When it comes to starting a business, Dubai is one of the most preferable locations in the world. Due to its taxation benefits, many entrepreneurs are willing to start their business in the UAE. The government is also very supportive, the business incorporation process is simpler and hassle-free. Its world-class infrastructure also encourages people to start a small business in Dubai. However, there are a few important things to focus on before setting a business in Dubai.
Important points to remember before starting a small business in Dubai:
- Selection of the license category:
If you are planning to set up a business in the UAE, the first and the most important step is to choose the license category based on your industry type. There are different types of licenses are:
a. Commercial License:
The commercial License in Dubai is easiest to obtain compared to other business licenses. It is for companies dealing with general trading or specialized trading activity.
b. Industrial License:
Companies engaged in manufacturing, producing, fabricating, or indulged in any other special activity, needs to obtain an Industrial License. Organizations that convert natural resources into finished products have to apply for an Industrial Trade license.
c. Professional License:
For service-oriented companies like craftsmen, artisans, and professionals need to apply for a Professional License. Accountants, auditors, consulting services, printing and publishing, healthcare services, etc, require a professional license in Dubai.
d. Tourism License:
Companies involved in Trave Tourism and healthcare has to obtain a Tourism License in Dubai. If you are opening a restaurant, hotel or even rent a car companies then you need to obtain Tourism License.
- Clarity about the zonal distribution:
When you are setting up a business in Dubai, understand the zonal distribution. There are mainly three zones – Free zones, Mainland and Offshore. Every zone has its own benefits for starting a business in their location
- Ensure compliance with legal work:
The governemnt of the UAE is very stringent when it comes to legal work. Ensure that your compliance and paperwork is done on time to avoid and penalties.
- Understand the tax regime:
If you are planning to start a small business in Dubai it is important to understand the tax regime. In the UAE, the free zones have 0 tax and the mainland has 5% VAT.
- Registration of trade name:
You must register a trading name for your company and select the name which resembles the type of business you are going to do. The trade name has to be registered with the Department of Economic Development (DED)
Planning to start a company in Dubai? Contact MSZ Consultancy!
In order to set up a small business in the UAE, it involves tedious paperwork and rushing to the government authorities for licenses. MSZ Consultancy will not only guide you in business setup but will also support you in getting the right documentation. Get in touch with us today!