Small-Scale Business in Dubai
Dubai is known worldwide as a launchpad for entrepreneurs that seek to take advantage of lucrative business opportunities. Thanks to relaxed immigration policies and minimal tax responsibilities, investors from around the globe venture to the UAE to form businesses of all shapes and sizes.
Small-scale businesses are one such type of enterprise that is highly profitable for those with an innovative spirit. Whether creating a new and exciting product or service or finding that perfect niche ripe for expansion, the UAE is a fantastic place to start your small business journey.
But how does one go about small-scale company setup in Dubai? Understanding the steps required can be challenging if you’re unfamiliar with the process. We’re here to help, though! If you’d like to learn more about the process of small company formation, keep reading!
The Benefits of Starting a Small-Scale Business in Dubai
As you can imagine, forming a small business in the UAE can be incredibly rewarding for savvy investors. With such benefits as no income taxes and well-built infrastructure, it makes sense that operating a company in this region has an expansive array of benefits. Let’s take a look at just a few benefits of starting your small-scale business in Dubai:
1. Quick Setup
Dubai prides itself on developing streamlined and hassle-free procedures, and forming your business is no different. You’ll easily be able to submit business license applications and open corporate bank accounts with minimal red tape.
2. Tax Benefits
Businesses operating in Dubai are not subject to income, personal, or business-related taxes. As a result, businesses can put more of their profits back into their company.
3. A Wide Range of Business Activities
Dubai is home to thousands of business activities, giving you the power to seek out a sector that works for your background, education, and skills.
4. 100% Foreign Ownership
Many regions of the UAE will require foreign investors to partner with a local sponsor. This sponsor is required to own a majority share in any business venture. However, companies operating in Dubai’s Free Zones can now own 100% of the shares.
5. Low Investment Requirements
Forming a small-scale company in Dubai will require a smaller upfront investment than larger ventures or company formation in other regions.
6. Flexible Business Locations
Dubai is home to both Mainland and Free Zone jurisdictions, which offer a wide range of business locations for your small-scale business venture.
7. Market Exposure and Connectivity
Dubai is home to a world-class infrastructure with well-built roadways, transportation, ports, and speedy internet connectivity.
The Steps to Launch a Small-Scale Business in Dubai
When you begin your business registration in Dubai, you’ll need to take several steps to ensure an easy, hassle-free experience. These include:
1. Choose Your Business Activity
The first step in your business formation journey will be to choose an activity that works for you. From professional and service-based businesses to product sales, Dubai offers thousands of business activities to choose from, and you’ll want to pick one that works for your skillset.
2. Select a Company Name
Your business will need a name! After choosing a business activity that works for you, you’ll want to submit a trade name request to Dubai’s Department of Economic Development (DED). You’ll need to ensure that another entity has not previously selected your chosen business name and that it does not violate any rules regarding profanity.
3. Choose Your Jurisdiction
When you form a business in Dubai, you’ll have the choice between establishing your company in Dubai’s Mainland or one of the many Free Zone jurisdictions. Each of these jurisdictions has its own rules, regulations, and benefits.
4. Office Space
Before you can conduct business, you’ll need to secure adequate office space. The size of your office space will depend entirely on how many employees you have and how many visas you’ve secured for them.
5. Submit Business License Application
Using the DED’s online business license application portal, gather the necessary documentation and submit your application.
6. Submit Visa Applications
In addition to submitting your license request, you’ll want to submit visa applications for yourself, your employees, and your family.
7. Receive License and Pay Fees
Once you’ve paid the required application fees, you’ll be issued your business license. This license gives you the legal right to conduct business in your chosen jurisdiction of the UAE.
8. Open a Corporate Bank Account
To conduct business properly in the UAE, you’ll need to have a corporate bank account. The UAE is home to many international banking institutions that can help you form your business account.
The Documentation Required for Launching a Small Business in the UAE
When you submit a business license application, you’ll be required to provide several pieces of important information. These documents include:
• A well-crafted business plan
• A filled application form
• Memorandum of Association (MOA)
• Legal Structure Agreement
• Trade name receipt
• Copies of passports for all shareholders
• Emirates ID
• Tenancy Contract
• Shareholder No Objection Certificate (NOC)
Crucial Tips on Small Business Setup in Dubai
Every business formation will require ample research, preparation, and strategy for success. And while many investors choose third-party business setup consultants like MSZ Consultancy to help them navigate the terrain, you might decide to go it alone. If that’s the case, here’s what you need to know:
1. Look for Potential Sponsorships
While Dubai now allows foreign investors to form their new small businesses without national sponsorship, it never hurts to have additional help. Sponsors can reduce business startup costs and make the process easier and more affordable.
