Business Setup in Dubai, UAE

business setup in Dubai


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The UAE is a place that welcomes foreign investment since it helps boost the economy. In this regard, you can take advantage of all the benefits it has to offer by doing the business setup in Dubai. As a dynamic business hub, Dubai can be the right place for you to expand your operations. However, doing the business setup Dubai can be overwhelming. For this reason, you can opt for Dubai business setup services to help you save time and money. Nevertheless, it is always recommended to know everything about how to set up your establishment so you can make a wise decision.

In this article, you are going to get more information about how to start your own company in Dubai. Moreover, you will understand how business set up companies Dubai can make the process easier. Let’s observe:

  1. The perfect location for your business in the UAE
  2. Decide on the legal entity of your business setup in Dubai
  3. See how easy it is to start your business in the UAE
  4. Learn what documents you have to prepare for your business setup in Dubai
  5. Look for a superb office solution to carry out your operations
  6. Get more value for your business setup in Dubai

1. The perfect location for your business in the UAE

business setup in Dubai

Dubai is a place that attracts entrepreneurs and investors for many reasons. Start-ups, small businesses and multinational corporations alike can find outstanding benefits by establishing their operations in this prosperous city.

By carrying out the Dubai business setup and starting your operations you can enjoy tax savings, state-of-the-art infrastructure, business-friendly policies, and countless opportunities. Moreover, as an investor, you can delight in the premium lifestyle this city has to offer.

However, doing the new business setup in Dubai requires you to consider several aspects that can determine the success of your company. For example, if you are a foreign investor, you need to know the basic steps to expand internationally.

Additionally, you need to evaluate the best business ideas in Dubai to opt for a lucrative business.

As you may already know, Dubai has three jurisdictions where investors can establish their businesses: Mainland, Free Zone, and Offshore. Each one has its set of benefits and caters towards a specific type of company.

In this regard, the first important decision you have to make is to decide between these jurisdictions.

1.1 Mainland or Free Zone? Which one to choose

Foreign investors that want to carry out the Dubai new business setup usually consider establishing a Mainland or a Free Zone company. Location is a key decision since it can impact on your activities, revenue, and more.

If you are considering establishing your entity in Dubai, you can incorporate a Mainland Company in Dubai, which grants the following benefits.

  • Possibility to trade within the UAE territory.
  • Access to modern infrastructure.
  • 100% foreign ownership on certain commercial and industrial activities as per the DED Trade license complete list.

On the other hand, you can opt for a Free Zone company, in any of the following Dubai Free Zones:

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    By having a Free Zone Company, you can enjoy the following benefits:

    • 100% foreign ownership.
    • Full tax exemption.
    • Access to lucrative investment opportunities.
    • Possibility to trade internationally.

    Once you have considered the pros of each jurisdiction, you may have decided which one is best for your business. If this may seem complicated, you can always get business setup services Dubai so they can help you determine the best path for your company incorporation.

    2. Decide on the legal entity of your business setup in Dubai

    After deciding on the best location for your business setup, you have to consider your business activity and the legal structure your company will have.

    2.1 The proper business activity for your company

    Deciding on the business activity is the basis for then determining the legal form of your company. Moreover, this will also determine the type of license you can apply for. For example, if you want to engage in commercial activities online, then you have to apply for an E-Commerce License in Dubai.

    Or, if you prefer to offer services as a recruiter, you need to choose that business activity and learn how to get a recruitment agency license in Dubai.

    As you can see, you need to know which license better suits your decided commercial activity. If this may seem challenging, this is why it is important to have experts backing your operations.

    2.1 Selecting the best legal form

    Your business setup company Dubai involves selecting the legal form of your company. This is important because it should match your chosen business activity. Also, depending on the legal entity you will have to follow a set of laws and regulations.

    Deciding on the legal form involves considering the number of shareholders, the capital, and many other factors.

    Some of the business structures a Mainland Company can take are as follows:

    • Limited Liability Company (LLC).
    • Sole Establishment.
    • Branch Company.

    Regarding a Free Zone Company, you can incorporate any one of the following legal entities:

    • Free Zone Limited Liability Company (FZ-LLC).
    • Free Zone Establishment (FZE).
    • Branch Company.

    Deciding on the type of legal structure for your foreign entity is perhaps one of the most common challenges of globalization. This is because you have to learn about local laws and regulations and this can be tedious.

    For this reason, it is useful to get assistance from experts in the field, to help you with everything, from selecting the legal form up to getting your establishment card.

    3. See how easy it is to start your business in the UAE

    By receiving business setup services in Dubai from experts like the team of Connect Resources you can be sure that you are going to get an excellent outcome.

