Dubai is a great place, not only for tourism but also for setting up a business. If you have a business idea and you want it to take off, then Dubai is a great place to start, as it is a corporate hub. With its strategic location, world-class infrastructure, and business-friendly policies, Dubai offers numerous opportunities for companies looking to expand their operations.
However, it is a country with strict regulations, and thus, you must get the hang of the process of business setup in Dubai so you don’t make any mistakes and end up on the wrong side of the law.
Hire Cever Corp as your business setup consultants in Dubai and allow us to help you through this crucial journey of business setup.
Determine the Type of Company
The first step of business setup in Dubai is to determine the type of entity you wish to establish. There are multiple options to choose from. Check these out;
Mainland Company: If you aim to operate within both Dubai and Across the UAE, then a mainland company is the option. All you need is a local agent or a sponsor, and there are multiple options for activities that you can engage in.
Offshore Company: This company type is suitable for those engaged in international business and aiming to manage assets through Dubai instead of a physical presence in the country. The business cannot be conducted in Dubai, but the entrepreneurs are protected assets.
Free Zone Company: A free zone company is suitable for international businesses and services. You will enjoy 100% foreign ownership, tax exemptions, and simplified procedures. However, there are restrictions on conducting business directly with the UAE market.
Choose a Business Activity
Which business are you getting into? Is it sales, services, consultancy, or other? You must have the answer to this question. The idea of establishing the start after the business activity has been selected should be pretty easy.
Dubai’s Department of Economic Development offers a list of over 2000 activities. Choose one that matches your business goals. Then apply for a license for the same.
Commercial License: This License is essential for trading activities.
Industrial License: This type is suitable for manufacturing and other production activities.
Professional License: this License is required for service-oriented business.
Select a Company Name
Selecting a company name might sound easy until you realize that more than 11 thousand companies registered in Dubai in the first quarter of 2024 alone. Now, imagine the odds of finding a name similar to any of these companies.
Thus, you must choose a distinct name for your company, which is as per Dubai’s naming conventions and also states your business activity, if possible.
No Abbreviations: use full name or form instead of initials.
No Offensive Language: Ensure that the company name is good and uses no offensive or blasphemous words.
No Trademarks: Do not use any existing trademarks in your company name.
It is essential because the company name will go to DED for approval.
Prepare MOA
A memorandum of Association is like an introductory document of the company which states its name, the business activity, address, shareholders’ names, ownership, operational rules, etc.
The MOA must be notarized and submitted to the relevant authorities as part of the company registration process.
It is a legal document and must be translated correctly before submission. Do not worry; at Clever Corp, we undertake this responsibility on your behalf, ensuring that every document is well-drafted and proofread before it is submitted to the DED office.
Obtain Necessary License or Permits
You will require the necessary licenses and permits to commence operation.
The DED issues an Initial Approval license after your application is approved. It is a permission to set up your company.
DED also issues trade licenses permitting you to operate your chosen business in Dubai.
If you are in healthcare, finance, education, or any such business activity, you need special permits from the concerned authorities.
Obtain Local Sponsorship and Get a Business Place
Depending on the type of company you are establishing, you need to lease a space in Dubai.
For example, if you are establishing a mainland company, you need a sponsor who will hold a 51% share. The profit-sharing arrangements can be agreed upon later.
Free zone companies are required to obtain space in designated free zones.
Register The Company
Once all the steps have been completed, we will submit the necessary documents to DED or free zone authorities. The list of documents includes the application form, MoA, passport copies, NOC from sponsors, etc.
You will obtain licenses to commence the operations once the application is approved.
Open a Bank Account
Every business requires a bank account, and thus, you must get one opened at the earliest. You need a trade license, MOA, passport copies, and sometimes a reference letter from your previous bank.
Conclusion
Business setup in Dubai is easy if you have the right guide to help you through the journey. Even the slightest mistake can get your application rejected. So, hire Clever Corp today and choose the best mate for this journey.
Our knowledgeable staff is right by your side at every step of the journey, making it smooth so you can focus on other important aspects of the business.
Contact us today!
