Smart Business Creation
Smart Business Creation

FAQs

This FAQ structure is well-suited to address common concerns and guide prospective business owners through the process of setting up a business in Dubai.

Incorporation Questions

Discover the essentials of company formation in Dubai, including legal structures, registration processes, and key considerations to ensure a smooth and compliant business setup.

How can I start a small business in Dubai?
To start a business in Dubai, you’ll need to follow these key steps: First, select the industry and business activity you wish to pursue. Then, determine the legal structure of your business, ideally with guidance from a consultant or lawyer. Choose a suitable location, whether it’s on the Mainland or in a Free Zone. Next, apply for a legal trade name, complete the necessary paperwork, and seek the required initial approvals. Finally, apply for your business license, register your company, and open a bank account.
What is the cheapest option to set up a company in Dubai?
The cheapest option to register a company is the IFZA (International Free Zone Authority). The location offers the cheapest Free Zone and General Trading Licence. You can start your company with AED 12,900* here.
What are the benefits of setting up a business in Dubai?
There are plenty of benefits to starting a company in Dubai, but the key benefit is a Strategic location as Dubai is a trade city that connects different continents, which simplifies the import and export of goods. Therefore, the high-class infrastructure that comes with low corporate tax is a major advantage for investors who want to set up a company in Dubai. Additionally, 100% foreign company ownership is another boost for foreign entrepreneurs because of Dubai’s friendly business environment.
How long does it take to setup a company in Dubai?
The timeframe of opening a company in Dubai is 4 to 5 working days but it all depends on different factors such as your industry and requirements of each licensing authority. Some business activities are quicker than the others but in general, it takes only a few days to setting up a new company in Dubai.
Can you own 100% of your business in Dubai?
Yes, you can own 100% of your business in Dubai. In the past, only Free Zones have allowed 100% foreign ownership of businesses in Dubai. However, with a recent amendment, now foreigners can 100% own an LLC business in Dubai Mainland, too. For more information on this topic, you can visit our complete guide.
Which is the most profitable business to start in Dubai?
These are the most profitable businesses to start in Dubai –

E-commerce stores
Digital payments
IT solutions
Real estate development
Tourism services.
Why to start a company in Dubai?
Starting a company in Dubai offers many benefits that are not accessible in other countries. A few major reasons to set up a business in Dubai are:

Global trading hub allowing you to start an international trading business instantly
Easy to start a business
100% ownership for foreigners
Low corporate tax and zero individual income tax
Full profit repatriation is allowed
Strategic location for business with advanced infrastructure
Business-friendly laws with a government that supports entrepreneurship
If I set up a company in Dubai and obtain a residence permit, can I travel to other emirates freely?
Yes, the visa issued in Dubai is valid throughout the UAE and allows you to travel to other emirates freely.
How can I obtain my Investor/partner visa to stay in Dubai?
To obtain an investor/partner visa, you must set up your own company in Dubai. You must fulfill all the company registration requirements and obtain a trade license. Next, you have to complete all the immigration authority’s formalities to receive your residency visa.
What kind of business can I set up in Dubai?
You can set up any business in Dubai as long as it’s not illegal as per the country’s law. UAE’s Ministry of Economy allows you to choose from more than 2,000 business activities for your business. You need one of these six licenses to start a company in the UAE:

Industrial license
Commercial license
Crafts license
Tourism license
Agricultural license
Professional license
Can I add/club all the business activities in one business license in Dubai?
No, you can’t include all the business activities in a single business license, as they might require different licenses to operate. You will need a trading license if you are trading goods or products. For manufacturing, a manufacturing license is compulsory, and so on. However, a business owner trading multiple products can also get a general trading license in Dubai. Therefore, different business activities require different licenses in Dubai.
Do I have to renew my company trade license annually in the UAE?
Yes, you have to renew your trade license in the UAE annually. It is also worth noting that you must apply 30 days before the expiry date of the license.

Do small businesses need a license in the UAE?
Yes, all types of businesses require a license to operate legally in the UAE. Operating without a business license is against the law in Dubai.
What are Professional Activities in UAE?
Professional activities are business activities that require a professional license to operate in the UAE. A professional must be qualified or highly skilled to offer such services with relevant expertise. Some professions and services in this category are lawyers, medical experts, legal advisors, business consultants, accounting and auditing service providers, marketers, artisans, and IT service providers.
Do I have to rent an office or warehouse to set up a business in Dubai?
Yes, it is mandatory for businesses to have an office space for a successful business registration process in Dubai Mainland. However, Dubai Economic Development (DED) has offered some leniency to investors and entrepreneurs by issuing virtual office licenses where you don’t need a physical space. Flexi desks are also a good alternative, as you can save a lot of rental costs and have physical space from the beginning. Another option is to get an instant license issued by DED, which does not require office space for the first year.

