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Getting Started with Business Formation
A business plan is a must for any entrepreneur before getting started with business formation in Dubai. A well-written plan details every aspect of your company and helps streamline the process for setting up a business in Dubai. With a business plan, you have all the strategies in place to get the work done and tackle possible complications that may arise. Here’s what can be included in a business plan:Business description
A description will cover the basic details of your business like the trade name, the industry it will cater to, the legal structure, the ownership, and all other information relevant to your company establishment in Dubai.Marketing plan
In this section, you can elaborate on aspects like your target audience, key competitors, and your unique selling propositions.Objectives
You can define the short-term and long-term goals of your business. Your objectives could be anything like expansion, diversification, etc. Also, elaborate on how you plan to achieve these objectives.Financials
This section can detail financial aspects like the expected revenue, expenses, net profit/loss, and most importantly how you intend to secure funding.Back-up plan
You can also include a backup plan to spell out the potential risks, and your strategy in case things do not go right.Dubai Free Zone Company Setup
You can choose from over 25 free trade zones in Dubai to set up and run your business. Based on the industry the free zone focuses on, you can choose the one appropriate for your activity and budget. Free zones in Dubai greatly benefit you with perks like 100% foreign ownership, efficient legislation, affordable pricing, and so on.Jurisdictions for Free Zone Company Formation in Dubai
Meydan Free Zone Company Formation
Meydan Free Zone is an excellent jurisdiction for doing business in Dubai thanks to its central location, premium amenities, and cost-effective packages. The free zone offers one of the cheapest company formations in Dubai.International Free Zone Authority (IFZA) Company Formation
IFZA is known for its business-friendly regulations and modern facilities, and provides an excellent ecosystem for setting up a company in Dubai. IFZA employs quick and simple setup procedures for business setup in Dubai.Dubai Multi Commodities Centre (DMCC) Company Formation
DMCC is home to over 20,000 businesses and primarily focuses on trading commodities such as gold, energy, tea, cotton, etc. With business setup at DMCC, you can avail of a host of benefits in the form of excellent office space solutions and networking opportunities.Dubai Airport Free Zone (DAFZ) Company Formation
DAFZ is a major free zone, based in proximity to the Dubai International Airport, and no wonder is a preferred option for aviation and logistical business setup in Dubai. DAFZ also has a dedicated industrial park with ample warehousing and storage options. Dubai CommerCity, a free zone powered by DAFZ, is an excellent option if you are looking for e-commerce company registration in Dubai.Dubai South (DWC) Company Formation
Based near Al Maktoum International Airport, Dubai South (formerly known as Dubai World Central (DWC)) is a major free zone for business setup in Dubai, and offers licenses for undertaking industrial, logistical, general trading, and other types of activities.Dubai Silicon Oasis (DSO) Free Zone Company Formation
DSO is a leading IT hub mainly known for its low operational cost, fast-tracked company incorporation, and excellent infrastructure. With DSO, you can choose from a broad range of offices, warehouses, and conference facilities.Dubai Internet City (DIC) Company Formation
DIC is another leading tech hub in Dubai and home to some of the biggest names in the IT industry. With excellent community benefits, DIC is a great destination for business setup in Dubai.Dubai Media City (DMC) Company Formation
Part of the Dubai Development Authority (DDA), DMC mainly focuses on businesses undertaking media and creative activities. DMC offers a wide variety of facilities that include commercial spaces, warehouses, industrial units, etc.
Dubai Mainland Company Setup
Jurisdictions for Mainland Company Formation in Dubai
A mainland company in Dubai gives you the freedom to conduct business anywhere with no restrictions. You can have the benefits of better customer exposure plus the opportunities to expand and gain a strong presence in the market.Sheikh Zayed Road
As Dubai’s most prominent highway, Sheikh Zayed Road is highly preferred for business setup in Dubai and makes for an excellent road link for setting up showrooms, hotels, and shopping complexes.Business Bay
Business Bay is a recently developed business district dedicated to Dubai company formation and provides excellent connectivity benefits thanks to the nearby Sheikh Zayed Road, metro Red Line as well as the marine stations.Deira
As Dubai’s historic commercial hub, Deira is blessed with natural harbors and creeks, ideal for trade activities. The district has some of the most popular souks, malls, and shopping centers, and is quite an ideal location for starting a business in Dubai.
Dubai Offshore Company Setup
With an offshore business in Dubai, you can access the Emirate’s business benefits without actually having a physical presence here. As a stable offshore jurisdiction with excellent tax advantages and well-established banking network, Dubai gives you all the reasons to start an offshore company.Jurisdiction for Offshore Company Formation in Dubai
Jebel Ali Free Zone (JAFZA)
JAFZA is the only jurisdiction for offshore company registration in Dubai. Besides business setup in Dubai, you can get the excellent opportunity to own real estate in the emirate.
