Business Setup in Dubai 2023: Company Setup in Dubai
If you have your sight on establishing a business setup in Dubai, congratulations! You have landed in the perfect spot. Dubai has carved its reputation as a prominent trading hub within the Middle East and across North Africa. In addition, it offers numerous advantages for businesses and corporations seeking to thrive and connect with the rest of the globe.
Despite the challenges provided by the global pandemic and a recession, the UAE economy is set to rise at its fastest rate since 2011, exceeding original estimates. As a result, the UAE GDP is predicted to rise by 5.4 percent in 2022 and 4.2 percent in 2023. This economic potential has attracted a growing number of businesses to Dubai.
Fortunately, establishing a business setup in Dubai is extremely simple, especially since Sharjah Publishing City Free Zone has chosen Dubai as its preferred destination.
Why Start a Business in Dubai?
Dubai and the UAE are amiable and supportive places for businesses. In fact, over 20,000 new businesses started in Dubai last year alone. Many of these were started by entrepreneurs from other countries. As a result, around 80% to 90% of the people working in the UAE are from other countries.
There are many good reasons why entrepreneurs worldwide prefer business setup in Dubai. The main advantages are:
- Low taxes: The UAE doesn’t have any taxes on personal income, except for a 5% tax called VAT that was introduced in 2018.
- Robust economy: With a GDP of roughly AED 692 billion, the UAE is the Arab world’s second-largest economy. It is diverse and offers opportunities in various industries like healthcare, hospitality, technology, and trade.
- Good quality of life: The UAE ranks 23rd in the Best Countries Index, which means it offers a good quality of life. It is slightly behind countries like Spain and Ireland and ahead of Portugal and Greece.
- Support for startups: The UAE has many programs and initiatives to support startups and help businesses grow.
The future of business in Dubai looks promising. So, if you’re interested in forming a business setup in Dubai, you’re not alone. The fact is that if you adequately follow the steps in this article, it won’t be difficult.
What are the Considerations Before Starting a Business in Dubai?
Before diving into your journey of starting a business setup in Dubai, there are a few crucial aspects that deserve your attention.
Economic Zone: Free Zones vs Offshore
Before you start your business journey, you must select whether you want to operate in a Free Zone or Offshore. Both solutions offer advantages and disadvantages depending on your needs.
- Free Zone
A Free Zone firm is registered in a free zone, an independent jurisdiction territory inside each emirate. The Free Zone Authority (FZA) is the regulatory organization operating and regulating free zones. There are already over 45 free zones across the country that offer 100% ownership and a variety of other unique features.
You can also register offshore companies in a free zone, and they can enjoy similar advantages. However, an offshore company is not the same as a free zone company. The main difference lies in how the business operates. For example, offshore companies are permitted to conduct business activities outside the UAE rather than within it. They also do not have any minimum capital requirements that need to be deposited before they can be established.
Types of Licenses
- Commercial License: If you seek a business setup in Dubai that involves buying and selling goods or trading activities, you will need a commercial license. This license is suitable for businesses involved in import/export, sales, logistics, travel & tourism, general stores, and real estate.
- Industrial License: The industrial license is for businesses engaged in manufacturing activities that convert natural materials into final products, either manually or mechanically. Industries like textile, metal, and paper manufacturing fall under this license.
- Professional License: The professional license is issued to service providers, artisans, and craftsmen. Businesses such as medical services, beauty salons, and repair services typically apply for this type of license.
If you are wondering how to start a business in Dubai when it comes to e-commerce activities, consider getting an e-commerce license from SPC Free Zone. We offer affordable prices, 1,500+ business activities, up to 20 visas, 100% foreign ownership, and quick license issuance within just 2 hours.
Related Article: Top 25 Successful Business Ideas in Dubai, UAE
How to Set up a Business in Dubai?
Free zones are prevalent among international entrepreneurs when starting a business and for good reasons. These zones offer compelling advantages, including zero personal tax, favorable corporate tax rates, and complete company ownership.
