You can see why so many people want to start a business in the UAE when we look at how far the country has come in such a short time. In fact, Dubai’s Department of Economic Development (DED) says that the number of new businesses that want to do business in Dubai has grown by 13% year over year. The same is true on the country’s level. Services, banking, trade, and real estate are all making money. Obviously, using this opportunity is the most strategic decision to be made.

Starting a Business in the UAE for a Foreigner

There are some good reasons to put your money into Dubai:

• Zero tax policy  — When a business is set up in Dubai, it doesn’t have to pay company tax, withholding tax, VAT, import/export tax, or capital gains tax.
• Balanced income policy — UAE has made more than 66 agreements with big countries like China, the USA, and most EU members to avoid paying two sets of taxes on the same income.
• Easy access to local cash — Since there are no trade rules, it is easy for foreigners to get their hands on local cash.

Also, people from other countries who want to start a business in Dubai move there and enjoy the international atmosphere. People from all over the world live in Dubai. This means that the city boasts the newest ideas and a limitless pool of skilled professionals. Furthermore, it is easy to start a business in the UAE — the country has business-friendly policies, a strategic location, and favorable tax breaks.

How Fast Can You Open a Company in the UAE?

There is no single answer to this question. It all depends on multiple factors, such as the business type, location, and your level of formal preparation. Let’s break down the main steps and give you an idea of how long each phrase usually takes. This will help you see how quickly you can get your business up and going.

Factors Affecting the Time It Takes

Keep an eye on the following factors as they will heavily impact your time resources:

• Type of Business — Some business types may require extra paperwork or approvals.
• Location — Processing times are usually faster in Free Zones than on the Mainland, but businesses on the Mainland have more options for getting into local markets.
• Paperwork — The process can go much faster if all the necessary papers are in order.
• Approvals from the government — The UAE government is usually quick, but working times may be a little different based on the Free Zone or government department.

Of course, it is way better to order professional consultancy to help you with company formation in UAE. This will significantly speed up the process and help you avoid all possible pitfalls.

1. Business Type and Setup

You need to decide what your business will do and how it will be set up legally before you can start the filing process. The UAE lets people do many types of business, such as commercial, industry, and skilled services. What you do for a living will determine what kind of license you need and how you set up your business (ex., as a single proprietorship, an LLC, or a branch of a foreign company).

2. Business Name Reservation

Once you know what you want to do for business, you need to choose a name for your company. The trade name has to be unique and follow the rules for names in the UAE. This means it can’t have any insulting words or links to political or religious groups. The Department of Economic Development (DED) or the Free Zone body in charge must agree to the trade name.

3. Application for a License

Your business type and setup will determine the type of business license you need to apply for. There are three main license types for you to consider:

• Commercial License — This is for companies that trade or do business.
• Professional License — This is for workers, service companies, and advisors.
• Industrial license — This is needed to produce products and do other industrial tasks.

The process of applying for a license is easy, especially in Free Zones where rules are less strict. Mainland companies may need extra permissions, based on the type of business.

4. Setting up a Business

You can start your business once your trade name and business license have been accepted. This step is where you send in the necessary paperwork, like a copy of your visa, the Memorandum of Association (MOA), and any other forms that are needed. The licensing process makes sure that the UAE government sees your business as a real organization.

5. Getting an Office Space

In the UAE, every business needs to have an address. Depending on the type of business you have and where you are (Mainland or Free Zone), this could be a real office or a virtual space. You will need to sign a lease deal once you have found an office. This is necessary to move on to the last steps of registration.

6. Applying for a Visa

If you own a business in the UAE, you will need to get a work visa. With this visa, you can live in the UAE and run your business there. You can also pay for people’s visas if you want to hire them. Free Zones usually offer visa deals as part of their services for setting up a business. On the other hand, companies on the mainland will need to apply through the right government platforms.

7. Getting a Bank Account for Your Business

Businesses must have a local company bank account in order to properly do business in the UAE. As part of the process, you’ll need to send in things like your business license, proof of your address, and information about your owners. It may take a while to open an account with a UAE bank because they are very careful when checking out businesses.

Give a Try to Opening a Business in the UAE

With a strong economy and a diverse population, the UAE is a center for business and trade between countries. It’s a great idea for foreigners to start a business in the United Arab Emirates. Give it a try and see how that works.