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Business Setup in Dubai

How to setup a business in Dubai?

Business Setup in Dubai

Dubai is a prime choice for businessmen to set up their companies due to the readily available resources and the strategic location of the city. Business Setup in Dubai will allow the entrepreneurs to target a large addressable market. 

There are three main business jurisdictions in Dubai. It is the mainland, offshore and Free Trade Zones. There are distinct advantages to setting up a business in these two jurisdictions

Establishing a business in Dubai has many benefits for entrepreneurs. They can own the company completely. There is no personal income tax and the profits earned from the company can be repatriated to the home country.

Additionally, the business infrastructure such as office space, warehouse facilities, and logistics support available in Dubai makes it easy for investors to start their business initiatives in the region soon.

Business Setup in Dubai

Advantages of Establishing a business in Dubai

The advantages of establishing a business in Dubai are limitless for investors. They can easily expand to UAE local markets and the rest of GCC Countries. Also, target the large addressable market of Europe and Asia by opening a company in Dubai.

The e-governance, government support for business, business-friendly policies, low taxation, etc., make Dubai a favourable choice for establishing a business in Dubai. The mainland of Dubai offers attractive business setup options with low-cost office or warehouse locations.

Mainland of Dubai

Furthermore, it is the Department of Economic Development (DED) or Dubai Economy that issue the Commercial Trade License for the mainland companies in Dubai. Similarly, the respective Free Zone authority issues a trade license to the Free Zone Company in Dubai, UAE.

Companies can do trade within Mainland and Internationally. The Company and the owner can obtain Tax Residence Certificate from the Federal Tax Authority. Companies with the Industrial License can avail the benefits relating to the procurement of raw materials. They have Zero Customs Duties for import of raw materials, semi-finished items, packaging items, etc.

The Mainland Company has the flexibility to take office space anywhere in the respective Emirate. They can keep the cost low by renting an office at a cheaper location. Also, for retail investors, establishing a business in mainland of Dubai will enable them to easily open branches and more retail outlets for their company.

Business Setup in Dubai Mainland

Business Setup in Dubai Mainland allows businesses to get a trade license in a wide variety of categories ranging from commercial, trading, industrial, and services. The Dubai Mainland offers more than 2000 plus business activities under various trade license categories. Also, Dubai Mainland is one of the best choices for setting up a limited liability company in UAE.

The 100% foreign ownership in Mainland of Dubai is making it an attractive choice for foreign investors. They can obtain a service license, trading license, etc., as a single owner or with shareholders.

The flexibility of obtaining a virtual license without office space for service companies, low-cost office & retail space availability, no visa quota restrictions, etc., make the Mainland of Dubai a prospective choice for foreign investors.

Free Zones of Dubai

The Free Zones in Dubai is a hub for startups, innovators, freelancers, and entrepreneurs. They are a full-fledged community that is involved in conducting trade and commerce in the region and beyond. There are various small and large companies operating in the Free Zones of Dubai. They contribute significantly to UAE’s growth and development by bringing in foreign direct investment.

Hence, establishing a business in Dubai Free Zones are highly beneficial for investors due to the ease of registering a company, taking the desired office space, choosing the business activity, facilitating international trade, and more. Additionally, most of the Free Zones in Dubai have an in-house customs checkpoint and immigration. Thus, it will help speed up the movement of goods, and immigration helps in clearing visa applications at a faster pace.

Furthermore, the proximity of Free Zones in Dubai to the Dubai International Airport and Port Rashid makes it an ideal choice for international trading companies. Also, the Free Zones in Dubai are well connected by road to the rest of UAE and GCC Countries enabling seamless logistic movement.

Additionally, the companies operating in the Free Zones have easy access to other major international airports and Seaports in UAE as well. Thus, companies focusing on international trade will be able to easily facilitate global trade. Similarly, for the services company, it is convenient to fly in clients and conduct meetings, and also to travel globally. Hence, setting up a company in Dubai Free Zone will enable the investor to conduct their desired business activity without any hassle.

How to Set up a Business in Dubai?

The business setup process in Dubai follows certain steps. For the investor to have a smooth business setup in Dubai, it is advisable to seek the assistance of an experienced team of Business Consultants such as AURION. Though the steps to set up a business in Dubai are self-explanatory, there are a lot of details to focus on when it comes to business setup in Dubai.

Also, there are numerous business setup packages, free Zone offers, and other supporting factors that determine the selection of the right Free zone, business package, office space, etc. The investor often gets confused about the right choice to make. That is when the support of a Business Consultant will be helpful. So, now the Business Consultant will enable the entrepreneurs to set up a business in Dubai by following the below steps.

Steps to Set up a Business in Dubai

  • Select the trade name, business activity, and business jurisdiction for the new company. Ensure the desired business activity is available in the selected Free Zone.
  • Get the Trade Name Approval by submitting the application form, shareholder details, photographs of investors, passport copy, and UAE entry permit/residence visa (if already a resident).
  • Choose the right office space depending on the business requirements and prepare the tenancy agreement. Make the required fee payment for the trade license.
  • Get any special approvals from the authorities ( for certain business activities such as Pharmacy, education, finance, etc.)
  • Obtain the Trade License from the authorities and proceed to apply for the residence visa and bank account opening for the new company.

Hence, the steps in setting up a business in Dubai look straightforward however in reality there are many hurdles to pass. Many functional teams are supporting the whole process of business setup in Dubai.

The Free Zone authorities, business consultants, authorities for special approvals, immigration department, visa processing department, document review team, finance management team, etc., are involved in the process of business setup in Dubai. It is a well-structured but extensive process that will finally provide the investors with their Trade License and required company documents.

Cost of Setting Up a Business in Dubai

In Dubai, there are two major business jurisdictions – The Mainland and Free Zone. In Mainland, the cost of setting up a business mainly varies depending on the business license type, and office rent. For General Trading License from Dubai Mainland, the cost of a Trade License is AED 41,000 approx.

Furthermore, the cost of setting up a General Trading License mentioned above is without office rent. For General Trading License, taking an office space is a mandatory requirement in the Mainland of Dubai. Similarly, for trading and services license the cost of setting up a business in Dubai ranges from AED 19,000 to AED 25000. Depending on the office space chosen and the location of the office, the rent will add up to the total cost of business setup in Dubai.

There are more than 10 Free Trade Zones that are home to numerous startups and multi-national companies. A few of the most popular Free Zones among investors are the Dubai Airport Free Zone, Dubai Commercity, IFZA, Dubai South and Dubai Multi Commodities Center.

The Cost of setting up a business in Dubai Free Zones varies depending on the choice of Free Zone, Visa Quota requirements, Office type and space, etc. The cheapest business setup package in Dubai is offered by the Dubai Silicon Oasis -IFZA starting at AED 12,900 for a zero visa company.

Additionally, there are premium Free Zones such as the Dubai Airport Free Zone and Dubaicommercity that offer attractive business packages to investors. The cost of setting up a business in Dubai Commercity starts at AED 29,000 for a 7.5 Sq.m Smart Desk office. Hence, the Dubai Mainland and Free Zones offer numerous attractive business packages for investors. Depending on their specific business requirements they can choose the right business package for their company.

How AURION will Assist You?

Aurion will provide complete guidance in establishing a business in Dubai. The team of expert Business Consultants will assist the investors with the right choice across the Mainland and Free Zones of Dubai.

They will educate the investors about the latest business regulations, changing tax regimes, etc. and also provide the right business package after precisely studying their business requirements. Find out more about establishing a company in Dubai Free Zones by contacting our Business Consultants.

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