Starting a company in Dubai involves a lot of decision-making. You have to plan, conceptualize, budget, and do a lot of research—all of which can quickly become daunting. The good news is that you can always seek help from an established and trustworthy team that has a good track record of helping other entrepreneurs with business setup in Dubai. With their help, you can choose the best trade license that is relevant to your business.
Steps to setting up a business in Dubai
A typical business setup in Dubai usually follows these steps:
Choose a business activity
You have to make sure that your business is practical and relevant to the local market. So, do some research on your idea’s profitability and feasibility before proceeding.
Choose a jurisdiction
There are different economic zones available to you: Mainland, Free Zone, and Offshore. Also known as jurisdictions, these economic zones have their own set of regulations and laws for setting up a business. They cater to different business requirements, too. So, consider your business activity and requirements.
Decide on the company structure
Selecting a legal form for your business is one of the critical decisions you’ll make when setting up a business in Dubai. It sets the structure and tone that can dictate how you can deal with losses and profits and how your assets and resources must be organized. This should be decided during the initial stages of your business setup in Dubai. Keep in mind that you won’t be able to apply for a business license unless you’ve made up your mind on the business structure. The options include the following:
- LLC (Limited liability company)
- IBC (International business company)
- FZE and FZC (Free zone establishments and free zone companies)
The DED (Department of Economic Development) must approve your company’s trade name before you can proceed with business setup in Dubai. Your business activity must also be approved. After approval, you should submit the documents to apply for a trade license before you can open your company.
Apply for the trade license and register your company
There are four kinds of trade or business licenses in Dubai: Commercial, Professional, Industrial, and Tourism. You may apply for one of them if you’re starting a business in the mainland. Free zones have a different licensing structure and will depend on your business activity.
Company licensing and registration are performed simultaneously but the whole process of approvals and documentation involve different stages. You must get the approval of relevant government authorities. The required documents will differ for every company activity and type.
Dubai is among the popular destinations for setting up a business among entrepreneurs and investors. It’s an investor-friendly place with rules and regulations that encourage and favor business owners. However, business setup in Dubai will be easier when you have a dependable team that can get things done with a streamlined approach. They can give advice on free zones, assist in company registration and LLC formation, and help you find and verify potential business partners down the line.
About the Author:
Beyond Limits Business Center is a business solution provider. It is a modern business center in Dubai that offers fully functional offices, serviced offices, co-working space, virtual office, and conference rooms on rent in Dubai’s business heart at a competitive price for all your business needs. Visit the website for more information!