2. Understanding Business Legalities
Though operating a business in the UAE is designed to be a straightforward process, it truly pays to have a thorough understanding of this region’s business market and its legal structures. Even the licensing procedures can vary depending on the business activity you hope to conduct. For example, business licenses are broken up into different categories. These include:
1. Commercial Licenses
A commercial license enables business owners to operate real estate brokerages, car rental businesses, and other service-based businesses.
2. Industrial Licenses
An industrial license covers businesses such as manufacturing, textiles, raw metals production, and the creation of manufactured goods.
3. Professional Licenses
Professional licenses are for businesses whose services require education and skilled training. Examples of these businesses include doctors, therapists, teachers, business consultants, and more.
4. Tourism Licenses
Businesses that operate in the tourism industry, such as hospitality, restaurants, and travel agencies, will require a tourism license.
5. Agricultural License
This license type covers the cultivation of crops, vegetables, dairy products, and other grown materials.
6. Craftsmanship License
A craftsmanship license is issued to companies such as electricians, plumbers, and carpenters.
3. Accessible Location
In business, having the right location means everything. It will make a massive difference in your exposure and potential foot traffic and can also heavily impact your profits and responsibilities. Therefore, you’ll want to perform plenty of research to find the right jurisdiction for your new business.
4. Hire the Right Staff
Having the right employees is vastly vital to the success of a business, even for small-scale entities! Luckily, the UAE has a large pool of skilled workers to choose from, ensuring that you have the right type of support you need for your business.
5. Marketing and Digital Advertising
A good marketing plan can go a long way to establishing a company properly. And with many businesses operating on e-commerce platforms, developing a keen digital marketing strategy will be invaluable to your chances of success.
Small-Scale Business Ideas in Dubai
Since Dubai is home to a world-class business environment, many business activities hold a ton of potential for the right investor. Let’s take a look at just a few of these business activities.
Dubai has a large market for restaurants and eateries, offering small-business owners plenty of opportunities for profit and expansion.
2. Events Companies
Holding events, competitions, and parties is big business in the UAE. As an events coordinator, you’ll be able to plan and manage these events, all while enjoying all the business benefits offered in the region.
Construction-based jobs will never go out of style or demand. Therefore, forming a company in Dubai can be especially fruitful if you have a background in construction.
4. Healthcare Services
In recent years, healthy living and proper habits have become all the rage. Forming a healthcare-based business, such as a healthcare practice, pharmacy, or laboratory, can be highly beneficial for a small-scale business.
5. Real Estate Investing
Overseeing real estate investments is another business that surely won’t waiver in importance. If you have a background in this market, brokering your own real estate firm is a great option.
6. Web Development
It’s no surprise that many businesses are moving their platforms into the digital space. So, why not take advantage of that by forming a web development company in the UAE?
7. Cleaning Services
Whether it’s cleaning homes, offices, or vehicles, cleaning services will always be a market that’s in high demand.
Business Setup Cost in Dubai
With any investment, it pays to have a full understanding of all the expenses involved. And when forming a business, the cost behind it can vary wildly based on several factors, including the jurisdiction you choose, your type of business license, and any startup expenses incurred in your particular business activity. You can expect to range from AED 2,000 to 10,000 or more as a rough estimate.
To determine your business startup costs, you’ll want to work with knowledgeable business experts that can detail the price for your licenses, applications, and any fees you may be required to pay.
MSZ Consultancy Can Help Your Business!
For years, MSZ Consultancy has led the way by delivering effective business and legal solutions for investors in the UAE. From navigating the terrain of foreign investments to staying atop important regulations, our expert consultants have the experience to deliver results.
Are you interested in a business setup in Dubai? We can help! How about securing the assistance of PRO services? We do that, too! No matter how big or small your brand is, MSZ Consultancy has the expertise to help.
We’ll assist you in handling crucial day-to-day business operations so you can free up your schedule to handle more important aspects of the company.
Give us a call today at +971 52 544 1248 for a free quote, and let us show you how we can maximize your investments, reduce costs, and grow your enterprise!