Business anywhere in the world is a complicated affair. Your constant efforts and confident decisions will act as boosters that will elevate it. Most of the governments promote business firms, as it helps in creating job opportunities and income generation. The UAE government is no different. It has some of the most constructive regulations that are conducive to the growth of business firms. Read this blog post “A complete guide to start a new business in UAE” to gain more insights about the procedures to be fulfilled for starting a new business in Dubai, UAE.
Expats have been exploring business opportunities in Dubai/ UAE for long. Numerous foreign nationals have found a gold mine in the UAE. The arrival of expats seeking to try their hands in the business arena of Dubai continues. Though many of them have experience in business in other parts of the world, they may not be aware of the formalities for business setup in Dubai. This article is intended to extend some insight in that case.
We will elaborate on the steps for commencing business firms in Dubai in the succeeding paragraphs. It will give you an overall idea whilst embarking the journey for setting up a business in the UAE. The formalities and documentation process will differ depending on the type of company plan to set up, viz. Mainland, Free Zone, or Offshore.
Select The Field Of Business
It may not be a complicated issue if you are thinking of establishing a branch of your already existing business in Dubai. Therefore, this point is exclusively for those who are going to start the business for the first time in their life. Never go forth blindly. Business is not gambling, perfected steps are necessary for accomplishing success.
Selecting the right field of business is very important. Subsequent activities will depend solely on the selection of the type of business. Once you decide where you are going to invest, the type of company could be finalized. As it is, some businesses perform better in Mainland, whereas Free Zone Company is a better option in the case of some other businesses. You may have to discuss with established professionals or your well-wishers, who have experience in business in Dubai, to finalize this.
Company Title Or Business Name
Unlike in many other countries, you cannot choose the name as you wish in the UAE. The authority has some stipulations about the name of a business organization. You may refer to the relevant sections of business regulations detailing the same or consult a professional agency. The governmental authority will reject a business name that does not follow the guidelines.
You are not permitted to use anything related to religious figures or concepts. Using the name of Allah is strictly forbidden. The business name should not be referring to any political figures, sectarian outlooks, or racist attitudes. Though you can put one of the partner’s names for the business, you should use their full names, neither initials nor abbreviations.
Obtaining Business/ Trade License
There are three types of business licenses in Dubai. Commercial, Industrial and Professional licenses namely. The Dubai Economic Department (DED) issues licenses for every company in the region. You have to submit an application (in both English and Arabic) to DED for issuance of the license. The certificates and other documents accompanying the application must be in both English and Arabic.
The license processing formalities for all three types of licenses are similar. Nonetheless, some types of businesses require additional approval from relevant ministries and departments. Hence, such approvals must be submitted along with the application for a business license.
Hiring Office Space And Commercial Space
You can opt for flexi office space or virtual office if you decide to establish an office later. However, you must own a commercial space of specified dimensions if your business undertakes commercial activities. The authorities will inspect the commercial space before issuing a license. You may contact a reputed business setup service, in case you are new to Dubai and need a commercial space. Else, you may end up paying high rents at a location that may not be even suitable for your business. Business setup services professionals can guide you regarding the best location based on the type of your business.
Incorporation Of Partners
All the documents, visa, and passport copies have to be forwarded to the competent authority for incorporation. You may find it as a lengthy and daunting process. The procedure is a bit drawn out. You can do it without any complications by obtaining support from professional agencies.
The process will be different depending on the type of company you own. In case your business firm is in the Free Zone, there will be additional documentation and formalities.
Start A Bank Account
You can open a bank account in the name of the organization, at the bank of your choice, post receipt of initial approval of the business license. The bank will ask for approval from the authority for opening the account. There are numerous domestic and international banks in Dubai. They will propose different offers for you. Seeking an expert’s advice is better to choose the right one.
Once you are through with all the formalities for setting up a business in Dubai, you will require a visa for your spouse, children, and company staff. You are authorized to put up visa applications in most of the Free Zone companies. The authorities will scrutinize the application thoroughly to confirm all the applicants are meeting the laid down criteria for visas.
Both you and the person you are aiming to obtain a visa must meet the requirements necessitated by the federal laws of the UAE.
Contact a business setup service to complete all the above tasks in quick succession, without any complications. At the same time, check the authenticity and experience of the service providers to confirm that they are genuine.