{"id":803,"date":"2017-06-17T06:30:25","date_gmt":"2017-06-17T06:30:25","guid":{"rendered":"http:\/\/139.59.38.172:8081\/?p=803"},"modified":"2021-08-19T10:50:09","modified_gmt":"2021-08-19T10:50:09","slug":"steps-set-business-dubai","status":"publish","type":"post","link":"https:\/\/www.mymoneysouq.com\/financial-blog\/steps-set-business-dubai\/","title":{"rendered":"Steps to follow for Business Set up in Dubai"},"content":{"rendered":"\n<p><span style=\"font-weight: 400;\">Dubai has opened its arms to foreign investors. With all the tax rebates and opportunities, the city has become one of the most sought-after destinations for every budding investor\/entrepreneur. The financial sector is also offering products at par, which would help investors in settling down and business setup in Dubai. Some such products are <a rel=\"noopener noreferrer\" href=\"https:\/\/www.mymoneysouq.com\/cards\/emirates-nbd-credit-card-in-uae\" target=\"_blank\">Emirates NBD credit card<\/a> for expats or <a rel=\"noopener noreferrer\" href=\"https:\/\/www.mymoneysouq.com\/loans\/dubai-islamic-bank-personal-loan-in-uae\" target=\"_blank\">Dubai Islamic Bank Personal Loan<\/a> or <a rel=\"noopener noreferrer\" href=\"https:\/\/www.mymoneysouq.com\/loans\/adcb-business-loan-in-uae\" target=\"_blank\">ADCB Business insta loan<\/a>.&nbsp;Just like every place, it has a certain set of rules and regulations that need adherence to setup a business. Be it small business ideas or big ones, entrepreneurs need to follow the terms and conditions attached. And in this article, we will discuss those regulations to provide a clear picture.&nbsp;<\/span><\/p>\n\n\n\n<p><strong>Maybe interested:\u00a0<a rel=\"noopener noreferrer\" href=\"https:\/\/www.mymoneysouq.com\/financial-blog\/best-business-ideas-expats-dubai\/\" target=\"_blank\">Best Business Ideas in Dubai<\/a><br><\/strong><span style=\"font-weight: 400;\"><br>If you wish to get your business setup in Dubai, then there are primarily two options available for you:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">As Dubai Limited Liability Company (LLC), where you have limited ownership of the company and part must be with UAE nationals.<\/span><\/li><li><span style=\"font-weight: 400;\">Obtaining license(from various free zone authorities depending on the area and the type of business) and picking a <a rel=\"noopener noreferrer\" href=\"https:\/\/www.mymoneysouq.com\/financial-blog\/free-trade-zones-in-dubai\/\" target=\"_blank\">free trade zone<\/a>; This will give you 100% ownership of your business.<\/span><\/li><\/ul>\n\n\n\n<p><strong>Check: <a rel=\"noopener noreferrer\" href=\"http:\/\/mymoneysouq.com\/currency-converter\/uae-dirham-aed-to-indian-rupee-inr\" target=\"_blank\">AED to INR exchange rate today<\/a>&nbsp;<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.mymoneysouq.com\/financial-blog\/wp-content\/uploads\/2017\/05\/steps-to-setup-business-in-dubai2-1.jpg\" alt=\"Step wise information on setting up business in Dubai\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Steps for business setup in Dubai are:&nbsp;<\/strong><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">Few steps may vary depending on the type of business <\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Choose the type of Business<\/li><li>Select a legal form<\/li><li>Choose a Trade name<\/li><li>Get a Trade Licence &amp; Open a Bank Account<\/li><li>Draft the Memorandum of Association<\/li><li>Select a location for your business<\/li><li>Get your Business Licence<\/li><\/ol>\n\n\n\n<h4 class=\"wp-block-heading\"><b>\u21d2&nbsp;<\/b><b>Selecting the type of business activity<\/b><\/h4>\n\n\n\n<p>The first and foremost thing for business setup in Dubai is, select the type of business. There are around 2000 types of business activities listed in the Department of Economic Development. This will help you understand the legalities involved in a particular business type. In case you do not understand in which category of trade activity your business falls, you can contact <a rel=\"nofollow noopener noreferrer\" href=\"http:\/\/www.dubai.ae\/en\/Pages\/Default.aspx\" target=\"_blank\" class=\"broken_link\"><span style=\"font-weight: 400;\">DED<\/span><\/a><span style=\"font-weight: 400;\"> directly and they will help you in selecting.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><b>\u21d2&nbsp;<\/b><b>Select a legal form<\/b><\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">After selecting your business category, you need to choose your company\u2019s legal form to facilitate smooth paperwork. There are different types of legal forms or company structures available such as LLC (Limited Liability Company) or PSC (Private Shareholding Company) for starting a business outside free trade zones. The type of legal form you choose depends upon your business activity.