Step by step plan to open your business in the UAE

Business setup in the United Arab Emirates became very attractive due to its strategic location, business-friendly environment, advanced banking system, currency stability and various free zones that offer a wide range of activities, office and warehouse facilities and attractive tax benefits.

Choose a company type:

You can consider a Free Zone Company:

• If you want to do business outside the UAE or between Free Zones;
• Have 100% ownership of your business;
• Willing to operate on-line and within a specific free zone;
• Use tax benefits;
• Office is not mandatory.

You can consider a Mainland Company:

• If you plan to do business on Main Land;
• Have office and hire employees;
• Open shop, supermarket, beauty salon, restaurant, clinic, pharmacy, school, nursery, car rental or provide services.

Offshore Company:

For businesses that don’t require a physical presence in the UAE and are mainly used for holding assets or international trading.

2. Choose correct business activity:

In the UAE it is very important to choose the correct activity for your business and you should pay attention to the fact that some activities can’t be in one trade license.

3. Select your company name:

You will need to choose 3 names for your future company before submitting your application. Choose a unique and appropriate name for your business. Make sure it complies with UAE naming regulations.

4. Obtain necessary license and approvals:

Depending on your business activity and location (free zone or mainland), you’ll need to apply for the relevant licenses and approvals from government authorities.

If you’re setting up a mainland company, you might need a local Emirati partner who will hold at least 51% ownership in the business. There are exceptions for certain professional licenses.

5. Register your business:

Submit the required documents and pay the necessary fees to register your business with the relevant authorities.

7. Open a corporate bank account:

You should be very careful while submitting documents for your bank application. Make sure that source of funds is very clear for the banker, prepare your passport copy, Emirates ID, tenancy contract, utility bills, CV, business plan.

8. Arrange an office space:

Free Zones will suggest a flexi desk facility and office space for your needs.

If you opened a Main land company, you will need an office in Dubai. Office size will depend on the number of employees (9 sq m per employee).

9. Hire employees (if needed):

If your business requires employees, you’ll need to apply for work visas and comply with UAE labor law. Also, you will need to provide them health insurance.

10. Comply with UAE taxation regulations

All companies should maintain their records and implement accounting software.

The UAE has introduced 5% of Value Added Tax (VAT) in 2018. When your turnover is above 375000 AED you will have to register for VAT and obtain TRN number and pay VAT tax on quarterly basis.

In June 2023 was introduced 9% of Corporate Tax from net profit and applied from the beginning of the first financial year. All companies have to register for corporate tax. All annual taxable profits below AED 375,000 shall be subject to zero rate. All annual taxable profits above AED 375,000 shall be subject to 9% rate.

11. Trade mark and product registration and certification

If your business relies on intellectual property, consider registering trademarks. All food products, consumer goods, electronics have to be registered with Dubai Municipality.