What is the procedure to start a Business in Dubai UAE?

September 11, 2022

What is the procedure to start a Business in Dubai UAE?

The United Arab Emirates (UAE) is a federation of seven emirates, with Dubai as the most populous city. The country is strategically located at the crossroads of Europe, Asia, and Africa. This makes it an ideal base for businesses that want to tap into the Gulf region’s growing markets. The UAE has one of the strongest economies in the world. It is ranked as the 28th largest economy by nominal GDP and has a per capita GDP of $69,700. The country’s economic stability and strong infrastructure are attractive to businesses looking to set up operations in the region.


The UAE also has a favorable business environment. The government has implemented reforms to make it easier to do business in Dubai. Its strategic location, strong economy, and favorable business environment make it the first choice for investors and business owners to look for it.


Steps to follow to start a business in Dubai

Starting a business in Dubai is a relatively simple process, as the city has built itself up to be a very business-friendly environment. There are only a few steps that need to be followed in order to get started.


The first step is to choose the type of business entity that you would like to set up. The most common types are limited liability companies (LLCs) and sole proprietorships. Each has its own benefits and drawbacks, so it is important to consult with an experienced business lawyer to determine which is best for your particular situation.


Once you have chosen your business entity, you will need to obtain the necessary licenses and permits from the Dubai Department of Economic Development (DED). The DED website has a helpful guide that outlines the different types of licenses available and the requirements for each.


What type of businesses are allowed in Dubai?

There are many different types of businesses that are allowed to operate in Dubai. These include everything from small, local businesses to large, international corporations. The procedure for starting a business in Dubai depends on the type of business you wish to start. For example, if you are looking to start a small, local business, you will need to obtain a trade license from the Department of Economic Development. If you are looking to start a larger, international corporation, you will need to register your company with the Dubai Chamber of Commerce and Industry.


Free zones vs. mainland

There are two options for businesses looking to set up shop in Dubai: free zones and the mainland. Each option has its own benefits and drawbacks, so it’s important to do your research before making a decision.


Free zones are special economic zones that offer 100% foreign ownership, tax-free profits, and easy visa procedures. Mainland companies, on the other hand, require a local sponsor (who owns 51% of the company) and are subject to UAE laws and regulations.


One of the biggest advantages of free zones is that they offer complete foreign ownership. This is appealing to many businesses, as it gives them full control over their operations. Mainland companies, on the other hand, must have a local sponsor who owns 51% of the business. This can be a drawback for some businesses, as they may not want to give up partial ownership.


The process of company registration in Dubai

The process of company registration in Dubai is simple and straightforward. The first step is to submit an application to the Department of Economic Development (DED). This can be done online or in person. Once the application is approved, the next step is to obtain a trade license from the DED. The trade license will allow the company to operate in Dubai. Finally, the company must register with the Chamber of Commerce and Industry (CCI). This will ensure that the company is compliant with all Dubai laws and regulations. The process may get confusing at some point, but don’t be puzzled, our experts will assist you in the entire process and make it very simple and straightforward for you.


Applying for trade licenses

In order to start a business in Dubai, you will need to apply for a trade license. The first step is to choose the type of license that is right for your business. There are three types of licenses: commercial, professional, and industrial.


Once you have chosen the appropriate license, you will need to submit an application form along with the required documents. These include a business plan, proof of ownership of premises, and financial statements. The processing time for trade licenses varies depending on the type of license and the amount of documentation required.


After your application has been approved, you will be issued a trade license which must be renewed on an annual basis. Depending on your business activities, you may also need to obtain other licenses or permits from Dubai authorities.


VAT in the UAE

The United Arab Emirates (UAE) introduced a value-added tax (VAT) on January 1, 2018, as part of its plans to become a more sustainable economy. The standard VAT rate is 5%, with some exemptions.


To register for VAT, businesses must have a trade license and be registered with the Federal Tax Authority (FTA). After registering, businesses will be given a Tax Registration Number (TRN). Businesses must file their VAT returns on a quarterly basis, and payments are due monthly. Returns must be filed even if there is no tax to pay. Penalties for late filing and non-payment of VAT can be severe, so it is important to ensure that returns are filed on time and payments are made on time.


Hiring employees in the UAE

One important aspect of doing business in the UAE is hiring employees. There are a few things to keep in mind when hiring employees in the UAE. First, it is important to make sure that the employees are legally allowed to work in the UAE. Second, employers must ensure that they comply with the labour laws of the UAE. Third, employers should provide their employees with health insurance coverage.


When it comes to hiring employees, the best way to find qualified candidates is through online job portals or recruitment agencies. There are many reputable agencies that can help businesses find the right employees for their needs.



When it comes to starting a business, there are a lot of factors to consider. But if you’re looking to start a business in Dubai, UAE, We will help you through the process of registering your company and getting a trade license, so that you can start your business in Dubai as soon as possible. Our experienced team will provide all the support you need to get started so that you can focus on growing your business.