<\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><b>\u21d2 Choosing a trade name<\/b><span style=\"font-weight: 400;\"><br><\/span><\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">This is a crucial step, the name you choose should represent your trade. You can hire any legal firm for helping you with the legalities and formalities involved. There is a set of rules and regulations involved which need to be adhered to, failing which may result in fines.<br><\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><b>\u21d2&nbsp;Get&nbsp;a&nbsp;Business&nbsp;Licence&nbsp;and&nbsp;Open&nbsp;a&nbsp;Bank&nbsp;Account<\/b><\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">Once the above-mentioned steps have completed, you need to apply for preliminary approval. This approval conveys that there\u2019s no objection for you to apply for a business license. Upon receiving the approval you will need to <a href=\"https:\/\/www.mymoneysouq.com\/accounts\/compare-savings-accounts-uae\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"open a bank account (opens in a new tab)\">open a bank account<\/a> to which this approval and the share capital is to be deposited. This share capital will remain with the bank until the license gets approved.<\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><b>\u21d2&nbsp;<\/b><b>Drafting the Memorandum of Association<\/b><\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">In this step, you (if an expat) will need to sign the Local Service Agent with an Emirati who will represent your business for licensing legalities. The local individual will have a 51% stake in your business, however, this does not mean that the profits and loss will be shared in the same manner. For profit and loss distribution, a separate document will be formed.<\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><b>\u21d2&nbsp;<\/b><b>Location<\/b><\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">It is necessary for Dubai that all businesses have a PO box address. Hence you will need to decide on your business location based on availability and then get the permission of the <a href=\"https:\/\/www.dm.gov.ae\/en\/pages\/default.aspx\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" class=\"broken_link\">Dubai Municipality Corporation<\/a>.<\/span>&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><b>\u21d2&nbsp;<\/b><b>Licensing<\/b><\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">For certain Business activities license from DED alone is not enough. This form of business requires special permission from the government or other listed authority, which needs to be acquired. For example, if you are planning to set up a business in the tourism department then you will need to attain the approval of the Dubai Department of Tourism and Commerce Marketing.<\/span><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><b>\u21d2&nbsp;<\/b><b>Collecting your license<\/b><\/h4>\n\n\n\n<p><span style=\"font-weight: 400;\">Upon completion of all the above steps, you will need to submit all the documents to the DED. It takes 1-10days for DED to process your documents and provide you with the license.<br><br>These were an overview of the procedure to business setup in Dubai. Although Dubai provides the most liberal environment for setting up of business and is a lucrative place to start a business without much hassle, yet it has certain rules; Hence, it is advisable that you do thorough research in order to exploit the opportunities provided\/available. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dubai has opened its arms to foreign investors. With all the tax rebates and opportunities, the city has become one of the most sought-after destinations for every budding investor\/entrepreneur. The financial sector is also offering products at par, which would help investors in settling down and business setup in Dubai. Some such products are Emirates [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":11924,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[95],"tags":[71,75,42,72,74,73,13],"class_list":{"0":"post-803","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-adcb-insta-business-loan","9":"tag-department-of-econimic-development","10":"tag-dubai-islamic-personal-loan","11":"tag-emirates-nbd-credit-cards","12":"tag-free-trade-zones","13":"tag-setting-up-business-in-dubai","14":"tag-uae"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Steps to follow for Business Set up in Dubai - MyMoneySouq Financial Blog<\/title>\n<meta name=\"description\" content=\"Business setup in Dubai provides the most liberal environment for setting up of business and can start without much hassle, yet it has certain rules.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mymoneysouq.com\/financial-blog\/steps-set-business-dubai\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Steps to follow for Business Set up in Dubai - 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