Arabian Dream: How to Start a Business in the UAE
16.06.2023
Welcome to the realm of boundless possibilities – the United Arab Emirates. It is an ideal destination to bring your business ideas to life with its strategic advantages and thriving business environment.
In this article, Lucky Hunter is excited to share the essential steps to navigate the landscape of opening a business in the UAE: from initial planning to legal considerations. As a bonus, our CEO, Tatiana Melnichuk, will share her first-hand insights and personal experience in establishing a business in the UAE.
In this article, Lucky Hunter is excited to share the essential steps to navigate the landscape of opening a business in the UAE: from initial planning to legal considerations. As a bonus, our CEO, Tatiana Melnichuk, will share her first-hand insights and personal experience in establishing a business in the UAE.
Research and Planning
Before embarking on your entrepreneurial journey, conduct thorough research and develop a solid business plan.
- Identify your business idea and target marketStart by brainstorming and evaluating ideas that match your interests and market demand. Conduct market research, analyse the target market, and identify a unique selling proposition (USP) that sets your business apart.
- Develop a comprehensive business planDeveloping a comprehensive business plan is crucial for success. It provides a clear roadmap, sets goals, and outlines strategies. It helps identify potential challenges and opportunities, ensuring informed decision-making and guiding the growth of the business.
- Validate your business conceptValidate your business idea and plan by seeking feedback from experts, mentors, and potential customers. Use focus groups, surveys, or test marketing to gather insights and identify areas for improvement. Adjust your plan based on feedback to ensure market viability.
With the brainstorming completed, it's time to transition from ideation to action.
Legal Requirements
Dubai offers various legal structures for businesses, including mainland and free zone options. Each has its advantages and considerations. Then depending on the option you chose, proceed with the necessary steps.
Are you thinking about relocating to Dubai? Check our guide on visa and immigration requirements for IT professionals.
Mainland
1. Establish the category
Firstly, you need to establish the category of your business activity to get a licence. It can be:
2. Determine Your Company's Legal Structure
The choice of a legal structure is driven by the specific requirements of the business, as it sets the framework for the laws and regulations that the company must comply with.
3. Register the Trade Name
The trade name should have an appropriate abbreviation of the legal structure of the company as its suffix (e.g., LLC, PJSC). Secondly, it should not include any offensive or inappropriate language, the names of rulers, government agencies, or the names and logos of government bodies. Ensure that the chosen trade name is not already registered by another company.
4. Apply for Initial Approval
5. Create LSA or MOA
If your company adopts a legal structure such as a civil company, limited liability company, public shareholding company, or private shareholding company, a Memorandum of Association (MOA) is mandatory. On the other hand, if your company is a sole proprietorship, a local service agent agreement (LSA) is required.
6. Choose Your Business Location
7. Apply for Additional Government Approvals
8. Submit Required Documents
- Receipt of initial approval and copies of all previously submitted documents;
- Copy of lease contract, duly attested;
- Memorandum/s of Association, as required;
- Approvals from other government entities, as required.
9. Pay Fees and Collect Licence
10. Register Your Company with the Chamber of Commerce and Industry
Free Zone
1. Determine the Nature of Your Business Activity
2. Determine Your Company’s Legal Structure
- Free Zone Limited Liability Company (FZ LLC);
- Free Zone Company (FZ Co.);
- Free Zone Establishment (FZE).
3. Register the Trade Name
It should meet the same requirements as the ones for the mainland.
4. Select Business Space and Location
5. Obtain the Initial Approval
Documents that might be required:
6. Registration and Payment of Fees
Opening an office in Dubai: first-hand experience
Last year, the CEO of Lucky Hunter, Tatiana Melnichuk, went through the whole process, and today, she shares her own experience in opening a bank account and a legal entity in the UAE.
- Tatiana MelnichukLucky Hunter CEOTo open a legal entity in Dubai, all you need is a passport, the name of your company and paid fees.
It is extremely challenging to handle it independently, so I strongly advise you to seek the assistance of a lawyer. The approximate cost, including different sorts of fees and payments for the licence, cost me about 23000$.
When it comes to opening a bank account, I'd say it's even more intricate.
Before getting a bank account, foreigners must obtain a resident permit.
To proceed, you will have to test for AIDS, hepatitis, syphilis, and tuberculosis, ensuring that you receive negative results.
After that, you can file a request to open a bank account. You will need:- Resident permit
- Sim-card
- Passport
- Utility bills (to show the address where you live)
- Contracts with your clients
- Expected turnover of your company
- Detailed business plan
- Personal and business bank statements
The required documents may vary depending on the bank, so you need to prepare for the possibility of additional document requests.
In addition, be ready to make a non-withdrawable deposit of $20,000 into your bank account.
