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Tip: Consulting a business setup expert can help you make the best decision based on your industry and operational needs.
When considering starting a business in Dubai, understanding the key differences between mainland and free zone setups is crucial. Here’s a comparison to help you decide based on your business goals and needs:
Note: Carefully consider your business goals before choosing between a Dubai mainland and free zone setup.
Dubai offers three primary types of business licenses based on the nature of your business activities:
All business licenses in Dubai are regulated by the Department of Economic Development (DED). It is essential to accurately define your business activities since each license allows for up to ten activities. For businesses operating in specific free zones or offshore, different licenses and requirements may apply.
Starting a business in Dubai involves a few essential legal and regulatory steps, including:
Given the complexity of the setup process, it’s highly beneficial to work with a business formation expert to navigate these steps efficiently.
When setting up a business in the UAE, two important elements to understand are the Local Service Agent (LSA) agreement and the Local Sponsor system.
Both systems are vital for specific business setups, and understanding how they work can guide you in making informed decisions.
Dubai offers various legal structures for businesses depending on your needs and goals:
Each structure has its own advantages, and choosing the right one depends on your business model, expansion plans, and the degree of control you wish to maintain.
Yes, foreign investors can enjoy 100% ownership in certain types of business setups in Dubai. For example, in many of Dubai’s free zones, foreigners can fully own their businesses. Additionally, with recent changes in the UAE’s Commercial Companies Law, foreign ownership is now allowed up to 100% in various sectors outside of free zones as well. However, it’s important to note that some sectors, such as banking and telecommunications, still have restrictions on foreign ownership.
Business setup consultants, such as Noble Core, help guide you through the entire process of establishing your business. They assist with choosing the right business activity and name, determining whether to set up in a free zone or mainland, and handling all the necessary paperwork for obtaining your business license and opening a corporate bank account. With strong connections to government departments, banks, agencies, and insurance companies, they can offer invaluable support as you get your business up and running. Consultants are well-versed in local laws, requirements, and potential challenges, helping you save both time and effort. If you’re hiring employees, they can also guide you through the visa setup process. Their goal is to streamline your business setup, allowing you to focus on running your business once it’s operational.
Opening a corporate bank account in Dubai is a simple process, but it requires some essential documentation and a visit to the UAE. Here’s an overview of the steps involved:
Make sure you choose the right type of account to fit your business requirements.
The share capital requirements for establishing a business in Dubai can vary based on the type of business and the free zone you select. Some free zones do not require you to demonstrate share capital, while others may ask you to specify the amount on the application without the need to provide evidence. These requirements are subject to change, so it’s best to check with your preferred free zone or consult with a business setup expert for the most accurate and up-to-date information.
The process of obtaining employment and residence visas for employees involves the following steps:
If your business is based in a free zone, you will need to coordinate with the relevant free zone authority to initiate the work permit and residence visa procedures.
The Golden Visa in the UAE is a long-term residency program aimed at investors, entrepreneurs, and highly skilled professionals. Unlike regular visas, which typically have a validity of up to 3 years, the Golden Visa offers residency for 5 to 10 years, with the possibility of automatic renewal.
One of the key differences is that the Golden Visa does not require a national sponsor, making the application process smoother. Additionally, it allows the visa holder to own 100% of their business in the UAE. However, the Golden Visa program comes with strict eligibility criteria and is generally targeted at individuals willing to make significant investments in the UAE.
Visa processing times in Dubai generally take between 2 to 4 weeks. However, the exact timeframe can vary depending on factors such as the type of visa being applied for and how complete the application and supporting documents are.
Regarding fees, they can differ greatly based on the type of visa and any additional services required during the application process.
Each free zone in the UAE is designed to support specific industries. For example:
Each free zone has unique rules, advantages, and procedures, so it’s essential to select the one that best aligns with your business requirements.