How to set up a small business in Dubai
U.A.E is a hub of many businesses. People from all over the world come to U.A.E to start their businesses. Some of the benefits of opening a business in the U.A.E are No income tax, location of U.A.E which is right in the heart of the middle east, stable currency, and easy steps to set up a business.
There are six easy steps that should be followed to set up a small business in the U.A.E:
One: Confirm your business activity
The first step is to confirm your business activity. There are many potential activities that one could choose from. It is important to list the activity in the license application. It is better to work with a company formation expert. These experts are aware of the different activities that are allowed and will be able to tell the ones that match your business.
Two: Choose a name for the company
There are a few things to consider before naming a business in the U.A.E. There are certain strict but easy to follow rules for naming your company. In this step, the company formation expert can help again. Any blasphemous or offensive language must be avoided. Names of well-known companies should not be copied. Also, abbreviations of company names should be avoided. You must check if your chosen name is available to be registered.
Three: Choosing a business setup- free zone or mainland
The next step is to decide where to set up your business in a free zone or on the mainland. There are many benefits to both. Free zones like Fujairah Creative City provide benefits such as an easy process of incorporation, continued support of business, tax exemptions, and zero restrictions on the currency. Mainland business allows you to directly deal with the U.A.E market. The nature of your business determines which setup is better for the company. Again, a company formation expert can help in determining the best approach.
Four: Business License Application
One of the most essential things to starting a small business is a business license. Getting a license for a small business is a rather simple process in both free zone and mainland companies. For starting a business at Free zone, the application has to be sent directly to the government authority. They are often given in a number of days depending on the nature of the business. It is a good idea to take the help of a company formation specialist at this point In order to start a small business in the mainland, you need to directly apply at the Department of Economic Development or the Municipality in Emirate where the business is being set up. These take around 3 weeks to be completed.
Five: Visa Applications
One very important requirement to start a small business in U.A.E is a visa. The process of applying for your own visa and those of your employees is very simple. Also, the expert can help with this step. Other’s visas can also be sponsored. This can be a spouse, child or parent, or a domestic worker. There is a certain number of visas that can be issued depending on the size of the company, personal earnings, and the chosen setup.
Six: Open a corporate account at the bank
An expert can help in setting up an account at the bank. Company formation experts have great links with all kinds of banks and can put you in touch with one bank according to your needs.
In Conclusion, U.A.E is a hub of businesses. There are six easy steps to open a small business: Confirming business activity, choosing a name for the company, choosing the business setup, application of business license, visa applications, and opening a corporate account at the bank.