Why set up business in UAE?
Starting a business in the UAE is fairly easy, and many companies and foreigners are jumping at the chance.
In the space of several decades, the Emirates has had an incredible transformation. From a nation of fishing and pearls, it has become a financial powerhouse with diverse, thriving industries. Furthermore, the country has a stable political system, strong capital flow, business-friendly taxation, and liberal trade restrictions. As a result, the country has become an increasingly popular choice for investment.
Dubai imposes restrictions for foreigners who wish to start and do business in the city. But, it offers many advantages, such as:
Company setup in Dubai helps to carry out your business tax-free, own 100% of your UAE company and have a bank account in a stable country with fixed USD/AED rate.
Business in UAE is a great connecting point between Europe, Africa and Asia. Business registered in the UAE is recognized all over the world.
Local companies also known as mainland companies are opened in partnership or using agent services of local UAE citizens.
This type of business setup in Dubai will suit those businesses who trade or provide services within local UAE market. They include retailers, manufacturers or community service providers. It can be shops, salons, training centers, schools, hospitals, rent-a-car or tourist companies, etc.
Starting a business in UAE is the first step of getting UAE residency. UAE resident visa will help you to move to this tax-free country and to obtain tax residency. It is also useful for opening and maintaining a UAE bank account.
Apart from that, UAE is a great country for comfortable family living, which has high standard international schools, shops, entertainment and good weather most part of the year.
Starting a business in Dubai for E-commerce companies is becoming very popular. The local market is open for the online shops and service providing companies. They can be registered as mainland or free zone entities.
E-commerce business can do global operations if it’s registered in the UAE. All you need is a streamlined delivery and a payment gateway to accept payments online. UAE offers stable banking and reliable payment collection solutions.
Business Setup In UAE
We are Business Setup Consultants, based in Dubai, With our vast experience, we provide you cost-effective and best business setup solution. We understand your needs and get you the work done at the earliest.
We can help you set up your business in Dubai. Step By Step Guide To Start Your Business Setup in Dubai
4 Steps to Starting a Business in Dubai
Step 1
Prepare the documentation
Step 2
Get a business license
Step 3
Start the visa process
Step 4
Set up the business
We provide services to support your business in UAE
- Business Consulting
Our experienced staff offers advice about selecting the right jurisdiction, trade activities and legal structure, as well pertinent government regulations.
- Document Preparation
We prepare all of the documents necessary to present the licensing applications for your business activity to the appropriate government departments.
- Corporate Registration
Our document clearance staff ensures your documentation is correctly submitted to the government departments to enhance processing time and approvals.
- Local Sponsor Facilitation
We can connect you with the right kind of local sponsor and recommend the best way to interact with your partner.
- Identification of Location
Through our professional real estate contacts, we can help identify the most strategic location based on market potential and other important factors.
- Staff Documentation
We offer a variety of application preparation and typing services, as well as document review for visas, residency permits and Emirates ID.
Our steps to set up your business in UAE:
Trade Licenses
Visas
Finding a Local Sponsor
Location
JBS provides highly rated and integrated services to setup new business within Dubai and the UAE.
Types of Licenses in the UAE
A trade license is a must when it comes to conducting businesses in the UAE. The UAE economic department issues the licenses and the procedures of license issuance varies from one emirate to another. The three major types of licenses in the UAE are commercial, industrial and professional. But the government also issues various other licenses as well that are specific to certain activities.
Commercial licenses are granted to companies that involve in any sort of commercial trade activity, related to goods, commodities and services. One need to decide upon the activities they plan to conduct before applying for a commercial license.
Some of the activities that come under commercial activity are logistics, car rental and real estate brokerage. The tertiary activities along with the main activity should be limited to 10 per license.
Industrial licenses are required for establishing industrial or manufacturing activity in the UAE. With the industrial license, businessmen can assemble and process goods using raw materials that are local or imported. One need to obtain an industrial license for the manufacturing of:
- Food
- Textile
- Metals
- Equipment and engines
- Petroleum products
- Paper
Professional licenses give permission to individuals and companies to engage in a profession they are talented in, based on their educational qualification. Some of the activities that come under this license are artisan ship, carpentry, consultancy services, printing and publishing, medical services, beauty salons, computer graphic design service, repair services, security services, and document clearing etc. With a professional license, foreign investors can attain 100% ownership of their business.
Businesses that provide tourism activities such as hotel renting, tourist camps, cruise boat rental, restaurants, guest houses, travel agencies etc must acquire a trade license.
The tourism trade license issued by Dubai DED is pretty straightforward. All businesses related to tourism activities need to apply for a tourism trade license such as vacation homes rental, hotel apartments rental, outbound and inbound tour operators, travel agencies, and marine tours operation among others. The number of tourists in Dubai alone has dramatically increased over the past decade, making the travel and tourism one of the fastest growing sectors in the UAE today.
