Start your own business in Dubai, all what you should know

Open new company in Dubai

Opening a new company in Dubai involves several steps, but the process is relatively straightforward. Here are the general steps you need to follow:

Choose a company type: The first step is to decide on the type of company you want to establish. There are several options, including a Limited Liability Company (LLC), Free Zone Company, Branch Office, or Representative Office.

Choose a business activity: Next, you need to decide on the business activity or activities you want to carry out. This will determine the license you need to obtain.

Choose a company name: You will need to choose a unique name for your company that is not already registered in the UAE. Your company name must also comply with the UAE’s naming conventions.

Find a local sponsor: If you are establishing an LLC or a Branch Office, you will need to find a local sponsor or partner who will hold at least 51% of the company shares. The sponsor will act as a local service agent and will not have any involvement in the company’s management.

Obtain a trade license: You will need to obtain a trade license from the Department of Economic Development (DED) in Dubai. The type of license you need will depend on your business activity and the type of company you are establishing.

Register your company: You will need to register your company with the Dubai Chamber of Commerce and Industry (DCCI) and the Ministry of Economy. You will also need to obtain a tax identification number (TIN) from the Federal Tax Authority.

Open a bank account: Once you have obtained your trade license and registered your company, you can open a bank account in Dubai.

Obtain necessary permits: Depending on your business activity, you may need to obtain additional permits and approvals from government authorities.

Hire employees: If you plan to hire employees, you will need to obtain a labor card and work permits for your employees.

Find a location: Finally, you will need to find a suitable location for your business. You can either rent an office space or set up your business in a free zone.

It is recommended to seek the assistance of a business consultant or a local sponsor to guide you through the process and ensure that all legal requirements are met.

Cost of opening new company in Dubai

The cost of opening a new company in Dubai can vary depending on several factors, such as the type of company, the business activity, and the location. Here are some general costs you can expect when opening a new company in Dubai:

Trade license fee: The trade license fee can range from AED 7,500 to AED 15,000 depending on the type of license and the business activity.

Registration fee: The registration fee with the Dubai Chamber of Commerce and Industry (DCCI) can range from AED 1,000 to AED 10,000 depending on the type of company.

Local sponsor fee: If you are establishing an LLC or a Branch Office, you will need to find a local sponsor or partner who will hold at least 51% of the company shares. The sponsor fee can vary depending on the sponsor’s agreement.

Rent: The cost of renting an office space or a commercial property can vary depending on the location and the size of the space.

Visa fees: If you plan to hire employees, you will need to obtain a labor card and work permits for your employees. The visa fees can range from AED 5,000 to AED 8,000 per employee.

Miscellaneous fees: You may need to pay for additional permits, approvals, and services, such as legal fees, translation fees, and notarization fees.

Overall, the total cost of opening a new company in Dubai can range from AED 30,000 to AED 100,000 or more depending on the factors mentioned above. It is important to work with a reputable business consultant or a local sponsor to get a better estimate of the costs involved and ensure that you comply with all legal requirements.

Can open company in Dubai online

Yes, you can open a company in Dubai online through the Dubai Department of Economic Development’s (DED) e-services portal. The portal allows you to apply for a trade license, register your company, and complete other business-related transactions online.

To open a company in Dubai online, you will need to follow these steps:

Create an account on the DED’s e-services portal.

Choose the type of company you want to establish and the business activity.

Choose a company name and check its availability.

Upload the required documents, including your passport, visa, and proof of address.

Pay the necessary fees online.

Wait for the DED to review your application and provide you with a trade license.

Register your company with the Dubai Chamber of Commerce and Industry (DCCI) and the Ministry of Economy.

Open a bank account and obtain necessary permits and approvals.

It is important to note that not all types of companies can be established online, and some may require additional documentation and approvals. It is recommended to seek the assistance of a business consultant or a local sponsor to guide you through the process and ensure that all legal requirements are met.

Best investments in Dubai

Dubai is known for its booming economy and investment opportunities across various sectors. Here are some of the best investment options in Dubai:

Real Estate: Dubai’s real estate sector is one of the most attractive investment options, with a high potential for growth and high rental yields. The city has several high-end residential and commercial projects, including apartments, villas, and office spaces.

Tourism: Dubai is a popular tourist destination, attracting millions of visitors every year. Investing in the tourism sector can be profitable, particularly in the hospitality industry, such as hotels, resorts, and restaurants.

Financial Services: Dubai is home to several international financial institutions, making it an ideal location for financial investments. The city has a well-regulated financial system, making it a stable and safe investment destination.

Technology: Dubai is investing heavily in technology, including artificial intelligence, blockchain, and smart city technologies. Investing in technology companies can be a lucrative option, particularly those that focus on innovation and sustainability.

Healthcare: The healthcare sector in Dubai is rapidly growing, with several world-class hospitals and medical facilities. Investing in healthcare can be a profitable option, particularly in the areas of medical tourism and healthcare technology.

It is important to conduct thorough research and seek the advice of a financial advisor or investment consultant before making any investment decisions. They can help you evaluate the risks and potential returns of various investment options and ensure that your investments are aligned with your financial goals.

