START TRADING IN DUBAI TODAY
Anyone thinking of opening a business in Dubai will need to get a Dubai trade license. This is one of the most important steps new businesses take when starting a company in the area.
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The process of starting a business in Dubai is actually quite straightforward. There are some things to watch out for though. It can be tedious and time-consuming with multiple steps and important considerations along the way that you should know about.
Hire Bizvibez business setup experts to fast-track your setup, make sure that you get good advice about the implications of your decisions. After helping over 60,000 entrepreneurs get started in business, we have put together the ultimate roadmap for how to start a business in Dubai.
Dubai and the UAE are incredibly welcoming and supportive business environments. In fact, over 20,000 new businesses launched in Dubai last year alone. Not surprisingly, many of these were registered by overseas entrepreneurs. Somewhere between 80% and 90% of the UAE workforce are foreign nationals.
There are many compelling reasons why thousands of entrepreneurs the world over flock to the UAE and Dubai to start a business. The main benefits are:
The future of business in Dubai is looking very bright too. According to the International Monetary Fund (IMF), the UAE is expected to lead economic growth in the Arabian Gulf this year, increasing by 2.5%. This is significantly ahead of the region’s biggest economy, Saudi Arabia, which is forecast to grow by 0.4%.
If this makes you curious about how to start a business in Dubai, you aren’t alone. The good news is that company formation in Dubai does not need to be difficult if you follow the steps in this guide.
There are many industries in the UAE and plenty of opportunities for innovation. You might be tempted to jump ahead to the actual setup process straight away, however, we recommend that you decide on the nature of your business up front.
For example, certain free zone locations cater to specific activities or industries, such as media, finance or tech. Let’s take a look at Dubai Media City. As its name suggests, it is a free zone dedicated to media companies, or businesses operating media-related activities. Dubai Media City is home to globally renowned media companies, such as BBC, CNN and Thomson Reuters. Another example is Dubai International Financial Centre (DIFC), where large global financial services companies like Credit Suisse AG, Goldman Sachs International and Morgan Stanley have offices.
Over the years, however, a number of sector-specific free zones have started to welcome general business activities, and not just the ones they are intended for.
Restrictions aside, there are other reasons why you may want to set up in close proximity to businesses in the same sector as you. Look at transport links too. If your business relies heavily on import and export, you should consider one of the free zones situated near an airport or port.
There are numerous business sectors thriving in the UAE. In 2022 and beyond, the commitment to diversifying beyond the oil economy means that new businesses that contribute to this vision will be looked upon favorably.
Having settled on an industry, your next big decision is whether to launch in the mainland or in a free zone. If you opt to set up in a free zone, you’ll benefit from:
However, if you wish to trade directly with the local market in the UAE, you’ll need to work with a mainland company who will charge a fee.
On the other hand, if you choose to set up in the mainland, you are free to trade directly with the local and international markets.
The UAE has some strict naming conventions, so before you commit to a company name, make sure it is legally acceptable.
Any names that include offensive language are forbidden, as are any company names that refer to Allah, Him or any other religious, sectarian or political groups such as the FBI or Mafia. If you choose to name your business after a person, that person must be a partner or owner of the company and their full name must be used — no initials or abbreviations.
For a full rundown of how to choose a company name, visit this guide.
Once your application has been processed, the government/Freezones will issue you with your company licence. Regardless of setup location, you’ll usually only require a few standard documents: a completed application form, shareholder passport copies and the like. Some free zones may also require you to provide a business plan.
Once your paperwork has been returned, you will have all the documentation you need to open your corporate bank account. The UAE is home to many banks, both local and international, including:
There are also global names such as HSBC, Citibank and Barclays. Choosing the one that’s right for you will depend on your specific requirements.
You will need a bank account before you can begin trading in the UAE.
Congratulations on making it this far! Applying for a visa is the final step on how to start a business in Dubai. As well as applying for your own visa, many free zones allow you to put in applications for staff and dependants. The exact number you can submit will depend on which free zone you choose to set up in.
If you are looking to obtain visas for a spouse, child, maid or driver, it is best to seek expert advice to ensure that, firstly, it is possible to do so in your chosen free zone, and secondly, that both you and anyone you are hoping to sponsor for a visa meet all of the entry criteria.
Assuming that this all checks out, the process is made up of four simple stages:
There is no limit to the number of visas a mainland company can apply for, whereas free zone companies will have some restrictions, which vary from one free zone to another.
That's it! With these eight steps completed, you're ready to start your business in Dubai!
Once you have completed these steps, you will be ready to start trading. Compared to other parts of the world, setting up a company in the UAE is very straightforward — ranked 16th in the world in the latest World Bank Ease of Doing Business rankings.
With a flourishing business landscape helped by government incentives and an ease of setting up new enterprises, the city of Dubai is an appealing challenge for the business-minded dreamer. Dubai has its contradictions and relatively new social paradigms, but the country’s hospitality and progressive forward-thinking strategies reward those with ambition.
Whatever stage you are on during your Dubai journey, taking these points into consideration will help smooth the transition — although engaging with professional advice throughout the process is of course expected.
In the end, Dubai is a city with an unmatched “You can do it” attitude. So with that in mind, it’s over to you.