Starting a business in Dubai is a great opportunity for entrepreneurs to bloom in a dynamic, friendly and modern environment. Dubai's economy, location and assistant government policy make it a top choice for people around the world. Although the process of establishing a company can perform complex work with the right help and support, it can be simple and easy.

Dubai benefits many groups, not least individual aspects, many of whom are 100% available to everyone in the field and have the facility to connect to Asia, Europe and Africa. Startup is thanks to programs such as golden visas and ancient visas that attract talented professionals and investors to the city. foreign entrepreneurs prefer it especially for their business associations, guidelines for friendly transactions and similar structured conditions.

At DBS, we are here to make the process easy and straight. We help you choose the right company. With our partners you can safely start a business in Dubai and enjoy the benefits of this exciting market.

Ready to start? Let's get straight to the point.

8 Steps to Form a Company in Dubai UAE

1. Define Your Business Activity

The first and most important step is to decide what kind of business you want to run based on your industry and goals. Dubai allows you to choose between more than 2,000 business activities, which is grouped:

• Commercial activities (buying and selling, trading and retail stores)

• Professional activities (IT services, marketing, consulting, education, etc.)

• Industrial activities (manufacturing, logistics and production)

• Tourism activities (travel agencies, tour operators, hotels)

2. Choose The Right Legal Structure

Once you have chosen your business activity, this is time to choose the legal structure that best fits. This option affects how you drive yourself and. Dubai offers a variety of structures on the mainland and in free areas:

Mainland Company Structures (Licensed by DET)

A mainland company lets you act UAE and internationally anywhere. Main companies should follow the rules for the UAE, but they give a lot of freedom on how to run your business.

Limited Liability Company (LLC) - The most popular option, now available with 100% foreign ownership for most activities. Great for trade, retail and professional services.

Sole Proprietorship - A business owned by one person, often used by freelancers, consultants and service providers.

Civil Company - Suitable for professionals such as doctors, engineers and legal experts who want to work together under one license.

Foreign Company Branch - Allows international businesses to open a 100% owned branch in Dubai while remaining affiliated with their parent company.

Free Zone Company Structures (License from Free Zone Authorities)

A free zone company gives you 100% ownership of your business, with tax benefits and no customs duties. However, to sell the UAE mainland directly, you need a local distributor or additional license.

Free Zone Establishment (FZE) - Great for a company, small business and start-up with an owner.

Free Zone Company (FZCO) - Created for 2 to 50 owners with full foreign ownership and simplified rules.

Branch Office in Free Zone - Allows a foreign or UAE company to open a branch in a free zone while remaining affiliated with the parent company.

Recent changes mean that most businesses can now be 100% foreign owned on the mainland. But in some areas such as security, defense, banking, insurance, oil, and gas - local partners should still be 51% of the business.

To help with it, DBS Group offers a local corporate nominee shareholder service. This allows you to follow the UAE regulations and at the same time maintain full financial and operational control over your mainland business. This is the best way to comply with your business without leaving control.

3. Register Your Business Name

Choose a unique name for your company that is in complies with the UAE’s naming regulations. Avoid using aggressive or religious words and stay away from political contexts. Submit your selected name to the Dubai Department of Economic Development (DED) or relevant free zone authority for approval.

Naming Tips:

• No offensive or religious words.

• Make sure it is not similar to an existing brand.

If you are naming your company after an individual, write out the name in full (for example, “Salem Ali Trading LLC,” not “S.A.T LLC”).

Add the appropriate legal ending, such as LLC (Limited Liability Company), FZE (Free Zone Establishment, or FZCO (Free Zone Company).

4. Identify Your Business Location

Where your business is located, it will depend on whether you choose to setup in the mainland, a free zone or offshore.

Business Location Options:

• Mainland: Requires a physical office or workspace.

• Free Zone: You can choose a flexi-desk, shared office, or private office.

• Offshore: No office required.

Some free zones allow virtual offices, which can save you money.

5. Set Up An Office Space

Each business in Dubai requires an official address. You can rent an office or shop, or go to a coworking space or a virtual office if your business type allows. Mainland businesses usually require a lease agreement and an official lease agreement before obtaining their final license. Many free zones provide budget-friendly flexi-desk or virtual office options that are good for start-up.

6. Pay The Fees And Get Your Trade License

Now you will pay the necessary fees and receive the business license. The fees usually cover licenses, naming reservation, initial approval and sometimes a market fee or local agent fee (if applicable). Thanks to the Dubai Unified License (DUL), which was introduced in late 2023, you will also receive a unique DUL number that connects your company to different public departments.