Cost of renting office in Dubai

The cost of renting an office in Dubai can vary depending on various factors such as the location, size, and facilities offered. Here are some general costs you can expect when renting an office in Dubai:

Location: The cost of renting an office in Dubai can vary significantly depending on the location. Prime locations such as Downtown Dubai, Dubai Marina, and Sheikh Zayed Road can be more expensive compared to other areas.

Size: The size of the office is another important factor that affects the rental cost. The larger the office space, the higher the rental cost.

Facilities: The facilities offered in the office building can also affect the rental cost. Offices with additional facilities such as a gym, swimming pool, and meeting rooms may cost more.

Type of office: The type of office you choose can also affect the rental cost. Serviced offices, which come with fully furnished and equipped spaces, can be more expensive than traditional offices.

Generally, the rental cost for a small office space in Dubai can range from AED 40,000 to AED 100,000 per year. For a larger office space, the rental cost can range from AED 100,000 to AED 500,000 per year or more, depending on the factors mentioned above.

It is recommended to work with a reputable real estate agent or a property management company to get a better estimate of the rental costs and ensure that you find the right office space that meets your business needs and budget.

Annual fees of company in Dubai

The annual fees of a company in Dubai can vary depending on various factors such as the company type, the business activities, and the location. Here are some general annual fees you can expect for a company in Dubai:

Trade License Renewal Fee: This is an annual fee paid to the Dubai Department of Economic Development (DED) for renewing your company’s trade license. The fee can vary depending on the company type and business activities and can range from AED 5,000 to AED 20,000 or more.

Office Rent: If you have an office space in Dubai, you will need to pay an annual rent fee, which can vary depending on the location, size, and facilities offered.

Sponsorship Fee: If you are a foreign national and do not have a UAE residency visa, you will need to pay an annual sponsorship fee to your local sponsor or a company formation consultant who acts as your sponsor. The fee can range from AED 5,000 to AED 20,000 or more.

Employee Visa Fees: If you have employees in your company, you will need to pay for their visa fees, which can range from AED 4,000 to AED 8,000 per visa per year.

Annual Audit Fee: Companies in Dubai are required to conduct an annual audit of their financial statements by a registered auditor. The fee for the audit can vary depending on the size of the company and the complexity of the financial statements.

Miscellaneous Fees: There may be other fees, such as bank charges, legal fees, and insurance premiums, that you may need to pay annually.

It is recommended to consult with a business consultant or an accountant to get a better estimate of the annual fees and ensure that your company is compliant with all the legal and regulatory requirements.

Websites to help in business plan

Here are some websites that can help you create a business plan:

Small Business Administration (SBA) – SBA is a US government agency that provides information, resources, and tools to help small businesses succeed. The website offers a free business plan tool that guides you through the process of creating a comprehensive business plan.

Business Plan Pro – Business Plan Pro is a software tool that helps you create a professional business plan. The software provides step-by-step guidance, templates, and financial forecasting tools to help you create a complete and well-structured business plan.

LivePlan – LivePlan is an online business planning software that helps entrepreneurs and small businesses create a well-structured business plan. The tool provides customizable templates, financial forecasting tools, and collaboration features to help you create a professional business plan.

SCORE – SCORE is a non-profit organization that provides free business mentoring, resources, and tools to small businesses. The website offers a free business plan template and guides to help you create a complete and effective business plan.

Bplans – Bplans is a website that offers a variety of free business plan templates and guides for different types of businesses. The website also provides articles, tools, and resources to help you create a successful business plan.

Remember that a business plan is a critical document that outlines your business goals, strategies, and financial projections. It is important to invest the time and effort to create a well-structured and comprehensive business plan that can help you achieve your business objectives.

Affordable housing in Dubai

Dubai has been actively working to increase the supply of affordable housing options for its residents. Here are some of the affordable housing options available in Dubai:

Dubai Affordable Housing Project – The Dubai government has launched several affordable housing projects across the city, aimed at providing housing options for low- and middle-income residents. The Dubai Affordable Housing Project offers studio, one-, and two-bedroom apartments at subsidized rates.

International City – International City is a mixed-use development located on the outskirts of Dubai, offering affordable studio, one-, and two-bedroom apartments. The development features a range of amenities, including supermarkets, restaurants, and retail outlets.

Dubai Silicon Oasis – Dubai Silicon Oasis is a technology park located in Dubai, offering affordable studio, one-, and two-bedroom apartments to residents. The development features a range of amenities, including schools, supermarkets, and healthcare facilities.

Al Quoz – Al Quoz is an industrial area in Dubai that has been converted into a residential neighborhood, offering affordable housing options to residents. The area features a range of studio and one-bedroom apartments at affordable rates.

Dubai South – Dubai South is a mixed-use development located close to the Al Maktoum International Airport, offering affordable housing options to residents. The development features a range of amenities, including schools, retail outlets, and healthcare facilities.

It is important to note that the definition of affordable housing may vary depending on your budget and requirements. It is recommended to consult with a reputable real estate agent or a property management company to find the right affordable housing option that meets your needs and budget.

