The Ultimate Guide to Setting Up a Business in Dubai - Tips, Advice & What You Need to Know
Starting your business in Dubai is a dream that is worth struggling for, but you don’t have to struggle much by learning about the process and hiring the right kind of people for assistance. There are many things you need to take into consideration when setting up a business in Dubai, and there are different types of business licenses and business types, each having a different authority in charge.
Another thing to consider while setting up a business is the location. The place where you decide to start your business can determine the path your business takes in the future. There are many more things to consider when starting a business in Dubai; let us take a closer look.
Before you start your business
- Take note of your business activity and type of business
Determine the business activities you want to conduct, like whether you want to sell products or manufacture materials, etc. Depending on the type of business activity, the type of trade license you want to apply for also changes. - Decide on the legal form of the business
The legal form of the business denotes the ownership of the company, such as whether it is a private, shared, or public business. Different legal forms of business require things like an LSA or a MoU to establish business in Dubai. - Decide on the location for your business
There are mainly three options for locations if you want to setup business in Dubai: mainland, freezones, and offshore. Depending on what kind of business you want to setup, these locations offer different advantages. For example, an international trading company will benefit much more if it sets up business in the Dubai Offshore.
Steps to start your business in Dubai- Mainland
Here we will be covering the steps to start a business in the Dubai Mainland. To start your business in Mainland, first you must contact the DED (Department of Economic Development), which is the authority in charge of the business licences in Dubai. These are the correct steps to start a business in Dubai properly
- Fix on the business type and licence you want to apply for your business
- Fix on a unique trade name that will best reflect the business activities of your company
- Get the initial approval after registering your trade name
- Apply for trade licence with concerned authorities
- Register the company with the trade name and get the initial approval to start applying for other approvals
- Depending on the legal form find a LSA (Local service agent) and form an agreement with them with all the details and conditions clearly written.
- Get the other approvals of external authorities that may be applicable for your business operations
- Prepare an MoU or MoA to setup business
- Rent your office space and make sure that tenancy contract is there and valid.
- Get the approved trade licence
This is the short and brief version of the steps required to start a business in mainland and as for freezones and Offshore business setup, the steps are much more different, and the issuing authority of business licences are different for each freezone, and the process may vary. Learn more about freezone business setup here.
Dos and Don’ts while setting up business in Dubai
- Do make sure that the tenancy contract and ejari is there. This is essential in the process of visa issuing also for the company registration. * ejari is a online system that keeps track of tenancy agreements.
- Do always look for a trusted LSA (Local Service Agent)
- Do follow the guidelines set for trade names to make sure the trade licence application is not rejected.
- Don’t setup business at the wrong location.
Why finding the correct location and business licence for your business is important
The correct location for your business will help it grow much faster and expand to other regions. The aim of any business is growth, and you will have to do whatever is best. The same goes for business licenses; depending on the business activities you have planned for your company, you will have to select the correct business license, which can help avoid hassles and aid in the development of the company.
Starting a business in Dubai can be confusing and hard to figure out with all the required documents and approvals, but with a little bit of planning and help from the experts, it is possible to start your business in Dubai in less than a week. We at Alchemist Corporate Services have experienced experts who can take you from step one to the inauguration of your business in Dubai. Don’t waste any more time; contact us at +971556205750 for a free consultation.
