Business Setup in Dubai
Introduction to Business Setup in Dubai
Silver Oak Biz Company Formation Consultants is a leading agency for business setup in Dubai, UAE. We offer fast and cost-effective solutions for setting up mainland and free zone companies with 100% ownership, low cost, and quick services. We are officially authorized business formation consultants in the UAE, Meydan Free Zone, Ajman Free Zone, Jebel Ali Free Zone, Rakez Free Zone, etc
- Why Dubai is a Global Business Hub: Dubai, a global business hub, attracts entrepreneurs and investors due to its strategic location, infrastructure, and economy. The UAE government offers tax incentives, streamlined registration processes, and free zones while supporting startups and corporations.
- Strategic Geographic Location:
Dubai strategic location, well-developed transport infrastructure, stable political environment, investment-friendly regulations, and international standards make it a famous global business hub. Its favourable business climate and vast market network appeal to investors and entrepreneurs.
- Tax Benefits and Incentives:
Dubai tax free environment, including zero personal income tax, 0% corporate tax, and numerous free zones, attracts global businesses. The UAE government promotes foreign investment by reducing setup costs and permits, and has established double taxation agreements with other countries.
- Ease of Doing Business Rankings:
Dubai, part of the United Arab Emirates (UAE), consistently ranks high in ease of doing business indices due to its robust regulatory framework, efficient business processes, and supportive environment for foreign investment. Key factors include streamlined processes, construction permits, access to credit, and efficient customs procedures.
Key Advantages of Hire a Business Setup Company in Dubai
If you’re planning to expand beyond Ajman or explore opportunities in the UAE commercial capital, it’s essential to hire a business consultant in Dubai to navigate the complex regulatory landscape. Dubai dynamic market, competitive licensing options, and sector-specific free zones require expert guidance to ensure a smooth setup. Our team provides business setup solutions in the Dubai Mainland, helping you comply with all legal requirements while maximising your growth potential.
- 100% Foreign: Ownership:
Dubai offers 100% foreign ownership of businesses, enabling foreign investors to exert greater control over operations and decision-making. This policy enhances Dubai appeal as a global business hub, fostering innovation and attracting diverse industries.
- World-Class Infrastructure:
Dubai world-class infrastructure, including modern transport networks, a state-of-the-art airport, advanced telecommunications, and high-speed internet, is a key factor in its status as a global business hub. This infrastructure development supports innovation, enhances productivity, and makes Dubai a top choice for businesses worldwide.
- Access to Emerging Markets:
Dubai strategic location at the crossroads of Europe, Asia, and Africa allows businesses to tap into rapidly growing markets in the Middle East and South Asia. Its extensive trade networks, logistics infrastructure, and multicultural business environment foster collaboration and innovation.
Types of Business Setup Jurisdictions in Dubai
Dubai offers several business jurisdictions, each fulfilling different business needs, legal structures, and operational preferences. Here are the main types:
To legally operate a business in Dubai, you must obtain the necessary licenses and permits from the local authorities based on the nature of your business, or hire our pro services in dubai.
Business Setup in Dubai Mainland Legal Structures
Choosing the right legal structure is a key step when starting a business in Dubai. Common options include:
- Limited Liability Company (LLC): Foreign investors can own up to 49%, while a local sponsor holds 51%.
- Sole Proprietorship: Ideal for individuals offering professional services.
- Branch or Representative Office: Allows foreign companies to open in Dubai without setting up a new company.
Each structure has different rules for ownership, taxes, and liability. That’s why it’s important to get expert advice. At Silver Oak Documents Clearing Services LLC, we help you choose the best legal setup that fits your goals and follows Dubai laws.
Documents Needed for Company Formation
To start a business in Dubai, you’ll need to complete the forms and gather the necessary documents, including:
- Passport-sized photos of all shareholders
- Passport copies of shareholders
- Residence visa copies (if applicable)
- Memorandum of Association (MOA)
- Article of Association (AOA)
- Trade Name Reservation Certificate
- Initial approval certificate.
