Check out here the details on how to Start a Business in Dubai as a foreign entrepreneur.
We all know that Dubai is a popular city in the United Arab Emirates (UAE). This city is famous for many things, from destinations to astounding architecture. If you are looking to set up a new business abroad, Dubai city is one for you. Due to becoming a well-known trading hub of the Middle East and North Africa (MENA) region, Dubai boasts a variety of benefits for companies, businesses, and organizations looking to succeed and connect to the rest of the globe.
Also, the UAE economy is very well to other countries in the world. According to experts, the UAE economy is expected to grow by 5.4 percent and 4.2 percent in the years 2022 and 2023. Fortunately, if you want to set up a business in Dubai as a foreigner, you can start your business in Dubai by completing the relatively simple process.
What are the things you need to know before starting a business in Dubai as a foreign entrepreneur?
Thousands of people are setting up businesses in foreign countries, especially UAE. But there might be many reasons for starting businesses in Dubai. Do you want to start a business in Dubai as a foreigner? If yes, you will require to know some things before starting a business in Dubai.
On this page, we’re sharing a list of some things you need to know about them before setting up a business in Dubai as a foreigner.
Economy Zone
The Economy zone is a thing you’ll need to consider before starting a business in Dubai as a foreigner. If you would love to run in a free zone or offshore, you will need to decide before starting a business in Dubai.
Free Zone
The free zone is a government-based concept. This concept was introduced by the Dubai government for individuals generating interest in setting up businesses in Dubai. You can consider applying for a license and location in Dubai’s Free Zones if you want to open a 100% ownership-based business in Dubai as a foreigner.
At present, a total of 30 free zones are operating in Dubai. They provide licenses and locations in Dubai’s free zones.
Offshore
Offshore companies are businesses that are registered in Dubai but allowed to have business activities outside the UAE and not inside. Typically, offshore companies in Dubai have no requirements for a minimum capital deposit before setting up for foreigners.
Types of license
After deciding on a zone, you’ll also be required to know the type of license before starting a business in Dubai. Three main types of licenses are issued by the Department of Economic Development (DED). You will consider applying for one of the following types of licenses.
Commercial License
If your business does trading activities, such as buying and selling goods, you will consider applying for a commercial license from the Department of Economic Development (DED). This license will cover trading activities, such as import & export, sales, general stores, logistics, travel & tourism, and real estate.
Industrial License
This is another type of license that is offered by the Department of Economic Development (DED). The industrial license will cover all the manufacturing activities of your business as well as promote your business for doing the extra manufacturing activities.
If you love to start an industrial-based business in Dubai as a foreigner, your next step might be getting an industrial license from DED in Dubai.
Professional License
The Professional license is a third type of license for a business-oriented offered by DED in Dubai. If you like to set up a professional business in Dubai as a foreigner, you will require pursuing a professional license for your business from the Department of Economic Development (DED) in Dubai. A professional license covers professional activities, such as medical services, beauty salons, repair services, and even more.
Sponsorship
Sponsorship is a key thing you’ll need to know about it before setting up a business in Dubai as a foreigner. You will choose a free zone to incorporate your business in Dubai because the Free Zone will offer you 100% ownership without the need of a UAE national as a sponsor.
What Would Be The Process Of Setting Up A Free-zone Business In Dubai?
When starting a business in Dubai, free zones have become more popular, especially for foreigners generating interest to succeed businesses in Dubai. We suggest you choose free zones to incorporate your business in Dubai because free zones are considered excellent by thousands of foreign entrepreneurs.
Here are some steps you’ll need to know before incorporating a business in Dubai.
Choose your business activity
The first thing is finding your business activity and getting a license according to your business activity. In Dubai, a total of 2100 business activities are available for foreign entrepreneurs. Every foreign entrepreneur can choose business activities from commercial activity to industrial activity.
Decide on a free zone
We have explained above about free zones in Dubai. The second step is deciding on a free zone besides finding your business activity. There are over 30 free zones in Dubai to choose from. Typically, free zones give you full ownership when you open a business in Dubai.
Choose a company name
Besides deciding on a free zone, your third step is choosing a company name because, without the name of the company, you will not good things about your company. You will require choosing the correct name of your company related to your business activities.
Consider applying for initial approval
After choosing a company name, the fourth step will be considering applying for initial approval from DED Dubai. The DED Dubai has no objections to you setting up a business in Dubai after getting initial approval.
Consider opening a corporate bank account
Besides applying for initial approval from DED Dubai, you will consider opening a corporate bank account in Dubai as you cannot start a business in Dubai without opening a corporate bank account in Dubai.
Find your office location
Later, you’ll need to find your office location in Dubai. A physical address is compulsory for all foreign entrepreneurs in Dubai.
Apply for final approval from DED Dubai
Besides completing all the steps of incorporating businesses in Dubai, you require applying for final approval from DED Dubai. You can start your business till when the final approval is not got from DED Dubai.
Now, your business is ready for doing activities related to your business after completing all the processes. Besides seemingly a full and long process, many businesses are set up in Dubai every year.
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