The United Arab Emirates is widely known as a regional hub of foreign direct investment (FDI). Expatriate investors can setup a business in the UAE in many ways. Especially, international entrepreneurs want to start an LLC in the UAE to tap into the progressive market in 2024.
Entrepreneurs from around the world come to the UAE to grab the opportunities the market presents. Because, the United Arab Emirates has a consumer base of over 2 billion people. Dubai has grown into a big business center in the Middle East in a short span of time.
A popular way of legal business setup in the UAE is the formation of limited liability company (LLC).
It is not only the investment and facilities provided but also the laws made by the UAE government to regulate all matters in such a way that allowed freedom to people while still preserving the cultural values of the city.
With growth of business in Dubai, many new topics of discussion rose to popularity as well. It is common for this to happen because people are now interested in something new and in a city like Dubai, who doesn’t want to talk about what is best for business?
The government of the UAE created many business zones to attract businesses and it has been successful in doing so. For those business owners and entrepreneurs who were not aware of the laws of Dubai, business setup Dubai consultancies started providing their services. The core services of these consultancies include company incorporation for mainland, free zones and offshore jurisdictions.
So naturally, one of the topics for people to talk about is the comparison between a Limited Liability Company and a sole establishment. We will contribute to this discussion and make things clear.
What is the process to register an LLC in the UAE?
Foreign entrepreneurs have to follow this step-by-step process to start an LLC in the UAE.
Now, we briefly discuss these steps to start an LLC in the UAE.
Clearly plan the business activities your LLC is going to conduct. This is crucial as it determines the specific licenses and permits you need to operate legally. Also, it influences factors like company structure, office location, and revenue potential.
Select the Emirate and area where your LLC will operate. Remember, mainland and free zones in the UAE have different regulatory requirements. Business location selection depends on factors like business activity compatibility, accessibility, and cost.
Choose a unique trade name for your LLC that is available for reservation. Check the availability of trading name through relevant UAE departments. Make sure your trade name complies with the naming regulations of the UAE authorities.
Prepare the Memorandum of Association (MoA) that outlines the ownership of your LLC. Also, this legal document will detail the company structure of your LLC in the UAE. Draft and notarize the MoA with other necessary details like shareholding information.
Submit the necessary paperwork to the Department of Economic Development (DED) to establish the LLC. Otherwise, you have to file the obligatory documents to the free zone authority or other relevant regulatory body. Upon the successful review, you receive initial approval certificate from specific UAE government entities.
Draft the LLC agreement that details the management structure of the LLC in the UAE. Also, it notes down the profit distribution, and other operational aspects of the company. Notarize this document with signatures of all shareholders of the LLC.
You need a physical office address to register your LLC. So, lease a suitable office space that is appropriate for your LLC. Moreover, your workspace must fulfill the requirements set by the UAE authorities.
Next, submit the application form with all necessary documents to the DED. Or you may have to file the application form with the free zone authority depending on your location. In some cases, you have to submit the application form with other specific regulatory body in the UAE.
Submit the necessary licensing fees to the DED, free zone authority, or other regulatory department in the UAE. Upon approval, you will receive your trade or professional license. This license enables you to legally operate your LLC in Dubai or the broader UAE.
Establishing a corporate bank account in the name of your LLC business is the next logical step. It helps an LLC in conducting business transactions in an efficient way. However, bear in mind that only UAE residents are eligible to opening a corporate bank account.
Registering your LLC with the local Chamber of Commerce and Industry is the optional step. Some business jurisdictions in the UAE require it, while others don’t. This step may vary depending on the emirate where you are establishing your LLC company.
Foreign business owners of the LLC must have the UAE residency. Otherwise, they have to apply for the appropriate visas of the UAE. Similarly, they have to arrange visas for their expatriate workers or partners under the company’s sponsorship.
The past requirement of entrusting a local Emirati sponsor with 51% shares for LLC in mainland is not applicable now. However, some free zones in the UAE may still require LLC owners to optionally appoint local sponsors. Even, the LLC in the UAE onshore may appoint an Emirati sponsor to work as a local agent.
Make sure your LLC is properly compliant with all regulatory requirements. Likewise, keep financial compliance with FATF and other AML frameworks. Renew your professional or trade license (and other permits) annually.
Are the investments of foreign owners of LLC secure in the UAE?
This is the most common concern for foreign entities regarding the extent to which partners in UAE Company may be subjected and whether UAE government protects the rights of partners in an LLC partnership. Article 246 of UAE Civil Code requires from partners to perform their duties according to contents of agreement fulfilling the manner of good faith. Article also specifies that “the agreement will not be limited to an obligation from contracting partner to perform which is mentioned in it, it should also embrace what is appurtenant to it by virtue of UAE law and nature of transaction.” UAE law secures partners in an LLC contract so that they perform their obligations in good faith.
How many types of LLC companies are there?
These are some of the leading forms of LLC companies.
What is a limited liability company (LLC)?
Limited liability company (LLC) is a hybrid business entity that is a combination of a corporation and a partnership/sole proprietorship. The minimum liablity of a corporation combine with the flow-through income/taxation of a partnership or sole proprietorship. So, the partners of an LLC hold liability to the extent of their shares in the capital of the company.
Which law of the UAE regulates the LLC partnerships?
There are several laws of the UAE which govern LLC partnerships in Dubai. The article 218 of UAE Commercial Companies Law characterizes the LLC formation. However, the minimum liableness is not applicable for all companies under the LLC partnership.
What is better among registering an LLC or sole establishment in the UAE?
Both formation of LLC and sole establishment are the right options in the UAE. Keep in mind plenty of things to get the best results while registering an LLC or sole-proprietorship in Dubai. The decision depends on the type of business you want to run, the scale of operations, and the economic conditions.
Which are the benefits of starting an LLC?
Let’s look at some of the rewards of registering an LLC in Dubai and the UAE.
What are the advantages of setting up a sole establishment?
These are the incentives that opening a sole establishment in Dubai provides.
Are the rights of owners safe under LLC partnership in the UAE?
Entering into a contract that safeguards your rights as a foreign investor, preparing a security contract that will shelter your investments and savings, appointing a partner who is inactive in the business operations in return for an annual compensation? You must be wondering whether it is possible or not? The answer is yes. With KWS ME business setup, you can have complete ownership of your business operations.
However, it must be kept in mind that the legalities regarding liability for both setups are different. You are exposed to the risk of more law suits if you are the owner of a sole establishment as this makes you completely responsible for all liabilities and debts owed.
Business consults provide strong investor rights and protection contracts that two witnesses from both parties sign and certify. We are the most reliable business partners in UAE. The key documents that specify your positions as partner, company formation contract, power of attorney etc. are carefully prepared and examined by KWS ME experienced professional consultants who will provide you complete security that you desire in an LLC partnership.
KWS Middle East can help you make the smart choice using its experience in guiding businesses towards success. The consultancy offers valuable advice and business solutions like mainland company formation, company registration and visa services. Other services include trademark registration and trade license services.
Some decades back, people in the UAE were only able to buy offline, just like the world. However, advancing technology has made it possible for everyone to shop over the internet during 2024. You can start an eCommerce business in Dubai to drastically increase your share of online purchases.
Nowadays, all business sectors worldwide are adopting online technology at a very fast pace. There is consumer shift from brick-and-mortar retail to online and mobile shopping. Users are fulfilling all their purchasing needs online such as from buying grocery to high street fashion or electronics.
Increasing consumer demand has driven companies to opt for e-commerce in the UAE. It brings limitless opportunities for new entrepreneurs as they have space to excel in this sector. They can begin online retail businesses to serve the growing number of online buyers.
Especially, customers can purchase all these items online from the comfort of their homes. Therefore, the demand for online stores in the UAE is also rising. UAE’s e-commerce sector hit $10 billion in 2018, tremendously growing up from $2.5 billion in 2014.
What is eCommerce (electronic commerce)?
Electronic commerce (eCommerce) is the business activity which includes purchasing and selling of products or services through an electronic medium. Today, it is not necessary for companies to have a physical store to provide their customers with goods and services. Rather, users can buy items/services online, from their houses.
After the number of online users grew, Amazon and eBay chosen e-commerce for retail purposes. Thus, the use of electronic mediums grew for buying and selling retail items. eCommerce is an emerging sector and investors globally have put in billions of Dollars which are paying off.
Platforms like Walmart, Alibaba, Etsy, Target, etc. are really changing the world of retail. Businesses in the USA, Europe, Asia, Americas, and the world are managing their e-commerce websites. They are running these apart from the physical shops and outlets that they own.
Retail companies provide a larger variety of options on online stores. It helps create business activity on website, which leads to customers visiting their stores. Overall, this helps generate sales for the business.
