Dubai in UAE is anytime the most preferred choice for business for new entrepreneurs looking to set up a small business. The local government encourages investors from everywhere to come and invest in Dubai through various schemes, rebates and easy taxation policies. Even the banks in Dubai continuously provide financial support to investors when required. As a result, Dubai today enjoys flourishing economic growth, thanks to the robust business environment, investor-friendly laws, and incentivizing government policies.
Establishing a small business in Dubai is not very complicated. It takes two to three weeks to incorporate a company when you follow the right procedure. However, if you consult a business setup consultant for the job, you will not need to worry about every small thing in the process. Business setup assistants are experienced and qualified to take care of everything related to company formation in Dubai UAE.
Steps to Follow to Set Up a Small Business in Dubai
Determine Your Legal Structure
Dubai offers multiple legal business structures to choose from. For example, you can open a sole proprietorship company in the UAE with 100% business ownership. You can also own a business on the mainland with 100% ownership. The digital venture is also available for local companies in Dubai at an affordable cost.
Decide Your Business Activities
There are about 2000 permissible business activities listed in DED. You can select those that match your business plan and requirements. You will need to list your business activities before applying for a license in the UAE. Ensure you are following the DED list, as you will not be allowed to conduct a business activity not covered under their license.
Select a Trading Name
Trade name reservation is another essential factor when applying for the initial approval certificate. Selecting a unique trading name is necessary for a small or an established company. Also, make sure your trade name indicates your business activities and is not misleading or duplicated.
You will need to follow all the naming convention rules set by the government. Avoid objectionable terms or controversial words in your trade name.
Find an Office Space
Once you achieve all the steps, find office space for rent at the appropriate location for your business. A rented or leased office is always a convenient option in the UAE as it saves you from massive investment and the hassle of selling the property when you plan to exit. Contact a professional business setup consultant to find an affordable office space in the UAE. You must note that all legal entities in the UAE need a genuine business address for business communications and marketing related to their local businesses in Dubai.
Apply for a Business Licence
You cannot start a business in UAE without a valid business license. After completing all the steps, you will need to apply for a business license. If you operate without a license, you will be subject to legal actions and penalties and may even be barred from doing business. Your business license holds the formal record of all your permissible business activities. And if you want to engage in additional activities, you will require external approvals for operations from a local governing body, permission from the customs authority, an agreement with a regional transport facility, etc., based on your business needs. You can consult your business setup consultant for a hassle-free business license service for smooth transactions.
Open a Bank Account
A corporate bank account in the UAE is essential to manage the financial transactions associated with your business in Dubai. So, cooperate with a bank that offers good and reliable banking services and open your account immediately.
In the UAE, managing visas for yourself and your family members is very easy. However, you will also need to apply for visas for your domestic staff and other associates. For more details, your business setup company in Dubai can assist you.
Necessary Documents Required for Business Setup in Dubai
Here is the list of documents you should keep ready to make things easier for you:-
- A business plan document
- Duly filled application form
- MoA and LSA agreements
- Payment receipt of trade name reservation
- Passport copies of all the shareholders in your company (if any)
Consult with a Business Setup Consultant
If you have decided to open a small business in Dubai, you will enjoy a cost-effective working environment, 100% repatriation of profits, several tax reliefs, and an amicable culture of the UAE. However, You need not worry if you find the company formation process complicated. You can hire a professional business setup company in Dubai for smooth and comfortable services.