The United Arab Emirates (UAE) is a federation of seven emirates of Dubai, Abu Dhabi, Sharjah, Ras al-Khaimah, Ajman, Fujairah, and Umm al-Quwain.
It has an advanced economy that offers a favorable business environment, world-class infrastructure, flexible government norms, and efficient quality services to all incoming businesses, irrespective of their country of origin.
Business setup in UAE is the best business decision you can make if you have an innovative start-up idea.
Not only are the tax policies almost zero, but the ease of doing business has helped strengthen the UAE’s business hub position.
The government also has supportive regulations in favor of businesses.
However, setting up a company in UAE is a crucial decision for entrepreneurs. It involves planning, conceptualizing, research, budgeting, and decision-making, among other things. It also requires guidance and assistance in selecting your business's proper trade license and other legal formalities.
Well, you have found the one-stop solution for all the above queries. Read along for a detailed step-by-step guide on setting up a business in UAE.
Pick the Type of Business:
When selecting the type of business for your venture, keep the research of the chosen industry in the UAE market ready. Do a thorough study on the feasibility and profitability. Then decide on when to start a business in UAE.
Choose the Zone:
The UAE marketplace is divided into different economic zones - Mainland, Free Zone, and Offshore. These have their own set of laws and regulations about business setup.
Finalize the legal structure:
The structure of your company is an important decision when starting a business in UAE. You cannot apply for your business license unless you decide on your company's legal form.
The Department of Economic Development (DED) must support the trade name for your company before you can start the process of your business set-up in the UAE. Once you receive the authorization, you have to submit documents to apply for your UAE trade license.
There are four types of trade licenses in the UAE (mainland), also called business licenses, that you can choose from:
The licensing structure in UAE free zones is different and depends on the business activity your company decides to undertake.
The entire process of documentation and approvals goes through various stages. You must get all the blessings from the government authorities in this step. The requirement for documents is different for different ventures.
Local Partner (optional):
Opening a business required mandatorily finding a local partner who must be a UAE national only.
But now, we can connect you with companies that offer corporate sponsorship, where you will be given documented authority and 100% ownership of your business.
Depending on your business activity, DED may request additional approvals from other government or non-government agencies. For instance, some businesses may be asked to get support from the municipality, specific banks, and embassies.
Before getting your business license to start a business in Dubai, you must get initial approval from DED. This consent shows that the UAE government does not object to your company formation in UAE. You cannot set up a business successfully in UAE if this approval is not received.
To obtain a UAE trade license, you will have first to get your hands on these documents:
Memorandum of Association (MoA)
Trade license application
Relevant government forms
Trade name reservation certificate
Initial approval certificate
External approvals (if any)
Tenancy contract and more.
All these should be submitted to the Department of Economic Development along with the necessary government fees.
The list does not end here. New rules are updated every day.
While these tips will help launch your business and get you set to grow, the procedures and approvals can be stressful for a business owner. You want to ensure you prepare thoroughly for starting a business, but also be thorough in paperwork. To run a successful business, you must focus on the company and seek reliable assistance for the tedious yet essential set-up procedures.
Contact QuickPlus to sort out all the above procedures and more!
If you need advice on how to open a company in UAE, contact QuickPlus Amer. We are experts in assisting entrepreneur’s setup their businesses in the UAE.
Please book your free consultation with our company formation experts today!
Call us at + 971 58 597 6993.