Starting to operate a Business in Dubai can prove to be a boon and expand your career prospects. Making the right choices at the right place is all that is required. There are a specific number of things that you need to decide before the business setup in Dubai
Most importance is given to the zones you choose to operate your business in.
Economic zones are categorised under two heads: Free Zones and Offshore.
Both of them hold their own benefits and specifications..
Free Zones are Specially designed economic zone where business people can enjoy absolute 100% ownership with 0% taxation benefits. The Dubai government set up this zone to generate foreign interest. A crucial limitation of operating in this zone is that it does not allow you to trade directly with the local market.
Offshore
Companies offshore can also register themselves with Freezone and relish the same benefits.
Operations of the business are the significant difference between Offshore and Freezone. The companies offshore can perform business activities outside the UAE but not inside. Also, they have no minimum capital requirements for incorporating. And Unlike the Freezone, offshore companies require a sponsor. As a result, your foreign ownership gets restricted to merely 49%.
After deciding the zone, the second decision that you have to take to business setup in Dubai is to specify the type of license needed. Majorly, There are Three Types of licenses that you can choose from to apply, Under the department of economic development (DED):
Commercial license: You need a commercial license to set up a business for buying or selling goods.
Businesses that involve import and export, logistics, sales, travel & tourism, general stores, and real estate are covered up under this license.
Professional license:
Service providers, Artisans or Craftsman businesses are undercovered by this license. Businesses including medical Services, repair services or beauty salons require a professional license.
Industrial license: Businesses involved in transforming the natural materials into finished products, i.e., manufacturing, require an industrial license. here is Metal manufacturing, Paper Factory, Textile manufacturing are categorised under this head.
Specifically, with 0% taxes, 100% ownership, Freezone is the most opted economic zone for establishing companies. So, After choosing your preferences from the options mentioned above, you have to follow seven crucial steps to set up your company in the Dubai free zone.
- Choose your business
Choosing the business activities you are going to undertake is the first step in setting up your venture. Belonging from different categories, there are over 2000 business options to choose from.
- Deciding on a free zone
According to the nature of your business, you can choose from over available 30 free zones in Dubai. Often, people tend to select a zone close to the proximity of the same companies.
- Name your company
There are strict naming conventions by UAE; make sure that your company’s name ticks all the requirements. Like Names should not include the words offensive to any religion or political groups.
- Apply for Approval (Initial)
Below mentioned documents are required to get approval:
- Business registration and licensing form
- Copy of your passport or ID
- Copy of your residence permit/ visa
- The company’s articles of association
- Feasibility study of the project
- Open a corporate Bank account
After being approved, you need to open a corporate bank account. You can choose from both local and international banks situated in UAE.
- Select the location for your office
If all the businesses are expected to have a proper physical address. You will find new office places easily in the free zones.
DMCC offers a wide range of office buildings and accommodations to rent.
All around the area, search engine visibility there are 68 towers, so make sure you find a suitable place for your office.
- Apply for final approval
Get all your documents, location addresses, legal information prepared to submit them to get the final approval.
Thereafter, submit the documents mentioned below:
- Initial approval receipt and all the previously submitted documents
- The lease contract provided by the Real Estate Regulatory Agency (RERA)
- Duly attested service agent contract (for civil establishments and companies that are 100% owned by non-GCC nationals), the UAE involving a local service agent
- Approval from other government entities concerned
Lastly, pay the fees for the licensing and your business is ready to fly.
