Setting up a business in Dubai is the dream of several investors and businessmen worldwide. And why not? There is no better place in the UAE than Dubai for a business setup. The Middle East and North Africa (MENA) trading hub Dubai offers several benefits for businesses looking to flourish, expand, and connect with the rest of the globe.
The first-quarter GDP growth rate was higher than the Central Bank of the UAE’s earlier estimate of 8.2 per cent, much faster than the 2.1% pre-pandemic GDP level. This occurred during a robust economic recovery fueled by increased tourism, a thriving real estate market, and higher oil prices.
This blog will walk you through the considerations to make when launching a business in Dubai.
Why Is Dubai Popular for Business Set Up?
The following are some reasons which make setting a business in Dubai popular:
1. World-Class Infrastructure
Dubai has one of the world’s most advanced transportation, social, and economic infrastructures, with a major project to expand the infrastructure of Dubai Maritime City (DMC), including DP, a purpose-built maritime hub which is expected to cost Dh140 million.
Due to the excellent infrastructure in Dubai, which is ranked among the best in the world for infrastructure investment attractiveness by the Global Infrastructure Investment Index, it is easier than ever to start a business here.
2. Strategic Location
As Dubai is geographically located in the centre of the world, it has strong trade ties with major cities such as Moscow, Hong Kong, London, and Hamburg. Dubai, one of the world’s leading trading centres, has experienced tremendous trade growth and hosts more than 100 international trade exhibitions annually.
Participating in these fairs allows Dubai-based businesses to network with global corporations and explore new opportunities without compromising daily operations.
3. Getting Residence Visa Is Convenient
Dubai’s visa policy is exceptionally accommodating to expats. You can get a residency visa for yourself, your family, and your employees by starting a business in one of Dubai’s free zones. With your visa, you gain access to additional benefits such as:
- Opening a bank account in your community
- Long-term housing leases
- Freedom of movement
- Quick application for visas to various nations and regions, including Schengen nations.
4. International Trade Opportunities
Dubai has been at the forefront of non-oil exports, supporting the country’s goals. Dubai’s non-oil external trade volume increased by 10% to 48 million tonnes in the first half of 2021. Exports increased by 30.8% yearly to 10.1 million tonnes, while re-exports increased by 10.6% to 7 million tonnes. This maintained trade’s position as the backbone of Dubai’s economy.
According to sources, Dubai granted 45,653 new business licenses in the first half of 2022, a 25% increase from the 36,647 given in the first half of 2021.
The UAE Government provides a variety of e-governance services through its official website, www.government.ae. Customers, clients, and visitors have a plethora of eServices at their disposal, ranging from legal procedures, approvals, enquiries, and more.
Thanks to eServices, UAE entrepreneurs can now easily access various services without leaving their homes or offices. Dubai is ranked first in the Arab world and fifth overall in the Local Government Online Services Index 2022 as per UN’s Digital Government Report.
What Is the Process of Setting Up a Business in Dubai?
Setting up a business in Dubai is simple if you follow the correct process. Here is a brief overview of each stage in the entire process:
1. Choose Your Business Activity
The first step in launching your business and obtaining a license is determining the type of endeavour. Whether you want to launch a little business or a big firm in Dubai, there are over 2,100 business activities, all of which fall into distinct categories within the industrial, commercial, professional, and tourism sectors.
2. Choose a Company Name
Choosing a trading name for your company is the next step. Names containing foul language that could be interpreted as insulting to a religion or that refer to political organisations or the mafia are prohibited. You must prove that the person named after the business is an owner or partner (no initials or abbreviations allowed).
Choosing a name for your company can take time and effort. To save time and effort, consult a professional to help you follow the rules and get your name approved.
3. Rent an Office Space
Depending on your requirements, you can rent an office space or choose a shared workspace at a business centre. Submit an application to Ejari to obtain your lease. You cannot obtain your business licence unless you have a tenancy agreement (an ejari). Remember to save your unique Ejari number in case you need it later.
4. Request for Initial Approval
Before getting your license, you must first submit an application for preliminary clearance to ensure that the Dubai DED has no issues with you starting a business. This application can be obtained directly, online, or from a third party (e.g. through a law firm).
5. Obtain the Required Business License
A business license is your official permission to conduct all business operations listed on the license. It opens up many lucrative business opportunities in the UAE, and your unwavering determination to succeed takes over.
Entrepreneurs must provide the necessary documents and authorization to the relevant economic agents to apply for a license. You may apply for external approvals if the license does not cover any of the required permissions. All of your papers will be thoroughly reviewed. If there are no issues, the regulators will approve and issue your company license in just 4 to 5 working days.
Additionally, ensure that your license is still valid by renewing it annually.
6. Obtaining a Bank Account and Managing Your Visas
After completing all the preceding steps, you can apply for visas for both you and your family. Domestic help and family members can also obtain visas. You must contact the proper authorities, provide the necessary documentation, and get a visa permit.
If you are setting up a business in Dubai, whether a foreigner or a UAE citizen, you must open a corporate bank account. Always choose a reputable bank that offers a wide range of banking services and long-term benefits.
What Documents Do You Require for Setting Up a Business in Dubai?
You’ll need to provide the following documents with your application to setup business in Dubai:
- Passport copies
- Passport size photographs
- Entry visa or stamp page
Based on your business activity, the setup specialists at the Shuraa UK Branch may give you a thorough document list.
How Much Does It Cost to Start a Business in Dubai?
The cost of company formation in Dubai can vary depending on your preferred company structure, business location, business activity, and so on. In a Dubai-free zone, setting a business normally costs between AED 15,000 and AED 25,000. Usually, it takes AED 20,000 or more to start a mainland corporation.
Setting Up a Business in Dubai with Shuraa
The possibilities for setting up a company in Dubai are virtually limitless. It makes complete sense if all of these great benefits have whetted your appetite for launching a business in the UAE.
Setting up a business in Dubai at a reasonable cost can be accomplished by contacting the business consultants at the Shuraa UK Branch. We will also take care of any required paperwork, pre-approvals, and other requirements throughout the setup process.