.
- Professional License: For service-oriented businesses.
- Industrial License: For manufacturing or industrial operations.
Obtain Other Required Licenses
- Depending on the activity of your business, you can apply to other licenses, including:
- Food and Beverage License: This is used in restaurants and catering.
- Healthcare License: For medical establishments.
- E-commerce License: For online businesses.
Open a Corporate Bank Account
Choose a Bank
- Locate research banks that are in Dubai and settle on one that deals with banking services to your type of business.
- Take into account such aspects as international banking purchases, charges, and customer service.
Open an Account
- This is to make sure that you attach; a trade license and any other material about the business, shareholders agreements, and identification of the business members.
- The FTA requires registration in case your company is based in the UAE and has a turnover higher than the minimum in terms of VAT.
Comply with Legal and Regulatory Requirements
Register with Relevant Authorities
- Register with the Federal Tax Authority (FTA) if your business meets the VAT threshold.
- Register to custom in case you intend to import or export merchandise.
Obtain Required Insurance
- Obtain compulsory insurance coverage, including employee(s) health insurance and insurance coverage for all your operations.
Adhere to Labor Laws
- Draft compliant employment contracts and adhere to the UAE Labor Law.
- Sponsor employee work visas through the Ministry of Human Resources and Emiratisation (MOHRE).
Read Also: Unlock UAE Golden Visa Perks with Esaad Card (Fast & Easy)
Develop a Business Plan and Marketing Strategy
Create a Comprehensive Business Plan
- Include key elements such as:
- Business objectives and vision.
- Market analysis and target audience.
- Financial projections and funding requirements.
- Operational strategies and milestones.
Develop a Marketing Strategy
- Leverage digital marketing channels, including social media, email campaigns, and search engine optimization (SEO).
- Participate in local trade shows and networking events to establish a presence in Dubai.
Launch Your Business
Finalize Preparations
- Make sure that all the documentation, licenses and approvals are available.
- Establish your office or business facility with the required equipments and facilities.
Promote Your Business
- Market through different marketing platforms in order to create awareness about your brand.
- Provide promotion offers or early days events to get early customers.
Provide Excellent Customer Service
- Target on high quality products or services.
- Engender proper relationships with your clients in order to have repeat customers and positive referrals.
Additional Tips for Success
Seek Professional Advice
- Converse with counselors, accountants and business advisors so that one will be legally thorough and more so that he/she will possess a superior business structure.
- Hire individuals who are familiar with the business model of Dubai.
Network with Other Businesses
- Participate in local business organizations and participate in networking functions.
- Establish relationships with the suppliers and allies as well as other stakeholders in the business industry.
Stay Updated on Regulations
- Frequently observe developments in the business laws and regulations in Dubai.
- Sign up to the news of the DED or pertinent free zone authority.
All these steps are bound to prepare the foundation of any business in Dubai.
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Final Words
Following the outlined steps of analyzing the business environment, and in consultation with business professionals, a business person can be in a position to develop a successful business in this prosperous city. Stay legal and stick to the basics if you want to seize the potential Dubai presents to your business dreams.
