Business Setup in Dubai

Due to the booming economy, favorable investment climate, and diverse government support programs, a business setup in Dubai can be fairly successful and bring its owner a large income. As one of the top ten most influential countries in the world and a significant logistic hub, the United Arab Emirates is considered a rather promising place for allocating capital and leading businesses. There are almost no restrictions for foreign investors and entrepreneurs in a state. However, relocating business to a strange country requires a certain level of preparation. Our agency’s team of experts has considered the major peculiarities of business setup in Dubai and other UAE locations.

Advantages of Business Setup in Dubai and Other UAE Cities

The UAE has established itself as a fast-developing market where it is promising to invest in real estate and conduct entrepreneurial activity. There are a range of reasons for its popularity among foreign businessmen.

• The UAE boasts a stable economy. In the Emirates, there is no inflation at all. The exchange rate of dirhams is linked to the dollar and has not changed for 50 years. In addition, setting up a company in Dubai gives its founders access to the reliable banking system, provides a loyal tax environment, and ensures ease of currency transactions.
• The country has a rather advantageous strategic location. It is situated at the intersection of European, Asian, and African trade routes. It allows entrepreneurs to draw partners from different corners of the world.
• There are several benefits for foreign entrepreneurs. The best areas for setting up a business in Dubai are free economic zones, where companies are exempt from income tax and customs.
• The UAE is a country with advanced infrastructure facilities. They ensure the comfortable lives of residents and the development of the economy. High transport accessibility, constant growth of the tourism sector, and usage of the latest western technologies contribute to successful entrepreneurship.

Thus, the idea of setting up a company in Dubai is quite prospective for both citizens and foreign businessmen.

The Most Promising Directions for Setting Business in Dubai

According to Palladium Group, there are several of the most active sectors for leading entrepreneurial activity.

• The UAE is considered one of the leading markets of the IT industry in the world. Due to the active state’s support, this sector demonstrates impressive growth rates. The Emirates’ authorities are actively investing in creating a favorable climate for IT companies, offering them diverse grants and tax incentives. In addition to traditional IT areas, the UAE is actively developing cybersecurity and high-tech design.
• Dubai is a perfect place for setting up a retail company. This city is considered a symbol of global shopping and ranks second in the world in terms of the number of international brands. A significant part of tourists arrive in Dubai for unique shopping. The annual retail sales in the city are estimated at about $35 billion.
• The tourism industry is one of the main business sectors in the UAE. According to statistics, in 2023, more than 17 million people visited Dubai. Therefore, the demand for tourist services is high. The hotel industry is also showing steady growth. The average occupancy of hotel rooms in Dubai is 76%. It is one of the highest rates in the world.
• The health market is a prospective sector for starting a business in Dubai. This niche includes hospitals, beauty clinics, spa salons, and other related businesses.
• Real estate investing is also a fairly promising way to allocate capital for a profit. The UAE property market is full of facilities for any budget. Due to a significant average ROI and a short payback period, buying real estate in the Emirates and renting it out can yield a lot of income.

Types of Jurisdiction

Firstly, those who have decided to start a company in Dubai should choose the type of jurisdiction suitable for the future organization’s activity. In the UAE, there are two primary types of jurisdiction. 

There is also a third type of jurisdiction. If you plan to establish business in Dubai and lead it in other countries, offshore suits your organization. An offshore company is a legal entity established with the intention of conducting commercial activity outside the state of its registration. 

Stages of Opening Business in Dubai

To start a business company in Dubai, you need to complete a number of key steps.

• The first stage is registration of the company’s name. The organization’s name is a significant part of the future business. It plays an important role in branding and marketing strategies. It is considered a cornerstone of the business’s identity. When selecting a name, take into account that it should convey the direction of the company’s activity and meet all the local legislation’s requirements. It is necessary to exclude all words and phrases that can be interpreted as negative or offensive in the Emirates. After choosing a name, the owner should apply to Dubai’s DED or the administration of the relevant free zone for its registration.
• To launch a startup in Dubai, it is necessary to prepare a range of documents. After registering the name, the owner should provide the following:
        ● the company’s regulations;
        ● confirmation of the legal address;
        ● identification of the organization’s management.
• The list of constituent documents is up to the company’s type. It can include partnership agreements or memoranda. An important condition for startups in Dubai is renting an office for at least a year. Its minimum size depends on the number of employees as well as the direction of the company’s activities. In most cases, it varies from 4 to 12 square meters per person. It is also necessary to accompany the application with documents confirming the right to use the office and the organization’s founders and directors’ passports. Several documents must be signed, translated, and notarized.
• The final stage of business setup in Dubai for companies includes submitting an application, paying fees, and providing documents to DED, or the administration of the free zone. The officials will review the submitted documents. If they are drawn up correctly, the applicant will obtain a document confirming the business setup and registration of the company in Dubai.

Entrepreneur’s Actions after Opening a Business in the UAE

After receiving a set of constituent documents and a license based on the results of successful registration, the owner should get a residence visa and an Emirates ID card, as well as open an account.

Receiving a Visa

Firstly, non-residents should obtain the entry permit that allows them to get inside the UAE. Then, it is necessary to change the status of a tourist to a resident. The list of documents for applying for a visa often includes the passport’s copy, medical insurance, the company registration certificate, the license’s copy, a letter from a credit institution certifying investments in capital of a new business setup in Dubai, etc. After the visa’s approval, the applicant also gets an Emirates ID card. One of its main designs is to provide the founder with access to UAE banking services and simplify the process of hiring employees.

Opening a Bank Account

It is necessary to open an account in the local bank to start any business or set up a company in Dubai and ensure its operation. It lets the organization carry out various financial transactions, including money transfers and employee salaries. Opening a corporate account involves the submission of a corresponding application and providing a range of documents (trade license, business plan, shareholders’ visas and passports, etc.).

Thus, the process of setting up a new company in Dubai requires careful preparation; however, relocating business to the UAE opens up unique prospects for foreign entrepreneurs.

One of other promising directions in the UAE for businessmen is property investments. If you intend to buy real estate in Dubai or Abu Dhabi with the purpose of investing, apply to our managers. Golden Bee provides the full complex of services related to buying property. We’ll make your investment process as comfortable, reliable, and profitable as possible.