Mainland Questions

Learn about the benefits and requirements of establishing a business on the Dubai Mainland, including regulations, ownership structures, and the advantages of accessing the local market.

Do I need a local partner to set up a mainland company in Dubai?
The answer is both yes and no. You do not require a local partner for certain licenses and activities; a foreigner can hold 100% of the company shares. Some examples include professional service providers or small businesses such as coffee shops, consultancy, and salons. However, general trading companies or businesses that require a trading license must have a local sponsor who owns at least 51% of the shares in the company.
What types of business activities are allowed for mainland companies in Dubai?
Dubai Mainland offers more than 2000 business activities from which to choose. These business activities fall into various categories and require respective business licenses to operate, including professional, commercial, industrial, and tourism. However, certain activities are not allowed in the UAE. You must consult with an expert before applying for a business license in Dubai.
What are the visa requirements for employees in a Dubai mainland company?
Foreign employees in the UAE require a standard work visa sponsored by the employer. There are certain conditions that the employer and employer must meet to obtain a standard work visa.

The employer has a valid operating license
The employer has no violations
Employee’s expertise and work is relevant to the company’s business activity
The employee has a high school diploma
How long does it take to set up a mainland company in Dubai?
The company setup in Dubai Mainland can be done within 5 days. However, depending on the nature of the business and its requirements, it may take a few weeks in certain scenarios.
Can I convert my existing free zone company to a Dubai mainland company?
Yes, you can convert your Free Zone company to a Dubai Mainland company. However, the process is complex, and you must not proceed without expert consultation. As there is no direct transfer option available, you have to cancel your Free Zone license and apply for a new license with DED. You also have to obtain visas, register for VAT, and complete the business registration process again.

FreeZone Questions

Explore the advantages of setting up in Dubai’s Free Zones, from 100% foreign ownership to tax benefits, and find out which Free Zone best suits your business needs.

Which Free Zone in the UAE is best suited for my business activity?
It depends on the nature of your business and the business activity. Every Free Zone has its own set of regulations and provides certain benefits for specific business activities. You must choose a Free Zone that is the most advantageous for your business operations and requirements. For instance, IFZA is a good choice for ecommerce businesses. On the other hand, DMCC is best for global trading.
Can I own 100% of my Free Zone company as a foreign investor?
Yes, you can own 100% of your Free Zone company as a foreign investor in Dubai.
Are there any restrictions on trading with the UAE mainland from a Free Zone company?
Yes, Free Zone companies cannot trade with the UAE Mainland. Business operations of Free Zone companies are limited to their jurisdictions only. However, you can engage with a local consultant if you wish to expand your activities on the Mainland. Our expert consultants can provide you with the right guidance regarding this issue.
Do I need to be physically present in Dubai or the UAE to set up a Free Zone company?
No, you do not need to be physically present in Dubai or the UAE to set up a Free Zone company. You can easily register and operate your business remotely in a Free Zone without the need for a local partner.
What are the import and export procedures for Free Zone companies in Dubai or the UAE?
You must register with the Customs Office to import or export goods in the UAE. For import, you need certain documents such as an import permit, certificate of origin, import goods declaration form, bill of lading/airway bill, etc. Similarly, to export goods, you need documentation that includes an export permit, declaration of customs clearance, and sales invoice.

Offshore Questions

Understand the process and benefits of offshore company formation in Dubai, including asset protection, tax optimization, and the flexibility of operating globally while maintaining a presence in the UAE.

Can an offshore company trade within the UAE mainland?
Offshore companies are not legally allowed to trade within the UAE mainland. However, they become shareholders in any of the Mainland companies.
What are the ongoing reporting and auditing requirements for offshore companies?
Offshore companies are exempt from annual audits in Dubai. They do not have to submit their audited financial statements, which helps maintain their confidentiality.
Can I open a corporate bank account for my offshore company?
Yes, you can open a corporate bank account for your offshore company in Dubai. However, the chances of success are slim, and it is recommended that you engage a business consultant to help you out.
What are the annual renewal fees associated with maintaining an offshore company?
The annual renewal fees associated with maintaining an offshore company depend on the jurisdiction, visa renewal charges, and bank account maintenance costs. For instance, a company in RAK ICC has to pay approximately $2200 in annual renewal costs, which includes a Certificate of Good Standing, a formal proof of the company’s renewal.
What types of business activities are allowed for offshore companies in the UAE?
Offshore companies are not allowed to trade in the UAE. However, certain activities are permitted for offshore companies to do in Dubai, such as shareholding in other companies or purchasing and managing real estate. Offshore companies are also allowed to offer wealth management, advisory, consultancy, and brokerage services.

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