How to Start a Business in Dubai (Ultimate Guide)

How to Start a Business in Dubai

Starting a business in Dubai is a fairly simple process. But there are several things, including Office for rent in Dubai to be on the lookout for. It can be laborious and time-consuming, with numerous processes and crucial factors to consider along the road.

Get good advice about the effects of your choices, whether you want to handle the process yourself or hire professionals to help set up your business quickly.

We have the best plan for starting a business in Dubai because we have helped more than 60,000 entrepreneurs with their projects.

Benefits of Starting a Company in Dubai

Dubai and the United Arab Emirates are extremely accommodating and helpful business environments. In Dubai alone, over 20,000 new firms opened their doors last year. Unsurprisingly, many of these were registered by entrepreneurs from abroad. Eighty to ninety percent of the UAE’s workforce consists of foreign nationals.

Numerous sectors, including technology, trade, healthcare, and hospitality, are open for business startups. excellent living quality. In the Best Countries Index, the United Arab Emirates came in at number 23, just ahead of Portugal and Greece and just behind Spain and Ireland.

Start-up assistance In the Emirates, there are a lot of startup incubators and funding programs that help businesses grow faster.

Dubai’s business prospects are likewise incredibly promising. The IMF predicts that the UAE will see the greatest GDP growth rate in the Arabian Gulf this year, with a 2.5% increase. This is much faster than Saudi Arabia, the largest economy in the region, which is only expected to grow by 0.4%.

If this prompts you to ponder how to launch a business in Dubai, you are not alone. Following the steps outlined in this article, starting a business in Dubai doesn’t have to be hard.

Once the right people have approved your first paperwork, you can move on to getting the permits and approvals you need to start contracting and doing business.

Permission is needed from the municipalities of each emirate for trading and school-related activities, and some activities call for permission from the Dubai Police, RTA, civil defense, etc.

However, suppose you deal with reputable company formation service providers like Avianca. In that case, they will handle your legal work and secure the necessary permits and trade licenses while you focus on your primary business in Dubai.

How to launch a Business in Dubai

There are some of the most important things to do to register and start a business in Dubai:

Choose the Business Activity

Before setting up a business, the owner needs to know what services they will offer. Also, once you’ve decided what services the business will offer to its target market, you should contact a business setup company like Avianca to find out if those services are viable and possible.

Get a Local Agent (if required only for a professional service license)

Several commercial activities or services necessitate the hiring of a local agent. If you need a local sponsor in Dubai for your services, you must find a reliable local agent who can act as a silent partner while you do business.

Make sure you choose a trustworthy UAE citizen you can count on if you need more help. With Avyanco, you may discover a local sponsor with the characteristics above. We will help you make a legally binding contract to protect your rights as an investor in Dubai and find you a long-term ally.

Select a Company Structure

As previously mentioned, mainland and free zone firms are two sorts of businesses. There are also a variety of company structures, including LLCs, sole proprietorships, and others.

You must select the option that best meets your needs. Again, it depends entirely on the services you wish to render. Based on these services, the company structure can be selected.

Finalize the Trade Name

You must reserve the company’s trade name according to the norms and guidelines established by the Middle Eastern administration after choosing the company structure. You must make sure that your business name follows the rules set by the Department of Economic Development (DED).

Get Approvals and Permits

Some business activities may require you to get external approvals. Make sure to do your research before completing the business formation process. Otherwise, your trade or business license may be rejected.

Rent a Business Space

You will need a lease area big enough for you and your employees if you wish to run a traditional, non-online business. Ejari is a well-known Arabic name. Entrepreneurs must sign a leasing agreement known as the Ejari agreement to rent a place in Dubai.

Trade Permit

You will obtain your legal documents once you have paid for the legal services. With them in your possession, you’ll be prepared to move on to other facets of your organization, like hiring the staff and selecting the best candidate for the position. You can work legally in the UAE if you obtain a trade license in Dubai.

How to Form a Company in Dubai: The Step-by-Step Guide

Pick an industry

The UAE has a wide range of industries and several prospects for innovation. You might be tempted to start the setup procedure right away. But we advise you to make your business type a priority right away.

Many places in Dubai and the UAE only accept particular business operations. Be careful not to launch a company in Dubai only to find that you can’t operate there!

For example, some free zone areas focus on certain activities or fields, such as journalism, finance, or technology. Now let’s examine Dubai Media City. As the name implies, it is a free zone for media companies and other companies that deal with media.

Dubai Media City is home to the headquarters of well-known media companies such as the BBC, CNN, and Thomson Reuters.

Another example is the Dubai International Financial Centre (DIFC), which houses offices for major global financial services firms like Morgan Stanley, Goldman Sachs International, and Credit Suisse AG.