Which are the business activities that you can perform with online portals?
Globally, online portals let you perform various types of business activities. eCommerce is the driving force that enables these activities. Let us list some of them here for you.
Electronic payment systems provide users with the ease of making payments for utility bills. They also allow the user to pay phone, internet, and retail shopping bills etc. through online banking systems. It brings to light to the Internet banking system. This virtual banking system allows people to go about their regular banking activities without having to visit the physical bank branches.
Using electronic mediums to generate sales is also an aspect of the business that new business owners have to understand. The knowledge of these few factors can help push the business in the right direction. Make the most of the increasing online users to generate more sales.
What are leading categories of eCommerce businesses?
These are the chief kinds of eCommerce businesses worldwide and in Dubai.
Now, we briefly look upon these categories of eCommerce businesses.
Companies can conduct e-trading (electronic trading) by creating an online shop with its own stock. Your company stores goods in its own warehouse. You can lease a warehouse where you will keep the stock at all times. Once, you receive the order, you can ship the products right away.
You can open a company where you will not hold any stock. Rather, you use drop-shipping to deliver products directly from the suppliers. In this type, you don’t have to maintain inventory.
A company can build an online exchange platform that brings together various buyers and sellers. You don’t have to keep inventory of the items. Essentially, you run an online system that allows the visitors to place orders on the website.
Once, you get an order, you forward the request to the manufacturers. They are fully responsible for arranging goods for shipment. Accordingly, they directly supply the items to the end customers.
Which things you need to consider while opening an eCommerce business in UAE?
You have to think upon these factors to start an eCommerce business in Dubai and the UAE.
Here we take a look on these factors.
You can select from different legal forms for your eCommerce business formation. Your options are LLC, one-person company, branch of a parent company, representative office, etc. Most common are the LLCs and branch offices as they offer plenty of benefits.
These are some deliberations in this regard.
Let’s have a look on these matters.
In the UAE and Dubai, LLC (limited liability company) is the most common type of company formation. It provides flexibility and several rewards to businesses in terms of trade. This legal form is better for facing any future lawsuits.
A foreign investor can setup a branch of foreign office to bring a global eCommerce business to the UAE. Branch office acts on behalf of the parent company and gives 100% foreign ownership. Also, you must keep in mind several points while setting up branch office in Dubai.
For example, activities of branch office in Dubai, tax on profits in home country, appointment of national service agent, etc. Think about appointing a local sponsor to smoothly establish a branch in Dubai. Pick from LLC or branch office according to your use case.
Among these two, free zone company formation is more cost effective solution for e-commerce business. It gives complete ownership, complete profit repatriation, personal, corporate, import/export tax exemption, and no restrictions on currency. A limitation on free zone companies is that they can’t trade outside the respective free trade zones.
If they intend to, they must hire a local distributor for trading onshore. Therefore, onshore business setups are much more favorable option for eCommerce businesses. Because, e-commerce companies on mainland can freely trade with the users in Dubai and the UAE.
A free zone company formation is sufficient for a drop-shipping business, as it doesn’t require storage and delivery of goods. Also, free zone is suitable for online exchange platforms, as they just enable communication between the buyers and the sellers. E-trading businesses require a local or mainland company formation, as you need to distribute/deliver goods which you’ve sold online.
Along-with the type of business setup, your budget determines which option you can go for. The cost of a local eCommerce company setup is high in the UAE. Also, other operational costs are steep, as you have to lease a warehouse as well.
For an e-commerce startup in Dubai with no external funding, it is a little difficult to manage in the beginning. Incorporating an eCommerce company in a free zone is more feasible, as it requires minimum investments. Also, you can pick a free zone in one of the northern Emirates, to further decrease your expenses.
Whether you are selling products or services, you must establish a secure online payment system. So that you can safely receive credit card, debit card, cash, PayPal, and other types of digital payments. It may sound costly for new startups but you have to invest proper time and money for this measure.
Because, getting it wrong is harmful for your business image. Also, the number of online payment options and digital finance partners are increasing in Dubai. Therefore, you have multiple options to consider which one suits your business and falls under your budget.
The UAE imposes 5% customs duty on the goods you import to the country. Free zone companies are exempt from import and export taxes. However, it is only applicable when you are selling your products in the respective free zone, whether online or offline.
In case, an eCommerce business setup in a free zone wants to sell online to the UAE market. It has to partner with local distributors for delivery of items to the users. Thus, import taxes will apply on it as well.
What is the process to get an eCommerce license in Dubai?
Here are the steps to acquire a license to start an eCommerce business in Dubai.
Next, we have a look on this step-by-step process to start an eCommerce business in Dubai.
Pick a unique trade name that people remember, and submit an application for its approval. This is important for online businesses in Dubai, as they do not have physical presence. Also, use your trade name as domain name, so that it is easier for people to find you online.
The type of eCommerce license depends upon the nature of your online business. Normally, you have to provide a business plan for acquiring an eCommerce business license. You may have to describe the exact process of buying the product on your website.
So, you must have everything at hand as you go to register your eCommerce company in Dubai. To setup an e-commerce business in Dubai mainland, you have to acquire commercial license from DED (Department of Economic Development). A mainland company has to approximately pay AED 10,000 to DED for issuance of license.
For registering a free zone eCommerce company, you have to acquire license from the respective free trade zone. Additionally, free zone authority may request you to specify all the suppliers or manufacturers you will work with. Regulatory department may need you to fulfill some requirements as well.
Receive your initial approval as a no objection certificate (NOC) from DED to start your eCommerce business in Dubai. Its validity is 6 months, and there is no renewal. You can apply for initial approval certificate at the same time while submitting your trade name approval application.
Draft a memorandum of association (MOA) and local service agent (LSA) agreement with the sponsor and submit it to DED. This step is necessary for incorporation of an e-Commerce business as a mainland company. eCommerce companies setting up in the free zones can skip this step.
You may think that you don’t need to rent or lease an office space, if you intend to trade online. However, you must know that you cannot register an eCommerce business without it. DED has made it compulsory for a company to have an office so as to consider it a legal entity.
So, you have to establish an office in Dubai to legalize your eCommerce business. Check minimum office space requirements set by the authorities. For instance, minimum office space requirement is 200 square feet in Dubai.
In the event, you settle for free zone establishment, there are cheaper alternatives like virtual or flexi-desk rental options. Nevertheless, keep in mind that obtaining visas for employees depends upon office space. More office space means that you can get more visas.
Once, you complete all the above steps; you will get a business license within 1 week. After that, open corporate banking account in Dubai in a bank which most suits your needs. Gathering final approvals means that you are good to go ahead to run your eCommerce business.
This is advisable to seek professional advice from a consultant company, for any form of business setup in the UAE. It assists you along the way whilst saving your time and resources. For professional guidance in eCommerce business formation in Dubai, seek the help of expert business advisors.
Business consultants provide assistance in the complete process of setting up a new company in Dubai. KWS Middle East is here to make the process of starting a business setup in UAE as easy as possible for its clients. Connect with us today to make your journey as smooth as possible.
Everything changes with the times as per the law of nature . Successful people and businesses foresee a situation, prepare themselves, and adapt to it. Accordingly, entrepreneurship has evolved and transformed the way companies are run during 2024.
From the last 100 years, the world is rapidly progressing in all ways possible. Moreover, the transformation of entrepreneurship has led to a complete face-lift of the way businesses are setup. What entrepreneurs think today is very different from those thoughts in the 1950s.
The concept of entrepreneurship has evolved dramatically over the past two centuries. However, the key fact remains same that entrepreneurship is on the rise. Let us examine the reasons for this surge, and compare the ways that today’s entrepreneur think contrast to their predecessors.
What is entrepreneurship?
In a nutshell, entrepreneurship is the activity of establishing companies, overcoming financial risks, to generate revenues, and earn profits.
Irish-French economist Richard Cantillon was among the first persons to iterate the concept of entrepreneurship in 1723. Scottish economist Adam Smith linked this concept with capitalism in the late 1700s. In 1803, French economist Jean-Baptiste Say defined entrepreneur as an economic agent who performs the following activities.
This definition though narrow but sounds familiar. Subsequently, the business owners on the enterprising journey are commonly practicing it as a costs cutting strategy. This concept is important in the relocation of economic resources for entrepreneurs as well.
Harvard Business School’s former business professor Howard Stevenson defines entrepreneurship as follows.
“Entrepreneurship is the pursuit of opportunity without regard to resources currently controlled.”
Howard H. Stevenson — Harvard Business School’s former business professor
This means that entrepreneurs can identify a business opportunity even if they do not have means to achieve it. Likewise, it is not about utilization of available resources to develop a product. Rather, it relates to having a vision to produce something and then work for ways to obtain required resources.
