Thinking about how to start a business in UAE can be intimidating. Many people find the idea daunting because of the perceived risks and uncertainties involved. However, one of the biggest challenges aspiring entrepreneurs face is the lengthy and complicated process of starting a business.
In some countries, it can take up to six months for your business application to be approved. Additionally, there may be mountains of paperwork and complex procedures to navigate. This can be discouraging for many people, leading them to believe that it’s easier to remain employed rather than embark on the journey of entrepreneurship.
However, not all countries have such challenging startup conditions. Location plays a crucial role in the ease of starting a business, and among all the countries in the world, the United Arab Emirates (UAE) stands out as one of the most favorable places to start a business.
Why is UAE an ideal location for startups?
The answer lies in its streamlined process, favorable tax policies, robust economy, diverse market opportunities, and supportive government regulations for setting up a company.
In the UAE, you can establish your own business in just eight days and through six simple procedures. This straightforward approach makes the UAE a popular choice for entrepreneurs worldwide.
Benefits of Starting a Business in UAE
- The country has a flourishing economy with a high per capita income and a strong annual trade surplus, providing a stable financial environment for businesses of all sizes.
- The legal framework and procedures for starting a business in UAE are remarkably simple, making it easier for entrepreneurs to get started.
- UAE offers attractive fiscal incentives such as tax exemptions, subsidies, and other benefits to encourage business activity.
- UAE is a land of opportunities, thanks to its diverse market and significant demand from visitors worldwide. No matter what your business idea may be, there’s a high chance that it can flourish in the UAE’s dynamic and thriving business environment.
Starting a business in the UAE has never been more fulfilling or easier compared to other countries. So why wait? Seize the opportunity and follow your calling to become your own boss.
If you’re still hesitant about starting your business in the UAE, consider seeking assistance from Outsource Prime Accountants and Bookkeepers (OPAB). Our mission is to empower startups and entrepreneurs by providing services such as business setup, record organization, and customized solutions to specific problems.
And speaking of getting started, let’s talk about the important steps you need to take to start a business in Dubai, UAE.
Key Steps to Follow On How to Start a Business in Dubai UAE
Starting a business in Dubai is relatively easy, but it still requires careful planning and decision-making. You’ll need to research your business idea, budget your finances, and make some important decisions about your company structure.
Here are the key steps you’ll need to follow:
Choose a business activity
Before you start your business, you’ll need to decide what kind of business you want to run. Make sure to research the market and make sure your business idea is feasible and profitable.
Choose a jurisdiction
Dubai is divided into different economic zones, each with its own set of laws and regulations. Choose the one that best suits your business needs.
Decide on your company structure
Choose the legal form for your company, such as a limited liability company or a sole establishment.
Get approval for your company name and activity
Before you can start your business, you’ll need to get approval for your company name and the activity you plan to engage in.
Apply for your trade license
There are four types of trade licenses in the UAE, so make sure to choose the one that’s right for your business.
Register your company
Register your company with the Department of Economic Development and get all the necessary approvals.
Find a local agent
If required, find a local agent to help you with the setup process.
Get your external approvals
You may need to get additional approvals from other government agencies, depending on your business activity.
Prepare your Memorandum of Association
Make sure to draft your MoA in accordance with UAE government mandates.
Rent an office
Depending on your business needs, you may need to rent an office space.
Get the tenancy contact & ejari
Make sure to get a tenancy contract and register it with the Ejari system.
Get the initial approval
Before you can get your business license, you’ll need to get initial approval from the DED.
Collect your trade license
Once you’ve completed all the necessary steps, you can collect your trade license from the Department of Economic Development.
Starting a business in Dubai can seem daunting, but with the right guidance and assistance, it’s entirely possible. With Outsource Prime Accountants and Bookkeepers‘ expertise and services, your business will have a better chance of success in the long run. Book a consultation with us today and kickstart your journey to business success in the UAE.
FAQs About How to Start a Business in UAE
Is it easy to start a business in the UAE compared to other countries?
Yes! The UAE consistently ranks highly for ease of doing business thanks to streamlined processes, clear regulations, and a supportive government.
Do I need a local partner to start a business in the UAE?
It depends. For mainland companies, a UAE national must hold a majority stake. However, in designated free zones, you can have 100% foreign ownership of your business.
What are the main types of business licenses in the UAE?
The most common types include:
Commercial license (for trading goods)
Professional license (for services like consulting)
Industrial license (for manufacturing activities)
Tourism license (for hospitality and travel-related businesses)
How much does it generally cost to set up a business in the UAE?
Costs vary depending on your business type, location (free zone or mainland), size, and other factors. Expect to pay fees for registration, licensing, visa costs, and potentially office space.
Can I get help with the business setup process in the UAE?
Absolutely! Business setup consultants specialize in guiding entrepreneurs through the process. They handle paperwork, ensure compliance, and can offer strategic advice based on your specific business.