Dubai is identified globally as a premier business center. Its economy is strong — the environment is tax-free and infrastructure is of top quality. These are the reasons why entrepreneurs are drawn to setting up their businesses in Dubai. Starting a business here comes with a lot of perks! Although there may be some limitations for foreign investors, it still remains fairly easy to start a company here. If you are a foreign entrepreneur looking at Dubai as the place to launch your business, we are ready to help! Let us take a deeper look into what awaits you and see how Start an Idea can make everything smoother for you.
Start an Idea provides a wide range of business setup services at Dubai along with full-fledged support which is the strong basis for your business to grow in that city. We have custom-built packages for all types of entrepreneurs— startup, small and medium enterprises, new businesses, and even large firms — to help you save money on establishing your business.
Why Choose Dubai?
Dubai stands as a giant in the Middle East economy, known worldwide for its trade opportunities. Located at this unique crossroad, the city easily connects and fosters partnerships across the Gulf, Asia and Africa due to its position. Being home to people from various parts of the world, thanks to that 90% expatriate populous mix — it also houses cultures which have rich exchanges of ideas based on this diversity.
Dubai enjoys good infrastructures plus security and pro-business tax systems; with tech-savvy leaders who constantly introduce innovative practices at work that create an enabling environment for other business-minded individuals to realize their full potential. Foreign entrepreneurs thus not only benefit from these pro-business mechanics upon startup when they choose Dubai as their base, but also become part of a dynamic cosmopolitan life!
Why Should You Start Business in Dubai as a Foreigner?
A city that thrives at the center of the world's commerce and trade, Dubai lures countless expatriates every year with its manifold prospects. As a foreign national, there are plenty of reasons that might incline you to start your business in Dubai:
1. Low Tax
Dubai features zero income tax for both individuals and companies— an incredible advantage that helps you retain all your profits. The import duties are also low which makes it easier for business.
2. Business Environment
Starting a business in Dubai for foreign investors is very easy. Most of the commercial entities can be set up either as a sole proprietor or in partnership. The process is straightforward with no red tape.
3. Strategic Location
Dubai is ideally located for international business as it provides easy access to markets in Africa, Asia, Europe and beyond — through world-class infrastructure that fosters global trade connectivity.
4. Lifestyle Appeal
The city of Dubai provides safety, good quality of life and a rich mix of cultures with fine facilities. This appealing ambience would make it an ideal place for business owners and their families to settle down.
5. Government Support
In the UAE, foreign investment and entrepreneurship are highly supported by the government which includes offering free business licenses as incentives for startups and SMEs, in addition to funding programs. The policies are pro-business which leads to growth.
All these points add up to making Dubai a prime destination for expatriates looking to establish their own businesses.
Rules and Regulations for Foreign-Owned Businesses
To initiate a business in Dubai as an expatriate, one must possess detailed knowledge of the laws and rules concerning ownership and licenses.
Trade Licenses
To start business dealings, the corporate bank account in Dubai is required. The documents needed for opening a business account include the trade license, memorandum of association and tenancy contract. When selecting a bank, you can choose between local banks and international banks. Local banks have generally low fees but their English services are limited; while international banks suit foreign businesses well.
Visas
For business transactions, a corporate bank account in Dubai is required. Opening a business account entails the provision of documents such as your trade license and memorandum of association plus tenancy contract. You have an option to choose between local and international banks— with local banks having lower fees but limited English services, while international banks are friendly to foreign businesses.
Business Banking
In Dubai, for business transactions to take place, a corporate bank account is required. Documents like your trade license plus memorandum of association and tenancy contract need to be provided when opening a business account. Choice is yours between local and international banks— locals have lower fees but limited English services while international banks can suit foreign businesses well.
Starting a business in Dubai?
The very first step is to get what is called a trade license. It is also known as a business or commercial license. This license authorizes you legally to operate any form of business activity in Dubai. There are more than 100 different licenses based on the type of the business activity from retail to consulting.
How to Set Up a Business in Dubai as a Foreigner
Establishing a business in Dubai is easy if you are aware of the rules and regulations laid down by the government. To start a business in Dubai as an expatriate or non-resident individual, take the following steps:
1. Determine Your Business Kind
The kind of enterprise you intend to establish ranks top among the decisions needed by a foreigner to be made prior to startup in Dubai. The chosen activity will determine the setup of your entity. You have the option to start a sole proprietorship— which enables you to be the only owner of the business. Additionally, you can establish a limited liability company (LLC)— the most common type of business structure in Dubai that allows you to have a separate legal structure.
2. When you decide on a Business Name
The reservation of the trade name is also needed before the registration of any company so keep in mind that your business name should clearly reflect the nature of business done. The legal consultants in Shuraa will support you to select a name not registered before, not against public law and does not contradict your business activity.
3. Get the Trade License
In Dubai, a foreigner must acquire a license to initiate business. It is the trade license that can be obtained directly from the respective free zone authorities or from the DED.
4. Business Registration
After completing those steps, register your business with the concerned jurisdiction and begin your operational activities in the UAE. Registration involves collecting all documents, proof of identity, trade license, permits, bank account among others. Your business only becomes a legal entity in Dubai post-registration.
5. Get a Business Visa
The business visa eases the flow into and out of the nation for the business. It also enables three of your senior business staff to apply for residency. Those who wish to start a business in Dubai as an expatriate can secure a long term visa for themselves and their dependents by contacting the local embassy. Moreover, any person ready to shift base to UAE with intent to establish business is entitled to apply for a business visa.
Cost of Starting a Business in Dubai as a Foreigner
A trade license can cost between AED 15,000 and AED 25,000, approximately, for starting a business in Dubai as a foreigner or an expat, with the overall cost being dependent on various factors such as the type of business, location, and other necessary documentation.
Also, if you pick a foreign name (non-Arabic) for your company you have to pay an additional fee of AED 2000. Initiation of businesses in Dubai has specific requirements to obtain approvals from various government organizations. For example, starting a restaurant in Dubai will require you to secure permission from the municipality for food and safety. Also, you will need a factory space leased or rented of a certain minimum area if any industrial activity is to be undertaken.
Approvals required for starting a business in Dubai as a foreigner
The commencement of any business entity in Dubai depends on different government departments that have their specific requirements. For example, in order to establish a restaurant in Dubai, it is necessary to obtain permission from the municipality for food and safety if you wish to open an eating outlet. Also, you need vast factory space leased or rented from the government if industrial activities are part of your plan.
Expert Assistance
Abu Dhabi is bursting with opportunities for budding business people in different fields. Abu Dhabi's environment is pro-business, with top-notch infrastructure and government backing. It's perfect. Need help taking your business off the ground in Abu Dhabi? Start an Idea offers full-fledged services. They can guide you through understanding the local market and reaching your business targets. They help with everything from market study and business strategies to legalities and rules. Trust Start an Idea to bring your business dream to life. Visit Start an Idea to find out how they can support you launch and develop your business in Abu Dhabi.
