Dubai has become a leading place in the world for leading brands and businesses of all types belonging to different industries and sectors. And undoubtedly, there are plenty of reasons why businesses and businessmen prefer Dubai for expanding their horizons and maximizing their revenues by hitting great sales margins.
The reasons are many, from zero tax rate to the friendly working environment, high-class security, great standards of living, and world-class facilities are some of the benefits. What’s more, most people are generally unaware that the Dubai business market offers a remarkably quick and efficient process to establish, grow, and expand the business.
The UAE economy is growing exponentially and returning back to normal from the uncertain hit of the Covid-19 virus. On the other hand, the number of potential investors is also increasing every month who want to harness the incredible prowess of the UAE’s market. However, it is not just like that one can directly go into Dubai’s business market without understanding this canyon of trade’s nitty-gritty and legal compliances. This is where understanding the laws and regulations of Dubai’s market may appear daunting to many, but at the same time, it helps everyone set the approach for setting a business that grows.
Want to set up a Business in Dubai? – Here’s What You Need to do!
The UAE Government introduced the best-in-class procedures and legal measures that allow anyone to start a business in Dubai. However, in order to let our readers understand the process more appropriately, here is everything you need to do to start a business in Dubai.
1. Pick the Business Nature
The first thing to begin with your business setup in Dubai is to select the business nature. This is what allows you to choose your business activities, and hence you can set your business graph. Further, this helps you understand the authorized activities you need to work on with the location and another setup for your business.
Moreover, you will also require a permit for which the best legal consultancy, i.e., Mai Alfalasi, is the best choice for you. Therefore, selecting your business nature becomes a matter of pivotal importance as several hundreds of business natures are listed in Dubai and learning about what’s best for you.
2. Select Business’s Jurisdiction
Before selecting the business jurisdiction, it is pivotal to understand which jurisdictions are available for business—starting with the different economic zones, i.e., mainland, free zone, and offshore, which are jurisdictions.
As for the business that is spreading its root, it is pivotal to note that each jurisdiction has its set of rules that must be followed and obliged to set up a legally compliant business. Doing so will ensure you that all the legal requirements are met, and no hinder would come your way.
3. Decide the Company’s Structure
When starting a business in UAE, it is paramount to choose the company’s structure as it helps you in forming your business wholly aligned with the legal bindings. By doing so, you can easily devise a structure that helps you deal with profits and losses to organize resources and assets better.
Moreover, it is also considered the initial step of planning as it gives the structure and layout of your company. What’s more, in order to get the legal business license for your company, it is also pivotal to decide and declare the structure as it gives you a clear and succinct view of your company. With this all being said, here are a few of the company structures in which you can register your business in the UAE;
- Sole Establishment
- Civil Company Setup
- Local Company Branch
- Limited Liability Company (LLC)
- Holding Company
- GCC Company Branch
- Free Zone Company Branch
- Foreign Company Branch
4. Apply for Approvals & Trade License
In order to get approval for the business name, you must consult with the Department of Economic Development (DED), which lets you move ahead with the process and set up in the UAE without breaking any rules. Once this process is done, the next step is to focus on a trade license that will give your company the legal status to conduct business in Dubai.
It is pivotal to note that there are four different types of trade licenses in the UAE, i.e., Commercial License, Professional License, Industrial License, and Tourism License. Now, according to your business structure, you can apply for anyone that matches the best of your requirements. However, it is also significant to note that structures and license requirements may vary in UAE Mainland and Free-Zones.
5. Prepare your Memorandum of Association
Another thing to pay keen attention to is the preparation of a memorandum of association (MoA), which is a primary requirement to start a business in Dubai. However, in order to get done with a memorandum, you will require an expert legal consultancy in Dubai from experts and reputed firms such as Mai Alfalasi.
6. Finalize Ejari (Tenancy Contract)
It is undoubtedly correct that you will require a tenancy contract, i.e., Ejari, for starting up a business in Dubai. It is a document or agreement between the real estate agency and the business owner. Ejari is recognized as an online system in the UAE that is governed by the Real Estate Regulatory Agency (RERA). The sole duty of this agency is to ensure transparency when the contract is made.
7. Visa Processing
As soon as you have received your license, it is time to apply for a visa. You will not only require the visa but also several free zones permit to file visa applications for dependents and employees if sponsoring any. This is where you will also decide the number of Visas you need to choose between. For this, the professional legal consultancy firm in Dubai will help you do all the documentation.
8. Collection of Trade License
Now, as you move toward the final step of the process of collection of your license, be mindful that you will have to submit the following documents in order to collect your trade license;
- Memorandum of Association (MoA)
- Trade License Application
- Initial Approval Certificate
- Relevant Government Forms
- External Approvals
- Tenancy Contract
- Ejari Registration Certificate
- Passport Copies of Partners
- NOC for Partners
- DED might ask for other requirements.
The Final Words
In order to conduct legally compliant business in Dubai, it is mandatory to follow all the guidelines and restrictions in place that benefit and promote business owners. Setting up business in Dubai requires you to strategize, envision, research, make decisions, and think of a budget for your business setup.
This is where Mai Alfalasi will provide top-notch services that allow you to start your business in Dubai. You can book legal consultation with our certified and experienced today and start your dream journey of business in Dubai.
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Mai Alfalasi
Advocates & Legal Consultancy
1203, Green Tower
Baniyas Street, Deira
Dubai, United Arab Emirates
Phone. +971 4 223 0666
Whatsapp. +971 50 208 9986
Email. info@maaflegal.ae
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