People who are involved in activities such as cultivation and harvesting of crops, trading of pesticides, crops etc, installation of greenhouses and those who provide agricultural consultancy, should possess an agriculture license.
This license is required for individuals who are involved in plumbing, carpentry, electrical work etc. If a company employs a craftsman to work for them, then they need to apply for the license.
It is illegal to conduct business in the UAE without a license; a hefty fine and even a ban on the activity will be the result. In addition, the license needs to be renewed every year in order to avoid penalties.
UAE Mainland company
A Mainland company is a company registered in one of the UAE DED (Department of Economic Development). It means that if you choose to conduct business in UAE Mainland, you will need to register a business entity with the DED, which will then provide you a business license to start doing business in UAE.
Mainland companies can practice any industrial, commercial, trading, professional, or tourism activity. Some professional activities are excluded as per DED’s business regulations, and others require approvals of authorities that regulate these activities.
Foreign investors may start their business in a partnership where 51% ownership of the company belongs to UAE nationals or choose a Sole Establishment company formation to own 100% of shares. However, some business activities are reserved for UAE nationals only.
Shareholders must fulfill the formation documents and processes, which is included the appointment of a manager by the Memorandum of Association (MOA) or Service Agreement, for a limited or an unlimited period. Mainland must appoint a minimum of one manager and up to a maximum of five managers for the business.
ADVANTAGES OF A MAINLAND COMPANY
- 100% repatriation of the capital
- 0% corporate and personal income taxes
- A mainland can have more than one branch
- Pitching for a host of private and government projects that are not available to Free Zone or professional services companies without a local partner
- Mainland allows foreign entrepreneurs to trade/operate directly with the local market
- Availability of a wide range of business activities
UAE Free zone company
Free Zone Company is an independent business entity with its own unique set of rules and regulations. Each free zone is allowed to operate its activities inside the free zone or outside UAE. The fundamental difference between mainland and free zone is that Free Zone Company cannot conduct its operation in non-free zone without the support of a local agent whereas a mainland company freely operates its business activities anywhere in UAE. There are numerous free zones in Dubai. The basic reason that foreign investors opt for free zone venture is to get complete ownership benefits, apart from utilizing the world class infrastructure, assure their assets and relish tax exemptions.
Free Zone benefits
- 0% PERSONAL AND CORPORATE INCOME TAX
- 100% BUSINESS OWNERSHIP AND CAPITAL REPATRIATION
As an expatriate, you can own 100% of the company you are setting up and remit all profits to your home territory, without restriction.
- THRIVING BUSINESS CENTRE
Network with 18,000+ member companies representing 180+ countries and 20+ business sectors in an interconnected marketplace with boundless opportunities.
- STRATEGIC LOCATION
Situated in the heart of Dubai, DMCC is within fast, easy reach of both airports, Jebel Ali Port harbour and the Expo2020 site, while adjoining some of the most prestigious visitor, retail and residential districts in the world.
- LIVE AND WORK IN ONE VIBRANT COMMUNITY
DMCC is home to 100,000+ people who live and work here. With its striking waterfront, beautiful community park and stunning skyline of 87 towers, you can enjoy a high quality lifestyle with superb restaurants, hotels, education facilities and healthcare.
- FLEXIBLE SOLUTIONS
Almost every business activity you can think of can be found in DMCC. You can set up as a branch, subsidiary or new limited liability company. We also offer flexible office solutions, from plug and play flexi-desks and serviced offices to multi-storey offices for lease or sale.
- ONE-STOP SHOP
As a DMCC member, you will find everything you need for every stage of your business journey under one roof. With easy access to more resources to invest in growing your business, you will be better equipped for success.
- ONLINE PORTAL FOR ALL SERVICES
Reflecting our commitment to innovation, you can access a wide range of services on the DMCC member portal from any device, anytime and anywhere in the world, ensuring a rapid response to any requests.
UAE Free Zones:
- Dubai South
- International Free Zone Authority
- Dubai Multi Commodities Center
- Sharjah Airport Intl Free Zone
- Sharjah Media City
- Ras Al Khaimah Economic Zone
- Umm Al Quwain Free Trade Zone
- Dubai Airport Free Zone
- Dubai World Trade Centre
- Dubai Silicon Oasis
- Jebel Ali Free Zone
- Abu Dhabi AirportFree Zone
- KIZAD
- Abu Dhabi Global Market
- Twofour54
- Industrial City of Abudhabi
- Dubai Internet City
- Dubai Academic City
- Dubai Biotech Research Park
- Dubai Design District
- Gold and Diamond Park
- Dubai Healthcare City
- Dubai Industrial City
- Dubai Intl Financial Centre
- Dubai Knowledge Village
- Dubai Media City
- Dubai Outsource Zone
- Dubai Studio City
- Dubai Techno Park
- Intl Media Production Zone
- Hamriyah Free Zone
- Ajman Free Zone
- Fujairah Free Zone