To assist you with the navigation of the process, here are the 7 essential steps to setup a business in a free zone:
Step 1: Select the company structure
The first step involves selecting the ownership structure to initiate a business setup in Dubai’s free zones. These free zones allow 100% ownership for expatriates. Investors can register as a Free Zone Establishment or a Free Zone Company (FZC), with the main difference being the number of shareholders. Both fall under the Limited Liability Company (LLC) classification and are governed by free zone laws rather than UAE Commercial Companies Law (CCL).
Step 2: Select a trade name
Choosing a trade name is crucial for establishing your free zone company’s brand presence and identity. As part of the business setup in Dubai, it is recommended to verify the name’s validity with the DED, Department of Economic Development, or the relevant free zone authority.
Checking the name’s compliance with trade name protocols and avoiding duplication with registered names is essential. Some naming conventions include adding the legal form of the entity (LLC, FZE, FZC) and ensuring the name does not violate public morals or public order or use the words of governing authorities, emirates, the UAE, or religions.
Step 3. Application for a business license
When you plan to set up a business in Dubai, one crucial step is the application for a business license. This process is essential as it determines the primary economic activities of your venture. The kind of products or services you plan to offer directly influences the trading license you need to obtain.
Acquiring a license is of utmost importance as it serves as legal proof that your business has the right to operate within the UAE. In free zones such as SPC Free Zone (Sharjah Free Zone), trade licenses have numerous advantages. These advantages include access to over 1,500 business licenses across various industries and the possibility of obtaining a license for up to 10 years.
Step 4: Find an Office Space
When planning for a business setup in Dubai, one crucial aspect is selecting office space. Free zones provide entrepreneurs the flexibility they need for their office space requirements. Free zones provide a varied range of office suites, whether you choose to rent or acquire a property.
These options vary in size and the availability of specific facilities, allowing you to tailor your office space to suit the specific needs of your business.
Step 5: Registration
A business setup in Dubai is a straightforward process. While registering a company in a free zone, submit your application along with the necessary trade license, documents, and paperwork. Then, you shall need to pay the registration and licensing fees.
Unlike setting up a business in other parts of Dubai, the costs in free zones are lower. This is because you don’t need a large amount of money upfront, and office spaces are reasonably priced. So, starting a business in a free zone reduces the initial cost and makes it easier financially. Once you have completed the payment, the rest of the process is smooth.
Related Article: Partner/Investor Visa in Dubai, UAE: A Complete Guide
How Can SPC Free Zone help you?
In a nutshell, a business setup in Dubai is a breeze, igniting the flames of ambition within every business-minded individual. And with SPC Free Zone by your side, success is within reach. Our professional team of experts is passionate about turning your entrepreneurial dreams into a tangible reality.
Imagine transforming your business idea into a thriving venture in just a day! We’ll help you navigate the process seamlessly with our unwavering guidance and support.
Don’t hesitate any longer. Take that leap of faith on your path to success today. Reach out to us at SPC Free Zone, and together, let’s embark on this incredible journey toward realizing your business goals!
You can contact SPC Free Zone, and our experts will assist you in setting up your dream business in Dubai with ease. We provide comprehensive support throughout the set-up process, ensuring a hassle-free experience for you.
You can choose between operating in a Free Zone, Mainland or Offshore.
Free Zone companies operate within the UAE and have certain requirements, while offshore companies can conduct business activities outside the UAE and have no minimum capital requirements.
Free zones allow 100% ownership for expatriates. You can register as a Free Zone Establishment (FZE) with one shareholder or a Free Zone Company (FZC) with two or more shareholders.
Check with the relevant authorities to ensure your chosen name complies with trade name protocols. Include the legal form of the entity and avoid violating public morals or using prohibited names.
Your trade license depends on your business activities. Free zones offer a variety of licenses across industries, such as SPC Free Zone with over 1,500 licenses and up to 10-year durations.