Dubai has become a magnet for entrepreneurs planning to thrive on a business journey in the UAE. Its robust economy, augmented with a luxurious lifestyle and opulence makes it a lucrative market to settle in, especially for foreign entrepreneurs. Additionally, its business-friendly policies and infrastructure create burgeoning demand for business setup in Dubai. In recent years, many entrepreneurs and investors have entered the market. With unique growth opportunities and seamless setup process, small business entrepreneurs are testing the market and capitalizing on its dynamic business environment.
Step-by-Step Guide to Start a Small Business in Dubai
Though Dubai boasts a fertile ground for entrepreneurs to flourish in its ecosystem, the process of free zone business in Dubai requires due diligence. Let’s dive and understand the key requirements for a seamless setup process:
Decide your business activity
Identifying a business activity of your interest, choice and expertise is the stepping stone to your entrepreneurial journey in Dubai. Considering the versatility of the market, you can decide from a wide range of activities that are permitted in the free zone. Choosing a specific activity will help in determining the type of license and minimum investment to start a business which will have its own set of advantages and disadvantages that will impact the business journey in the long-term.
Select your jurisdiction
Dubai offers several options in terms of deciding your business presence. Mainland, Freezone and Offshore. You can select the zone as per your business requirement as each zone has its own benefits.
Mainland is ideal for businesses that plan to trade within the local market of the UAE and require freedom to expand across Dubai. On the other hand, the freezone business setup in Dubai is suitable for those who plan to trade globally with tax exemptions and low cost business setup, while offshore allows businesses to operate outside the UAE or hold assets without a physical presence.
Choose the right structure
Deciding the legal structure of a business significantly impacts the overall functioning of the company. Entrepreneurs can decide from owning a sole proprietorship firm or Limited Liability Company, in case more than one or two directors or shareholders are present and responsible for establishing and operating the business.
Obtain a Trade License in Dubai
Once you have decided on the business activity and structure, you will have to apply for a trade license. Even if you are a small business, obtaining a license is mandatory to ensure that you are operating in a legal manner and your business complies with UAE’s regulatory requirements. Based on your activity, you can choose from commercial, industrial, professional and E-commerce licenses.
Submit your documents
- Passport Copies of all Shareholders
- Passport-size photographs of all shareholders
- Memorandum of Association, outlining your business plan and structure
- Identification proof of shareholders
- Address proof of shareholders
Document requirements may vary depending on the type of business activity, license and structure.
Setup a corporate bank account
Starting a small business in Dubai is very straightforward. However, you still need to open a corporate bank account to ensure ease of transaction and financial management of your company. Make sure that you take the advice of a reliable and trusted business advisory firm to ensure a hassle-free process.
How A&A Associate can help to start a business in Dubai
We at A&A Associate, have the most seasoned team of business professionals who take care of the end to end business setup process in Dubai. If you are planning a robust support in your business journey, connect with us today!
