How to start a business in Dubai: licenses, jurisdictions, consultations

Dubai, which is part of a rapidly developing region, has seen a significant increase in demand from foreign investors following the global Expo-2020 exhibition. This emirate attracts attention due to its favorable tax climate, lack of corruption, effective governance, and stable banking system. These factors contribute to international companies and holding structures in the emirate coming to the forefront, highlighting Dubai's advantages as an international business hub.

Equal opportunities for all

However, Dubai does not limit its selective approach in the business sector and provides equal opportunities for everyone, including small and medium-sized startups. Organizing a business of this kind requires a specific strategy and a distinct approach to studying the market, potential consumers, and competitors.

International experience

Foreign investors often believe that having solid experience in their home country will help them in a new foreign market. Opening an office in the UAE is seen as a way to develop new opportunities and successfully conduct business.

Licensing and regulation

To start a business in the UAE, it is necessary to obtain a license, considering that business activities here are highly regulated. The license grants the right to only a specific type of activity outlined in it. Obtaining a license is not a complicated procedure, but the process can take from one to three weeks, and then it will need to be renewed annually. This factor requires careful planning of business processes in Dubai.

Successful business operations in Dubai will allow you to access a broader international market, where you can explore new techniques and methods of doing business, expand your networks, and enhance your reputation.

Accounting in the UAE

In the UAE, it is necessary to maintain accounting records to confirm the financial position of the company and provide up-to-date information about its assets and liabilities. The laws of the UAE intertwine with Sharia law, and each jurisdiction has its own registration and regulatory requirements. Depending on the area of activity, additional permits may be required, for example, to open a dental clinic.

Consultation for company registration in the UAE

When you plan to register a company in the UAE, it is advisable to consult a consulting firm to develop a personalized plan that aligns with your goals.

Choosing a jurisdiction for company registration

The first step is choosing a legal jurisdiction: mainland zone, free zone, or offshore. For example, registering locally.

In the United Arab Emirates, it is easiest to obtain a permit and visa for freelancers, making it attractive for those who want to provide services to companies. The cost of the permit is around 7,000 dirhams (approximately 2,000 dollars), but the total amount including the visa can reach 18,000 dirhams (about 5,000 dollars). It is important to remember that not every type of activity is covered by this permit, and annual renewal as well as a license will be required.

Free zones

“Free zones” are an excellent choice for those who do not plan to conduct business in the UAE but need an office and staff.

Against the backdrop of rapid economic growth and a stable banking system

Dubai is becoming increasingly attractive to foreign investors. The business opportunities in this emirate are truly limitless, and it is essential to first identify a niche, target potential consumers, and analyze competitors. Opening an office in the UAE is often seen as a way for foreign companies to enter a new promising market, but Russian investors are also increasingly choosing Dubai for relocating their businesses due to the favorable business environment and simplified taxation.

Obtaining a business license in the UAE

It's not as complicated a task as it may seem. It covers a specific type of activity and usually takes from one to three weeks. In addition, every company here is required to keep accounting records, and depending on the nature of the activity, additional permits may be required.

An important step in business in the UAE is choosing a jurisdiction.

The mainland zone, free zone, or offshore - each has its own features and requirements, and undoubtedly requires professional consultation before making a decision. A local company (LLC) remains the most common choice for operating in the local market, and with the introduction of changes to the commercial companies law, foreign investors can now be 100% owners of a business on the mainland.

Important factors for a successful business startup in Dubai

• Thorough planning:A successful start in business requires detailed planning and market analysis.
• Professional consultation:It's important to seek help from specialists to avoid mistakes and problems in the process.
• Compliance with local legislation:Understanding and complying with local laws and regulations is essential for successfully conducting business in Dubai.