Dubai is a well-known start-up haven. A lot of up-and-coming entrepreneurs take their chance in starting their trade in the emirate due to the advantages provided by the government including streamlined business registration, tax-free privileges, strategic location, availability of manpower and resources, and state-of-the-art infrastructures.
And Dubai’s consumer profile is diverse as people from around the globe and all walks of life flock and reside to the emirate either to experience the culture or reside and retire permanently. This may mean that you can capture a diverse audience for your new business
Quick Overview on Dubai’s 2022 Business Forecast
According to Khaleej Times, Dubai business owners can expect growth and expansion to the Dubai economy this 2022 with a forecasted 4.5% growth in major industries including real estate, food and beverages, manufacturing, Information and Technology, and more.
Not only Dubai, but UAE will have an upward trajectory in terms of economy, with the whole country gearing up to a 5% to 6% economic growth this year, as forecasted by the Economic Minister Abdulla Bin Touq Al Marri in an interview with Reuters.
Despite the crippling effects of the pandemic on the global economy, many business experts believe that Dubai will have a promising year in terms of financial growth. This forecast provides aspiring business owners the opportunity to take their chance in the booming state of the emirate’s business environment.
Getting Started with Your Business in Dubai
Being your own boss in Dubai starts with getting your business registered. Although the emirate provides aspiring entrepreneurs leniency in terms of forming a company, you need to at least meet the minimum requirements set by the governing agencies before you can operate in the a Dubai free zone.
If you are thinking of setting up business in Dubai this year, here are the steps that you need to undertake and some things that you need to understand as you go along with your business registration in Dubai.
1. Decide on your business activity
Before you go through the technical process of registering your business in Dubai, it is best if you draft a business plan that includes the following details: the nature of your business, your business objectives and vision breakdown of your services or products, financial or investment sources, etc.
This is just the initial plan. You may need to revise this as you go along the process of business registration and polish this step-by-step. Some business jurisdictions require such document so they can learn more about your business. You can also use it as a guide. If you have never drafted a business plan before, it would be best to seek the help of experts in company formation in Dubai.
2. Select your business jurisdiction
There are more than 30 free zones in Dubai that aspiring business owners can choose from. But this step should not be taken lightly. Choosing the best location for your trade can be a big advantage for your business. One, you need to consider what freezone in Dubai caters to the nature of your business. For example, medical professionals would like set up their practice in Dubai Healthcare City, a well-known free zone for medical advancement and clinical services. IT-related businesses are likely to set up in Dubai Internet City and Dubai Silicon Oasis, known hubs for tech-related trades and innovation.
You also need to understand that each free zone has specific requirements for business owners who are registering their trade. Although there are general requirements accepted in all free zones, you need to know if you have to apply for certain additional permits or specific documents depending on your choice of business activity and free zone.
3. Finalize your company’s legal structure
Another thing that you need to keep in mind is there are different business structures that are accepted in Dubai free zones. Consider this as the more technical side of business registration in Dubai. There are at least 7 company structures accepted in UAE and these include:
- Individual Establishment
- Civil Company
- General Partnership
- Simple Limited Partnership
- Private Joint Stock Company
- Limited Liability Company
- Partnership Limited with Shares (PLS)
Each legal structure requires certain conditions in terms of capital investment, incorporation procedures, number of shareholders, stakeholders, and the nature of your business. It would be best to consult with business consultant companies in UAE so you will be able to make a sound decision on what legal structure to apply for your business.
4. Decide on the business name
A brand name is essential for business. This name will represent your business to the clients and stakeholders. It should hold weight in the business scene. Hence, you need to be thorough on choosing a business name for your trade. The first order of business when you are choosing a company name is to do a Dubai company name check. If you are using generic terms for your business, there is a high chance that the name is already taken by other entrepreneurs. Marketing-wise, it is best to use a unique brand name that would help your business stand out.
You might also want to consider the nature of your business when you create a business name. Serious tones more likely associate with businesses like banks, medical practices, and corporate services. But with businesses like crafting, food and beverages, etc., you can be a bit playful.
5. Apply for a trade license
Another technical part of the process that you need to go through is applying for a trade license in UAE. A trade license is an essential document for any UAE company as it states the specific activities a business can carry out and do. This is issued by the Department of Economic Development.
There are four types of trade licenses in Dubai that you can apply depending on the nature of your business, namely:
- Professional license
- Commercial license
- Industrial license
- General Trade license
Professional license includes more specific services that your business would like to offer like medical, clinical, marketing services, etc. A commercial license, on the other hand, is applied by business owners who delve into trading like commercial stores, retail, etc. An industrial license is given to businesses who are involved in running industrial and manufacturing operations. Lastly, a general trade license is specialized for import and export services.
As mentioned, your trade license depends on the nature of your business. And each type of license might require a different set of requirements that you need to fulfill, so the help of an expert in company formation in Dubai is a must.
6. Scout for a location
If you are planning to have a physical store, you need to find a specific location that would present your business well to your target audience. The good news is, Dubai free zones are strategic for business, so it would be a big advantage for your trade. But you need to consider the rent, the layout, and whether it is close to suppliers that can help your business.
On the other hand, there are businesses that can apply using a virtual office. There are free zones in Dubai that allow this setup. But you need to be more aware of the requirements and other conditions stipulated on this kind of company formation.
7. Get your business registered
We stated earlier that Dubai offers a very streamlined process when it comes to business registration. The UAE government places great importance on providing an easy and convenient startup environment for aspiring business owners. However, it is essential that you do your research from the get-go and ensure your business in UAE is set up the right way and your license allows your company to grow the way you wish.
You may choose to register a business yourself, but it is advisable to talk to business setup companies in UAE so you will know for certain the requirements and documents you need to submit in order to avoid any delays or unexpected costs. A company setup specialist will confidently guide you step by step on the intricacies of starting a business in UAE, or more specifically in Dubai.
When looking for a business consultant in Dubai, keep in mind your business formation needs as well as your budget.
Starting a business in Dubai is straightforward compared to other locations around the world, but you need to follow certain procedures and steps so you can fully register your business and start your trade operations as soon as possible. Our company formation experts at ExpressPRO can help you make sense of this process and provide you the necessary information to make a sound decision when you set up your business in UAE.