Doing business in the capital city of the UAE has its perks. With Dubai on its path to being a smart city in the coming years, planning a business setup in Dubai is the choice of many entrepreneurs around the world. With world-class infrastructure, top-notch facilities, strong government support, and much more, it is only natural to be drawn to even the idea of a company formation in Dubai.
If you are one of those people thinking or planning for a business setup in Dubai, you are at the right place. As tempting as it sounds, the process of business setup can be tedious if you are not even aware of the basics. Though, if you have support from a company formation in Dubai expert, you can finish the whole process in just a matter of 5 to 6 days. In this blog, we have listed all the steps for a business setup in Dubai.
What are the Steps to Do Business Setup in Dubai?
With constant and strong government support, it is very easy to do a business setup in Dubai now. All you need to do is collect relevant and necessary documents. But, be vigilant while arranging all the paperwork as it is the most crucial portion of the whole process. Submit the papers with the concerned legal authority and get your business license. To make it easier for you, the steps for the process of a company formation in Dubai are as follows:
1. Decide the Legal Structure
The very first step of company formation in Dubai is to decide the legal structure of your company. Do you want it to be a sole proprietorship, a partnership, public or private shareholding company, civil company, an LLC (Limited Liability Company), or branch of an existing foreign or GCC company? It is important to decide this first as it will be the base for all your business-related decisions ahead.
2. Decide the Type and Business Activities
Now, you need to decide the type of business you want to do. Is it a manufacturing business, a trading business, tourism or are you a service provider? On the basis of your business type, you can then select the business activities. The Dubai government offers over 2000 business activities to select from. Moreover, if there is any activity that you want to opt for and it is not in the provided list, you can simply take permission for it. While filling the application form for business setup in Dubai, you will need to select and submit your business activities. Also, choose wisely because changing your choice can be a long process.
3. Trade Name Reservation
Once you have selected your business activities, you must decide on a suitable and easy-to-remember name for your company. There are certain rules you need to keep in mind while picking the name for your company. A few of which are – no use of abbreviations, no use of any foul or offensive words, and usage of the full name of the person if you want to name it after one. Moreover, remember not to use the name same as that of an already existing company. If you do so, the government authorities will decline your application.
4. Rent an Office
Now is the time to lease a space to carry out all the official work and business activities. This will be your official address. Moreover, this address will be used in all your business-related documents. Make sure to rent an office at a location in an area suitable for your business. Also, make sure to keep important documents like the location map, land map, official documents, and property documents in a safe place. You will need them later.
5. Register for Tenancy Contract
After renting an office, you need to register it on Ejari. Ejari is a national online portal to record all the lease contracts in the country. It is a must to register on this online platform to get your tenancy contract. Without your tenancy contract, the government will not issue your license. Moreover, do not forget to obtain and note down your unique Ejari code. This code can be used for any legal purposes or as proof of your registration.
6. Draft an MoA
Next, you need to draft Memorandum and Articles of Association. Then, get it signed by all the business partners in presence of a public notary in the court.
7. Acquire Initial Approval
Submit all the necessary documents collected so far with DED (Department of Economic Development) and other concerned legal authorities. Get the required permissions and if all seems right, you will acquire your initial approval certificate for a company formation in Dubai.
8. Apply for Business License
The Dubai government offers mainly 4 types of business licenses. Professional License, Trading License, Tourism License, and Industrial License. On the basis of your business activities, you can choose any one of these. Submit an application form for the business license you need along with other documents. Moreover, make sure all the partners sign the application form.
9. Wrap up the Remaining Paperwork
Now, all there is to do is collect the remaining documents and submit them with the DED. A few important ones are your national ID, copies of your and your partners’ passport and visa, tenancy contract, and business license application. Collect all of these and the others, then double-check all of them. At last, when you’re satisfied, submit them to the DED and wait for their response.
10. Acquire Your License and Pay the Fee
If all seems good after a thorough inspection, the government will issue your business license. You will then receive an email from the DED with a payment voucher attached to it. You need to pay the required one-time registration fee to the government. Remember, that you need to complete the payment within 24 hours of getting your license. If you fail to do so, your license can be canceled. Once you receive your license, you can start your business operation with the country.
Set Up Your Dream Business in Dubai Today!
Although the process to do a business setup in Dubai is straightforward, many people do need help with the paperwork. We suggest you take help from renowned business setup consultants at Shuraa Business Setup. We assist you at every step of your company formation in Dubai. Moreover, we will also make sure to get your business license at a comparatively lower cost. All you need to do is get in touch with us and share your requirements. Once you do that, from helping you draft a proper business plan to getting your license, we will take care of it all.