However, several industry-specific free zones have begun to accept all types of commercial activity, not just the ones they are designed for.

Restrictions aside, there are other reasons you may want to set up close to businesses in the same sector as you. Look at transport links too. If you import and export a lot for your business, you might want to look into one of the free zones near an airport or port.

In the UAE, a wide range of commercial sectors is thriving. Thanks to the decision to move away from an oil-based economy, new businesses that help reach this goal will be seen in a good light after [2022].

Select a location

After determining the industry, the next significant choice is to launch on the mainland or in a free zone. If you choose to locate in a free zone, you will enjoy the following advantages:

0% corporate and personal taxation 100% ownership of the company 100% repatriation of capital and profits No currency restrictions 100% exemption from import and export tax
If you wish to trade directly with the local market in the UAE, however, you must work with a mainland company that will charge you a fee.

If you set up your business on the mainland, you can trade directly with local and international markets. Unless your business activity falls under the professional services category, you must work with a local partner who will own 51% of your company’s shares.

Virtuzone offers mainland companies a Local Corporate Nominee Shareholder who will serve as their local partner. Thus, foreign business owners can control the operations and finances of their mainland companies.

Choose a name for your company

Before deciding on a company name, you should check to see if it meets the rules for names in the UAE.

Any names that contain derogatory language are prohibited, as are business names that refer to God, Allah, or any political, religious, or sectarian organizations like the FBI or Mafia.

The person must be a partner or owner of the business if you decide to name your company after them, and you must use their complete name—no initials or abbreviations—in this case.

Visit this guide for a full rundown of choosing a company name.

Related Post:
Dubai City Startups

Complete the incorporation paperwork

If you have read this far in your research on launching a business in Dubai, you have already made the most important choices. It would help if you dealt with the necessary documentation at this time.

To register your business, you must fill out an application and mail it to the government with copies of the shareholders’ passports. In some free zones, you might be required to submit a business plan, a Non-Objection Certificate (NOC), or a letter from your current sponsor attesting that you are authorized to launch a new firm in the UAE.

When you set up a company in the UAE, you must fill out an application to register the company’s name and activity, as well as make copies of the passports of the shareholders. The memorandum of association must provide the minimum capital needed for a corporation.

Checking and submitting your paperwork

In the UAE, you must contact the Department of Economic Development in which you want to do business and register your business activity and trade name. You will also need to send in the necessary paperwork. Under “Information and Services” on the UAE government website, you can find links to each office.

Once your application is processed, they will issue you a company license.
Getting through the paperwork at this point may be the hardest thing you have to do. Even though it could take you weeks or months to fully understand and finish this part of the process, Virtuzone is often a great help at this point.

If you don’t like doing paperwork that is boring, hard, or has a lot of small details, you should use our help.

Apply for a license

The government will issue you a company license after processing your application.

No matter where you set up your business, you’ll usually only need a few standard documents, like a filled-out application form and copies of the passports of the shareholders. You might also be asked to submit a business plan in some free zones.

Establish a bank account

After you turn in your paperwork, you’ll get all the information you need to open a bank account for your business.

Global brands like HSBC, Citibank, and Barclays are also present. Depending on your unique needs, you can select the one that is best for you. A bank account is a must before starting trading in the UAE.

Apply for a visa

Congratulations on getting this far! The last step to starting a business in Dubai is applying for a visa. You can apply for staff and family members in many free zones in addition to your visa. You can submit a certain number depending on which free zone you set up.

If you want to get visas for a spouse, child, maid, or driver, you should talk to a professional to make sure that you and the person you want to sponsor for a visa are both in compliance with all entry rules and that you can do so in the free zone you have chosen.

Assuming everything is in order, the procedure consists of four straightforward steps:

Entry permission, status adjustment, medical fitness test, Emirates ID registration, and visa stamping.

A mainland company can apply for as many visas as it needs, but businesses that work in “free zones” may have to follow rules that vary from zone to zone.
I’m done now! Following these eight steps, you’re prepared to launch your business in Dubai!

Let’s get to work!

After completing these steps, you’ll be prepared to begin trading. According to the most recent World Bank Ease of Doing Business rankings, the UAE is one of the most accessible places to start a business, coming in at number 16.


The city of Dubai presents an alluring challenge for the business-minded dreamer with its thriving business landscape aided by government incentives and ease of setting up new businesses.

Even though Dubai has contradictions and social norms that are still fairly new, it is also challenging to find out new Office for rent in Dubai. It rewards ambition with its hospitality and forward-thinking policies.

These pointers can help you transition more smoothly regardless of where you are on your trip to Dubai. However, it’s crucial to seek expert guidance at every turn. In the end, Dubai is a place where “You can do it” is unmatched. So with that in mind, the decision is now yours.


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