How to Set Up a Business in Dubai: A Step-by-Step Guide
Dubai has rapidly become one of the most attractive destinations for entrepreneurs and investors around the globe. With its strategic location, world-class infrastructure, pro-business policies, and zero income tax regime, business setup in Dubai is now seen as a golden opportunity. Whether you're a solo entrepreneur, a growing startup, or an established international company looking to expand, setting up a business in Dubai offers incredible advantages.
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At RONIN LEGAL, we specialize in guiding clients through the business setup process, ensuring legal compliance and a smooth launch. Here's a comprehensive step-by-step guide to help you understand the process of setting business in Dubai.
Step 1: Choose the Right Business Structure
The first step is to determine the legal structure of your business. This can include:
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Mainland Company
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Free Zone Company
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Offshore Company
Each option comes with its own set of benefits and limitations. Free Zones offer 100% foreign ownership and tax exemptions, while Mainland companies allow direct trade within the UAE market.
RONIN LEGAL can help you assess your business model and choose the best structure aligned with your goals.
Step 2: Decide on the Business Activity
You need to specify your business activity or activities from the list provided by the Department of Economic Development (DED) or the respective Free Zone Authority. The type of activity—commercial, professional, industrial—will influence your licensing process and operational requirements.
Step 3: Select a Trade Name
Your trade name must align with your business activity and comply with the naming conventions laid out by the UAE government. Avoid names that include offensive or religious references. It's advisable to have a few options ready in case your preferred name is already taken.
Step 4: Apply for Initial Approval
The initial approval from the relevant authority (DED or Free Zone Authority) indicates that the UAE government has no objection to you starting a business. This approval is valid for six months and allows you to proceed with the setup process.
Step 5: Draft a Memorandum of Association (MoA)
A Memorandum of Association outlines the shareholding structure and operational rules of your company. If you're setting up in the mainland, you may require a local service agent or sponsor, depending on the nature of your business.
Our legal experts at RONIN LEGAL can draft your MoA and ensure it adheres to UAE laws and regulations.
Step 6: Choose Your Business Location
Location is critical. If you're opting for a Free Zone, your location is predetermined. For Mainland businesses, you need to rent office space that meets government standards. A tenancy contract and Ejari (Dubai’s online registration system for tenancy contracts) are required for final license approval.
Step 7: Obtain the Business License
Once all documentation is in place, submit it to the appropriate licensing authority to obtain your business license. The type of license—commercial, professional, or industrial—depends on your chosen business activity.
Step 8: Open a Corporate Bank Account
After receiving your license, you can open a corporate bank account in Dubai. Banks will require copies of your license, MoA, passport copies of shareholders, and other KYC documents.
Step 9: Process Visas for You and Your Staff
Once your company is registered, you can apply for residency visas for yourself, your employees, and any dependents. The number of visas you can sponsor depends on the size of your office and the type of license.
Step 10: Stay Compliant
Business compliance doesn't end at setup. Annual license renewal, bookkeeping, VAT registration (if applicable), and legal updates must be maintained regularly.
At RONIN LEGAL, we continue to support you post-setup with ongoing legal and compliance services.
Why Choose RONIN LEGAL?
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Expert legal advisors with UAE business law expertise
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Transparent, step-by-step guidance
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Customized solutions for Free Zone, Mainland, or Offshore setups
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End-to-end assistance—from documentation to visa processing
Reach Out to Us
Dubai: +971 505 929404
India: +91 99307 05852
Email: connect@roninlegalconsulting.com
Let us help you turn your vision into reality.
FAQs
Q1: How long does it take to set up a business in Dubai?
A: Depending on your chosen structure and documentation, it can take anywhere from 3 to 10 working days.
Q2: Can a foreigner own 100% of a business in Dubai?
A: Yes, particularly in Free Zones and for certain activities in the Mainland under the new foreign ownership laws.
Q3: What is the minimum capital required?
A: This varies depending on the business type and jurisdiction. Some Free Zones have no minimum capital requirement.
Q4: Do I need to be physically present in Dubai to start a business?
A: Not always. Many Free Zones offer remote setup options, but some steps like visa stamping may require your presence.
Q5: Is a local sponsor mandatory for a Mainland company?
A: For many professional activities, a local service agent is required but doesn’t hold equity. Recent reforms also allow 100% foreign ownership in certain sectors.
If you're considering setting up a business in Dubai, reach out to RONIN LEGAL for expert legal and procedural assistance. Let’s build your dream venture together.
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