How to Get Started With Business Setup in Dubai
Dubai is a great place to start or expand a business. The city is world-renowned for its thriving economic landscape, attractive living and working conditions, and its friendly business environment. But before you can get started, you will need to understand the process of setting up a business in Dubai.
The Steps to Follow for Business Setup in Dubai
Establishing a business in Dubai is not a complicated matter and can usually be done within a month if all the necessary steps have been planned out. The three main steps to successfully setting up a business in Dubai are selection of the type of business, acquisition of a license, and opening a corporate bank account. Let’s take a look at each of these steps in detail:
Step 1: Select a Type of Business
The first step to setting up a business in Dubai is to identify the type of business you want to register. There are several types of businesses that can be registered in Dubai, namely sole proprietorship, partnership, limited liability companies, foreign-owned businesses and public joint stock companies. In addition, businesses can also operate in the free zone areas of the city.
Step Two: Acquire a License
Once you have chosen the type of business you want to establish, the next step is to acquire the licence. All businesses in Dubai, except those trading and professional consultants, must register with the Department of Economic Development (DED). There are different types of licences, the most popular are Professional, Commercial, Industrial and Tourism and General Trading. You will need to provide a set of documents to the DED, including a trade name registration, a Memorandum of Association, a partnership agreement and so on. The DED will also ask for an Initial Approval Certificate, which will be granted after the DED has evaluated your documents.
Step Three: Open Up a Corporate Bank Account
Once you have acquired the licence, the next step is to open up a corporate bank account. Many banks in the UAE offer corporate banking services, and you will need to present the DED licence and other documents as proof of ownership. It is also important to note that some banks may require you to have a local sponsor or partner in order to open a bank account.
FAQs
Q. What documents are required to set up a business in Dubai?
A. The documents required to set up a business in Dubai are a trade name registration, a Memorandum of Association, a partnership agreement, an Initial Approval Certificate and other documents which are required by the Department of Economic Development.
Q. Is it necessary to have a local sponsor or partner for setting up a business in Dubai?
A. It is not always necessary to have a local sponsor or partner for setting up a business in Dubai, but some banks may require this in order to open a corporate bank account.
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