UAE has been a strong ground and has been supporting businesses to grow with so many additional benefits the government and the authorities are bringing in now and then. Let us now look into the different steps one has to follow to start a business in the UAE.
- Choose an Industry of your choice.
The growth that UAE witnessed over time opens up opportunities for many different industries to start their business. It will be ideal to do good research on what you are planning to start and how to go about it rather than taking a hasty decision. There are two regions in the UAE where you can commence your business; Mainland and Freezones. Each of these areas has certain business activities that are permitted. Certain freezones in Dubai only cater to a particular line of business such as Dubai Media City, this area has large media houses setting up businesses, and it can be out of place to have a finance-related business amongst them. A finance business will hold its fort if opened up at Dubai International Finance Center (DIFC), where global companies like Goldman Sachs International, Morgan Stanley, etc.
Sector-specific zones help in the growth of the business, and there are other general areas in which businesses co-exist together. If your business is heavily invested in import and export, then it might require to have to take a look at the transport links.
After the type of industry and business opportunities are decided; the next step is to decide where to launch your businesses in the UAE. That is, the business has two options for setting up either on the Dubai mainland or in the free zone. Setting up a business in the free zone has its perks: 0% corporate and personal tax, 100% company ownership, 100% repatriation of capital and profits, No currency restrictions, and
100% import and export tax exemption. But to have a direct connection with the local market of the UAE, then it will be ideal to start your business on the Dubai mainland.
It is not fitting to go ahead with a random name, and the business needs to follow up with some rules and regulations to decide on a name. The UAE government and authorities do not allow them to put blasphemous names, and it should not be that are referring to Allah or any other reference to Islamic words. If you are using the name of any person, the name chosen should not be of someone who is a partner or the owner of the company. It also has to be kept in mind that there should be no initials or abbreviations of the name.
Once the decision on the name of your business venture is made, the next step will be to proceed with the relevant paperwork attached to it. The application for the proposed business name and copies of the passports of the shareholders have to be submitted to relevant government authorities in the UAE. To set up businesses in the freezones of the UAE there might be additional requirements such as a NOC from the sponsor allowing or permitting you to set up the business in the Dubai freezones. Certain freezones will also demand the submission of a business plan along with the licence application.
If you are planning to set up on the Mainland, then you need to meet some capital requirements that have to be mentioned in the Memorandum of Association, or MOA.
The documents have to be submitted to the DED or Department of Economic Development of the Emirate that you have chosen to set up your business. The application for the name along with the copies of the shareholder's passports should be submitted there. The processes regarding registering the business will be on the respective Emirates websites, or you can take the help of a prominent business setup consultant like Kiltons.
Once your application goes through, the authorities issue the registration papers of the business with the licence. The assistance of a good business setup consultant in the UAE will help in navigating through the paperwork as the process can be monotonous, and the chances of missing fine lines are comparatively higher. The money spent on business setup consultants in the UAE is worth time and money. And Kiltons, with years of experience they possess, are the rightful choice.
UAE is home to many banking institutions, both national and international. Choose the bank of your choice and submit the documentation to open a corporate bank account. A corporate bank account is important for proceeding with business activity in the UAE, mainland or freezone, irrespective of the location. Choose the bank according to your business preference as a bank account is mandatory before you start your business activity in the UAE.
The information the bank may ask for before opening the account is as follows:
- Primary business areas
- Total deposits
- Revenue Levels
- The volume of currency dealt
- Main customers and suppliers,
It takes two to four weeks to process the documents and get you access to your corporate bank account.
Applying for a visa is the final step to complete your entire business setup process. The freezones not only allow you to put forth your application for the visa but also the visa application for staff and dependents. The number of visa applications allowed to your business will depend on the freezone that you plan to set up your business.
The decision on the location of your business and the aspects of the visa that you are bound to get can be clear if you choose to avail of the service of a professional business setup consultant in the UAE.
To obtain the visa, the applicant should have a green signal in the following:
- Entry permit
- Status adjustment
- Medical fitness test
- Emirates ID registration and visa stamping
These are the main steps that you need to follow to get your business setup licence or registration licence in the UAE.