- Lease agreement for office space
- Power of Attorney
- Bank reference letter
Costs of Setting Up a Business in Dubai
Mainland License Fees: To start a mainland business in Dubai, you need a trade license from the Department of Economic Development (DED). This usually costs between AED 10,000 and AED 15,000, depending on your business activity and any extra permits needed.
You’ll also need a local sponsor for some businesses. The sponsor fee can range from AED 5,000 to AED 50,000 per year, depending on the agreement.
Free Zone License Fees: Setting up in a free zone comes with benefits like 100% foreign ownership and tax exemptions. License fees vary depending on the zone and business type, starting from AED 6,500 up to AED 50,000.
Some free zone packages include office space, utilities, and multi-activity licenses, which can help you save more.
Additional Licenses and Permits: If your business involves activities like food handling, healthcare, education, or construction, you may need special approvals. These extra licenses can cost between AED 500 and AED 10,000.
Some of Our Services for mainland and free zone businesses in the UAE:
Corporate Bank Account in UAE:
After setting up your business, the next step is to open a corporate bank account in the United Arab Emirates (UAE). It’s essential for managing payments, staff salaries, and business transactions.
VAT Registration in Dubai:
If your company’s annual turnover exceeds AED 375,000, you must register for VAT in Dubai. This keeps your business compliant with UAE tax laws.
PRO Services in Dubai:
Need help with paperwork? Our PRO Services in Dubai handle all government approvals, visa processing, and document clearance quickly and efficiently.
Office Space Rentals and Ejari Costs
Office Space Rentals: Renting office space in Dubai can be substantial. A physical office is typically mandatory for mainland businesses, with rental costs varying based on location and size. Prime locations, such as Dubai Marina or the DIFC (Dubai International Financial Centre), can command rents exceeding AED 100,000 per annum. At the same time, more affordable options might be available in outlying areas, starting from AED 30,000.
Ejari Registration: Ejari is a system that registers rental agreements in Dubai, which is mandatory for obtaining a business license in the emirate. The registration fee can range from AED 200 to AED 1,000, depending on the rental value and lease duration. This cost should be factored into your overall setup expenses.
Visa Sponsorship Fees
Visa Costs: Securing work visas for employees and investors can significantly increase your business setup costs. The cost for each work visa can range from AED 3,000 to AED 7,000, which includes medical tests, Emirates ID fees, and processing charges.
Sponsorship Fees: If you choose to sponsor an employee’s visa, please note that there is an annual fee per sponsored individual. The costs typically start at around AED 5,000 per employee. Additionally, any dependent you sponsor will incur separate visa and processing fees. Want to know more about Visa Services in Dubai? Contact us.
Golden Visa: The Golden Visa is a special long-term visa in Dubai that allows you to live, work, or study in the UAE without requiring a local sponsor. It is usually given to investors, business owners, skilled workers, and talented individuals. With help from Silver Oak Biz, the process becomes easy, we guide you step by step to get your Golden Visa and enjoy a stable future in Dubai.
Do you have any question? Find answer here
What are the steps to setup a business in Dubai?
Setting up a business in Dubai typically involves several key steps:
- Determine the Business Activity: Identify the type of business you wish to establish.
- Choose the Right Jurisdiction: Decide between mainland, free zone, or offshore.
- Register the Trade Name: You must choose a unique trade name with the Department of Economic Development (DED).
- Obtain Initial Approval: Get the initial approval from relevant authorities.
- Prepare the Legal Documents: Prepare necessary documentation, including the Memorandum of Association (MOA) and Articles of Association (AOA).
- Get a License and Permit: Apply for the business license and necessary permits for your business activity.
- Set Up Location: Rent or purchase a physical location for your business.
- Complete Visa and Labor Registration: Apply for visas and register with the Ministry of Labor.
For assistance at any step of this process, Silver Oak Documents Clearing Services LLC is here to help streamline and simplify your business setup journey in Dubai.
