How to start a business in Dubai 2023
In the year 2023, the world economy is at a stage of rapid development and change. New demands are generated day by day, making this the ideal year to start your business in Dubai if you have a good business plan in mind. Dubai has remained a hub of economic activity and entrepreneurship for the past decades, and it can provide everything that business requires, from facilities to access to local and international market space. Whether it’s your target audience or skilled employees for your business, Dubai has all of it. It is a good investment opportunity that provides added benefits like safe living conditions and protection of your assets.
Before you start your business in Dubai, you should fix on a few important aspects of your business, they are
1. Legal structure of your business
The legal structure of a business refers to the form of ownership, which can include whether the company is private, shared, or public in nature. To start with the company formation process in Dubai, you should choose a legal structure that will best accommodate your business. It can be a partnership, a branch of a foreign company, or under sole ownership.
2. Location of business setup
The right location for your company will allow it to grow much faster and expand into other areas. The goal of any business is to grow, and you must do whatever is best. The same is true for business licences; depending on the business activities you have planned for your company, you will need to choose the appropriate business licence, which can help you avoid hassles and aid in the company’s development.
3. Business type and trade licence required for the business
You must know what kind of services the business would be providing and fix on the business licence you will be applying for to start your business process.
In this guide, we will discuss the process of establishing a business in Dubai Mainland. To initiate your enterprise in the Dubai, you must first approach the concerning authorities for issuing licence, which is responsible for managing business licenses in Dubai. Follow these steps to properly set up a business in Dubai.
1. Determine the appropriate business type and necessary licenses for your company.
You should have a clear idea of the kind of services your company will be providing and the licence that is required run the company. It can be a commercial, professional or anything else.
2. Choose a distinctive trade name that accurately represents your company’s activities.
The name should be selected in such a way that the name reflects the nature of your business and the business ideals.
3. Obtain initial approval by registering your chosen trade name.
After getting the initial approval you can start getting approvals and other relevant documents from different authorities. The authorities can vary depending on the nature of your business and the jurisdiction.
4. Apply for a trade license through the relevant authorities.
The relevant authority for business licence issuing varies according to the location of your business. For example, DED will be the issuing authority of business licences on the mainland, and likewise, for each free zone, there will be a governing authority.
5. Register your company under the trade name
The business must be registered under the trade name and officially your business will be established.
6. Acquire any necessary external approvals from appropriate authorities for your business operations.
For different businesses the requirements are different hence all of it should be collected before you start your business. You also must ensure that all the relevant documents are produced.
7. Draft a Memorandum of Understanding (MoU) or Memorandum of Association (MoA) to establish your business.
8. Lease office space, ensuring a valid tenancy contract is in place.
This is a crucial step as the valid office physical address will be required for further business activities and bank account formation. Alchemist can help you out wave off the lease of office space for the first year on businesses doing approved activities that are eligible.
One thing to note is that the physical presence of the investor is not completely necessary to start your business in Dubai, Alchemist can help with the incorporation of your business even if you’re a foreigner starting a business in Dubai
Initiating a business in Dubai may seem daunting due to the necessary documentation and approvals; however, with proper planning and guidance from industry professionals, it is feasible to establish your company in a short time, even within a week. At Alchemist Corporate Services, our skilled specialists will assist you through every phase, from inception to the launch of your Dubai-based business. Don’t hesitate any longer – reach out to us at +971556205750 for a complimentary consultation.
