6 Steps to start a small business in United Arab Emirates.

The World Bank has recognized the UAE as one of the least cumbersome countries in which to set up a new business.

According to its 2016 Doing Business ranking, United Arab Emirates is ranked 31 out of 189 economies in the world and first in the Arab world for 3rd year in a row.

There are a variety of reasons why so many entrepreneurs from all over the world prefer to do business in the United Arab Emirates.

The country’s favorable tax policy, which levies 0 percent on both personal and corporate incomes, is a big lure. There’s also the UAE’s strategic location in the middle of the Middle East, which makes it an ideal hub for worldwide trade.


Steps to open a small business in Dubai, United Arab Emirates: 

To start a small business in Dubai or the UAE, you only need to follow six simple steps.

  1. Decide your business activity.

The very first step to open a small business in Dubai, United Arabi Emirates is to decide what’s your business activity. There are thousands of possible activities to choose from, and it’s critical that you include all of them on your license application.

Failure to specify each and every one of your proposed activities may result in problems down the road. As a result, consulting with a business formation professional is recommended while making this decision. Such professionals are familiar with permitted activities and can recommend those that are most appropriate for your business.

  1. Decide the best Company Name for your business.

Now that you’ve established your business activities, it’s time to choose a name for your business. When naming a company in the UAE, there are a few factors to consider. You must follow a set of naming rules that are both stringent and simple to follow. This is another step where a company setup specialist can assist you.

In short, any disrespectful or profane words should be avoided. If you’re calling your company after yourself, stay away from well-known companies’ names and abbreviations.

  1. Decide where to set up; Free zone or Mainland (Dubai)?

Before you submit your license application, you must first select whether you want to start your business in a free zone or on the mainland.

Both have numerous advantages. Free zones like Fujairah Creative City provide advantages like a simple and quick incorporation process, ongoing business support, and financial incentives like tax exemptions and no currency limitations.

Mainland business, on the other hand, allows you to trade directly with the UAE market and take on potentially lucrative government contracts.

  1. Make an application for a business license.

A business license is, of course, one of the most crucial criteria for starting a small business.

For both free zone and mainland businesses, obtaining a small business license is an easy process. To launch a small business on the mainland, you must apply for a license directly with the Department of Economic Development or the Municipality in the Emirate where you will be operating. Mainland license applications typically take three weeks to process.

However, for free zone, you must apply directly to the relevant governing authorities. Depending on the type of your business and the license required, free zone licenses can typically be granted in a matter of days. It is a good idea to retain the services of a business formation professional at this stage to ensure a seamless process.

Whether you apply on your own or through a company formation agent, you will typically only need to give a few details and some basic documentation, such as:

  • Application form filled out completely
  • Passport copy of the proposed owner or owners
  • Two colour passport size photos.

Free zones are a good option if you’re looking for a low-cost or no-cost way to launch a business in Dubai. Many modest license packages are available in free zones such as Fujairah Creative City, which require no paid-up share capital, no annual audit, and a simple formation process. There is also no requirement for you to be physically present in the UAE in order to start your new business.

  1. Applying for visa.

A UAE visa is another important need for starting a small business. The procedure for applying for your personal visa, as well as the visas of your staff, is specific yet simple. This is another step where an expert in UAE business formation can assist you.

You can also sponsor others for their visas if you have a UAE company license. A spouse, parent, or kid, as well as a domestic worker such as a housekeeper, could fall into this category.

The maximum number of visas you can apply for is determined by the size of your business, the setup you choose, and, in the case of dependent visas, your personal earnings.

  1. Opening a business bank account.

Due to the UAE’s strong anti-money laundering legislation, access to corporate banking facilities is difficult for foreign entrepreneurs. Working with a professional in the sector makes the process go much more smoothly.

Experts in company formation have strong ties to both local and international banks and can quickly connect you with the one that best suits your needs – even setting up face-to-face meetings if necessary.

If you’re looking for a company license in Dubai, a Dubai free zone visa, or the lowest trade license in the UAE, you’ve come to the right place. Then our team can assist you.


Are you ready to establish a small business in the United Arab Emirates?

While the steps to start a business in the UAE are not particularly difficult, they do necessitate some prior knowledge of the process. Furthermore, it’s worth noting that the application process is only simple if your business application is full and error-free at the time of submission.

To help you ensure that this is the case, it’s a good idea to work with a company formation specialist when establishing a new company in the UAE.

As well as handling your license application, a company formation expert can also assist with the opening of corporate bank accounts and advise on the most appropriate financial institution to suit your specific needs.

Many also provide visa and immigration services, and can assist with all government formalities, clearances, work permits, and visa applications needed to do business in the UAE.

In summary, company formation professionals can set up your business on your behalf, file your license and visa applications, and handle all of the paperwork, leaving you free to focus on what you do best.

Parker Russell Business Set-up Services

With Parker Russell we make it simpler and easier for you. Our time-tested process saves you time and money, while eliminating the stress of starting up on your adventure.

Since 1998, our business setup consultants have assisted more than 25,000 business owners and founders in the UAE. We’ve taken care of the difficult lifting and guided them through a variety of possibilities so they can focus on their exciting new adventure. Our method saves you time and money while also removing the stress of getting started on your journey.

Our Business Set Up Services: 

Business Set up in Mainland 

Business Set up in Free Zone 

E-commerce License in UAE

Freelance License in UAE

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