The Mainland businesses are registered with Business Registry of Dubai, and you will automatically become a member of the Dubai Chamber of Commerce. If you are in the UAE free zone, you will trade with local companies, you may need to register separately with the Dubai chamber.

7. Open a UAE Business Bank Account

To run your business smoothly, you need to open a bank account in the UAE.

Top banks for business accounts in Dubai:

• Emirates NBD

• Mashreq Bank

• First Abu Dhabi Bank (FAB)

• Abu Dhabi Islamic Bank (ADIB)

8. Set Up Accounting And Bookkeeping

Each business of the UAE must keep appropriate financial records to follow VAT and corporate tax rules.

Important steps to follow:

• Register for value added tax if your annual sales are more than AED 375,000.

• File for corporate tax if your business earns more than AED 375,000 annually.

• If you are in a free zone or run a large business, you can get a financial audit.

Documents Required for Company Incorporation in Dubai

According to the UAE official website, the following documents are required for company registration in Dubai.

• Receipt of Initial Approval

• Shareholder & Manager Passports

• Title Deeds (if applicable)

• Letter of Intent

• Manager Registry Identification Code (RIC) Form (Original & Notarized)

• Copies of Submitted Documents

• Copy of Lease Contract (Attested)

• Memorandum/s of Association

• Government Approvals (if applicable)

• Existing Trade License/Certificate (if applicable)

• Specimen Signatures - company’s shareholders and appointed manager

• Completed Application Form

• Business Plan

• Financial Documents (as required)

Understanding Sponsorship and Visa Requirements

The UAE makes it easy for people from other countries to start a business. The Golden Visa helps you live in Dubai without the need for a sponsor. If your project is worth USD 136,150 (AED 500,000) or more, you can get a 5-year visa with fewer steps.

In May 2019, the UAE introduced new rules for long-term visas. They now offer 5-year, 10-year and permanent residency visas to those looking to invest or start a business. The visa costs are:

• 5-year visa - USD 177 (AED 650)
• 10-year visa - USD 313 (AED 1,150)

This long-term visa allows you to stay and work for a long time without any hassle.

Documents You Need For a Visa

To obtain a visa or permit, you will need to provide the following:

• Valid passport
• UAE job offer (if you have one)
• Birth certificate and where you are from
• Education papers
• Marital status
• Recent photographs
• Completed visa or ID fee
• Health insurance
• Details of any business or financial affairs in the UAE
• Fingerprints and biometrics
  

Have all documents ready to facilitate your visa process.

Business Opportunities for Entrepreneurs in Dubai

Dubai offers many business opportunities to worldwide business owners. The city has a wide range of businesses and supports those looking to start something new. Here are some of the best business ideas for foreign entrepreneurs in Dubai:

• Tourism Business
• IT Company
• E-Commerce Business
• Accounting and Bookkeeping Services
• Real Estate Business
• Crypto Trading
• Cleaning Company
• HR Consultancy
• Freelancing
• Restaurant Business
• Logistics and Transportation
• Retail Business
• General Trading
• Event Management
• Clothing Business
• Education and Training
• Cafeteria Business
• Healthcare and Wellness
• Jewellery Business
• Green and Sustainable Businesses
• Car Wash Business

You can choose a business that matches your skills or interests. Dubai helps small and large businesses grow rapidly.

How Can DBS Help You Turn Your Business Ideas Into Reality in Dubai?

A career plan is required to start a business in Dubai, which requires the local market to know and get the right license and permission. If you have a great business idea, but require help to implement it, DBS Group is here to guide you at each stage.

Our entire services include everything you need to start from registering your company to providing Pro services, helping with office space and visa arrangement. If you have a great business idea, Dubai is a place to do so. Contact DBS today and get your vision to life.

Also Read: What Is a DED Payment Voucher and How to Get It?

FAQs: Frequently Asked Questions

Q1. Is It Difficult to Start a Business in Dubai?

Starting a business in Dubai is a great opportunity to become one of the best business destinations in the world. But the setup may take time, to consider several steps and things.

Q2. How Much Money Do I Need to Start a Small Business in Dubai?

To start a small business in Dubai, you usually require AED 10,000 and AED 30,000. The cost depends on the type of business, location (mainland or free zone) and how many visas you need.

Q3. Can I Open a Business Without Staying There in Dubai?

Yes you can. You do not need to live in the UAE to open a business in Dubai. Many free zones and mainland areas allow you to establish your business from outside the country.

Q4. Can I Start a Business Without Money in Dubai?

It is difficult to start a business in Dubai without money, but not impossible. You can try low-cost ideas such as freelance work, consultation or online jobs. Some free fields and government schemes can also help you pay less.