How to start a business in Dubai-2023

How to Start a Business in Dubai

Starting a business in Dubai can be a relatively straightforward process, but it is crucial to be aware of certain factors. The journey can be lengthy and tiresome, involving multiple steps and significant considerations. It is essential to have a solid understanding of these aspects 

whether you choose to handle the process independently or seek assistance from business setup experts who can expedite the setup for you. It is highly recommended to seek reliable advice regarding the consequences of your choices. With extensive experience in assisting so many entrepreneurs in establishing their businesses, Spade Consult has developed the ultimate guide to starting a business in Dubai.

Why you should Start a Business in Dubai?

The business environments in Dubai and the UAE are renowned for their warm reception and supportive nature. Impressively, Dubai witnessed the establishment of over 20,000 new businesses in the previous year, with a significant number of these being registered by entrepreneurs from overseas. Foreign nationals make up a considerable portion, ranging from 80% to 90%, of the UAE workforce.

Entrepreneurs from around the world are drawn to the UAE and Dubai for various compelling reasons. The key advantages include:

• Strategic Location: Dubai is located at the crossroads of Europe, Africa, and Asia, giving businesses access to a vast customer base.
• Business-Friendly Environment: Setting up and operating a business in Dubai is streamlined, with minimal bureaucracy and efficient processes.
• Tax Benefits: Dubai has no personal or corporate income tax, resulting in cost savings and increased profitability.
• Infrastructure and Connectivity: Dubai has excellent infrastructure, including modern transportation, logistics, and telecommunications systems. Its airport and air routes offer global connectivity.
• Free Zones: Dubai’s free zones provide 100% foreign ownership, exemption from customs duties, and simplified company setup procedures.
• Diverse and Vibrant Market: Dubai’s multicultural population and high purchasing power create a dynamic market. The city hosts international events and exhibitions, offering ample business opportunities.
• Safety and Stability: Dubai is known for its secure and stable business environment, with robust regulations and protection of intellectual property rights.
• Talent Pool: Dubai attracts skilled professionals from around the world, offering a diverse workforce for businesses.

While Dubai provides many advantages, it’s important to conduct market research, understand local regulations, and seek professional advice before starting a business there.

How to Start a Business in Dubai – The Company Formation Process

Starting a business in Dubai involves a series of important steps. Here is a comprehensive guide on how to start a business in Dubai:

Choose an industry

Determine the nature of your business and ensure it aligns with the approved business activities in Dubai. Different locations may have restrictions on specific business activities, so choose wisely.

Select a Location

Decide whether to set up in a free zone or the mainland. Free zones offer benefits such as 0% tax, 100% ownership, and import/export tax exemptions. Mainland companies allow direct trading with the local market but require a local partner who holds 51% of the company shares. Consider your business requirements and choose accordingly.

Choose a Company Name:

Select a unique and legally acceptable name for your company. Follow the naming conventions and avoid offensive language or references to religious, sectarian, or political groups.

Complete Incorporation Paperwork:

Prepare and submit the necessary documents for company incorporation. This includes an application for the company name and activity, shareholder passport copies, and additional requirements specific to free zones.

Register Your Business:

Contact the Department of Economic Development or the relevant authority to register your business activity and trade name. Once your application is processed, you will receive your company license.

Apply for a License:

After obtaining your company license, apply for the required licenses and permits for your business activity. Provide the necessary documents, including a completed application form, shareholder passport copies, and possibly a business plan.

Open a Bank Account:

Gather the required documentation and open a corporate bank account in a reputable bank. Choose a bank that suits your business needs and provide details about your primary business areas, anticipated currency volume, deposits, revenue levels, customers, and suppliers.

Apply for Visas:

Apply for the necessary visas, including your own and potentially for staff and dependents. Different free zones have varying restrictions on the number of visas that can be applied for. Follow the process, which typically includes an entry permit, status adjustment, medical fitness test, Emirates ID registration, and visa stamping.

What are the Dos and Don’ts 

Dos:

• Dress appropriately and maintain a positive attitude. While Dubai embraces Western influences, it also values its Islamic roots. Dress smartly, stylishly, and modestly, especially when attending meetings or dealing with local sponsors. It’s important to exude a positive and happy energy, as optimism is highly valued in social, entrepreneurial, and corporate circles. Additionally, treat introductions and meetings with respect, being mindful of proper etiquette when addressing individuals and engaging in social interactions.
• Explore the local culture and embrace new traditions. Embrace the desert climate and its unique experiences. Rather than complaining about the heat, appreciate the breezy nights, desert landscapes, and activities like dune bashing. Show interest in the well-being of the local population, learn about the region, and consider learning a few Arabic words as a sign of respect.
• Engage in networking and personal interactions. Building relationships through in-person networking events, meet-and-greets, and personal connections is crucial in Dubai. Attend events, socialize, and maintain contact with individuals in your industry. Word-of-mouth referrals are powerful, so make positive connections and always carry business cards, including an Arabic language side.

DON’T:

• Brag about your achievements. Dubai has seen its fair share of self-proclaimed firsts, bests, and biggests. Instead, focus on modern minimalism, clean design, and conveying quality and humility in your business communications. Avoid using clichés and strive for authenticity in marketing your brand or services.
• Expect meetings and negotiations to go exactly as planned. Be prepared for flexibility and a different pace during group meetings. People may check their phones, join discussions unexpectedly, or arrive late. Cultivate patience, as this is an important virtue in the region. Remember that family connections play a significant role in business, which may influence decision-making and the dynamics of your interactions with companies.

By following these etiquette guidelines, you can navigate the complex and multicultural business environment in Dubai more effectively.

Starting a business in Dubai offers an enticing opportunity, thanks to its thriving business environment, government support, and simplified setup procedures. The city presents a unique blend of modernity and traditional values, making it an attractive destination for ambitious entrepreneurs.

To embark on your entrepreneurial journey in Dubai, it’s important to be mindful of a few key factors. While Dubai offers numerous incentives and opportunities, seeking professional guidance and support throughout the process is crucial for a smooth experience.

Dubai’s business landscape is dynamic, constantly evolving, and may present cultural nuances. Therefore, having a good understanding of the local business culture and customs can greatly contribute to your success.

Ultimately, Dubai is a city that encourages and empowers individuals to pursue their dreams. It’s a place where possibilities are vast, and with the right mindset and determination, you can achieve your business goals. So, take advantage of this thriving environment and seize the opportunities that Dubai has to offer.