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Step by Step Process to Easily Setup your Business in Dubai

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Dubai is among the world’s fastest-growing cities and commercial hubs. It has grown into a worldwide city and the Middle East’s business hub. It is also an important passenger and cargo transportation hub. Owing to its location, tax-free policies & state-of-the-art infrastructure, it is thought to be a desirable location for enterprises.

Several international firms call the city home, and it also serves as a hub for numerous small and medium businesses (SMEs) looking to establish a presence in the Middle East. UAE is also well known for its free zones, which are located in strategic locations across the emirate. Free zones are locations where firms can be owned entirely by foreigners and where tax breaks are available with low import duties, among other benefits.

In this article, we’ll walk you through the very important actions to take when it comes to beginning a business in Dubai.

The steps for forming a corporation in Dubai are as follows:

  1. Select a suitable business activity and license type

To form a company in the UAE, you must first choose a suitable business activity, as all Free Zones require you to specify your organization’s nature. Your company’s activity will decide the type of license you obtain from the Free Zone Authority.

A license is required for anyone doing business in Dubai or any other emirate. There are two categories of commercial licenses in the United Arab Emirates.

  • Professional license: This is required for those who desire to provide a service. You might like to establish a consulting firm, an IT firm, or a medical center, for example. For that, you’ll require a professional license.
  • Commercial license: When you wish to buy or sell items or products, you’ll need to use. If you wish to open a grocery store, for example, you’ll need a commercial license.
  1. Reserve your company name

If you want to set up a company or business in the United Arab Emirates, you must first reserve your company name before registering with the local government. You can first choose a few names and then submit the application for reservation of company name. It is preferable to obtain a license before beginning a business in Dubai.

Choose office space or work from home

Whether you’re launching a new company, expanding your current enterprise or just need a place to work outside your home, choosing the best office space could be really a challenging task. Before you commit yourself to an office space for lease in Dubai, take the time to consider what you really want and need from your new workspace.

  1. Apply for visas (if required)

If you intend to do business in the UAE, you will need a business visa. The visa is effective for 30 days and can be renewed for another thirty days. After receiving a letter of invitation from a company in Dubai, the visa is issued at the discretion of the immigration officials.

To apply for a VISA for business in the United Arab Emirates, you’ll need the following documents:

  • A passport effective up to at least 6 months from your travel date (with at least 1 blank page)
  • A recent passport photograph taken against a white background (the photo must not be older than 3 months)
  • A completed application form
  • An invitation letter from your sponsor, containing details of your visit.
  1. Obtain initial approvals from various government departments

Obtain initial approvals from various government departments to setup business in UAE.

The below are among some of the required approvals:

  • Get approval from Ministry of Labor.
  • Get approval from Department of Naturalization and Residency (DNRD)
  • And Get approval from Telecommunications Regulatory Authority (TRA)
  1. Apply for your Trade License with DED

What is a Trade License?

The license you receive from the Free Zone Authority permits you to conduct business. Following are these two types of licenses:

  • General Trading License: Allows you to export and import commodities both within the UAE and across the GCC. Allows you for trading, storing, and distribute products which are defined in your license within the Free Zone.
  • Commercial Trading License: Allows you to only import and export things into and out of the UAE. Permit you for trading, storing, and supply goods that are specified in your license within the Free Zone.
  1. Open a corporate Banks in UAE

Banks in the UAE offer a number of different corporate bank accounts alternatives to meet a wide range of business requirements and criteria. However, when creating a bank account for a business, you must consider factors such as the minimum balance necessary, transaction limits, and transfer fees, among others.

Each bank has its own procedures for opening a corporate bank account in the UAE, but they all follow the same steps:

  • Fill up your application form and send it to the bank of your choice, along with any supporting documentation.
  • Sign the agreement stating that you will follow all UAE banking rules and regulations.
  • Once approved, you can bring your original passport and EIDA card for verification at the bank branch where you will be opening your account.
  • Once verified, you can start using your corporate bank account for business transactions.

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  1. Register with Dubai Chamber of Commerce & Industry (Optional)

Dubai Chamber of Commerce & Industry (DCCI) is a government body that supports and protects business interests in Dubai. It also represents businesses in the emirate at the federal level. In addition, it helps to improve the competitiveness of the private sector.

Dubai Chamber provides many services to its members, including networking opportunities and promotion of trade relations with partners abroad.


For those of you who are serious about pursuing your ambition of beginning a business in Dubai, it is vital that you take the necessary precautions. This should ensure that you receive complete support and it is simple to start a new business in Dubai.

Visit:What are the do’s and don’TS of Amazon FBA selling?

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