Setting up a business in the United Arab Emirates is a dream for most company owners and investors; the region's dynamism, strategic location, and investor-friendly atmosphere are hard to resist. The UAE provides various ways of setting up companies: on the mainland, within one of its 40+ free zones, or offshore. Business owners or investors can select physical office spaces, warehouses, or a virtual office setup while tailoring their business needs to the unique opportunities the UAE holds.
Documents Required to Start a Business in Dubai
Businesses willing to operate in Dubai need to get their firm registered with all essential approvals. The process necessitates the preparation and submission of the following primary documents initially. These include:
- Filled Application Form
- Copies of passports of all stakeholders with a minimum of 6 months of validity.
- Memorandum of Association (MoA).
- Ejari—Office Tenancy Contract: This is required in the UAE when there is a need for an actual physical working space (office or warehouse).
Note: Trade Name Approval / Initial Approval will be done when you provide a few name options, and the authorities will approve one.
Apart from the aforementioned necessary documents, based on the business activity of the company, some approvals from other government and private agencies may be required. The following are the main ministries and authorities, and respective business activities licensed by those authorities:
- Ministry of Interior: General transport, driving schools, fire equipment, alarm and safety systems, dealers in used cars, dealers in used auto parts, car rental.
- Ministry of Justice: Legal activities and legal consultancy.
- Local Municipal Department: Architectural and engineering affairs.
- Telecommunications and Digital Government Regulatory Authority (TDRA): Telecommunication activities.
- Executive Council: Travel and Tourism, general services, charter trading, ship and maritime agencies, car clubs, charter air transport, foreign company branches.
- Ministry of Economy: Insurance activities and insurance consultancy
- Local Health Departments: All health-related activities
- Supreme Petroleum Council: Onshore and offshore gas and oil-field services, onshore and offshore oil drilling operations.
- SIRA(Security Industry Regulatory Agency) – Mandatory approval for all jewelry trading companies
BMS will confirm with the relevant authorities and will inform you of the approval process when applying for the license.
Depending on the nature of your business, acquiring these particular approvals will be essential for the compliance and successful operation of your business in Dubai.
Setting up a Business in Dubai, UAE
The procedure for establishing a business in Dubai involves several decisions, from choosing the right business activity to deciding on license type and whether to set up in a free zone or on the mainland. This chapter spells out the process in seven steps as an overview.
1. Selection of Business Activity
While setting up a company in UAE, the business activities have to be chosen from a list provided by the relevant registration authority. Some activities falling under ‘Technical Services’ include plumbing, electrical works, and AC maintenance. Multiple activities can be added under one license; however, costs vary from Emirate to Emirate and also by activity.
The type of business activity may dictate the jurisdiction in which one should set up the new company.
2. Business Activity Selection and Documentation
BMS will help you sail through all the regulatory barriers to establish your business on the UAE mainland. We assist in the preparation of paperwork, liaising with the concerned government authorities, and seamlessly overseeing licensing procedures. From locality selection to visa arrangements, BMS is there to support end-to-end processes. Our local knowledge and commitment to the success of clients make complex setups look easy. At BMS, you will have a trusted partner who will help you realize your UAE business vision effectively and compliantly.
3. Free Zones Cost Considerations
Every free zone has various groups of activities, and we assist in the selection of activities at the time of application or after selecting your activity. All these activities have different fees, and our team will help you in choosing the best activity for your business while considering cost impacts and suitability.
If a Freezone has a provision for the number of business activities on a license, additions to that list during or after the setup phase attract additional fees.
4. Choose a name for your company
The selection of a company name is a subtle yet very important aspect of the setup process in Dubai. In the UAE, there are stringent policies for business names. The criteria are as follows:
- Uniqueness: The name should be unique and not similar in spelling or phonetics or in any other way to any other company name in the UAE.
- Cultural and Religious compatibility: The name needs to be compatible with the cultural and religious identity of the country and shall not hold any abusive or inappropriate language.
- Adherence to Specific Authority Guidelines: The name should not break any specific rules set by the concerned authority.
- Abbreviation of Legal Structure: It must contain an abbreviation of the legal structure, for example, LLC or PJSC. This complies with UAE legislation.
In the form of the application for a name, it is advisable to apply with three options to smoothen the processing of its approval.
5. Collect all business registration documents.
We identify and gather all documents required to be submitted to every authority, ensuring that they are accurate and complete. BMS thus assists in the preparation and submission of such documents to smoothen the licensing process. Our support avoids probable delays, ensures full compliance with all regulatory requirements, and makes setting up a business very easy and quick.
6. Obtain Your Business License
After document submission, the application will be forwarded to the authorities for checking and approval. In case of any objections, BMS will prepare supplements or clarification documents on your behalf. Under ideal conditions, company registration usually takes 4-6 working days.
7. Corporate/Company Bank Account Opening
BMS will help you determine the ideal bank that best matches your specific business needs. We assist our clients with the application and approval for a corporate bank account. We, at BMS, have good relations with all major banks so that you get personalized service and support. Our team will walk you through the application process, manage the documentation, and follow up to ensure that the set-up of your corporate bank account is smooth and efficient.
8. Visa Applications
BMS assists in the processing of visa applications for investors, employees, and other personnel. We oversee the entire procedure from document submission to approval, making sure all the paperwork is accurately prepared and submitted. Liaising with the relevant authorities and following up about the application status in terms of ensuring that compliance is followed, we ensure a smooth and efficient way of acquiring visas.
We will process your visa application through verified online government portals. On approval, we book your medical check, within 2 days normally. We then apply for Emirates ID, for which you have to visit one of the verified centers to get your Biometric verification done. Within 2 to 4 working days, an Emirates ID usually gets issued.
Additional requirements include applying for a Labor Card from the Ministry of Human Resources and Emiratization in the case of employee visas. BMS will apply with a job description and tenancy agreement for visa approval, handle the deposit process, and any other requirements.
Simplifying Business Setup in Dubai with BMS Auditing
Choosing BMS Auditing as your partner ensures a smooth business setup process in Dubai. With our expertise in navigating complex regulations and providing reliable support, we help you focus on your business goals while we handle compliance and documentation. Trust us to make your entrepreneurial journey seamless and stress-free.