What types of business licenses are available in Dubai?
In Dubai, there are several types of business licenses depending on the nature of the business:
- Commercial License: For trading activities.
- Professional License: For service-oriented businesses and professionals.
- Industrial License: For manufacturing and industrial businesses.
- Tourism License: Specifically for tourism-related businesses.
Silver Oak Documents Clearing Services LLC can help you determine the right license for your business type and ensure the efficient management of all necessary paperwork.
How much does setting up a business in Dubai cost?
The cost of setting up a business in Dubai can vary significantly based on various factors, including the location, type of business, and licensing fees. Typically, initial expenses range from AED 10,000 to AED 50,000 or more. This may include:
- Trade Name Registration: AED 620 to AED 1,000
- License Fees: AED 7,000 to AED 15,000
- Office Rental: Depending on the area
For a detailed consultation, you can contact Silver Oak Documents Clearing Services LLC for a more accurate estimate tailored to your business needs.
How long does it take to setup a business in Dubai?
The duration for setting up a business in Dubai can vary from a few days to a few weeks, depending on factors such as the type of business, completeness of documentation, and approvals from authorities. Generally, obtaining an initial trade license might take about 1-2 weeks, while finalizing the setup can take an additional 2-3 weeks.
Silver Oak Documents Clearing Services LLC efficiently expedites the process and helps you set up your business swiftly, keeping you informed at every step.
Do I need a local sponsor to start a business in Dubai?
Yes, if you are setting up a mainland business, a UAE national sponsor is typically required unless you establish a business in a free zone where local sponsorship is unnecessary. The sponsor generally holds 51% of the shares, but various arrangements can be negotiated.
At Silver Oak Documents Clearing Services LLC, we can help you understand the sponsorship requirements and find the ideal local sponsor based on your business needs.
What are the advantages of setting up a business in Dubai?
There are numerous advantages to setting up a business in Dubai, including:
- Tax Benefits: Dubai often offers 0% corporate and income tax.
- Strategic Location: Ideal for businesses targeting markets in the Middle East, Africa, and Asia.
- Free Zones: Offers 100% foreign ownership and repatriation of profits.
- Robust Infrastructure: Excellent connectivity and modern facilities.
Silver Oak Documents Clearing Services LLC can guide you through leveraging these advantages to grow your business in Dubai.
Can foreign investors start a business in Dubai?
Yes, foreign investors can start a business in Dubai. The investment structure may vary depending on the jurisdiction (mainland vs. free zone). 100% of foreign ownership is allowed in free zones, while mainland businesses generally require a local sponsor.
Silver Oak Documents Clearing Services LLC can provide insights into the best options available for foreign investors and assist with the setup process.
What documents are required to setup a business in Dubai?
The documents required may include:
- Passport copies of shareholders and managers
- No Objection Certificate (if applicable)
- Business Plan
- Proof of residence (e.g., utility bill)
- Memorandum and Articles of Association
Silver Oak Documents Clearing Services LLC can help ensure that all required documents are prepared and submitted correctly for a smooth business setup.
What are the visa requirements for establishing a business in Dubai?
To establish a business in Dubai, investors must obtain a UAE residency visa. The primary visa types include:
- Investor Visa: For business owners and partners.
- Employment Visa: For employees hired by the business.
- Family Visa: For bringing family members.
The number of visas you can apply for depends on your business setup and local regulations. Silver Oak Documents Clearing Services LLC can assist you in navigating the visa application process efficiently.
Can I open a bank account for my business in Dubai as a foreigner?
Yes, foreign investors can open corporate bank accounts in Dubai. Requirements typically include:
- A copy of your trade license
- Passport copies of the owner(s) and authorized signatories
- Company’s MOA and AOA
- A business plan or introduction letter
Silver Oak Documents Clearing Services LLC can assist in selecting the right bank and ensuring that all documentation is correctly prepared for the account opening process.
