How to Setup Business in UAE in 2024

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How to Setup Business in UAE in 2024

The UAE is one of the most attractive destinations for entrepreneurs who want to start or grow their businesses in the Middle East. The UAE offers a stable economy, a strategic location, and a favorable tax regime. However, setup business in the UAE can be challenging if you are not familiar with the legal and administrative requirements.

That’s why you need Makateb, a company that provides business incorporation services in the UAE. Makateb can help you with every step of setting up your business in the UAE, from choosing the right type of company to obtaining the necessary licenses and visas to managing your business operations.

Read: How To Get Residency in Dubai

1. Choose the Type of Company that suits your business

The first step to setup business in UAE is to decide what type of company you want to establish. You may be asking What is the difference between mainland, free zone, and offshore companies? 

Here are the three main types of companies in the UAE:

Mainland company

A mainland company is a company that operates within the UAE market and is subject to the UAE Commercial Companies Law. A mainland company requires a local sponsor who owns at least 51% of the shares, except for some professional activities that allow 100% foreign ownership.

Free zone company

 A free zone company is a company that operates within a designated area and offers special incentives and benefits, such as 100% foreign ownership, 100% repatriation of capital and profits, and tax exemptions. A free zone company can only trade within the free zone or outside the UAE unless it obtains a special permit.

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Free zone company

 A free zone company is a company that operates within a designated area and offers special incentives and benefits, such as 100% foreign ownership, 100% repatriation of capital and profits, and tax exemptions. A free zone company can only trade within the free zone or outside the UAE unless it obtains a special permit.

Offshore company

Offshore company is a company that is registered in the UAE but does not conduct any business within the UAE. An offshore company can be used for international trade, investment, or asset protection. An offshore company does not require a local sponsor and enjoys tax benefits and confidentiality.

You don’t know what type is best for you to set up a business in UAE? Don’t worry we got your back. Makateb can help you choose the best type of company for your business goals and needs. Makateb can also advise you on the best location and license for your business activity.

2. Steps to Register Your Company in UAE

  • Selecting a trade name and checking its availability
  • Applying for initial approval and registering your trade name with the Department of Economic Development (DED) or the free zone authority
  • Preparing a Memorandum of Association (MOA) and a business plan
  • Getting additional government approvals depending on your business activity
  • Submitting all the required documents and paying the fees

Your time is limited? Makateb can handle the registration process for you, from preparing the documents to submitting the applications to paying the fees. Makateb can also speed up the process by using its online platform and its network of contacts.

3. Obtain Your License and Visa

The third step to setup business in UAE is to obtain your license and visa. The license is a document that authorizes you to conduct your business activity in the UAE. The visa is a document that allows you to enter and stay in the UAE.

The type of license and visa you need depends on your type of company, your business activity, and your nationality. There are different types of licenses and visas available in the UAE, such as:

  • Commercial license
  • Professional license 
  • Industrial license
  • Investor visa
  • Employment visa
  • Residence visa
  • Family visa

Remember that Makateb can help you obtain your license and visa by applying on your behalf, collecting and submitting the documents, and following up with the authorities. Makateb can also help you renew your license and visa when they expire. Focus on your business operations and let all the legal documents on us.

4. Manage Your Business Operations

The fourth step to setup business in UAE is to manage your business operations. This involves taking care of various aspects of running your business, such as accounting, banking, and marketing

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FAQs

How can I open a bank account in Dubai/UAE?

To open a bank account in Dubai/UAE, you need to provide the following documents:

  • A valid passport and visa
  • A trade license or certificate of incorporation
  • A memorandum of association or articles of association
  • A resolution from the board of directors authorizing the opening of the account
  • A proof of address, such as a utility bill or tenancy contract

What sort of business activities need special approvals?

Some business activities need special approvals from specific authorities before obtaining a trade license. These include:

  • Health care, education, media, tourism, and financial services, which need approval from the relevant ministry or department
  • Oil and gas, electricity, water, telecommunications, and postal services, which need approval from the Supreme Petroleum Council, the Federal Electricity and Water Authority, the Telecommunications Regulatory Authority, and Emirates Post Group

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What is the minimum investment to start a business in Dubai?

It depends on several factors, such as The type of business activity, The location of your company, The number of visas and office space, The legal structure of your company. But, According to some sources, the minimum investment to start a business in Dubai is:

  • AED 11,900 for a free zone company with a trading license, no office space, and zero visa quota
  • AED 18,500 for a mainland company with a limited liability structure, plus AED 6,000 for 10 visa quota and office space.

Conclusion

Setting up a business in the UAE can be a lucrative venture, but it requires careful planning and adherence to local regulations. With Makateb’s expert services, you can streamline the entire process, from company formation to visa services and ongoing corporate support. By choosing Makateb as your partner in business incorporation, you’ll be well on your way to success in the thriving UAE market. Contact us today to get started on your journey towards business success in the UAE

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