Business Setup in Dubai: A Complete Guide to Starting Your Company

Dubai has established itself as one of the world’s leading business hubs, attracting entrepreneurs and investors from every corner of the globe. With a remarkable 7.6% real GDP growth in 2022 and the UAE ranked 10th in the GlobalData Country Risk Index, the city offers a stable, secure, and investor-friendly environment for businesses.

Embarking on a business setup in Dubai opens doors to countless opportunities in a thriving economy. Whether you choose the Dubai mainland or one of its many free zones, the process of register company in Dubai is straightforward, thanks to supportive regulations, world-class infrastructure, and low taxation policies.

With the right guidance, such as the services offered by Tetra Consultants, you can navigate this process seamlessly and establish a strong foothold in the Middle East’s dynamic marketplace.

Essential Steps for Business Setup in Dubai

Step 1: Choose the Business Activity

The first step in your Dubai business setup journey is selecting the right business activity. Tetra Consultants will analyze the feasibility and profitability of your chosen activity within the Dubai market. By aligning with permitted activities defined by the Department of Economic Development (DED), you can ensure your business complies with local laws while maximizing profitability.

Step 2: Decide on the Company Structure

Choosing the right company structure is critical during the company formation in Dubai process. Your legal structure determines ownership, profit distribution, taxation, and compliance requirements. Options include:

• Limited Liability Company (LLC)

• Sole Establishment

• Civil Company

• Local Company Branch

• GCC Company Branch

• Foreign Company Branch

• Free Zone Company

• Holding Company

Tetra Consultants provide full support in selecting the most suitable structure for your business setup in Dubai.

Step 3: Meet Legal Requirements for the Entity

Each company type has its own incorporation requirements. For example, an LLC in Dubai requires:

• Minimum of 1 director (no residency requirement)

• Minimum of 2 shareholders (no residency requirement)

• A registered office in Dubai

• Share capital of AED 300,000

• A local service agent (UAE national) holding a minority share

Tetra Consultants will ensure all requirements are fulfilled for a compliant business setup in Dubai.

Step 4: Get Approvals from DED

Before proceeding with licensing, approval from the Department of Economic Development (DED) is necessary. This includes approval of your trade name and business activity. Tetra Consultants streamline this process by offering name reservation services and securing necessary permits.

Step 5: Apply for Trade License

To operate legally, businesses in Dubai must obtain a trade license. The four main types of trade licenses are:

• Commercial License

• Professional License

• Industrial License

• Tourism License

While these apply to mainland companies, licensing rules differ in free zones depending on business activity. Tetra Consultants also assist with offshore financial licenses and other permits, broadening your scope of opportunities.

Step 6: Register Your Company

Company registration and licensing are processed simultaneously. This involves document submissions and approvals from government authorities. With Tetra Consultants managing the paperwork, entrepreneurs can expect a smooth and timely business setup in Dubai.

Step 7: Engage a Local Agent (if required)

Certain business structures require a local service agent or partner, who must be a UAE national. Finding a reliable local agent can be challenging, but Tetra Consultants simplify the process by offering corporate sponsorship services, ensuring compliance while maintaining full ownership rights.

Step 8: Draft the Memorandum of Association (MoA)

The MoA is a key legal document that must reflect both UAE regulations and your business objectives. Tetra Consultants provide expert drafting services to ensure your MoA is compliant and aligned with your company’s interests.

Step 9: Rent an Office Space

Depending on your requirements, you can opt for a dedicated office or shared workspace. The choice of office space can also impact the number of visas your company is eligible for under the DED.

Step 10: Obtain Tenancy Contract & Ejari

When renting office space in Dubai, an Ejari (tenancy contract) registered under the Real Estate Regulatory Agency (RERA) is required. This is essential for business operations as well as obtaining visas for employees and family members.

Conclusion

Starting a business in Dubai is an exciting venture, offering access to a booming economy, strategic location, and investor-friendly policies. However, the business setup in Dubai process involves multiple steps, legal requirements, and documentation.

Tetra Consultants provide end-to-end support for entrepreneurs, covering everything from company registration and licensing to finding office space and drafting legal documents. With our guidance, you can navigate the complexities of company formation in Dubai and start your business journey with confidence.

Contact Tetra Consultants today to learn more about business setup in Dubai. Our team will respond within 24 hours to help you take the first step towards successful incorporation in the UAE.