Dubaiis the perfect place to start a business if you're looking to do business abroad. For businesses and companies seeking to succeed, thrive, and connect with the global market, Dubai is a well-known trading hub in the Middle East and North Africa (MENA).

There has been an increase in the number of entrepreneurs moving into the city due to the positive growth prospects. Dubai has a number of free zones that make it relatively easy to establish a business there - especially if you're thinking of starting one.

Why to set up a business in Dubai?

Prior to setting up, you should know:

Before you start setting up your business in Dubai, there are a few things you should know. Check them out one by one.

Economic Zone: Free Zones vs Offshore

Choosing whether to operate offshore or in a free zone is the first step in setting up your business. Each option has its own benefits and specifications, depending on your needs.

Free Zone in Dubai:

Free zones in Dubai can provide 100% ownership of a company if you have a license and a location within them. To attract foreign investors, the Dubai government established a free zone. Business owners in this economic area can take advantage of several ownership and tax benefits.

The local market in the UAE is not open to direct trade between companies operating in a free zone. As of now, Dubai has 30 free zones.

License Types:

You must also determine the type of license required in addition to choosing a zone. Applicants can apply for three main types of licenses through the Department of Economic Development (DED):

1. License for commercial activities.
You need a commercial license if you intend to trade or buy and sell goods in Dubai. Businesses in the field of import & export, sales, logistics, travel & tourism, general stores, and real estate can apply for this license.

2. License for industry
Manufacturing activities involve the manual or mechanical transformation of natural resources and materials into final products. Manufacturers of textiles, metals, and papers are covered by this license.

3. License for professionals
Businesses that provide services, are artisans, or are craftsmen are eligible to obtain a professional license. Medical services, beauty salons, and repair services are examples of businesses that apply for this type of license.

4. Investing in sponsorships
In free zones like DMCC, a local sponsor is not required. Free zones offer the advantage of setting up entities with 100% foreign ownership without the need for UAE nationals as partners or sponsors.

Setting up a company in the Dubai free zone:

A free zone is particularly popular among foreign entrepreneurs who want to set up a business because they provide 0% corporate and personal taxes, 100% ownership of the company, and no currency restrictions.
In order to start a business in a free zone, you will need to take the following steps:

1. Discover your business activity
You must first determine the nature of your venture before you can obtain a license for your business. In total, there are more than 2,100 businesses to choose from, all falling under categories such as industrial, commercial, professional, and tourist. DED's website has the full list.

2. Make a decision about the free zone
Several free zones are available in Dubai, as stated earlier. Choosing a free zone based on your business can affect your decision. Businesses in the same industry are often a good place to set up shop.
Global Free Zone of the Year has been awarded to DMCC by Financial Times' fDi Magazine, the world's flagship free zone and government authority for commodities trade and enterprise.

3. Name your company UAE's strict naming conventions must be followed when choosing your business name. Using offensive language or referencing political groups or the mafia can be interpreted as offensive to religion or the mafia. Names must be based on the names of real people (no initials or abbreviations allowed).
It can be challenging to name your business. An expert can assist you in following the conventions and getting your name approved, saving you time and effort.

4. Request initial approval
To start your business, you'll need to apply for initial approval from the Dubai DED to ensure there are no objections to you starting a business. A third party (like a law firm) can assist you with this application, either online or in person.
Depending on your business nature, you'll be required to provide these documents:

• This form is used to register and license businesses
• You will need to provide a copy of your passport or identification
• Copies of your residence permit and visa
• Articles of association of the company
• An assessment of the project's feasibility

Whether you need assistance with filing and preparing documents or need help completing the application, we can help.

5. Account opening for corporations
Following approval and receipt of all required documents, you can now open a corporate bank account. There are many banks to choose from in the UAE, both local and international. There are many banks in the UAE, including HSBC, Citibank, Barclays, Abu Dhabi Commercial Bank, and Commercial Bank of Dubai.

6. Establish a location for your office A physical address is required for all businesses in Dubai. Free zones are a good option for setting up a business.

Interested in starting a Dubai business setup?

We are here for you providing many services including:

1. Establishing companies in Dubai and providing assistance in entering the investment market.
2. Handling all government agency procedures as quickly as possible, at the lowest costs, and in the most efficient way possible.
3. Obtaining the trade license for all activities and submitting the required documents to the competent authorities in Dubai.

Dubai's diverse economic activities require practical solutions. To reduce the investor's budget as much as possible, we offer distinctive and unique packages. We offer office and warehouse space for rent according to the needs of various types of work.

Get in touch with our team today to discover more about the conditions for forming a company in Dubai and to receive assistance from an expert to settle the business and company establishment and license applications in Dubai. ITQAN has the best experts in investment and establishing businesses in Dubai. We help you to go through the process of starting your commercial business or company step by step till the end of the process.