How to Start Your Own Business in Dubai
The United Arab Emirates occupies one of the leading places in the World Bank’s ease of doing business ranking. Therefore, Dubai is one of the best places to open a business, as well as for general living. Developed infrastructure, security, government regulations that promote business development, the absence of taxes on most activities – all this can be found in Dubai.
Dubai is one of the seven emirates of the country. It leads in terms of population, and therefore is the most attractive for many developing companies. However, registration of a company in this emirate may take longer than in others. This is due to a large number of daily requests to the registration authorities. In addition, many businesses in Dubai require additional permits from various departments.
Therefore, for starting a business in Dubai it is best to seek the help of a professional consulting company. This will help you avoid such problems as:
- the difficulty of choosing a free niche in the economy and the right type of company;
- long paperwork;
- finding a reliable partner – a citizen of the UAE, a local investor;
- selection of the optimal bank;
- difficulties in obtaining a license for a certain type of activity and other problems.
Process of company formation in Dubai
In Dubai, the rules and regulations for companies are subject to change, as the government tries to comply with international standards in the best possible way. The first step for company formation in Dubai is to decide on the type of license that is suitable for future business. Licenses are issued by the Dubai Department of Economic Development (DED). Different types of licenses have a different fee structure, which is manifested in the total fees. In addition, different types of licenses impose various additional requirements on the business.
In fact, the DED issues three basic types of licenses, within which most of the activities are covered:
- Commercial license – is required if the entrepreneur who plans to conduct a trading business.
- Professional license – such a license is intended for an individual or group of individuals who would like to offer their experience in the form of services to the general public.
- Industrial license – an industrial license is suitable for a company that will be engaged in manufacturing or other types of industrial activity.
You can choose any trade name for your company, depending on its availability and the legality of this name from the point of view of the State Department. The trade name should reflect the nature of the company’s business activities. Your trade name must be approved and reserved by the Department when you register a company in Dubai.
In order to obtain the initial approval from DED, it is necessary to prepare the documents required specifically for your chosen activity:
- application for registration of the company and for obtaining a license, as well as confirmation of the reservation of the trade name;
- a copy of the applicant’s ID;
- applicants under the age of 21 are required to obtain permission from the court to conduct business;
- depending on the type of company you plan to register in Dubai, you may be asked to provide some additional documents.
In order not to make mistakes that will result in a loss of time and money, we recommend using the services of professionals when registering a company. A consulting agency will help you to collect the necessary package of documents, as well as obtain permits from government agencies, which will greatly simplify the process of registering a company for you.