The commercial connection between the UAE and the United Kingdom is improving. In a post-Brexit world, British firms are invited to explore new ventures in the UAE, and UAE entrepreneurs are seeking new business possibilities.
In the MENAT area, the UAE is the greatest beneficiary of UK foreign direct investment. UAE is the 13th largest export market in the United Kingdom. As a result, if you are a UK investor or an entrepreneur wanting to start a small business in Dubai, the time is right, and the environment is conducive.
Although the process of obtaining a small business licence in Dubai is straightforward, you must have complete knowledge about it. Let’s see how to start a small business in Dubai.
How to Start a Small Business in Dubai?
A small business setup in Dubai is easy to establish and run. However, you must abide by all the government rules, submit relevant documents, and successfully fill in an application to obtain a small business licence in Dubai. Following is the process of setting up a small business:
1. Select a Business Idea
Dubai supports a variety of business plans across spheres. There is something for everyone here. Whether you are passionate about food, travel, fashion, technology, or finance, Dubai has endless business opportunities. You need to find where your heart lies and choose the best business idea.
Following are some small startup business ideas in Dubai:
- Advertising agency
- Food Processing & Delivery Services
- Beauty-Related Business
- Event management
- Health and Wellbeing
- Real Estate
2. Finalise Your Legal Structure
Once you have decided the kind of activity you want to do, you must next decide on your company’s legal structure. Dubai supports different legal structures, like Limited Liability Companies (LLC) and Limited Liability Partnerships (LLP).
Shuraa experts can help you determine the correct structure for your company, depending on the type of your business activities. They will also help you weigh the pros and cons of each, helping you make an informed decision.
3. Decide Your Trading Name
Deciding on a trading name can be tricky, especially in Dubai. You must ensure that the trading name you choose is compliant with all the rules laid down by the government.
Following are some of the rules for a choosing a trading name:
- The trade name must not be offensive or use any derogatory terms.
- You must use the full name of the individual if you wish to name your company after someone; you must avoid using nicknames.
- Trade names cannot include the name of Allah or any other god for that matter.
Note.: These are more rules that one must abide by while deciding their trading name. Shuraa experts can ensure that your trading name meets all the requirements with their expertise and knowledge.
4. Select the Location
It is vital to make an informed decision as to where you want to have a small business setup in Dubai. Do you want to set it up in one of the free zones or on the mainland? Both of them have their own perks.
Similarly, different zones in Dubai offer specific purposes. For instance, Business Bay is suitable for corporate offices, whereas media city is ideal for media companies. Furthermore, DIFC is for financial institutions, and the industrial area is a hub for manufacturing units.
You may also need to rent or buy an office space, depending on the type of your business activity. For this, you might have to get your office registered with the Ejari. You must also consider several other factors like easy availability of transportation, parking facilities, availability of eatery, and interior.
5. Apply for the Licence
Without a small business licence in Dubai, you cannot carry out any business activities. These business licences are issued either by the Department of Economic Development or the respective free zone authority, depending on your choice of location.
You might also need to apply for additional permits, depending on the choice of your activity. For instance, you may have to get a permit from the Department of Food and Safety. Similarly, for starting a tourism business, you may have to get permission from the Department of Tourism and Commerce Marketing (DTCM).
6. Open a Bank Account
Post applying for the desired business licence to the DED or the respective free zone authority, you need to open a bank account for your business company. Whether it’s a local or international bank, choose a respected bank depending on your demands. Additionally, ensure that the bank you select has outstanding financial services and facilities.
What Are Some Other Requirements for a Small Business in Dubai?
1. Hiring Employees
Employees and workers can make or break your business. Hence, choosing the right employee is necessary. You can carry out the hiring process yourself or outsource it to a recruiting agency.
Hiring employees also necessitates setting up a payroll system. You may also need to get permits from the Ministry of Human Resources and Emiratisation. Furthermore, you will also have to sponsor their visas in some cases.
Our experts at the Shuraa UK branch are well versed in hiring requirements and the visa process. They can help you follow the correct procedure to seamlessly recruit your workforce.
As a new business setup, it is vital to market your services to get more leads and sales. For this, you can have an in house IT team to ensure your visibility. You can also partner with a PR agency to give your business a boost and take some load off your shoulders.
What Documents Do You Need to Get a Small Business Licence?
Submitting relevant documents to the respective authorities is a crucial part of the setting up process. Following are some of the documents that you must submit:
- Passport-size photographs
- Passport copies
- Visa entry or stamp page
You will have to submit other documents in addition to the ones mentioned. To know more details about other documents required, reach out to our expert business consultants at Shuraa UK Branch.
What Is the Cost of a Small Business Licence?
Several factors influence a small business licence cost in Dubai. It can cost you anywhere between AED 20,000 to AED 30,000. However, the licence cost will increase for special privileges.
You can reach out to our expert at the Shuraa UK branch, and we will ensure that you are not overpaying to start a small business in Dubai.
Start Your Small Business With Shuraa
Dubai has everything an investor needs for his business – world-class infrastructure, good connectivity, supportive government policy, advanced technology, tight security, affordable visas and a stable economy. This makes a small business setup in Dubai all the more attractive.
Our experts at the Shuraa UK branch can help you start a small business in Dubai almost effortlessly. We promise to look after everything, right from documents to your business licence. Our experts are the best at what they do. All you need to do is give us a call and let us handle the rest for you!