Read more: Habits of successful entrepreneurs
How has entrepreneurship evolved with the times?
Here are some ways entrepreneurship has evolved globally in terms of business expansion over the years.
Now, we take a look on the phases of entrepreneurship.
Although, not known back then, trade was the first form of entrepreneurship, starting nearly 20,000 years ago. Humans were exchanging goods for the overall benefit of their tribes. Known as barter trade, it let people to give their excess items to others to receive some valuable things in return.
With time, people learnt to domesticate plants and animals. Group of people cultivated food and exchanged it with people who provided valuable goods. Thus, new areas of specialization began to emerge such as pottery, carpentry, wool-making, and masonry.
Cities started to appear from 2000 BCE. As population rose, people got an idea that they can earn profits by trading between cities and cultures. Popular trade at that time was of salt, fruits, rice, wheat, and paper making (by China).
The key development in the history of entrepreneurship was a shift from barter system to currency. Coins were the first mode of payment. Later, paper money as a medium of exchange, became a way to store value.
Large marketplaces became more popular to cater large population. Economic regulations and banking became more efficient. Consequently, small businesses and entrepreneurs could purchase goods from abroad.
Innovation, mercantilism, and explorers was on the rise at that time. Afterward, market economy has led to a boost in the global trade. Luca Pacioli formulated standardized principles to keep track of a company’s accounts.
The shift from small scale to large scale production led to the industrial revolution. Henceforward, it gave rise to some of the world’s great entrepreneurs such as J. Morgan and John D. Rockefeller.
Nowadays, entrepreneurship serves as lifeblood of all economies of the world. Entrepreneurs innovate the businesses processes and meet the needs of the users. Therefore, countries worldwide value their contribution in the economy.
Further reading: RAK introduces business packages for women entrepreneurs
Which are the change drivers for entrepreneurship?
These are the change drivers that are transforming entrepreneurship.
Next, we briefly look upon the change drivers that are powering entrepreneurship.
Technological entrepreneurship is progressing rapidly across the world and in the UAE. According to 2017 MENA Venture Report, tech companies in UAE made up 29% of new businesses. Even if a business is not a tech startup, it will utilize technological tools like social media, apps, and websites.
More than 60% of people in Middle East have access to internet. Technology helps people access essential business knowledge and tools for their low cost startup which were not possible before. Also, new technologies boost entrepreneurial potential and provide a plethora of opportunities to start new businesses.
Nowadays, we can see more women taking in charge of new startups. A report by the global entrepreneurship research association is a testimony to this progress. It reveals there are some countries such as Qatar where females have equal or higher entrepreneurship rates than men.
Entrepreneurship diversifies in the terms of age as well. Also, minority owned businesses are on the rise. Many new entrepreneurs are starting out at a young age.
Entrepreneurship is a concept that you can learn. So, entrepreneurial education is a must to develop enterprising culture and drive business. Universities in the UAE like NYU Abu Dhabi and Dubai Entrepreneurs Academy offer courses on business and career development.
Those who cannot learn in universities can gain access to this information via internet. For example, free online courses, podcasts, YouTube videos, etc. It is one of the main reasons that many entrepreneurs are starting out young.
Entrepreneurship has evolved in terms of location as well. Thanks to the internet, in entrepreneur can work from anywhere and with great speed. Hence, big companies are widening their workforce to take benefit out of small startups in developing nations.
A study by risk management and brokerage firm Willis Woers Watson is right on the money. As it discloses that 55% of multi-national companies are looking for ways to effectively handle their workforce. Besides, they can use external contractors for the next three years.
There are people who are no longer profit driven. Rather they want to build their corporate empire that is socially aware and returns something to society. They are known as ethical entrepreneurs.
An example is of TOM, a shoe store which has a “one for one” policy. When you buy one pair of shoes, the store donates another pair to a person in need. Therefore, ethical entrepreneurship is beneficial for both the business owners and the community.
Know more: Advantages of launching an online business in Dubai
Why is entrepreneurship booming in the UAE?
The UAE is open to international trade, providing best tax incentives to new startups. Particularly, the UAE is ranked best for “ease of doing business” in Middle East by World Bank Report. Free zones in Dubai and across the UAE are promoting foreign investment big time.
In the same vein, mainland companies make the most of the business friendly policies. The benefits for entrepreneurs have been startling in the UAE. Overall, global developments are leading conservative countries to become more socially progressive.
The UAE is among the best countries in the world to start a business. Its marvel Dubai attracts business owners from around the globe because of its central location. Due to a growth potential, everyone wants to become an entrepreneur in Dubai (with the help of business advisors).
With the economy growing sharply, Dubai aims to turn into an entrepreneurial hub of the world. Hosting of the Dubai World Expo 2020 has led to a great boost in the business opportunities. Thanks to the introduction of smart city plan in 2021, Dubai is opening its doors for creativity and technological innovation.
The geo-strategic position of Dubai ensures year around traffic to and from the East and the West. So, popular multi-national companies come to Dubai to expand their business operations in the MENA region. The world-class infrastructure and business consultants help in starting a business in Dubai and develop it in every way possible.
Tip: Unique business ideas in Dubai to make money
What are the points to consider to become an entrepreneur in Dubai?
Nearly 90% of the population of the UAE, and more than 85 % population of Dubai is expatriate. UAE’s government is working hard to devise and implement strategies which serve different communities to live in harmony in Dubai. However, entrepreneurs new to the city may face some hurdles in company establishment due to the lack of knowledge.
Sheikh Mohammed bin Rashid Al Maktoum (Ruler of Dubai) setup AED 2 billion ($544 million) innovation fund in 2015. So, this initiative helps innovators and entrepreneurs with sponsorship of their startups and businesses. Such measures show how welcoming Dubai is to foreigners and businessmen alike, and help them turn their ideas into reality.
Here are a few crucial points which you must go through before initiating your business endeavor.
No, we take a brief look on these points as they can help us to become an entrepreneur in Dubai.
The first step in becoming an entrepreneur in Dubai is to decide what product or service you want to offer. So, you may offer an existing product which will result in fierce competition with other companies. Or you can go for niche product or service which is not readily available in Dubai market.
Firstly, the best way is to go through market research before the product/service launch. Business consultants in the UAE can guide you about properly conducting the market research. Accordingly, they enable you to identify the scope of your product or service in the Dubai market.
Broadly speaking, if you are looking to setup a business in Dubai, you have two options to determine the business type. Either you can choose a mainland company or a free zone company. Formation of mainland company empowers you to trade directly within the Dubai market and across the UAE.
Whereas, the incorporation of free zone company means to setup your business in one of the special economic zones. It provides special benefits to foreign entrepreneurs such as complete ownership, no tax, complete repatriation of profits, and many more. Also, you have to decide about the type of legal structure you want to adopt for your business.
A strong business plan is the foundation of your business setup in Dubai. In case, you plan to undertake your business on an existing competitive market. You need a sound and viable business plan that extensively takes into account each and every single detail.
Business advisors in Dubai specialize in complex company setup procedures. So, they can deliver you 360-degree business consulting services. They can prepare a sound business model or improve your existing one, taking into account extraordinary detail.
You should decide the source of funding for your business in Dubai. For this purpose, you can look into venture capital funds or startup incubators. Moreover, various banks in the UAE provide business loans for new business startups.
Normally, you have to get your business license from Department of Economic Development (DED). Your business license depends upon the kind of the business activity. Generally, there are three types of business licenses.
Business consultants in Dubai can do all the work to obtain a business license for you. Remember, there are further approvals from various government departments depending upon your business activity. Business advisors can happily perform all those tasks to acquire those approvals on your behalf.
The cost of your business depends upon the amount of work and the area where you will launch your operations. So, you must determine the cost of business startup. It gives you an overall idea of how much budget you have and how much funds you require more.
Financial/business advisors specialize in assessing the cost that a company needs to have a successful start in Dubai. These business experts can give you a general idea of business start-up cost in Dubai. Subsequently, you have a head-start in your budgeting for your business setup.
This depends upon the company jurisdiction and can vary between different areas. Whether Dubai main or free zone, it usually take about 7 to 10 days for business startup in Dubai. In some circumstances, the process can take two to three weeks as well.
Know further: Start a low-cost business in Dubai
Which are top places for foreigners to setup business in the UAE?
Due to the numerous benefits, it is understandable to register a business in the UAE. Besides, it is extremely feasible and profitable to venture into the world of entrepreneurship in the United Arab Emirates. Because, the UAE government is providing incredible support to budding foreign entrepreneurs.
Here are some places in the UAE which are very suitable for a foreigner who wants to setup a business.
Now, we take a brief look on these top spots to do business in the UAE.
