Setup Your Business Before EXPO in UAE
Commencing a business in Dubai, UAE, or anywhere else in the world is a big step. It entails, among other things, planning, conceptualizing, researching, budgeting, setting up, and making decisions. It also necessitates support and guidance in determining the appropriate trade license for your organization, particularly if you are a new entrepreneur. You will learn about the crucial measures in this article.
The United Arab Emirates is a popular investment and business destination. What makes it an investor-friendly country, is its low tax policies and ease of doing business which has helped to solidify its place as a Middle Eastern economic hub. The government also has policies in place that benefit and encourage business owners.
Steps to start a business in Dubai:
Choose a business venture
It is vital to keep the practicality of the chosen activity in respect to the UAE market and its timeliness when choosing a business activity for your entrepreneurial venture for the certainty of taking off. Before deciding to start a business in the UAE, remember to conduct a comprehensive analysis of the activity’s feasibility and profitability.
Pick a suitable jurisdiction
Mainland, Free Zone, and Offshore are the three economic zones that make up the UAE market. Jurisdictions are another name for these economic zones. Each jurisdiction for your firm is determined by your business needs and activities, hence it is an important decision to make.
Finalize the legal framework of the company
When beginning a business in the UAE, deciding on a legal structure for your firm is fundamental. It establishes the tone and framework for dealing with earnings and losses, as well as how your resources and assets should be organized. It is apt to decide the legal form or structure of the business during the early phases of planning. This will aid in the creation of a layout for your business. You won’t be able to apply for a business license until you’ve decided on the legal structure of your organization.
The following are some of the legal forms or company structures that you can use to register your company in the UAE.
Limited liability company (LLC)
Local Company Branch
Foreign Company Branch
GCC Company Branch
Free Zone Company Branch
Obtain authorization for the name and operation of your company
Before you can move forward with the process of setting up your company in the UAE, the Department of Economic Development (DED) must approve the trade name of your company. During this stage, your chosen business activity, as well as your company name, is approved. You’ll need to provide paperwork and submit documents to apply for your UAE trade license once you’ve received the approvals.
Apply for your trade license
In the UAE, there are four categories of trade licenses, also known as business licenses, they are listed below:
If you want to start a business in the UAE mainland, you can apply for any of these trade licenses. The license system in the UAE free zones is unique, and it is determined by the type of commercial activity that your company chooses to engage in.
Register your company
The registration and licensing of the firm happen simultaneously. The documentation and approvals procedure, on the other hand, goes through several stages. You must obtain all necessary clearances from appropriate government authorities as sought by the Department of Economic Development in this phase. Each form of business and activity has its own set of paperwork.
Locate a local agent (if required)
Previously, if you wanted to start a business in Dubai, you had to locate a local partner. Only a UAE national can be an Emirati partner or agent. Finding a reliable local agent can be time-consuming, especially for an aspiring entrepreneur seeking to commence a business in Dubai. A business setup consultant can put you in touch with organizations that offer corporate sponsorship, in which you will be given documented authority and full ownership of your company.
Get your external approvals
Depending on your business activity, DED may need further permits from other government or non-government authorities. Some firms, for example, may be required to obtain approvals from the municipality, specific banks, embassies, and so on.
Prepare Memorandum of Association
To start a business in Dubai, you must first comprehend the complexities of the Memorandum of Association (MOA). As a result, you should consider seeking professional counsel before creating the MOA. The MOA should be written in compliance with the UAE government directives and should also include your business interests.
Secure an office for rent
You have the option of renting an office unit or using a shared workplace at a business center, depending on your operating requirements. The amount of visas you can request from the Department of Economic Development is also affected by your office space (DED).
Acquire the tenancy contact and Ejari
You could require an Ejari if you begin your own firm in Dubai. This rental contract or tenancy contract is between you and the real estate agent from whom you wish to rent an office unit or shared workspace. The Real Estate Regulatory Agency regulates Ejari, an online system (RERA). It is an online system. It ensures that both parties to the tenancy are treated fairly and transparently. To activate your Ejari account, you must submit your tenancy contract as well as a few other documents. Ejari is essential because it is required to get or renew visas for family members and/or employees.
Secure the initial approval
You must first obtain the initial approval from DED before getting your business license to start a business in Dubai. This permission means the UAE government has no objections to you launching a business there. You will not be able to continue with the application procedure unless you receive this approval.
Get your trade license
To obtain a UAE trade license, you must submit the following documents:
Memorandum of Association (MOA)
Trade license application
Relevant government forms
Trade name reservation certificate
Initial approval certificate
Tenancy or Rental Contract
Ejari registration certificate
Passport copies of partners
NOC for partners
Other requirements by DED
Everything should be submitted to the Department of Economics, along with any government fees that may be required.
Contact Alya Auditor for assistance with business advice.
Contact No: 052 9750690
Thanks to Aiswarya Pramod for writing this article