Setting up a business in Dubai means following specific procedures and respecting local rules. These steps apply to both local citizens and foreign investors. A clear process helps avoid delays or errors that could affect the timeline.
If you are interested in business setup Dubai, you must go through the following rules.
Select the right legal structure:
The legal structure affects registration steps and ownership. Examples include sole establishment, civil company, and LLC. The choice depends on factors like ownership share and how the business is managed. Some structures allow full foreign ownership, while others include a local partner.
Choose the right business activity:
All businesses must select activities from a list published by the licensing body. Each activity has a unique code and related conditions. For example, trading, manufacturing, and service-based activities may each have different rules. Picking the right activity avoids problems during the licence stage.
Decide the jurisdiction:
Dubai has mainland, free zone, and offshore areas. Each has a different process for registration. Some areas support international trade or offer industry-specific zones. The rules for office space, employee visas, and capital may change from one zone to another.
Get name approval:
The trade name must follow local naming rules. It should not include offensive words or refer to religious or political groups. The name also must match the business activity and not copy existing registered names. A check with the authority is essential before moving forward.
Secure initial approval:
Before getting the full trade licence, businesses apply for initial approval. This shows the local authority has no objection to the project. It is a basic step and allows the investor to start finalising other formalities such as contracts or site selection.
Arrange the tenancy contract:
Physical space is essential in some jurisdictions. The business owner signs a lease with a landlord and submits a copy to the licensing body. In some zones, a shared workspace may be accepted, while others ask for a full office unit.
Finalize and submit documents:
The final step is submitting the documents, paying fees, and receiving the business licence. Documents may include ID copies, passport-size photos, and proof of address. Once the licence is received, the business can apply for visas and open a bank account.
