Thanks to Dubai’s friendly but competitive environment, Dubai has become one of the most popular destinations for foreign entrepreneurs and investors looking to expand their business operations. However, people give up as they go through many obstacles. Mostly, people require a guide that shows how to start a business step by step in Dubai, and if you’re one of them, then this guide is for you.
Documents Required To Start a Business In Dubai
Before you start your official new business in Dubai, you need to have these essential documents as you register your company and get the necessary approval. Below are the essential documents
- Passport copies of all stakeholders with at least 6 months of validity
- Memorandum of Association (MoA)
- Office tenancy contract (also known as Ejari in the UAE)
- Trade name approval/initial approval
Along with these documents, you might need specific approvals depending on your business activity.
- Ministry of Interior: General transport, driving schools, alarm and safety systems, used car dealers, auto parts, and car rental.
- Local municipal Department: Architectural and engineering affairs.
- Telecommunications and Digital Government Regulatory Authority (TDRA): telecommunication and activities.
- Ministry of justice: legal activities and legal consultancy.
Process for starting your business in Dubai
The action of starting a business in Dubai requires several considerations. From choosing the suitable business activity to the license type, you must decide whether to go for a free zone or a mainland 8company.
We have divided this process into 7 key steps to give you an overview of everything involved to make it easy to understand. 811 company can help you in starting your business.
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Choose your business activity
This step might seem obvious, but in the UAE, it has more significance and is more important.
When setting up your business in the UAE, your business license must have a predefined Activity or Activity Category. This is chosen from a list of business activities the relevant business registration authority provides. Therefore, knowing which business activity is relevant to your business plan is crucial for properly setting up your business.
You can go for multiple activities under one business name, but that will cost your license a lot more than expected, depending on your jurisdiction and chosen activities. Now, selecting the right category plays an important role in the following steps: choosing the right jurisdiction. You can get access to VAT consultants in Dubai.
The right jurisdiction for company setup in Dubai
Now depending on your choice you’ll have to choose the right jurisdiction, you’ll have three options:
- Mainland
- Offshore
- Free zones
Mainland companies are registered directly with an Emirate’s economic development authority, while free zones are under designated authorities within an emirate that offers activity-specific benefits for businesses. An offshore business can not have any economic activity inside the UAE.
Choosing the right jurisdiction can offer your business multiple benefits.
3. Choose a company name
The UAE has strict requirements when it comes to naming your business. The requirements include:
- The name of your business should be unique and should not have any already used names in the UAE
- The name should align with religious values and should not contain offensive or inappropriate words.
- Name should be compatible with your assigned activity.
- The name needs to have an abbreviation of the legal structure (LLC, PJSC, etc).
- When submitting a name for approval, it is always best to have 3 options ready.
4. Gather all the necessary documents required to register the business
When registering for most company types, you will need to show a tenancy contract or “Ejari”. The address on your Ejari will be considered your official office location, which is why you need to find the right office for your company before you begin the registration process. Alternatively, you can also get a virtual office.
5. Get your business license
After you have successfully submitted your documents, your application will be reviewed by the relevant authorities for approval. In ideal conditions, the process for company registration takes between 4-6 working days.
6. Open your business bank account
The process for opening and managing a bank account in the UAE requires a few compliances though. Both the government and the banks monitor monetary activities very strictly, and not knowing about certain requirements can result in penalties or disapproval of your account opening application if not done right.
7. Apply for visas
Depending on your chosen jurisdiction, your business can be eligible for Visas for you as the investor, as well as your employees. While investor visas generally come with every company type, employee visas have to be applied for by first registering with the labor department.
Conclusion
When people start their business operations in Dubai UAE they require direct and proper guidance. This guide helps you to navigate the challenges and be aware of all parts that come across this new journey.