    To carry out the company setup Dubai you will have to go through a series of steps. This is why having specialists that back your operations can make a big difference.

    Generally, the Dubai business set up involves navigating the following stages:

    1. Selecting your business activity.
    2. Choosing an appropriate legal structure for your company.
    3. Registering the company’s trade name.
    4. Getting the Initial Approval.
    5. Processing the documentation (MOA or LSA).
    6. Choosing a business location.
    7. Getting additional approvals (if needed).
    8. Submission and payment of fees.

    Although it may seem simple, doing the Dubai Company set up by yourself is not always easy. If you are not familiar with regulations, it can be even difficult to deal with.

    And, after you have done your company registration, you have to continue with other processes, such as opening your bank account, getting visas, getting your medical fitness certificate, and taking into consideration the basics for hiring employees in the UAE.

    So, before starting the process to incorporate your company in the UAE, you need to have people that can give you their best service. And, if you plan on doing the process alone, make sure to have a thorough understanding of each stage, to ensure you can establish your entity without trouble.

    4. Learn what documents you have to prepare for your business setup in Dubai

    business setup in Dubai

    To have a successful business setup in UAE, you need to prepare your documentation. However, the requirements vary depending on the type of establishment you will incorporate.

    Generally, the basic documents you have to get for your business set up in Dubai are the following:

    • Trade name certificate.
    • Passport copy of each shareholder.
    • Copy of Emirates ID and UAE residence visa (if any).
    • Proof of residential address in the country of residence.
    • Completed Application Form.
    • Business Plan.

    On the other hand, additional documents you have to submit are the following depending on the legal form of your company:

    • MOA: for registration of LLC, Limited Partnership or Public or Private Joint Stock Company.
    • Copies of parent company documents: for local or foreign branches.
    • CV and bank reference letter: for an FZE registered in any of the Dubai Free Zones.

    Moreover, depending on the business activity you will carry out, you will have to submit third-party approvals during your company setup in Dubai.

    5. Look for a superb office solution to carry out your operations

    Whether you are operating in the Mainland or a Free Zone, you have to rent a physical office. This is because you need to have a physical address to operate. Looking for a perfect location is one of the key tips for ensuring outstanding global mobility.

    However, the office solution part of your business setup company in Dubai will depend on your specific needs. For example, if you will have a large workforce, you may need a serviced office.

    Or, if you are establishing a sole proprietorship, then you may not need a big office, so a co-working space can be suitable for you. Similarly, if you hold a fitness freelance visa in Dubai, you may use a virtual office or any other.

    As you can see, your workforce size will be a great factor when deciding on your office space. Nevertheless, keep in mind that having a global workforce of freelancers can also be a choice for you. This is intended to save resources and boost your income.

    In some jurisdictions, you may be required to submit the details of your office address when you are carrying out the company formation Dubai. So, make sure to have this prepared, since you will have to submit it after your company has been registered.

    6. Get more value for your business setup in Dubai

    If you are considering starting your icecream shop, or any other type of business in the UAE, you have to consider the costs.

    However, the expenses you will incur during your company formation in Dubai vary depending on several factors, like the number of work visas, the type of license, the type of company, and more. This is because you have to pay visa application fees for each individual. Also, some types of companies may require less capital.

    In fact, when you are doing the business setup UAE you may see that minimum share capital is not always required.

    On the other hand, you also have to take into account the office rental charges. From the cheaper options, which are the virtual spaces, up to warehouses that offer long-term leases. However, it is possible to find affordable options in the Mainland and the Free Zone.

    6.1 Learn how to save money registering your company

    The business setup service total cost can vary broadly. Nevertheless, it is possible to divide it broadly into five components:

    • Documentation: this includes preparing the papers for company registration as well as attestations.
    • Licensing: some licenses may be cheaper than others, for example, the talent pass license for freelancers in Dubai is more affordable than others.
    • Share capital requirements: some companies do not require a minimum share capital, which makes the process cheaper.
    • Visa processing: getting the visas for your employees may vary depending on how many you will hire. Also, keep in mind that during the application, you need to follow the most important UAE Employment Visa Rules to ensure there are no issues.
    • Workspace: If you rent a hot desk for a single year, it will be cheaper than renting an executive office in a business centre.

    After considering all the crucial steps involved in the business setup in Dubai, you may think it is a daunting process, particularly if you are a foreign investor. Therefore, if you want to learn more about business set up, you can visit our blog where we have plenty of information about the process, such as how to start a business while being an employee or how to set up a foreign legal entity in Dubai.

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