Start Your Business in UAE: A Complete Guide by Your Muneem
UAE is a popular destination for company owners and entrepreneurs. Its world-class infrastructure and strategic location make it ideal for starting a business and growing it successfully.
In this blog, we will guide you through the essential requirements and steps to start your business in UAE, focusing on both the mainland and freezone.
Why Start Your Business in UAE?
Before going into the requirements and procedures, let’s explore why UAE is such a popular location for starting a business:
- Tax Benefits: The UAE offers a zero percent corporate tax for businesses with qualifying income in designated free zones.
- Strategic Location: UAE offers access to a wide range of markets by acting as a bridge to the Middle East, Asia, and Europe.
- Business-Friendly Environment: The city has modern infrastructure, effective government services, and a world-class judicial system.
- No Currency Restrictions: UAE allows firms to transact in any currency, making international trade easy.
Step by Step process of starting a Business in UAE
- Choose the Type of Business Entities
The first step to start the company registration process by choosing the right type of business entity. Depending on your business goal, you can choose between mainland and freezone setups.
Mainland Company Setup
A mainland company allows you to do business anywhere within the UAE and internationally. You can have offices and physical locations within the UAE and even bid for government contracts.
- Ownership: 100% foreign ownership
- License Types: Mainland licenses include commercial, professional, and industrial licenses, depending on the type of business activity.
- Office Space: Mainland companies must have a physical office in Dubai.
Freezone Company Setup
A Freezone business setup is the process of starting a company within one of the UAE designated Free Zones, which are special economic areas developed to attract foreign investors. These zones provide businesses with several benefits, including:
- 100% Foreign Ownership: Foreigners can own 100% of their business in a freezone without needing a local sponsor.
- Types of Freezone Companies: You can choose between a Freezone Limited Liability Company (FZ LLC), a business subsidiary company, or even a representative office, depending on your business requirements.
- No Import/Export Duties: Freezone businesses are exempt from customs duties and are ideal for businesses focused on international trade.
- Tax Exemption: Freezone companies enjoy a zero percent corporate tax for businesses with qualifying income in designated free zones.
- Select Your Business Activity
Once you’ve decided on the type of company, you need to select the business activities your company will undertake. These activities must align with the license you will apply for, whether it’s a commercial, industrial, or professional license.
Types of Licenses & Activities:
Professional License: Professionals in their industries may open their companies to the general public. Examples include medical practitioners, designers, civil engineers, and others.
Industrial License: This license is required for manufacturers to operate legally within the UAE. This license covers the manufacture of goods, equipment for use, textiles, and other relevant manufacturing operations.
Commercial License: The most common type of license, a commercial license permits you to run a trading firm, such as selling textiles, consumer items, or raw material
- Choose a Business Name
The next step is choosing a name for your business. Dubai has certain guidelines regarding name conventions:
- The name must not violate public morals or the UAE’s established values.
- It must be unique and not resemble any existing registered company.
- Avoid using names that reference religious figures or political terms.
- Apply for Business Licenses and Permits
Once the name is selected, apply for the necessary licenses and permits from the relevant authorities. The licensing process may vary slightly between mainland and free zone setups.
- For mainland companies, the license applies to the Department of Economic Development (DED) in Dubai.
- For freezone companies, the license applies directly to the respective freezone authority.
- Office Space & Visa Application
In Dubai, businesses must have a registered office address. For mainland companies, this means leasing a physical office in Dubai. Freezones typically provide flexi-desk options or office spaces at competitive prices.
- Residence Visa
After getting the trade license, you can apply for residence visas as an investor or as an employee. Freezone companies usually offer visa packages depending on the number of employees, while mainland companies can apply for visas through the DED.
- Open a Business Bank Account
After obtaining a license and registering a business, you must open a corporate bank account in Dubai. The paperwork for opening a bank account can be done remotely. However, the business owner must have an Emirates ID and UAE Residence Visa to process the account opening request. Choose a bank that aligns with your business requirements, including online banking services and international payment options
How Your Muneem Can Assist You with Company Formation in UAE:
Your Muneem provides comprehensive business setup services in UAE, from company formation to ongoing accounting and taxation services. Here’s how we can assist:
As one of the Top Business Services Companies in the UAE, we offer:
- Company Formation and Legal Assistance
Starting a business in Dubai requires you to go through a number of legal and administrative procedures. Our experts will guide you through the entire process, to make sure that all relevant documentation is in place and helping you comply with local laws and regulations.
- Accounting and Auditing Services
Managing financial records with the UAE accounting standards is crucial for every business. Our team provides effective accounting services, including bookkeeping, financial reporting, and audits, to run your business successfully.
- Taxation (VAT & CT) Services
We offer comprehensive taxation services, including VAT registration and quarterly filing, corporate tax registration, and filing. Our team helps you maximize tax savings so that your business remains compliant with the UAE tax laws.
- PRO Services
Navigating the government paperwork can be time-consuming. Our PRO (Public Relations) services assist you with visa applications, labor and immigration procedures, and government documentation, & Golden visa.
- Ongoing Business Support
Your Muneem continues to assist you with your accounting services once your company is operational, and assist you with regulatory issues and growth strategies.
Mainland vs Freezone: What is Best for your Business?
Mainland businesses provide broader market access and the flexibility to operate anywhere in the UAE. However, certain business types require a local sponsor.
Freezone businesses offer full foreign ownership and tax exemptions, but they can only operate within specified freezones or require you to engage with distributors to reach the mainland market.
Depending on the requirements of your business and future objectives, Your Muneem can help you choose the suitable option for your business
To Know About Procedure & Costing, Talk to Our Expert
