8 Essential Steps to Start a Business in Dubai

Dubai has always been a businessman’s galore. Every person who has the skills to be an entrepreneur or who is already running his own business always desires to expand the business to Dubai.

However, the competition in Dubai is quite high since it is a global market and brands of all levels and from all the parts of the world is present in the city. Are you thinking to start or expand your business in this city of UAE? That is great, but you need to be very sure of what you are stepping in to.

Not all businesses can be successful, but you can make yours by doing proper research and following effective tips and strategies to sustain your business in the global village of the world. Following are the essential tips that every businessman must know before starting their business in this business hub.

Determine the type of business

First and foremost, you need to decide the type of business. The license is granted according to the business type and if you haven’t determined that, you will face quietly a lot of troubles in getting the license.

The three different types of businesses based on the license are commercial, professional or industrial. You will get the license according to your business type. Business type decision is a critical one and needs to be discussed with several different governmental departments.

Ownership formalities

If you are a foreign national and want to have 100% ownership of your business, you will have to select the license for one of the many free zones in Dubai. Each free zone satisfies different types of specifications and activities and there are more than 45 free zones so you can easily choose the most suitable one. The local license, on the other hand, can be obtained from DED. This specific license has several restrictions including the specifications of sharing capital with a foreigner.

The legal structure of the business

Each free zone in the UAE has different specifications regarding the legal structure of the business. To know the restrictions and specifications of the free zone your business is present in, you will need to look up the official website of the zone.

There are specifications regarding the type of agencies as well and you cannot make-up the firm without getting the legal structured cleared first.

Trade name of the structure

The trade name is an important part of every business in the UAE. You must determine your trade name if the company is not a branch of any big organization. For instance, if you own any resume writing service business, you must identify its trade nature if you are not a branch of any existing organization. It determines the nature of the business and is an important part of the legal procedure. Specifications and properties of the trade names can be easily found on the official website of DED.

Capital share formalities

The Memorandum of Association is proposed by your company in which the minimum share capital is composed and decided. Most of the cases do not require the payment of the minimum capital at the time of setting up.

Location or premises of the business

The first step of any business set up is the legal formalities and forms. Once you have cleared that step effectively, the next thing to do is to find a suitable location for the business.

Start looking for offices considering the prices and other important details such as the location etc. solving the legal complexities, in the beginning, carves out a clear path ahead where you can smoothly think of the other things for the business like the premises, investments, and marketing procedures.

If you are setting up the business in one of the free ones, you will be guided for appropriate premises along with setting up the facilities of electricity, water, internet, and other amenities.


In some cases of DED, you are supposed to hire a manager to look over operations of the business and without that your registration would not be approved at all. In other cases, business owners are not allowed to hire an employee at all. For instance, business owners holding Intelaq license – which is a home-based Emirati license, cannot hire employees. They can, however, work with contractors. After the legal formalities and settling location concerns, employee issue should be discussed.

Local support or agent

If you are a DED license holder, you must have local support in the form of agent, partner, or sponsor. Especially, it is a great help for foreigners because they are guided in the right direction by the professionals.

On the other hand, for free zones licenses, local support is great and effective guidance can be availed and used. It is, however, not important to have a local agent or professional since Dubai is a great place for starting businesses.

UAE is a great country in terms of business and corporate sector. Many international and local brands operate in the city and make great sales. Since it is one of the most considered tourist destinations, tourist influx is nothing uncommon.

Most of the times people travel to Dubai merely for shopping which enhances the conversions and businesses. Regardless of the industry, every business manages to sustain in the city if proper rules and regulations are followed.

If you are planning to start your business in Dubai, discussed above are some of the most effective strategies and steps which must be followed in order to successfully start your business in the city.

If the mentioned above steps are properly followed along with the quality of product or service ensured, there would be nothing left to stop your business from succeeding any further. Running a business is not a cup of cake and every aspect must be thoroughly analyzed in order to leave notables turned and earn the success rightfully.

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