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5 Top Tips For Starting a Small Business in UAE


Dubai has emerged as heaven for investors from all around the world. It appeared as one of the fastest developing economies in the world. The launching of a Small Business setup plays a vital role in Dubai’s, success although the complicated licensing and registration required specific capital to start the business. Dubai provides an attractive and most suitable environment for businessmen as compared to other states or regions. The UAE authorities have taken various steps to encourage people from all around the globe to start business setup in Dubai specifically small business enterprises.  The government has established certain authorities and taken various initiatives to provide a boost to the developing Small Business Setup in UAE.

Tips for Starting Small Business Setup: 

  1. Awareness about Business

Before starting a business venture the individual should acquire the basic knowledge related to the local region. A businessman should do extensive research about the services or products that he is going to offer and most necessarily the demand and consumption of your product along with the business plan to attract and persuade the local investors to be a part of your journey. One should go through the competitors that are available in the market right now; an individual’s strategy should make a different impact on your services and products from the other available in the market. Research also includes the cost consumed on the advertisement to see the response of customers toward your product. This step might cost you some dollars but in the future, it will provide your long-term benefit. Try to check the responses of people using social media sites, like by creating a poll or asking a questionnaire.

  1. Selecting Local Partner (GCC Resident)

In UAE local business partner or sponsor is mandatory which will own the majority of your business shares in your company and can control it. A partner can be an individual or a company based, they will not be required to participate financially to start a business. There are various ways to deal with the local partner regarding control and profit sharing. Before starting one should make a clear agreement with the local partner to avoid future confusion and conflicts.

  1. Financial Viability

After the registration of your business, proof of financial investment from an owner will be required by the Ministry of Commerce. Rather than trusting local support, an owner should develop his own resources via bank or any other legal means. Your idea of business will get an immense boom after the success of your concept from the market point of view and financial point of view as well. There are seven basic categories of commercial companies that can be launched in Dubai-UAE as per law. The business structure used to affect the requirements of starting a business set up in UAE like minimum capital levels, shareholders and procedures for incorporation.

  1. Limited Liability Companies (LLCs)

To launch a small business setup In UAE region, a Limited Liability Company structure is commonly adopted. The number of Limited Liability Companies (LLCs) that can be formed; ranges from two to fifty persons whose liability in the said company is limited to their share investment in the company. Local sponsors will have control over 51 percent shares of the business on another hand foreign shares i.e. is limited to 49%. In Dubai, you can make a capital investment not less than AED 300,000 (USD 82,000) to launch an LLC. The following steps should be taken in order to launch a business setup.

Step#1: Selecting and approving the name of the Company as per type of business after licensing from the Economic Development Department.

Step#2: Presenting Memorandum of Association which will address the external activities of the company. MOA should be notarized by a Notary Public in Dubai Court.

Step#3: Application for entry into the Commercial register at the Economic Development     Department should be submitted.

Step#4: After approval, EDD will issue a license and the company’s name will be entered into the Commercial Register. The Memorandum of Association will be published in the     Ministry of Economy and Commerce’s Bulletin.

Step#05: The last step is to get your company registered at the Dubai Chamber of Commerce and Industry.

  1. Professional Firms

In Case your firm deals with professional activities then 100% sole proprietorship will be provided but the number of staff that can be hired will be limited. In that case, the local service provider will be helpful in assisting the visa, licenses and labor cards-related documentation but will not have any direct participation in conducting business.

Companies launched in free zones have a different legal structure and are known as offshore companies. This type of business setup is best for those who are using UAE as a regional base in order to manufacture and distribute, the majority of their demands come from outside UAE.

Salient Features of Offshore Companies

  • 100% ownership
  • Repatriate of income and profits
  • Exemption from import duties
  • Zero corporation tax
  • Simple, quick, efficient administration-related support from free zone authorities.

Two largest free zones in Dubai are Dubai Airport Free zone and Jebel Ali Free Zone. Companies operating in these zones are commonly issued four types of licenses.

  1. Industrial based license
  2. Trading based license
  3. Service based
  4. National industrial based on company’s incorporation and its local production.

This kind of company can operate in free zones and outside the UAE. The company can make a purchase of goods and services within UAE but must have acquired a distributor or commercial representative to conduct business within UAE.

How Can We Help?

FAR Consulting Middle East was launched in 1985 at Dubai-UAE. FAR is a renowned Business Consultant in Dubai. FAR can completely assist you with how to start a business setup in Dubai. FAR will be with being with you throughout the whole process till completion. To gather all necessary information along with filling of excessive & critical documentation, FAR will not let you feel alone