Dubai is one of the most preferred business hubs in the world for the global business community today. The strategic location, flourishing economy, favorable business environment, easy tax system, and world-class infrastructure are some of the key reasons foreign investors are looking for a business setup in Dubai.
The list of benefits for investors in Dubai is endless. Though there are some restrictions, the benefits provided to foreign investors overpower them. Setting up a company in Dubai is quite an easy process, and incentives that come along make it more appealing to investors.
If you are a foreign investor looking to start your business in Dubai, read on to understand the steps and process.
Starting a business in a new country or a foreign land is not easy. Therefore, it would help if you had a lot of planning and preparations before forming your company. First, you will need to make a business plan and the formats of your company’s basic structure.
The next step is to get your visa in Dubai by consulting the local embassy.
The license is an essential document to start a business in Dubai. First, obtain your business license from the Department of Economic Development (DED).
There are 3 main types of business license:
Standard documents necessary to start a business in Dubai:
The UAE government has introduced several incentives for business owners to set up their business in Dubai. The formation of a company is easy and quick. However, if you find the process complicated, you can always hire business setup consultants in Dubai for expert services.
Before starting your company formation, you will also need to apply for a Dubai visa to make your entry into the country valid. And a visa will allow you to enter multiple times.
This will help you determine what type of business license you will need to operate in Dubai.
This will give your business identity. It must reflect the nature of the business.
If you choose a business setup in Dubai mainland, you will need to find a local sponsor. The sponsor will hold 51% of your company’s share. The remaining 49% can be distributed among you and other shareholders. This is not required if you are setting up your company in a Free Zone.
Obtain initial approvals of your application and supporting documents from concerned departments.
The Memorandum of Association (MOA) is a document that states the additional activities of the company. Notarise this in a Dubai court.
You will receive a payment voucher after you have submitted all your documents. However, you will have to make payments for your license within 30 days of receiving the payment voucher.
After all the abovementioned steps are done, register your business at the Dubai Chamber of Commerce and Industry.
Also, note that there might be additional steps that you may need to accomplish, depending on your business activity. So, it is recommended you consult with a professional business setup consultant to avoid any confusion or delays.
Here are some benefits of setting up a business in Dubai as a foreign entrepreneur:
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