Business Setup in Dubai – 5 Important Tips

business setup in Dubai

Setting up a business in Dubai entails that you have the good access to all the modern facilities, sustainability, and good transport facilities within quick reach. In a word, business setup in Dubai is economically, socially, politically, and otherwise available with the leverage of positive demographics. The emirate’s skilled workforce in IT and BPO industry, together with its massive financial resources have made it the one-stop shop for businesses throughout the Middle East. Hence, establishing a business in Dubai has become a cakewalk nowadays.

Before you head to Dubai for establishing your business, you must consider some legal formalities and visa formalities for the foreigners coming over to Dubai for doing business. The government in UAE pursues a policy of inwards, not outwards, so you need to be very careful about this. The first and foremost thing to do is to secure the necessary business permits and visas to do business. These are easily obtained with the help of an experienced attorney.

The business setup in Dubai follows a system of structured commercial ventures with some degree of private commercial enterprise. The main aim behind these ventures is to ensure that employment opportunities are available to the foreign professionals and investors. Therefore, they follow a system of regulated professions such as doctors and engineers (through the Dubai Civil Service). These professionals have the advantage of getting a fixed job on a long term basis, which is a key factor for long-term recruitment. The government encourages work permits for foreign professionals coming to Dubai. Sponsoring an individual’s visa is one option for doing so.

business setup in Dubai

The second most important step in the process of setting up in Dubai is to get an establishment card. This card is used by employers to check the identity and details of an individual. Holding an establishment card is also required for employment purposes in the labor market of Dubai. The advantage of having an establishment card is that it helps the authorities in collecting the taxes and social security payments. It is mandatory for all individuals who plan to establish a business in Dubai.

The third step towards establishing a business in Dubai is to apply for a business license. This is required for any business that involves trade or service and is to be operated on a daily basis. The procedure for obtaining a business license varies from one area to another. For example, if one wants to run a food store then it is necessary to apply for a business license to that effect. The same is true for all other businesses, even if they are set up to engage in commercial activities. However, if one wishes to open a limited liability company, then he can do so without applying for a business license.

The fourth step towards establishing a business activity in Dubai is to purchase an agent’s registration. This is essential if one chooses to be self-employed or starts his own limited liability company. An agent’s registration gives him legal cover for any legal disputes that may arise during the course of business activity. If any disputes arise between you and your customers, then your agent will be able to deal with them efficiently.

The fifth and last important step towards establishing business activities in Dubai is to secure a visa for the UAE. Visa process takes a longer time than visa applications for many countries. However, if one has a well-established business, he is likely to be granted the visa on the spot. The processing time of visa applications for UAE starts at three months, while that of other countries takes around six months.

After having all the above-mentioned documents in place, the next step towards establishing business operations in Dubai is to get a local sponsor. For companies that do not want to sponsor their own employees, there are many options available for those who need sponsors. Companies that wish to have a local sponsor should contact the Dubai Trade Office for more details.

Overview on LLC Company Formation in Dubai

Limited Liability Company (LLC) is now one of the most common formed enterprises in Dubai, UAE. An LLC business is a very flexible kind of business combining the basic features of a corporation and a partnership. It is possible to open an LLC business in Dubai through “omniums transactions” or by applying for a DBA registered business name.

The registration process involves the filing of an application with the concerned authority of the Companies House in the UK. The Companies House in Dubai also makes the process of incorporating an LLC easier by advising both the faker and the receiver on all the formalities that need to be fulfilled before the closing date. The steps involved and the rules governing LLC business formation in Dubai are relatively simple.

There is a need for businessmen to form limited liability companies (LLCs) in Dubai because this is where their business interests are protected. An important thing to consider when forming an LLC is to make sure that all the business partners have equal shares in the business.

If there is a difference in the shares of the partners, it can spell trouble for the business since one can be liquidated without notice and the other is still legally functioning. This has been one of the major reasons for the formation of LLCs. In many cases, the businesses have been established with several partners but the situation has changed because one of them was diagnosed with an illness or had to move to another country making him ineligible to participate in the business setup.

All business owners need to understand that an LLC is not considered as a totally legal entity in Dubai or in the United Arab Emirates (the UAE). However, the rules for an LLC in Dubai and in the United States are somehow similar due to the same characteristics of limited liability. An LLC is not allowed to carry any public share and therefore cannot interfere with the right of the people to register a company. The same rules apply for the choice of an office space in Dubai and in the United Arab Emirates.

Forming an LLC is not difficult if you know what you have to do. There are several options for llc company formation in Dubai or for a company formation in the United Arab Emirates (the UAE). You have to consult a chartered accountant for expert advice in both cases. A chartered accountant is familiar with the rules and procedures applicable to an LLC in Dubai or in the United States. If you choose the online option for filing your documents, you will have to pay a filing fee to the chartered accountant.

An important thing to remember while selecting an LLC and while planning the company formation is to list the different ownership types of the LLC. The best choice would be a general partnership, limited liability company, and sole proprietorship, etc. Only after this, you should come up with the different corporate entities, which include the partners, directors, employees and other individuals associated with the business activities.

Before making a decision about the type of registration to be made, the applicant should take a look at all the documentation regarding the requirements for the registration. These documents include the application form, the payment of fees, and the registration fees.

If you are planning to open a branch in Dubai, you should check with the local authorities about the required licensing conditions for the workers and the agents involved in your business activities. The business location should also be carefully looked into before making a decision about the type of registration to be made.

There are two types of formation available through Dubai authorities: Sole proprietorship and the partnership. In the case of sole proprietorship, only the name of the company owner is mentioned in the document and he is the only person who can make the decisions. If you are planning to set up a limited liability company setup through free zones, all the decisions related to the business operations will be made by the partners. This is the reason why most of the investors prefer the joint or the multiple corporation setup over the sole proprietorship.

Before making a decision about the business location and the formation options, you should check with the local officials about the formalities needed for your setup. In most cases, the processing of the legal setup takes around six months or more.

After the submission of all the documents, the approval is made through the Dubai Ministry of Economic Affairs and Trade. On the approval of the setup, the registration can be made by the issuer of the trade license. Once all the formalities are completed, you can easily run your business as usual.


As the editor of the blog, She curate insightful content that sparks curiosity and fosters learning. With a passion for storytelling and a keen eye for detail, she strive to bring diverse perspectives and engaging narratives to readers, ensuring every piece informs, inspires, and enriches.

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