Doing Business in the UAE

Doing Business in the UAE

Doing business in UAE has never been more attractive than it is now, with Dubai offering numerous opportunities for foreign investors to set up various types of companies. Dubai’s diversification of its economy means that the city’s growth prospects are strong, with oil production accounting for less than 1% of its total GDP.  

The city’s commitment to doing business in UAE is reflected in the significant increase in the number of business licenses issued, which rose to 45,653 in the first half of 2022, a 25% increase from the previous year. This growth is driven by a variety of factors, including business-friendly government policies, taxation, and infrastructure. For international investors, registering a corporation in Dubai can be particularly beneficial, making it a great area to establish a business and take advantage of all that the UAE has to offer. 

According to the explanation above, doing business in UAE, and registering a corporation in this city may be very beneficial for business owners, particularly international investors. 

Why Start Doing Business in Dubai? 

Dubai and the United Arab Emirates are extremely inviting and helpful business environments. In fact, approximately 20,000 new businesses have been established in Dubai alone last year. Unsurprisingly, many of these were registered by foreign business owners. Foreign nationals make up between 80% and 90% of the UAE employment. 

There are several compelling reasons why thousands of enterprises from all over the globe want to start doing business in the UAE. The primary advantages are as follows: 

Business-friendly Regulatory Environment 

The Dubai government has quickly adapted the technology for establishing a business in Dubai. The business registration procedure is simple and may be finished in a few days. There is minimal paperwork, and the procedures are simple to follow. 

100% Foreign Ownership 

Certain revisions to the UAE Commercial Companies Law were made in 2021, allowing foreign investors to hold 100% of their enterprises in the UAE. This enables for more than half of all economic activity in Dubai, where foreign investors are permitted to possess 100% of the company. 

Availability of more than 30 Free Zones 

Investors can establish their businesses on the Mainland or in Free Zones. Dubai has around 30 Free Zones to select from for entrepreneurs and investors. Setting up a firm in a Free Zone gives the investor complete control of the company. It also provides for the full repatriation of earnings and cash invested. It also provides the investor with the possibility to work with other companies in the same sector. 

Tax Benefits Offered by the Government 

One of the primary advantages of incorporating in Dubai is that the firm is exempt from paying taxes. In Dubai, there are no business or personal taxes. However, a few enterprises must pay GCC VAT at a rate of 5% on specific commercial activity. 

Strategic and Advantageous Geographic Location 

Dubai is strategically located at a crossroads that connects the north, south, east, and west. UAE one of the world’s largest re-export hubs. It boasts one of the world’s busiest airports and seaports, as well as one of the most efficient logistical infrastructures. It is also one of the most significant tourist spots on the planet. 

Developed Infrastructure 

Dubai is one of the most advanced cities in Central Asia, with one of the greatest infrastructures in the world. Its infrastructure is constantly growing and provides good public transit, telecommunication, terminals, and so on. Dubai also hosted Dubai Expo 2020 and FIFA world cup during which substantial developments in Dubai’s overall infrastructure were achieved. 

Regulatory Body/Authority for Company Registration in Dubai 

The Registrar of Companies is the primary regulatory entity in Dubai for business creation. It is the governing body where new business registration applications are lodged. It is the location where businesses must file the necessary paperwork and registrations. 

Company Registration Process  

Following is the process of Establishing a business in the UAE: 

Deciding the Appropriate Business Structure For the Company 

The applicant must first choose the best business structure for the organization. An LLC, Branch Office, Free Zone Company, or Trade Representative Office are some of the structures that can be used. The number of shareholders, commercial activities engaged, and financial requirements of the firm all influence the choice of an appropriate business structure. 

Selecting and Reserving a Company Name 

The following step is to reserve a company name. This is the name under which the company will conduct its operations. The applicant should check the availability of the requested name with the UAE Department of Economic Affairs or the relevant Free Zone Authority. The applicant must check that the chosen name is not already in use by another company and is in accordance with local legislation. 

The chosen/desired name for the firm should have the following elements: 

  • Not to breach public morale or undermine the country’s public tranquilly. 
  • Be consistent with the company’s legal structure. 
  • Have not previously been registered 
  • Must be consistent with the type of commercial activity carried out by the organisation. 
  • Neither the name of any religion, the governmental authority, nor the names or logos of any external bodies are included. 
  • It should not be contentious, disrespectful, or offensive. 
  • When the names of the entrepreneurs are chosen as the business’s trade name, they should represent their complete names rather than nicknames. 

Apply for a Business License 

After selecting and reserving a name with the relevant government, the applicant should apply for a business license based on the commercial activities that the firm wants to engage in in Dubai. The business license is the legal instrument that authorizes its holders to carry out specified business operations. Listed below are the many types of licenses: 

  • Commercial License:  Trading businesses must get a commercial license in order to conduct their business legally.  
  • Industrial License: Businesses that participate in manufacturing and industrial operations must get an industrial license. 
  • Professional License:  Service providers, technicians, and artists need to get a professional license. 

Deciding the Location/Jurisdiction of the Company in Dubai 

The decision about the location of your office might be game-changing for your company. As a result, the company’s office space must be carefully assessed. The entrepreneur has the option of purchasing office space or leasing land. The type of company activity chosen, the number of personnel employed, and the money allotted for the same all influence office space choices. 

Office sizes in Dubai’s free zones range from 20-30 square meters to 2000 square meters and beyond. 

Obtaining Pre-approvals, Business Registration, and the Required Business License from the Relevant Authorities 

Companies registered anywhere are subject to the laws of the jurisdictions in which they are located. As a result, businesses must apply to the relevant authorities with the necessary documentation to get pre-approvals, business registration, and suitable business licenses. The paperwork is determined by the type of business operations carried out by the organization, its location, and its corporate structure.  

Opening a Bank Account 

Once all necessary registrations and approvals have been received from the appropriate authorities, the firm must open a corporate bank account in its name to receive and transmit funds in furtherance of the company’s operations. 


The United Arab Emirates provides a favorable environment for Doing Business in United Arab Emirates due to its strategic position, political stability, infrastructure, and pro-business legislation. The country’s diverse range of sectors and multicultural workforce make it a prosperous economy.  

However, to succeed in the UAE, businesses must be aware of cultural standards, regulatory requirements, and local market circumstances. With the UAE’s commitment to diversifying its economy and promoting innovation, there has never been a better time to consider Doing Business in United Arab Emirates. Companies that invest in building relationships and understanding the local business culture can reap the rewards of this dynamic and prosperous market. 

Companies that spend in developing relationships and learning about the local business culture stand to benefit from this vibrant and wealthy market. There has never been a better moment to explore conducting business in this lively and interesting country, thanks to the UAE’s dedication to diversifying its economy and supporting innovation. 


Recent Posts