- Determine Your Business Structure and Activity
- Choose the Right Jurisdiction
- Finalize on Trade Name and Secure Initial Approval
- Apply for a Dubai Business License
- Corporate Tax Registration
- Open a Corporate Bank Account
- Secure Your Visa and Emirates ID
- Compliance and Operations
- Leveraging Dubai’s business support ecosystem
For years now, Dubai has been a magnet for global entrepreneurs looking to expand their reach; a place where digital supremacy, opportunity, and low taxation converge to create one of the world’s most conducive business environments. Whether you are still on the road to becoming a first-time business owner or a seasoned investor with a few business accolades to your credit already, setting up a business in Dubai requires you to do your due diligence. In addition to planning how you are going to pave your way for business setup in Dubai, you will also need to invest a considerable amount of time in understanding the legal landscape.
The Zone10x experts have compiled a complete business setup checklist to guide entrepreneurs through every essential step so they can transform their business aspirations into a full-fledged business enterprise.
1. Determine Your Business Structure and Activity: The first step you will take in your business setup journey is to select a business activity category that corresponds with the nature of your business. The Department of Economic Development offers over 2,000 business activities across multiple sectors. Our team at Zone10x can work with you to determine which business structure and license will work best for you.
2. Choose the Right Jurisdiction: Depending on your business needs and requirements, you will need to choose one of three jurisdictions: Free Zone, Mainland, or Offshore entities.
a) Mainland: Offers freedom to operate within the UAE market and bid for government contracts.
b) Free Zones: Free Zones offer tremendous benefits for companies, including 0% personal tax, 100% foreign ownership, and customs exemptions.
c) Offshore: An Offshore entity is most suited for holding assets, international trading, and tax-efficient structuring.
3. Finalize on Trade Name and Secure Initial Approval: At this stage, you need to pick a company trade name that complies with UAE company naming requirements. Once your trade name is approved by the DET or the concerned Free Zone authorities, you can apply for initial approval, which essentially signifies that the government has no objection to your business formation.
4. Apply for a Dubai Business License: Once your application is submitted with the required documents, our experts at Zone10x will help determine which business license is best suited for you, depending on the nature of your business activity. Some of the key licenses you can apply for are:
a) Commercial license: Covers the buying and selling of goods.
b) Professional license: For service-based businesses and consultancy firms.
c) Industrial license: For businesses engaging in manufacturing, packaging, and product assembly.
5. Corporate Tax Registration: Every company operating in Dubai must register for corporate tax in the UAE through the Federal Tax Authority (FTA) portal, even if they are exempt from being taxed. Corporate tax is set at 9% on taxable profits exceeding a threshold of AED 375,000, making it one of the most competitive tax rates across the globe. Free Zone companies that meet specific qualifying criteria may continue to benefit from 0% tax. In many cases, non-compliance can lead to the imposition of hefty penalties, so it is always better to avail the services of a trusted expert who can assist with accounting, filing obligations, and VAT in the UAE.
6. Open a Corporate Bank Account: In the UAE, a corporate bank account is of absolute essence to conduct transactions legally. To open a corporate bank account, you will need a trade license, certificate of incorporation, passport copies of shareholders, and a business plan, along with proof of address. Dubai’s leading banks offer a wide range of banking solutions specifically tailored for SMEs and startups.
7. Secure Your Visa and Emirates ID: Once the business license is issued, you are on track to sponsor your own residence visa, along with sponsoring visas for your dependents and employees. The visa quota you can be allotted is generally determined by the size of your office and the nature of your business activity. Dubai’s General Directorate of Residency and Foreign Affairs (GDRFA) is the government entity that oversees visa processing. Their introduction of digital visa processing has now made onboarding faster than ever.
8. Compliance and Operations: Compliance is not an activity that ceases once your business is operational. You will still be required to renew your license annually and stay updated with your company audits and corporate tax filings. Partnering with a customer-oriented business setup company in Dubai ensures that you meet all compliance requirements, while you can focus on what matters most: scaling your business
9. Leveraging Dubai’s business support ecosystem: From accelerator programs at Dubai Future District to networking hubs facilitated by initiatives by the Dubai Chamber of Commerce, foreign investors and founders gain access to world-class mentorship programs and global connections.
Starting a business in Dubai is an exciting prospect for any entrepreneur. But it requires the right guidance. That’s where Zone10x comes in. With dedicated consultants, transparent pricing, and strategic partnerships across Dubai’s top free zones, Zone10x ensures that your business is launched effectively.
Launch your Dubai venture the smart way. Speak to our experts today.
