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
1. Choose the business activity
- The first thing to do before starting a small business in Dubai is to choose an activity that you wish to undertake. Your business activity affects your business setup. Hence it has to be chosen with detailed research and analysis and then derives to the conclusion on your business activity. Consult a business setup consultant in Dubai to get better ideas about the trends and other business insights before the business setup in Dubai.
2. Clarity on zonal distribution to pick the suitable one
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 benefits for starting a business in their location
3. Registration of the perfect 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)
4. Selection of the license category
If you are planning to set up a business in the UAE, the most important step is to choose the license category based on your industry type. There are different types of licenses are:
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.
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.
For service-oriented companies like craftsmen, artisans, and professionals need to apply for a Professional License in Dubai. Accountants, auditors, consulting services, printing and publishing, healthcare services, etc, require a professional license in Dubai.
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.
5. Opening a bank account
Once you obtain a business license it becomes easier to open a corporate bank account. You can choose from the host of international, local, and Islamic banks in the UAE.
6. Applying for your visa
Visa application is also one of the important steps for a business startup in Dubai. The visa application process is simple. It consists of four stages: entry, permit, status adjustment, and medical fitness test. Then obtaining Emirate ID registration and visa stamping. A business consultancy service can help you with such PRO Services in Dubai.
7. Ensure compliance with legal work
The government 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.
8. 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.
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!
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