Regarding time stamps, company registration typically takes approximately one month, while opening a bank account usually takes around three weeks.
A bank account in the UAE offers numerous advantages, making it a reliable and high-quality choice. You will benefit from one of the most advanced banking systems, enjoy tax-free status, and have the opportunity to engage in international business transactions. However, it is essential to consider the cost of services as a potential drawback.
In my case, I invested approximately $50,000 to establish a bank account in the UAE: but I firmly believe that the benefits outweigh the expenses, considering the UAE's reputation as a high-quality and reliable destination for entrepreneurial endeavours. It is necessary to consider that this may not be suitable for everyone, as the UAE primarily caters to companies with significant turnovers and the ability to pay a one-time fee of approximately $50,000.
To open a legal entity in Dubai, all you need is a passport, the name of your company and paid fees.
It is extremely challenging to handle it independently, so I strongly advise you to seek the assistance of a lawyer. The approximate cost, including different sorts of fees and payments for the licence, cost me about 23000$.
When it comes to opening a bank account, I'd say it's even more intricate.
Before getting a bank account, foreigners must obtain a resident permit.
To proceed, you will have to test for AIDS, hepatitis, syphilis, and tuberculosis, ensuring that you receive negative results.
After that, you can file a request to open a bank account. You will need:
The required documents may vary depending on the bank, so you need to prepare for the possibility of additional document requests.
In addition, be ready to make a non-withdrawable deposit of $20,000 into your bank account.
Regarding time stamps, company registration typically takes approximately one month, while opening a bank account usually takes around three weeks.
A bank account in the UAE offers numerous advantages, making it a reliable and high-quality choice. You will benefit from one of the most advanced banking systems, enjoy tax-free status, and have the opportunity to engage in international business transactions. However, it is essential to consider the cost of services as a potential drawback.
In my case, I invested approximately $50,000 to establish a bank account in the UAE: but I firmly believe that the benefits outweigh the expenses, considering the UAE's reputation as a high-quality and reliable destination for entrepreneurial endeavours. It is necessary to consider that this may not be suitable for everyone, as the UAE primarily caters to companies with significant turnovers and the ability to pay a one-time fee of approximately $50,000.
It is extremely challenging to handle it independently, so I strongly advise you to seek the assistance of a lawyer. The approximate cost, including different sorts of fees and payments for the licence, cost me about 23000$.
When it comes to opening a bank account, I'd say it's even more intricate.
Before getting a bank account, foreigners must obtain a resident permit.
To proceed, you will have to test for AIDS, hepatitis, syphilis, and tuberculosis, ensuring that you receive negative results.
After that, you can file a request to open a bank account. You will need:
- Resident permit
- Sim-card
- Passport
- Utility bills (to show the address where you live)
- Contracts with your clients
- Expected turnover of your company
- Detailed business plan
- Personal and business bank statements
The required documents may vary depending on the bank, so you need to prepare for the possibility of additional document requests.
In addition, be ready to make a non-withdrawable deposit of $20,000 into your bank account.
Regarding time stamps, company registration typically takes approximately one month, while opening a bank account usually takes around three weeks.
A bank account in the UAE offers numerous advantages, making it a reliable and high-quality choice. You will benefit from one of the most advanced banking systems, enjoy tax-free status, and have the opportunity to engage in international business transactions. However, it is essential to consider the cost of services as a potential drawback.
In my case, I invested approximately $50,000 to establish a bank account in the UAE: but I firmly believe that the benefits outweigh the expenses, considering the UAE's reputation as a high-quality and reliable destination for entrepreneurial endeavours. It is necessary to consider that this may not be suitable for everyone, as the UAE primarily caters to companies with significant turnovers and the ability to pay a one-time fee of approximately $50,000.
Tatiana Melnichuk
Lucky Hunter CEO
Hiring specialists
Once the legal processes are completed, the most crucial aspect of your business awaits: hiring specialists.
Understanding the labour laws and regulations in the UAE is essential when it comes to hiring employees. That’s where an IT recruitment agency like Lucky Hunter can be invaluable. We will listen to your requirements, build the right search strategy to identify the most suitable candidates for your business.
Fill out the form below and we will contact you as soon as possible.
Understanding the labour laws and regulations in the UAE is essential when it comes to hiring employees. That’s where an IT recruitment agency like Lucky Hunter can be invaluable. We will listen to your requirements, build the right search strategy to identify the most suitable candidates for your business.
Fill out the form below and we will contact you as soon as possible.
Alexandra Godunova
Content Manager at Lucky Hunter
Focusing on a diverse range of topics including talent acquisition strategies, employer branding, workplace culture, leadership development, and industry trends. With her extensive knowledge, she delivers engaging content that helps businesses thrive in the competitive landscape of today's job market.
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