The most populous city of the UAE, City of Dubai is the capital of the Emirate of Dubai. In the late 1980s, the modern Dubai was built with the revenues generated from the Oil and Gas sector. Gradually, the government of Dubai became aware of the advantages of diversification of the sources of income.
Today, less than five percent of the Emirate’s revenue comes from the oil and gas industry. However, it still contributes eight percent to the entire GDP of Dubai. The government of Dubai is focusing on renewable energy generation from clean/green sources.
The strategic location of Dubai pays a significant role in its worth. The availability of the numerous free zones in Dubai make the city hard to miss. As a result, Dubai has become a lucrative option for foreign investment and business owners.
The second most prominent and outstanding pick for a foreigner to start a business in UAE is Abu Dhabi. It is the capital of the UAE, and the Emirate of the same name. Emirate of Abu Dhabi is the richest and the most prosperous Emirate in the UAE.
Individually, it has one of the highest GDP per capita in the world. With investment of more than a trillion dollars in the city, it is an indispensable hot-spot for foreign business owners. Thus, entrepreneurs and investors are exploring new horizons for setting up a new business in Abu Dhabi.
Historically, the district of Deira was the financial and commercial hub of Dubai. In recent years, the government is reviving the town of Deira by the construction and extension of the metro. The creation of many shopping malls in the area is driving its growth. The development of Port Saeed beside the Deira’s coast of Dubai creek is cherry on the cake.
The Business Bay, as the name implies, is a business district in Dubai. Upon the completion of its under construction portions, the Business Bay will boast more than 250 high rise buildings. Companies and people will use these as residential as well as commercial purposes.
Business Bay will cover 4,370,000 m sq. of area. Out of which 7,280,000 m sq. will be up for leasing and renting. The whole region will comprise of a Bay Square, 12 Executive Towers, and a Bay Avenue.
As a suburban district of Dubai, Al Karama was built in a grid system. It is an excellent place for setting up shopping malls, restaurants and cafes. Al Karama is ideal for incorporating small setups such as beauty salons and pre-schools.
The region of Al Karama is smaller than two square kilometers, it accommodates more than 50,000 people. It has many low rising residential structures such as apartment buildings and houses. Transportation to and from Al Karama is extensive, fast, and readily available.
This makes it very comfortable for people to travel to and from the area. The nearness of many hotels makes it a desirable destination for business. Especially, if an immigrant wants to start a company in the UAE.
Idea: Launch a tourism business in Fujairah
Why is UAE top destination for foreign entrepreneurs to start a business?
The Middle East is known as a global center for all things business. UAE has the superior infrastructure and the best business atmosphere in the region. Because of the most sound technological facilities, entrepreneurs are choosing UAE for foreign investment.
UAE is ranking 13th on a global scale according to a research. It measures the ease of doing business, among other criteria, while ranking the financial centers of the world. This report reveals that UAE is the best among the MENA region on this criteria.
The government of the UAE is aiming to create more investor-friendly environment. So that foreign investors, both big and small, find it an appealing destination for starting a business. In recent times, more and more foreign entrepreneurs are investing in the development of its infrastructure.
For instance, the projects such as KKR are testimony of this phenomena. The 40% stake of black rock in the Abu Dhabi National Oil Company’s pipeline project is another example. It confirms that foreigners still have very much interest to invest in the business sphere of the UAE.
Many governmental reforms, such as state-led privatization across the country, are transforming the UAE into a desirable investment destination. UAE is evolving into the place to invest in business for entrepreneurs all over the globe. Besides, there are significant developments and advancements in the realm of sustainable and renewable energy.
What are the reasons to start entrepreneurial career in Dubai?
The United Arab Emirates is emerging as a notable hub for worldwide businesses. Dubai’s government has made some significant changes to the rules surrounding company formation by promoting ease of doing business. These initiatives are forming a fertile ground for loads of business and investment opportunities in Dubai.
Implementation of the lax taxation laws in the past decade is putting Dubai on the verge of another economic leap. The populous and busy Emirate of Dubai is evolving, adjusting, and transforming every day. It is adapting to innovative schemes of production, circulation, and consumption of goods and services.
The businesses setup in Dubai can reach over one billion consumers residing in the UAE and the neighboring countries. The people and companies in the regions of the Middle East, Asia, Africa, and Eastern Europe are their immediate clientele. Here are a few reasons for you to start your entrepreneurial career with a new business in Dubai.
Which are the business opportunities for entrepreneurs in Dubai?
The United Arab Emirates is full of business prospects for entrepreneurs. However, they have to identify the best sectors for investment in Dubai. These are the top business opportunities in Dubai that will ensure investors quick returns and long-term profits.
Next, we take a look on these profitable business opportunities for entrepreneurs in Dubai.
Among the top contenders on this list are real estate and construction. Properties management, real estate development, property rentals, and maintenance the properties are its leading sub sectors. Dubai mainland, DAFZA, and JAFZA are the primary options for business setup in Dubai for the realty and construction industry.
Retail industry is another business sector growing at a furious pace in recent years. All thanks to the increasing population, the influx of foreign visitors of leisure and business kinds, and a robust economy. Therefore, setting up a sales office, showroom, warehousing facility, or a grocery store are lucrative options.
It is common knowledge by now that Dubai is the leading hot-spot for tourists to throng during holidays. It has managed to entice people from around the world, offering a myriad of exciting, amusing elements like luxury beaches, boutique hotels, shopping malls, residential villas, and cultural attractions like Old Dubai and Global Village.
There are plentiful opportunities in the transport and logistics sector because of the ever-high need for transport facilities. Investors have the choice to either set up a local taxi service or a trans-city transport services company. The transport industry includes warehousing, transportation of goods, and people and packaging inventory.
The advertising industry, chiefly digital media, continues to show signs of growth in general. The United Arab Emirates has recently been declared the top country for spending the most on advertising and promotion in the GCC, accounting for USD 410 million in the first quarter of 2018 alone. Within this diverse market are many home-grown success stories like fast-growing businesses like Porsche and McDonald’s.
The global textile industry and especially the apparel industry, has seen striking changes in the past several years in Dubai. The wholesale clothing supply is rising worldwide in all the industry sectors, whether it be men’s clothing, women’s clothing, kids’ wear, or even baby and toddler apparel
Dubai is a hub for people congregating from all over the world. Now, it is an essential point that a place that sustains such a diverse culture must also amuse global cuisine. Whether it is rooftop dining or something the people can order off the food truck or some cheap yet tasty eat streets, people love to indulge their taste buds. Setting up a business in the food industry must be a tantalizing idea.
What is process of business registration in Dubai for entrepreneurs?
This is the procedure of business registration in Dubai for kick-starting your entrepreneurship journey in the UAE.
Now, we briefly look upon this step-by-step procedure.
The core of your business registration in Dubai process is deciding your business activity before starting other steps. Make a thorough business plan that describes your whole business activity. Because, many regulatory authorities require applicants to disclose the business activity with a business plan.
The business sector of Dubai comprises two areas: mainland and free zone. However, each of these areas has some slightly different rules for foreign business owners. Pick the land sensibly by calculating the budget and acquiring a license for a startup.
In case, you are venturing into manufacturing for global markets, you can register your business in the free zone. Nevertheless, if you are aiming for trading onshore, you have to incorporate your business on the mainland. If you are already doing business oversees, then you can open a branch office in Dubai.
A new business must have a clean company name that does not contain any blasphemous or offensive words. Also, pick a name that is unique and aligns with your business. Otherwise, your company name registration request can result in a disapproval.
Trademark registration for a company is a crucial part of business registration in Dubai. Also, you must have full knowledge about the requirements for registering a company name and its trade name. That’s where a business consultancy firm can suggest you names to save time.
The collection and completion of all legal paperwork for company registration in Dubai is a hectic phase for entrepreneurs. Because, they are unaware of the regulatory requirements and governmental approval system. Expert business consultants can assist you in collecting paperwork and guiding you in filling these before correspondence with the authorities.
Try to assemble all shareholders for creating MOA (Memorandum of Association). The professional business consultancy agencies in Dubai assist fresh business owners in creating their company’s article of association. These documents require some time in filing, but clear the muddy path for establishing your firm’s identity in Dubai.
Dubai is home to many office apartments that are built specifically for startups. In the start, you can even get a flexi desk to quickly commence the business. Find an office space which suits your needs and can facilitate your customers.
Now, focus on the next phase of business registration in Dubai, that is processing your VISA application. After all, you have to come to the UAE to form a business in Dubai. So, try to find legal business advisors that can provide good packages for VISA for Dubai.
