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setting up a business in dubai

Facts to Consider While Setting Up a New Business in Dubai

Initially, establishing a company in the UAE is an intriguing proposition. Without question, the chances offered by UAE to entrepreneurs and corporations are vast and profitable. The UAE’s access to worldwide markets and it’s good business climate foster economic expansion. It is the fifteenth biggest global business center and a worldwide commercial hub. If you can effectively develop and build a company, there is no limit to how far you may go.

Unique business culture in Dubai

Foreigners will find doing business in the Emirates to be rather simple. Hence, it is simple to establish a business in the UAE. With the government now offering long-term permits for investment, the economy is expanding. The local government is supporting investment and entrepreneurs in various ways, so now is an excellent moment to join.

In 2019, the UAE stated that it would allow 100% foreign ownership in 122 economic operations spanning 13 sectors. Renewable energy, logistics, hospitality and manufacturing are the fastest-growing sectors. Despite this, each Emirate has the authority to impose its limits.

Who can open a business in the United Arab Emirates?

Free Zones are the nicest part of starting a business in the UAE. This is due to their 0% corporate and personal tax rates and 100% foreign ownership and import and export tax exemptions. Hence, these are distinct locations that attract foreign investors.

Foreign businesses establishing a branch or subsidiary in the UAE

There is a significant legal distinction between a foreign company’s branch and its subsidiary. The parent firm is responsible for the acts of the branch because it is linked to it. A subsidiary, on the other hand, is a legally separate entity. As a result, a subsidiary will be based in the United Arab Emirates. It can, however, benefit from double taxation protection and operate in a Free Zone.

Like any other business in the UAE, a branch or subsidiary must register with the Ministry of Economics.

setting up a business in dubai

The UAE’s investment environment

Expats and non-residents can begin investing on the UAE Stock Exchange with no paperwork. Hence, many overseas investors profit from the country’s thriving real estate market. Obtaining a license to create a local business that will trade locally or worldwide is quick and easy. You can set up some companies with 100% foreign ownership. Additional popular investment choices include private pension schemes, mutual funds, and other asset classes.

Local banks cater effectively to UAE expats, offering a variety of savings and deposit accounts. Some of the banks offer quite competitive interest rates as well.

However, bringing a concept to fruition demands a thorough action plan and much thinking. Before establishing your own business in Dubai, we have compiled a list of important considerations.

Conceptualization – Define Expectations Clearly:

Every great idea begins with a business strategy and the willingness to take calculated risks. Due to uncertainty and lack of correct direction, many businesses fail to succeed. However, giving up a continuous existence and embarking on a road of hardship is not easy. Therefore, design a plan and development strategy for the business. Additionally, you should have a strategy if you ever decide to sell your business. You can even hire a business consultant to help you through the process of business setup.

Business Framework, Model, and Architecture

Dubai s home to many firms and startups from various sectors. This may make you feel that any company plan may succeed, but it usually takes a lot of work behind the scenes. This background research comprehends the business climate and proceeds with your enterprise. This involves designing the business’s model, foundation, and architecture.

Know the Differences Between Your Home Market and the UAE Market

It is essential to have a thorough awareness of the market you want to enter. You should be aware of its business structure, behavior, and conventions. The taxes, laws, market structure, jurisdiction, and atmosphere in Dubai are very different.

You should be able to identify the similarities and differences between your home market and the Dubai market. This will help you carry out to establish a company and target the right audience.

Ensure Your Business Marketing Plan Includes Your Customer Base

Simply establishing a business in the UAE is insufficient. To guarantee a profit, you must reach the appropriate audience and consumers. This necessitates a precise company marketing strategy that encompasses the consumer base. Before starting a company in Dubai, you should thus have completed all of your research on your target market.

Location Most Appropriate For Your Business

Select the Appropriate Jurisdiction:

Depending on the company, you must pick a business zone for your Dubai business setting. If you want to target the local market, you will need a company on the mainland. However, the free zone is preferable if you want to do business outside the UAE, such as an IT company.


It is quite difficult to find an Emirati you can trust and rely on. However, you need to find one if your firm needs a sponsor. Whether you need sponsorship is contingent upon the nature of your company. If you want full control of your organization, choose the free zones. A sponsor covers 51 percent of your business’s ownership. Individual sponsors, corporate sponsors, and local service agents are suitable sponsors for your mainland company.

setting up a business in dubai

The designation of Company & Documents:

The next stage is to pick a name for your organization and determine all other requirements. A few rules also govern the naming of the firm. The name of your firm should not begin with “global,” international,” or “Middle East.” The next step is to name the business and register it with the appropriate paperwork.

Finding an Office Space

Several websites provide serviced offices in dubai for Business Setup With the increasing number of enterprises in Dubai, it is not easy to get the right workplace. It would be helpful to consider numerous factors, such as proximity to ports, demography, etc. The availability of office premises is a worry. Therefore, we provide you with all-inclusive packages to assist you in establishing a company. You can concentrate on your company with us while the specialists handle the rest.

Dos for Starting a Business in Dubai

Carefully select a business license:

Professional, Commercial, and Industrial licenses are the three types of licenses accessible in Dubai. Each type necessitates a unique set of supporting documentation and licensing fees.

Examine all company formation structures beforehand:

Before forming a company in Dubai, consider all sorts of business structures like Mainland, Free Zone, and Offshore. Each structure has benefits, ownership restrictions, and visa restrictions that may or may not be appropriate for your company.

Don’t do your business registration:

Although the Dubai government has made starting a business simple, there are some challenging areas to navigate as a foreign investor. Avoid the bother by entrusting the registration and licensing process to a competent business setup expert like us.

Don’t Start a Business Without Enough Money:

In Dubai, most startups are unable to obtain financing. If you don’t have the financial means to cover the launch expenditures, you should hold off on starting a business in Dubai.


Therefore, it is usually good to partner with a consultant like us to establish a business in Dubai. Having years of experience and a team of experts, we are one of Dubai’s best company formation consultants. Therefore, contact us to get the fastest and the most affordable consultation.

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