Choosing the Appropriate Company Structure
In terms of legal entities, you can have different types of company formations in Dubai, UAE. Here are the most common legal forms for business setup in Dubai:Limited Liability Company (LLC)
With an LLC company formation in Dubai, you as a shareholder are not personally liable should your company face legal or financial troubles. Such a legal structure requires two (2) or more shareholders. A free zone LLC company name has the suffix FZ LLC or FZCO.Sole Establishment
A sole establishment is owned by a single shareholder. A sole establishment free zone company name has the suffix FZE.Branch
A branch company is an outlet of the parent company that is set up at a different location, conducts the same business activities, and has the same legal status. Numerous MNCs from around the world and within the UAE choose this legal entity for business setup in Dubai.Choosing a Business Name in the UAE
Selecting a trade name is one of the key steps in any type of business setup in UAE. It must be noted that the government has stringent regulations in place regarding the naming of business. The regulations remain more or less the same for all types of jurisdictions. Here are some of the common things that must be taken care of:- Avoid names that are likely to sound offensive or obscene.
- The name must not refer to any political organization, religious affiliation, etc.
- The trade name can be a name of an individual provided the said person is a shareholder/owner of the business.
- The name must not match the name of another business that is already registered.
Steps for Company Registration in Dubai
The procedure for starting a business in Dubai varies with the type of jurisdiction you choose. Below we have given an outline of the steps involved in company formation in free zone, mainland, and offshore jurisdictions.Company registration in a Dubai free zone
- Trade name reservation
- Application and document submission
- License issuance
Company registration in Dubai mainland
- Trade name registration
- Initial approval
- MoA and LSA preparation
- Rental agreement issuance
- External approvals
- License issuance
Registration in Dubai’s offshore jurisdiction
- Company name reservation
- Document preparation
- Signing and submitting documents
Freezone vs Mainland Business Setup in UAE
It is common for individuals to ponder over the difference between free zone and mainland company formation in the UAE. The below-given table lists out how these two jurisdictions differ from one another.| Free Zone Company | Mainland Company | |
| Ownership | 100% foreign ownership | 100% foreign ownership for most activities. Certain activities may have a requirement of a Local Sponsor or Local Service Agent |
| License Issuing Authority | The free zone authority | The Department of Economic Development |
| Visa Quota | Visa quota depends on the package selected and is subject to the free zone authority | Visa quota allocated based on the office size |
| Audit Requirements | Audit requirements depend on the free zone where it is incorporated | Yearly financial audits are mandatory |
| Business Activities | Can undertake activities permitted by the free zone authority. Certain free zones are industry-specific. For instance, you can mostly undertake financial activities in a financial free zone. | Can choose from over 2000 activities permitted by the DED. |
Business Setup Cost in Dubai
The cost of setting up a business in Dubai is influenced by a variety of factors. Firstly, the jurisdiction where you look to incorporate is a major factor affecting the pricing. As an example, setting up a mainland company will have different costs when compared to a free zone company. Furthermore, every free zone comes with its own license costs. Besides the license, aspects such as the number of visas you apply for, the office spaces you have opted for, and the business activity you have chosen impact the costs involved. Hence, it is advisable to acquire professional assistance for new company formation in Dubai. Business setup advisors at InZone can recommend you the appropriate package based on your requirements and provide you with the exact costs involved for Dubai company incorporation.Frequently Asked Questions
The registration fee for a Dubai company varies from one jurisdiction to another.
Starting a venture in Dubai involves a series of steps and paperwork to obtain the necessary approvals from the authorities. It is highly recommended to acquire the services of a business setup service provider in Dubai.
As a leading business hub, Dubai is an ideal location to start almost any type of business. However, the most profitable businesses as per the latest trends are F&B, digital marketing, IT, construction, consultancy, tourism, and so on. For setting up a new business in Dubai, we would advise you to choose a business activity that specifically interests you or something that you specialize in.
Yes, foreign nationals can start their business in Dubai. It is not necessary that an individual needs to hold UAE citizenship to undertake entrepreneurship here.
Free zones in Dubai allow 100% ownership for foreign nationals. On the other hand, mainland businesses are permitted 100% foreign ownership for most activities. Certain activities still require you to partner up with a UAE national for ownership.
Here are some of the naming conventions to be followed during the registration process for a company in a Dubai free zone. The business name must:
- Be in line with the business activity undertaken
- Have a suffix that indicates the legal structure
- Not refer to any religion or government bodies
- Not contain names of the UAE’s emirates
This would depend on the free zone authority in question. For example, IFZA allows you to virtually register a company in Dubai. This essentially means, the shareholders need not be physically present in the UAE.
InZone is a leading corporate service provider with experienced business setup consultants in Dubai offering you complete guidance to obtain a Dubai Trade license.
Business setup in Dubai can be an overwhelming process if done without professional assistance. Since it involves substantial paperwork and complex procedures, it is advisable to hire a consultant for company registration in Dubai.
Among all the free zones in Dubai, Meydan FZ emerges as your cheapest option to open a company in Dubai.
Just like Dubai, you can choose from free zone and mainland jurisdictions in the rest of UAE for launching a venture. It is necessary to carefully evaluate each available option before you set up a company in the UAE. Get in touch with our experts for comprehensive guidance on all the available alternatives.
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