Remember that affordable is not always the appropriate pick. Investor visa gives you the right of residency for 2 years in the UAE. Lifetime visa and golden visa are premium options for entrepreneurs and business
Opening an account in a bank is the last stage of the company registration operation for entrepreneurs. Banks require photocopies of business shareholders’ identity cards, passport size photos, and a copy of the business permit. Also, banks in Dubai and across the UAE need records like transactions of the last six months.
The legal business license is the backbone of this procedure. Because, governmental departments give permission to start a business in Dubai, if the owner has a legal permit. Among the most popular trading license types are commercial license and professional license.
You have to submit the business license application to the Department of Economic Development (DED) for mainland businesses. Otherwise, you can file the trading license application with the Dubai Chamber of Commerce (DCC). Companies wishing to begin business in the free zone need to register with the relevant authority of that area.
When entrepreneurs complete all the above steps, they get permission to start their businesses in Dubai. Upon successful approval, you can receive your business license. Nonetheless, you can appeal again if you get disapproval.
Why do business registration in Dubai for a small company?
Dubai is among the most profitable places in the world for entrepreneurs to start their small-level businesses. Now, it is ninth among the best economical cities which offer great opportunities for logistics and import/export business. The government of the UAE is spending $70 billion to help boost up small-businesses growth projects.
With the arrival of more entrepreneurs, the number of startups in the UAE is rapidly growing. The authorities are making the procedure of business registration in Dubai simple. However, standard steps can cause trouble for startups in getting registration in Dubai.
Some important stages demand legal approvals and documents for entering into Dubai market. To apply for starting a small-scale business in Dubai, any entrepreneur must comply with all rules and regulations. The first phase involves building your team, and all members should get an Emirates identity card.
Afterward, entrepreneurs must complete the legal paperwork and submit the documents to the relevant authorities. After finishing the basic procedure, there is a precise process to register your company in Dubai. Get to know all the nitty-gritty here to avoid any issue.
Which statistics highlight UAE is embracing entrepreneurship?
Here are some statistics that showcase that entrepreneurship is evolving and entrepreneurs are thriving in the UAE.
Based on information provided by VisaGuide.World: To get an Investor Visa in Dubai or anywhere else in the UAE, you must invest at least AED 10 million in the public sector in UAE or invest at least AED 5 million in a property.
Insight: Rules to select a business name in the UAE
What is the future of entrepreneurship?
Around the world, entrepreneurship will continue to sustain its special position in society and economy in the future. Through the years, only the means of entrepreneurship have evolved, but not its core. After all, the global financial landscape has made modern entrepreneurship quite challenging but rewarding as well.
The provision of state-of-the-art infrastructure, communication systems, cheap labor, and means of production are playing a great part in it. Also, entrepreneurs address the demand by providing supply. They are the innovators who solve problems that no one has solved before.
Promising entrepreneurs are the ones who have the ability to lead from the front. Furthermore, they show creativity, move with the time and never give up. Entrepreneurship is the vehicle that is driving the modern businesses internationally.
United Arab Emirates as a global economic hub is the place to start your entrepreneurial journey. Take help of any finest professional consultancy agency to efficiently complete your paperwork for business registration in Dubai. So, choose the consultants who have track record of helping numerous entrepreneurs and business owners.
Dubai has seen a swift transformation, from a comparatively small desert city into a genuine mega-city or metropolitan. If you, too, have a thirst for more extraordinary things and want to stand out in the commercial world, then Dubai is a perfect match for you. So put on your entrepreneurial hat and advance towards a new journey of money-making with any of these fantastic business ideas in Dubai.
Business consultants in the UAE can help you in setting up an enterprise. KWS Middle East is here to assist you in navigating your entrepreneurial journey. So, connect with experts at KWS-ME to make your transition to entrepreneurship as smooth as possible.
They are pioneers in helping entrepreneurs start a business in the UAE and its Emirates. Our business setup consultants have years of expertise in this domain and can make the process hassle-free and easy.
The hospitality industry in the UAE is set to reach new heights during 2024. Massive support from the UAE government in terms of new policies is playing a major role in business advancement. So, you can start event management business in Dubai to tap into this market.
The open culture of the UAE is fueling the growth of the hospitality industry and expansion of the service providers. Whether, corporate events or recreational events, Dubai is always a top choice to host them. If you’re planning to acquire event management license, then your chances of progressing are better than ever.
Opening of new tourist destinations and exemption from VAT for travelers is bringing new opportunities. Also, the success of Dubai Expo 2020 has led to the increase in the business activities. Similarly, the event management industry of Dubai is getting healthier by the day.
What is an event management company?
In essence, an event management company is a firm who plans and organizes corporate, entertainment, and public events. They manage ceremonies, celebrations, product launches, service presentations, workshops, conferences, etc. Moreover, event management companies have a great scope in the modern busy lifestyle of today.
If you are looking to start event management business in Dubai, now is a great time to do that. Remember, the first step is to decide what type of events you want to organize. Decide whether you want to conduct large scale event, small scale event, product introduction, promotion, or a conference.
Which areas are best to begin event management business in Dubai?
To setup your event management company in Dubai, you have to decide your business interest. Then, you have to choose the location where you want to conduct your hospitality operations. You can select an area to start event management business in Dubai from these options.
Let’s have a look on these choices.
To conduct events all over the UAE, you need to setup business on Dubai mainland. For this purpose, you need to apply for event management license directly from Department of Economic Development (DED). Also, you need to take permission once from the Department of Tourism and Commerce Marketing (DTCM).
Several free zones in the UAE are home to many prestigious event management companies. For example, Dubai World Center (DWC), Fujairah Creative City (FCC), and Dubai Creative Clusters Authority (DCCA), etc. Select the free zone where you want to establish your event management company.
Send an application form along with necessary documents like passport copy and visa copy to the free zone authority. UAE free zone company formation provides 100% ownership to the foreign investors. However, there are limitations on where business owners can conduct events and exhibitions.
Keep in mind that event management companies setup in the free zone can’t hold events in the mainland. Likewise, they must apply for a permit from every venue they work with. They can’t hold events in public spaces such as beaches or parks.
What activities can an event management company perform in Dubai?
Event management license in Dubai makes your company eligible to undertake these activities.
Which activities an event management firm can not conduct in Dubai?
An event management license doesn’t permits you to execute these activities in Dubai.
What is process to get event management license in Dubai?
The first step for company incorporation in Dubai is to fill out application form for obtaining the license. Furthermore, you need to provide personal and professional information. Also, you have to list down your business activities.
In the case of Dubai mainland, submit the complete legal application form to DED with necessary documents. Then, wait for reply from DED for your initial approval. After initial go ahead, pay the fee and get license in a few days after the final approval.
However, if you aim to start event management business in Dubai free zones. Then, submit your application to the relevant free zone authority of your choosing. Note that there are different rules for each free zone.
Which are perks of forming event management firm in Dubai?
The hospitality industry of UAE hit $7.6 billion in 2022. Dubai as one of leading business and tourist destinations is playing a big part in it. Here are the advantages of establishing an event management company in Dubai.
Now, we take a brief look on these rewards you get as you start an event management business in Dubai.
There is no upper limit which means that event management business owners can apply for limitless visas.
In UAE free zone, there is often no requirement to take on office space and but on the mainland, however, office space is required. Nonetheless, it depends on your business activity and budget on what kind of space will be needed. Our company formation specialists at KWS Middle East will guide you all about office types and leasing process.
An event management license also lets you to acquire residence visas for your dependents. Fortunately, starting an event management company in Dubai is somewhat an simple process. Especially, if you’re aware of all the legal formalities.
If not, you can always take help of our business consultants at KWS Middle East to make things easier. Get all information on business setup in UAE by visiting our website. Thus, connect with us today to discuss all your business formation queries.
Gold trading is one of the most lucrative businesses in the UAE during 2024. Meanwhile, Dubai is rightfully maintaining the title of the “city of gold” in the world. Many companies and ambitious people aim to start a gold business in Dubai to tap into the booming jewelry potential.
The gold industry adds around 20% to the total GDP of the UAE. Whereas, Dubai contributes the lion’s share, with Abu Dhabi and Sharjah following closely. The bustling gold sector incorporates more than 4,000 businesses, and countless professionals are directly engaging in multiple trades.
Several other companies are indirectly taking part in the trading of the precious gold metal. Also, there are hundreds of both local and expatriate investors in the gold and diamond industry of the UAE. Many business executives, and white and blue-collared workers are in this business as well.
What are types of gold businesses in Dubai?
Globally, people consider gold as an essential asset, irrespective of their country of origin and culture. Similarly, companies tend to invest heavily in it, deeming that money conversion into gold is safe and secure. Entrepreneurs and foreign investors can start a gold business to reward from this luxury metal.
Gold is available in many forms, such as coins, bars, blocks, bullion, and jewelry. The various qualities of gold in purity are available for trade — 24K, 22K, 21K, and 18K. Moreover, the weight of the precious gemstones in carats is important as well.
You need to consider a variety of different things at the time of selling and purchasing gold. For example, weight of gold, charge of craftsmanship, quality control, wastage costs wherever relevant, VAT tax, etc. You can try your hand in the following different kinds of businesses in Dubai.
Surprisingly, the United Arab Emirates and Dubai do not have any gold mines of their own. The UAE was the 4th largest gold importer globally in 2021, with imports worth of $46 billion. Gold was number 1 among the goods shipments into the UAE in the same year.
UAE imports most of the gold from the African, Asian, European, and Latin American countries. Mali ($7.32B), Zimbabwe ($3.5B), Sudan ($2.82B), Niger ($2.68B), and United Kingdom ($2.46B) are the biggest gold sellers to the UAE. Companies participating in the gold mining abroad have begun the practice of “responsible sourcing”.
They restrict sourcing the metal from battle-ridden and politically unstable areas to avoid any likely financing illicit activities. Corporations and SMEs readily embrace the policy of ethical sourcing of precious metals on their freewill without the government enforcement. Gold companies are voluntarily signing up for certification that authenticates the bullion sourcing is ethical and responsible.
The UAE was the 2nd biggest exporter of gold, with exports worth of $32.8 billion in 2021. Gold exports were the 3rd largest among the goods delivery from the UAE. Switzerland ($7.47B), India ($7.03B), Hong Kong ($6.55B), Saudi Arabia ($2.96B), and Turkey ($1.52B) are the largest gold buyers for the UAE.
There are many investment and business opportunities available in the gold refining and gold-bar manufacturing business. Likewise, multiple companies are working in the jewelry crafting process. They include both local and international firms, whether they source the gold themselves or from different traders operating in Dubai.
The companies deploy all the newest and latest technologies to heighten their capabilities and increase the process efficiencies. After the refining process, pure gold advances through the supply chain. It includes many suppliers, distributors, whole-sellers, and gold retailers.
Gold is one of the notable means of the investment across the globe. Although, most of the gold is sold in its natural form. There are still numerous opportunities to invest in the gold and ornaments industry by applying fail-safe means.
Dubai Multi Commodities Centre (DMCC) free trade zone provides market infrastructure for global goods and precious products. Its subsidiary Dubai Gold & Commodities Exchange (DGCX) is empowering the community of 267 gold businesses and jewelers. Gold Standard DMCC, another organizations under DMCC maintains Dubai Good Delivery Standard (DGD) for Gold. It offers amenities and financial support to local, small, and foreign corporate investors.
Which are best areas to begin gold business in Dubai?
Companies who want to start a gold business in Dubai can choose a free zone if they trade globally. Or they can select mainland business setup in Dubai, if they have to trade onshore. These are the areas that you can consider for this purpose.
To start a gold business in Dubai mainland, consider these Gold Souks (traditional markets).
Here we list the best gold souks of Dubai.
Start a gold business in Dubai for retail in the Deira Gold Souk. More than 300 gold retailers here are providing exquisite gold jewelry. Furthermore, it is better choice for wholesale trade of gold ornaments as well.
What are benefits of investing in gold business in Dubai?
A variety of Government and market benefits support businesses that are investing in the gold industry of Dubai.
Tourists from all around the planet flock to Dubai to spend their vacations in style. Dubai presents countless fabulous happenings and adventures for tourists, both local and foreign. Dubai is has gained the title of shopper’s paradise due to the abundance of shopping selections on offer in more than forty malls situated in Dubai. The Dubai Gold Souk is a famous tourist destination with glorious displays of gold ornaments honoring the artistic skills of Dubai’s goldsmiths. In the last few years, there is a surge in tourists visiting from the Asian continent who have been very enthusiastic about shopping for gold jewelry. The immense number of gold retailers, a diversity of craftworks in gold jewelry, and the minimal taxation and other advantages have made Dubai a hotbed for Gold shopping.
Dubai is one of the famous and reliable markets for gold investments. Tourists, visitors, entrepreneurs, immigrants, and local residents never let go of an excuse to get the precious yellow metal. Gold adornments and jewelry are available at relatively lower prices in Dubai. There is a VAT exchange mechanism in place- according to which listed and registered dealers do not charge any VAT in the event of selling the Gold to another certified dealer as long as the latter plans to resell or manufacture those products. Nevertheless, the retail customers are still charged VAT at a low rate of 5% of the total estimated value of the purchased Gold.
The advantages differ between the free zones where the market is going. DMCC and Dubai Gold & Diamond free zone give a plethora of perks to the gold sector. They include the following.
Businesses working from the mainland, such as Dubai Gold Souk, which is a traditional gold exchange offer other compensations.
Dubai World Expo 2020 exhibition grew the revenues and earnings of all the sectors of the UAE economy. Many UAE based businesses are extending their operations after the mega event. In its subsequent aftermath, and continuing tourism to the UAE, gold businesses are thriving and jewelry trade is booming.
Professional business advisors can assist the entrepreneurs with setting up a business in the gold industry. These expert business setup consultants have years of experience in the field. They loyally help the clients by providing them with all the necessary legal information and necessary market insights.
In case of any queries, get in touch with KWS Middle East. Our specialists are more than happy to resolve your questions. They assist you in making decisions that are best for your business in the long run.
The UAE is transforming into one of the economic hubs of the world. Because of the dynamic business environment and commitment to the technical innovation of Dubai and Abu Dhabi. Many companies want to start a financial technology company in Dubai to serve the entrepreneurs and people.
Launching a FinTech firm in Dubai can prove an exciting journey for new business owners.However, it is crucial to carefully navigate the specific requirements. Anyways, forming a financial services business in Dubai can turn out an exciting venture.
Overall, financial technology is a dynamic and disruptive force in the international economic landscape. It offers innovative solutions and has the potential to make financial services more affordable, simpler, and user-friendly for everyone. Therefore, the FinTech companies are revolutionizing the way we manage money, while making the experience efficient, and convenient.
What is financial technology (FinTech)?
In a nutshell, financial technology (FinTech) is the application of new technology to improve the financial services. Moreover, it aims to automate the delivery and use of financial products for companies, business owners, and consumers. The core concept is to use technology to make financial processes readily accessible, faster, easier to perform, and more secure.
FinTech is a portmanteau or a made-up term from the combination of two words “financial” and “technology”. It is a rapidly evolving industry that impacts both businesses and users in numerous ways. Artificial intelligence, blockchain, cloud computing, and big data are known as the “ABCD” (four key areas) of FinTech (financial technology).
Initially, the backend systems of financial institutions like banks were the only ones using FinTech. Over time, it underwent expansion into various sectors like retail banking, investment management, fundraising, and education. Presently, we interact with fintech regularly through mobile banking, money transfers, and online investment management.
Which are the uses of financial technology with examples?
These are global examples of the use cases of FinTech for inspiration to start a financial technology company in Dubai.
What are the benefits that fintech companies provide?
Here are some rewards that you can offer as you start a financial technology company in Dubai.
Do you know the challenges that fintech companies face?
Given below are some challenges that you have to solve, as you start a financial technology company in Dubai.
Which things you need to think while forming a fintech company in Dubai?
These are the things that you have to consider before you start a financial technology company in Dubai.
Now, we briefly look upon these considerations.
Decide the specific fintech activities that your company wants to conduct. After all, the financial technology industry is very broad. So, single out a specific problem or gap that you can address with your solution.
Niche down to pinpoint the financial services that your company intends to provide to the users. For example, payment processing, lending, wealth management, digital wallets, crowdfunding, etc. Also, it determines the kind of trade license that your fintech company requires.
Select the legal structure of your financial technology company in Dubai. Therefore, consider important factors like flexibility, control, and regulatory requirements. Your decision about business jurisdiction must depend on your business goals to pick the right fit from these options.
Pick a unique and relevant company name, then check its availability with the authority. Any mainland company should register its business name with the Department of Economic Development (DED). Whereas, a free zone company must reserve its company name with the regulatory authority of its jurisdiction.
Come up with an appropriate trade name for your fintech company. Besides, make sure that the trading name aligns with your business activities and company goals. Pick a compliant name that follows the UAE naming guidelines.
Secure your funding from bootstrapping, angel investors, venture capitalists, or other appropriate sources. Also, the amount you need depends on your fintech business model. Nevertheless, keep room for growth plans to drive your future evolution.
Secure necessary capital to effectively run your financial technology company. Also, the minimum base capital requirement depends on the chosen license and regulatory body. However, it begins from USD $10,000 for smaller fintech activities and processes.
What is process for registering a FinTech company in Dubai?
Each regulatory body in Dubai has its own application procedure and requirements. Nonetheless, there are similarities in the registration process of DED and free zone authorities. Here is the step-by-step process to start a financial technology company in Dubai.
Next, we take a brief look on this procedure.
Draft the necessary legal documents like the Memorandum of Association (MOA) and Articles of Association (AOA). Prepare supporting documents like business plans, financial projections, and shareholder information. Submit these documents with your passport and visa to DED or the relevant free zone authority.
Ensure to seek prior regulatory permissions for your business activities in the financial sector. Also, you may need NOC from the Dubai Financial Services Authority (DFSA). Similarly, you may require approval from the Central Bank of the UAE (CBUAE) for payment processing or e-wallets.
Obtain a trade license for your fintech company from the relevant regulatory authority. However, the specific license for the fintech industry depends on your business activities. Common options include the DFSA Fintech License, ADGM Fintech License, and CBUAE Payment Service Provider (PSP) License.
Also, think about taking the Innovation Testing License (ITL) to test your financial product before full licensing. Pay the fees for application processing, company registration, licensing, and other permits. Once, you get approval from the regulatory authority, receive your license, and start business operations.
Set up a business banking account in Dubai to smoothly run your operations. Therefore, find a reputable bank familiar with fintech companies and their specific needs in the UAE. Likewise, manage your company finances and accounting with a bank that complies with worldwide regulatory requirements.
Establish a physical presence for your financial company by setting up an office space. So, find a workplace in a suitable location, keeping in view your business model and user requirements. Furthermore, you may consider a co-working facility, or a virtual office, depending on your preferences and budget.
Understand the evolving regulatory requirements in the fintech industry, as staying up-to-date is crucial. Also, maintain regulatory compliance by continuously adhering to the set rules and update your licenses on time. Thus, keep active regulatory reporting with the relevant authorities about your financial activities and operations.
Globally, businesses are transforming to better serve the people. Therefore, you can start financial technology company in Dubai to streamline their operations. Because, by streamlining their daily tasks, businesses can facilitate their customers more.
Embrace the evolution by hopping on the fintech bandwagon. After all, professional business consultants in the UAE can make your journey very smooth. The consultants at KWS Middle East are available to help you all the way.
With every passing day, more and more businesses are opting to start their operations in UAE. Due to the high demand for rental properties in Dubai, it is challenging to find an appropriate commercial space. Therefore, finding a suitable office space in Dubai at an economical rate is difficult in 2024.
The companies that do the majority of their business activities online may feel the temptation for a virtual office. Dubai business rules require businesses within the city must have physical addresses to ensure the adequate monitoring of their activities. As an entrepreneur, you must know the importance of having a perfect office space.
Thanks to the government’s policies, Dubai is conducive to business formation. Besides, the UAE has set up various industry-specific free zones to attract international investors to its shores. Right from the get-go, understand that arranging a workplace in Dubai is mandatory to conduct legitimate business operations.
Why you need an office space in Dubai?
As a business owner in Dubai, you need to have the best office there. Your office as a doorway to your business, plays an essential role in forming the opinion of users about you. By looking at your office, your clients create their first impression of you.
Therefore, having an attractive office space in Dubai with adequate work culture is a basic corporate requirement. Whether, you are a citizen of UAE, an immigrant, or a foreigner. Well, two primary questions come to the mind of an entrepreneur.
Should you buy an office in Dubai? Is it better to get an office for rent in Dubai? Well, the answer is pretty simple. The real estate rate is on the rise, so it is best to get a modest office for rent in Dubai.
Your workspace is more than just a series of cubicles. It is the first thing your potential clients see. The location and ambiance of your rental office space is responsible for creating a lasting impression on them.
Which are the benefits of renting an office in Dubai?
Finding an office space with all the needs is not that easy, if you are just starting your entrepreneurial journey. Starting a business in Dubai is rewarding, but can turn out an intimidating task. Similarly, locating the right office in Dubai is even more challenging.
Buying an office has its pros. However, it is tricky, notably for a start-up company in Dubai. You as a newbie entrepreneur have to answer some questions after incorporating a business setup in Dubai.
How do you exactly impress your clients? Is it by giving them discounts? Or by offering them extra credit? The answer is: a potential client is impressed by the way you present yourself and how your working space looks.
These are a few benefits of renting an office space in Dubai.
Let’s briefly look into these particular insights on why renting an office in Dubai is the right choice.
This is one of the most significant advantages of renting an office in Dubai. It takes off the additional financial load. Also, it is a better option for startups and new companies to rent an office space in Dubai.
In case, you are a proud owner of a building in Dubai’s illustrious commercial area. Then, you have to look after its maintenance and other charges. It costs more depending on the scale, to maintain a building than having a cheap office for rent in Dubai.
After sometime, every business is ripe for great expansion. If your business setup in Dubai is progressing towards success, moving into a bigger office turns into a necessity. As you grow your business, you want more employees, for which you require larger office space in Dubai.
In case, you have an office of your own. Then moving into a bigger office or extending the current one becomes tricky. A rental office gives you the flexibility for moving into a bigger and better office space, when you need it.
One of the most challenging tasks during the incorporation of company formation in Dubai, is buying an office space. Also, you require furniture, tech equipment and all the bells and whistles that come with establishing an office in Dubai. The initial setup costs a lot, not to mention it is unbearably time-consuming.
On the other hand, acquiring an office space in Dubai for rent is super easy not to mention super fast. Rental or leased offices are amply equipped with all the services needed for a business. For example, corporate furniture, meeting rooms, built-in phone lines, internet service, power points, etc.
Office space is an essential asset of the company, which needs more capital. But if a company spends in taking a reasonable office on rent in Dubai, then it can preserve more money. Because, it demands less amount of working capital, in comparison to owning a building or purchasing an office space. This conservation of the working capital has a straight impact on the company’s periodic cash flows.
What are tips for finding right office space in Dubai?
Choosing a rental office space in Dubai that boosts your brand’s popularity is vital. After all, a unique brand identity is necessary for you to beat your competition and come up on top. Here are some useful tactics for acquiring a decent office space in Dubai for rent.
Let’s take a look at these tips in detail.
You must understand your business requirements before searching for the right office space in Dubai for rent. However, it depends on the type of business you are operating in the United Arab Emirates. After knowing the company needs, you realize whether a business center is ideal for renting an office space in Dubai.
Sometimes, going for an office space in Dubai having a warehouse is more suitable. As it all comes down to finding a workplace for smooth operations for your business. A few options that you may consider for an office space in Dubai are the following.
Read more: Advantages of virtual office in Dubai
Choosing an appropriate location for your office space in Dubai is very important. Having an workplace in a popular area adds a touch of professionalism and an air of credibility to your business. Moreover, it is essential in luring in customers that will inadvertently boost your profits.
Dubai mainland offers several locations that are known for providing the companies matchless mobility and accessibility. Also, it is famous for its vicinity to other business centers. Dubai mainland is home to the largest commercial zones like Dubai World Trade Center (DWTC), and Dubai International Finance Centre (DIFC).
Business that have office space in Dubai business centers in the mainland are thought to have hit the jackpot. Sheik Zayed Road, DWTC, and DIFC are among the most desirable business locations in all of the Dubai. Companies fall over themselves to get a spot in any of these commercial hubs. Rents are on the higher side in the Dubai mainland as many companies are looking to set up a base here.
Companies providing services in any particular area can select a free zone that is apt for their specific industry. Many companies set up business and obtain office space in Dubai at these free trade zones for ease and convenience. Dubai Media City, Healthcare City, Dubai Design District, and Dubai Internet City are famous examples of these free zones.
Further reading: Is it necessary to rent an office in Dubai?
Once, you have chosen a rental office space in Dubai, it is mandatory that you complete all the legal requirements. Usually, the rental contract mandates you to deposit an agreed-upon amount in the bank account of the landlord. This agreement guarantees that the office space is reserved for you until the end of the contract.
Discuss with business consultants before signing the office rental agreement. This ensures that the other party is not duping or exploiting you. Likewise, having a credible rental contract qualifies you for a business license.
Tip: Open a branch office in Dubai
Most entrepreneurs adhere to the practice of consulting with the business advisors in the UAE. These specialists are adept at finding an ideal office space in Dubai to satisfy all your requirements to the fullest. Furthermore, they negotiate on your behalf with your potential landlord to finalize a rental rate that is within your budget.
Business consultants do everything possible to get you the in-demand business address in a commercial center of your choice. Starting a business and making it successful requires extensive planning, strategy, and foresight. Nonetheless, it is only easy, if you are a serial entrepreneur or are the owner of big corporation.
Bonus: Destinations for entrepreneurs to start business in UAE
Newbie business owners and startup founders should hire business setup consultants to overcome this hardship. Essentially, it is only possible if one has the experience in the art of company formation. You can discuss with the industry leaders to realize your entrepreneurship dream.
The experts at KWS Middle East are here to serve you for this purpose. After listening to your problems/challenges, they advise a solution that is perfect for your business. From company incorporation to office rental to tax filing, they are available to assist you.
The UAE is the ninth largest FDI beneficiary of the MENA region as per the annual Global Investment Report. People looking to form their companies are choosing UAE, while Dubai has become the top priority for them in 2024. If you want to start a low-cost business in Dubai, it requires extreme determination and ambition.
This is not all, you need substantial investment to bear the business setup costs. Especially, if you want to form your company in Dubai as a business startup. It demands a specific business setup cost for the preliminary expenses alone.
The number of investors and entrepreneurs is growing year by year in the UAE. Whereas, the most of its investors come from Asia, Europe, and North America. Abu Dhabi (the capital of United Arab Emirates) is the second most desirable place to own a business.
What is the reason why the UAE is so investor-friendly? How you can start a low-cost business setup in Dubai? Keep reading to know some valuable tips to start a low-cost business in Dubai of your own.
What is the process to start a low-cost business in Dubai?
Dedicating some time to preliminary research can decrease so much pressure of starting a company in the UAE. After all, you need to know about a run-down of things which are part of the procedure. Here are several factors to consider while thinking of setting up a business in Dubai.
That’s why it is highly beneficial to hire a reliable business setup consultant. There are many business setup consultants available who can help you set up your business in Dubai or any other emirate of the UAE.
Read more: Guide to start your own business in Dubai
How is low-cost business setup in Dubai a boon to SMEs?
In case, you intend to begin a business with a low-investment, then Dubai is the place to choose. The city is among the leading commercial hubs of the Middle East. It has an abundance of business and investment opportunities for small and medium-sized enterprises (SMEs).
Due to its strategic positioning in the Gulf region, Dubai has an easy accessibility to the world. This makes it attractive for both local and foreign investors. Dubai’s government is supporting startups and novice entrepreneurs by creating the business setup process easier and affordable for everyone.
The government is implementing several policies to befit the requirements of SMEs. For example, abolishing restrictions on foreign ownership, and revising tax policies. Numerous projects make Dubai a desirable destination for small businesses among the leading commercial hubs of the world.
What are low-cost business resolutions for SMEs in Dubai?
Occasionally, the initial financing can turn into a devastating setback for the bulk of businesses. Dubai as an emerging center for SMEs, diminishes this gap with the abundance of low-cost business opportunities. Free trade zone business setup in Dubai is suitable for small companies that provide a broad range of services.
They encourage aspiring entrepreneurs who abstain from starting their enterprises owing to costlier investment requirements. There are many free zones that offer minimal rates to facilitate small and medium-scale businesses. These economic zones deliver multiple advantages to the startups and new business owners.
For instance, complete foreign ownership, tax exclusions, easily obtainable office locations, effortless transportation, and low prices. Facilities such as these make it more accessible for new enterprises to manage their business at low operational costs. Dubai mainland is costlier, but allows you to trade inside the emirate.
Further reading: Start a grocery business in Dubai
Which initiatives make Dubai perfect for startups?
Small businesses are the chief causes of the economic expansion of the UAE. Therefore, its administrative body is expediting the shaping of Dubai into a fitting place for prolific and thriving SMEs. These are the ambitions that make Dubai excellent for setting up a low-budget company for people.
Let’s take a look on these dynamic initiatives.
Launching in 2021, Dubai Smart City is an initiative that gives business/investment opportunities for all industries of the UAE. The principal goal of this breakthrough plan is to capitalize on the latest technologies to step into the future. For example, blockchain, robotics, artificial intelligence, self-governing (autonomous) transportation, etc.
In addition, this project places remarkable emphasis on shaping and molding the future of the country. SMEs are the driving factor that aids in the implementation of this ambitious yet intense project. Accordingly, it is transforming Dubai into the most suitable business hub that incites innovations and technological advancement in the emirate.
The first task while setting up a business is to arrange seed funding. Presently, it is becoming exceedingly convenient due to the improvements in government policies that include lax tax reforms. The UAE is pulling several investors, both local and foreign, with its accelerating commercial growth.
As a result, investment and business opportunities for investors in Dubai are at an all-time high. It is a massive relief for emerging enterprises and makes low-cost business setup possible for SMEs. Thus, the growing FDI potential of Dubai is a testimony of its business-friendly culture.
Dubai is leading from the front when it comes to state-of-the-art infrastructure amenities. The government of Dubai is financing heavily to improve the existent facilities to make it affordable and readily accessible. Likewise, there are countless projects for further advancement of the business landscape of the city.
SMEs can work in readily available and economical office spaces in Dubai. Also, world-class conveniences and transportation facilities are an asset for the sustainable progress of the region. Digital ecosystem of Dubai is a major attraction for many newbie business owners.
Tip: Start a trading business in Dubai
What are the main benefits for SMEs in Dubai?
The UAE in general, and Dubai in particular, have rising investment potential for startups, SMEs and large corporations. Subsequently, business setup in Dubai is profitable with many perks. Here are the advantages of beginning a business in Dubai.
Idea: Start a blockchain company in Dubai
If you are planning to extend your business, UAE has numerous affordable areas available. A low-cost company setup in Dubai or any other Emirate entirely depends on its location. Dubai mainland, offshore, and free zone are the three principal jurisdictions in which UAE company formation is split. To start your company in Dubai mainland, you will need approval from the Department of Economic Development (DED).
Starting a new company in the UAE requires a well-thought procedure that can comprise several stages. It involves picking a suitable business activity, choosing a proper business location, and selecting a trading name. Finally, you apply for the business license by providing the necessary documentation to the requisite regulatory authority.
Business setup consultants help you in acquiring license to make your venture legal, while making the business incorporation procedure easy. They significantly reduce the extra-load from your head and make the process of company formation in Dubai extremely stress-free. With the guidance of a business advisor, you can start a profitable business in Dubai.
Professional company formation experts also save you from unwanted expenses and inform you of the UAE’s applicable laws. We at KWS Middle East make the whole business setup process hassle-free. Contact us today and book our commitment-free consultation call.
Bonus: Start a tourism business in Dubai
The world is undergoing a great industrial revolution and business transformation in different verticals. Engineering is playing a major role in this advancement globally, Gulf region, and the UAE. Therefore, starting an engineering consulting business in Dubai is a promising opportunity in 2024.
An engineering consultancy business is a company that takes part in engineering activities. Dubai Municipality regulates the engineering industry in the Emirate of Dubai. It ensures excellence, quality control, and make certain national/foreign companies safely and competently perform the work they hold tenders for.
In the event, you want to launch a business like an engineering consultancy in Dubai. You have to apply for a permit to practice in the area, to conduct engineering or construction activities. Also, ensure that your company has correct classification and accredited by Dubai Municipality Building Service Department Qualification team.
Which are the general types of engineering consulting businesses?
Local engineering firms are the businesses in the company register that one or more UAE nationals own. They may get edge over their foreign counterparts in certain areas. There are three types of engineering consulting businesses in general.
What are categories of engineering consulting businesses on experience?
There are three categories of engineering consulting businesses on the basis of experience.
How are engineering consulting businesses classified on project height?
Dubai Municipality classifies engineers who go about company formation in Dubai in three categories.
Foreigners can hold 100% ownership in the engineering companies from June 2021.
What are main engineering activities in Dubai that you can conduct?
These are some main engineering activities that are common in Dubai and the UAE.
Which are requirements to start an engineering consultancy business?
Here are the requirements to begin an engineering consulting business in Dubai.
What is the process of getting an engineering license?
Before initiating business setup in Dubai, you must decide whether you want to set up in Dubai mainland or free zone. If you want to go for Dubai mainland company formation, you can consider to have a local sponsor. Remember, to serve the Dubai market you need a mainland license.
If you opt for Dubai free zone company formation, then you have benefits like 100% ownership and zero-taxation. But company registration procedure in every free zone is different, as it is set by its authority.
Dubai Municipality has set some parameters for engineering companies. These guidelines help in regulating the practice of engineering consultancy business. Engineering, architectural, or industrial consultants have to appoint a local partner that must possess the following attributes.
The process of setting up an engineering company in Dubai is complex and quite challenging. If your business fully meets the above criteria. Then, you get a temporary permit that allows you to start employing staff before finalizing commercial license.
It is always beneficial to seek professional advice from business consultants. KWS Middle East acts as a liaison to ensure the Dubai Municipality understands which areas your engineering firm can cover. Hence, you can operate safely and legally as quickly as possible in the UAE. Just send us an email or call us today.
