5 Things to Consider While Setting Up Business in Dubai

Setting up a business in Dubai

5 Things to Consider While Setting Up Business in Dubai

With its progressive business landscape backed by government incentives and an ease of setting up a new enterprise, the city of Dubai has become an ideal investment destination for entrepreneurs around the world. In Dubai, you will find many talented people with creative and business mindset that are benefitting from this tax-free heaven, its safe and sound working environment as well as rich social and cultural lifestyle.

Company formation in Dubai is not a difficult process as the government offers most liberal and attractive operating conditions. However, there are few elements which must be taken into consideration beforehand in order to avoid any obstacles. The important points to consider while setting up your business in Dubai are

Form of Business:

The first stage is to decide what type of business you are going to step in. It will also determine the form of license that you will require from government organizations. It should be kept in mind that for certain businesses such as the trade of food or jewelry or legal consultancy requires more approvals from certain authorities. The Department of Economic Development (DED) has provided with 2100 activities from which you can select any area to go for. In case you do not find your activity, you can contact DED for further assistance.


If you are a foreign investor, you will have mainly two options for ownership. If you want complete ownership of your business, you will have to choose a free zone in Dubai for your business operations. Free zones are the special economic zone which provides 100% ownership to a foreign investor as well as 100% retention of capital and profits. However, your operations will be restricted to that specific free zone and outside of UAE. In order to enter the local market, you will have to find a local distributor for that purpose. Secondly, if you want to operate locally, you will go for Mainland Company but that will restrict your ownership to the maximum of 49% as you will have to find a local sponsor who will have 51% of ownership. DED will issue a license for your Mainland setup.

Legal Structure of Business

There are various legal forms for businesses such as sole proprietorship, one-person company, civil company, Partnership Company, branch of a foreign or UAE company, Limited Liability Company and many others. Each structure has its own rules and regulations specified by Department of Economic Development (DED). It depends upon your nature of the business which will decide its legal structure.

Setting up a business in Dubai

Choose the Right Location

Once you have sorted out all your legal forms and documentation procedure, the next step is to choose the right premises for your business. Deciding a suitable location is a tedious task because your business cannot prosper if your clients cannot contact you. Secondly, you will have to decide according to your financial capacity. Usually, free zones in Dubai offer a wide range of advantages such as cheap labor and electricity and authorities also assist you in setting up your office at less cost.

Company name and Share Capital

Company name is an integral part of the legal procedure and the name should signify the nature of your business unless you are setting up a branch of a foreign company. Also, share capital is decided beforehand but in most cases, you are not required to pay minimum capital at the time of company formation.

These were some of the basic elements to consider while setting up your business in Dubai. Also, one of the most important things is to conduct research. Prior to the setup, you should undergo an extensive research into the business sector you are opting for. Another way to obtain detailed knowledge about the region is a consultant firm. A good consultant company such as KWS Middle East will provide you all the necessary information about the area such as your target market, current market conditions and your competitors. KWS-ME will guide you along the way in selecting the right kind of company, choosing the appropriate location, setting up an office in cost effective manner and all the legal and licensing requirements that need to be met beforehand. Having a professional team by your side such as KWS-ME which has experience of more than ten years in this region will boost your confidence and with their assistance, you will set up your company in Dubai in no time and at less cost.

To know further, kindly write to us at info@kwsme.com we will be happy to assist you Or get free consultation and save a lot of time, money and effort.

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