Setting up business in UAE
Setting up a business in UAE 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 percent, 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 Setting Up a Business in UAE. Benefits of setting up business in UAE The following are some reasons that make setting up 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 a 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 2024. 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. 5. E-Governance 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 services at their disposal, ranging from legal procedures, approvals, inquiries, 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. Steps to Setting up a Business in UAE 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 2100 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 license 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