How to Start a Business in Dubai: Your Step-by-Step Guide in 2024

Dubai’s business-friendly environment and advantageous tax rates make it a top choice for foreign entrepreneurs and investors seeking to grow their business ventures. However, navigating the hurdles to start a business in Dubai can be daunting. If you’re among those wondering how to embark on this journey, you’ve come to the right place.

In this guide, we’ll provide a comprehensive, step-by-step walkthrough of the process involved in establishing a business in Dubai, covering everything from selecting the appropriate business activity to setting up a business bank account and obtaining visas.

Documents Required to Start a Business in Dubai

To start a business in Dubai, it’s imperative to register your company and secure the requisite approvals. This entails gathering essential documentation. Here’s a rundown of the key documents needed to register your company in Dubai:

1. Passport copies of all stakeholders with a minimum validity of 6 months.
2. Memorandum of Association (MoA).
3. Office Tenancy Contract (referred to as Ejari in the UAE).
4. Trade Name approval / Initial Approval.

Depending on your business activity, you may also need to procure additional approvals.

Step by Step Process to Start a Business in Dubai, UAE

Embarking on a business venture in Dubai involves various factors to ponder upon. This encompasses selecting the appropriate business activity, determining the necessary license type, and deciding between a free zone or mainland company setup.

To provide a comprehensive understanding of the process, we’ve segmented it into 7 key steps, offering an insightful overview of the entire journey to start a business in Dubai.

1. Choose Your Business Activity

Although it may appear straightforward, the initial step holds deeper complexities within the UAE context. When initiating your business in the UAE, your license must align with a specific pre-defined Activity or Activity Category. This selection is drawn from a comprehensive list of business activities provided by the relevant business registration authority. Hence, identifying the pertinent business activity tailored to your business plan is pivotal for a successful setup.

For instance, if your endeavor involves offering plumbing services, the suitable activity category would be “Technical services” or “Technical contracting.” These categories encompass various activities such as plumbing, electrical work, masonry, AC maintenance, and installation, among others.

While the option to incorporate multiple activities under one business exists, expanding activities substantially escalates the license cost (based on your jurisdiction and chosen activities). Additionally, selecting the appropriate category holds significance in the subsequent step, which involves determining the suitable jurisdiction to launch your business.

2. Choose the Right Jurisdiction for Company Setup in Dubai

Depending on your chosen activity, you’ll be presented with three jurisdictions to establish your business in Dubai or elsewhere in the UAE:

1. Mainland
2. Free zones
3. Offshore

Mainland companies are registered directly with an Emirate’s economic development authority, while free zones operate under designated authorities within an emirate, providing activity-specific benefits for businesses. Offshore businesses, however, cannot engage in any economic activity within the UAE.

Choosing the appropriate jurisdiction can furnish your business with numerous benefits. Certain free zones extend special incentives tailored to specific company types. For instance, the Jebel Ali Free Zone provides infrastructure and tax advantages for importing goods. Nonetheless, if you aim to conduct business seamlessly across the UAE, a mainland company is the optimal selection.

It’s important to note that not all activities are available in every free zone option. While mainland companies have the flexibility to choose from over 2,000 activities, free zones offer specialized versions of these activities.

3. Choose a Company Name

Choosing the right name for your business in Dubai is a crucial step, as the UAE has stringent guidelines governing business names. Here are the requirements:

1. Uniqueness: The name must be unique and devoid of any elements from existing company names within the UAE.
2. Cultural and Religious Sensitivity: It should align with the cultural and religious values of the country, avoiding any offensive or inappropriate words.
3. Relevance: The name should be relevant and compatible with the chosen business activity.
4. Legal Structure Abbreviation: It must include an abbreviation of the legal structure, such as LLC, PJSC, etc.

When submitting a name for approval, it’s advisable to have three options ready to increase the likelihood of approval.

If you’re uncertain about the availability of your desired company name for registration, our company formation advisors are available to assist you.

4. Gather All the Necessary Documents Required to Register the Business

The process for this step can vary depending on your chosen jurisdiction. For mainland registrations, Emerhub will complete the necessary forms from the Department of Economic Development in your selected Emirate, along with providing copies of your shareholder passports.

Additionally, it’s essential to consider your office space at this stage. For most company types, you’ll need to present a tenancy contract or “Ejari.” Your Ejari address will serve as your official office location, underscoring the importance of finding the right office before initiating the registration process. Alternatively, you can opt for a virtual office, and Emerhub can assist you in obtaining either option based on your specific business requirements.

In some free zones, additional documentation such as NOCs or a business plan may be required. Moreover, in most cases, your documents may need to be translated into Arabic for submission.

5. Get Your Business License

Once your documents are successfully submitted, they undergo review by the relevant authorities for approval. In the rare event of objections arising, Brightlink Consulting will submit additional clarification documents on your behalf. Ideally, the company registration process takes between 4-6 working days under normal conditions.

6. Open Your Business Bank Account

Your license serves as the gateway to accessing various services you may require in the UAE, starting with a bank account. There are several options to choose from, including:

• Emirates NBD
• Commercial Bank of Dubai
• Mashreq Bank
• Abu Dhabi Commercial Bank.

However, opening and managing a bank account in the UAE entails compliance with specific regulations. The government and banks closely monitor monetary activities, and failure to adhere to requirements can lead to penalties or rejection of your account opening application. For instance, a bank account could be closed due to six months of inactivity.

Having a local partner like Brightlink Consulting can assist foreign entrepreneurs in navigating these regulations, thereby avoiding potential financial or time losses in the future.

7. Apply for Visas

Depending on your chosen jurisdiction, your business may qualify for visas for both you as the investor and your employees. While investor visas are typically included with every company type, employee visas require registration with the labor department.

The visa application process generally follows these steps:

• Brightlink Consulting submits your visa application and supporting documents via verified government portals on your behalf.
• Once your visa is approved, Brightlink Consulting arranges your medical examination, typically scheduled up to 2 days in advance.
• Upon completion of the medical examination, Brightlink Consulting proceeds with your Emirates ID application. This stage may necessitate a visit to a verified center for biometric verification.
• Emirates IDs are typically issued within 2-4 working days after submission.

For employee visas, there are two additional steps preceding the aforementioned ones. The company must obtain a Labor Card from the Ministry of Human Resources and Emiratization. Following that, Brightlink Consulting submits your employee’s job description and your tenancy agreement to obtain visa approval. Additionally, a bank deposit of AED 3,000 per visa issued for employees is required by the ministry.

Obtaining visas for your dependents is relatively straightforward. The sponsor must have a minimum salary of AED 4,000 or AED 3,000 plus accommodation, and all visa holders must undergo a medical examination.

Partner with Brightlink Consulting to Start a Business in Dubai and the UAE

Partner with Brightlink Consulting to Start a Business in Dubai and the UAE. Starting a business in Dubai, whether for local or foreign entrepreneurs, requires navigating complex government regulations and document submission.

Brightlink Consulting has a proven track record of supporting foreign entrepreneurs in establishing their business setup in Dubai and the UAE. Our experienced advisors understand the challenges that may arise and are committed to guiding you through the process successfully.

Frequently Asked Questions Related to Business Setup in Dubai

Here are some frequently asked questions related to Business Setup in Dubai, UAE in 2024: