With favourable tax policies, diverse market, and strategic location, Dubai offers ample opportunities for businesses to thrive therefore starting a new one can be an exciting prospect for entrepreneurs. However, a startup in Dubai requires careful planning, preparation, and adherence to regulatory requirements. In this article, we will discuss the steps to help you set up a business and how to go about it.
The first step in setting up a new business in Dubai is to determine your business activity. The Department of Economic Development (DED) is the regulatory body that governs business setups in Dubai and Abu Dhabi and is responsible for a comprehensive list of activities that are permitted in the city. Through that, you can ensure whether your business activity is permitted in Dubai or not.
Once you have determined the business activity, it’s time to choose a suitable business entity type. There are several options available which include sole proprietorship, limited liability company (LLC), partnership and branch office. The most popular option amongst entrepreneurs is an LLC, for its limited liability protection and foreign ownership up to 100%. It is important to note that the requirements for each entity type may vary, and it is advisable to seek a management consultancy firm for legal advice before making a decision.
Choosing the right business name is crucial for any business, and the same applies to businesses in Dubai. The name should be unique, relevant to the business activity and catchy. Again, the DED has specific guidelines for business names, and it is important to ensure that your chosen name complies with these guidelines. The availability of your chosen name(s) can be checked on their website.
Dubai has specific licensing requirements for each type of business activity, and it is essential to obtain the necessary licences and permits before your business becomes operational. The DED issues licences for commercial, industrial, and professional activities, while other government sectors such as the Dubai Municipality and Dubai Civil Defense issue permits for specific activities. It is advisable to seek professional assistance from a management consultancy firm to avoid the hassle and in order to obtain all the necessary licences and permits before starting operations.
All businesses in Dubai are required to have a brick-and-mortar office space to conduct their operations. The type of space required depends on the business activity, and it is important to ensure that it also complies with the relevant regulations and requirements. You can either rent or purchase office space in the city with several options available which include free zones, business centres, and commercial buildings.
Opening a corporate bank account is mandatory for any business, and the same applies to business setups in Dubai. With a robust banking system in place, there are several banks that cater to the specific needs of businesses. Therefore, it is advisable to choose a bank that offers the right services, features and benefits for your business.
Once you have worked upon and completed the steps above, you can start hiring employees for your business. Dubai has a diverse workforce, and you can make use of several options available for recruitment, including recruitment agencies and online job portals. Keeping the legal formalities in mind, it is important to ensure that your employees are eligible to work in Dubai and that you comply with the relevant labour laws and regulations.
Dubai is a thriving hub of business and commerce, attracting entrepreneurs from all over the world to set up their shop to people of different nationalities in this bustling city. Setting up a business can be a complex process, but with the right guidance from an expert and knowledge of the required steps, it can be a seamless and rewarding experience.
Whether you are an entrepreneur expanding your business in UAE or launching a new one, our consultants at TVG Management Consultancy are here to help you every step of the way. We have worked with plenty of different businesses in Dubai and with our expertise in local regulations and business practices, our team can provide guidance and support to help you navigate the complex landscape of the UAE market. From developing business plans to securing funding and identifying key partners, we prepare entrepreneurs to streamline their operations and accelerate their growth.