Companies in free one in Dubai

Dubai has several free zones, which are designated areas where foreign investors can establish their companies with 100% ownership and enjoy tax exemptions and other benefits. Here are some of the free zones in Dubai and the types of companies that can be established there:

Dubai Multi Commodities Centre (DMCC) – DMCC is the largest free zone in Dubai and is home to a variety of companies in the commodities trading sector, including precious metals, energy, and food. DMCC also offers office spaces and business facilities for companies in other sectors.

Dubai Internet City (DIC) – DIC is a free zone that specializes in technology and IT-related businesses, offering a range of business services, including licensing, visas, and office spaces.

Dubai Media City (DMC) – DMC is a free zone that specializes in media and communication businesses, offering a range of business services, including licensing, visas, and office spaces.

Dubai Silicon Oasis (DSO) – DSO is a free zone that specializes in technology and innovation businesses, offering a range of business services, including licensing, visas, and office spaces.

Jebel Ali Free Zone (JAFZA) – JAFZA is one of the oldest free zones in Dubai and is home to a variety of companies in different sectors, including manufacturing, logistics, and trading.

Dubai Airport Free Zone (DAFZA) – DAFZA is a free zone that specializes in aviation-related businesses, offering a range of business services, including licensing, visas, and office spaces.

These are just some of the free zones in Dubai. Each free zone has its own rules and regulations, and the types of companies that can be established there may vary. It is recommended to consult with a reputable business consultant or a free zone authority to determine the best free zone for your business needs.

Tax system in Dubai

Dubai has a tax-friendly business environment, with no income tax, corporate tax, or value-added tax (VAT) on most goods and services. However, there are some taxes and fees that businesses may need to pay in Dubai:

Value-Added Tax (VAT) – VAT is a consumption tax that is charged on most goods and services in Dubai at a standard rate of 5%. Businesses that have an annual turnover of more than AED 375,000 must register for VAT and charge it to their customers. Some goods and services are exempt from VAT, such as healthcare, education, and basic food items.

Customs duties – Customs duties are levied on imported goods at the point of entry into Dubai. The rate of customs duty varies depending on the type of goods and their country of origin.

Municipality fees – Municipality fees are levied by the local government in Dubai for services such as waste management, street lighting, and public parking. The rate of municipality fees varies depending on the location and type of property.

Tourism Dirham – Tourism Dirham is a fee charged on hotel stays in Dubai. The fee ranges from AED 7 to AED 20 per night depending on the hotel category.

Corporate social responsibility (CSR) – Some free zones in Dubai require companies to contribute to a CSR fund, which is used to support social and environmental initiatives in the local community.

It is recommended to consult with a reputable tax consultant or a business advisor to understand the tax obligations and requirements for your business in Dubai.

Failure rate of companies in Dubai

The failure rate of companies in Dubai varies depending on several factors, including the industry, the size of the company, and the economic conditions. However, according to a report by the Dubai Chamber of Commerce and Industry, the number of businesses closing down in Dubai has decreased in recent years.

The report found that the closure rate of businesses in Dubai decreased from 5.8% in 2017 to 4.7% in 2018, indicating a more favorable business environment in the city. The report also stated that the most common reasons for business failure in Dubai were lack of market demand, insufficient cash flow, and high competition.

Despite this positive trend, starting a business in Dubai can still be challenging, especially for new entrepreneurs who may not be familiar with the local business environment and regulations. It is important to conduct thorough research, seek professional advice, and develop a solid business plan to increase the chances of success. Additionally, it is recommended to consider the type of company structure and the industry in which the business will operate to ensure that it aligns with the local market needs and conditions.

Business models

Restaurants business in Dubai

The restaurant business in Dubai is highly competitive but can also be highly rewarding for those who are willing to put in the effort to create a unique concept, provide high-quality food and service, and maintain consistency. Here are some key things to consider if you are thinking of starting a restaurant business in Dubai:

Market demand – Before starting a restaurant, it is important to conduct market research to identify the demand for the type of cuisine and concept you plan to offer. Dubai is a multicultural city, and there is a high demand for a variety of cuisines, including Middle Eastern, Asian, European, and American.

Location – The location of a restaurant can greatly impact its success. Dubai has several high-traffic areas that are popular for dining, such as Downtown Dubai, Dubai Marina, and Jumeirah. It is important to choose a location that is easily accessible and has a high footfall.

Licensing and regulations – Starting a restaurant in Dubai requires obtaining several licenses and permits, including a food license, trade license, and health and safety certificate. It is important to consult with the relevant authorities to ensure that you meet all the requirements and regulations.

Competition – The restaurant industry in Dubai is highly competitive, with many established brands and new concepts opening regularly. It is important to differentiate your concept and provide a unique value proposition to stand out from the competition.

Costs – Starting a restaurant in Dubai can be expensive, with high rents, labor costs, and food costs. It is important to create a realistic budget and business plan to ensure that your restaurant is financially viable.

Overall, the restaurant business in Dubai can be a lucrative opportunity for those who are willing to put in the effort and have a solid business plan.

Most successful nationalities in business in Dubai

Dubai is a multicultural city, and people from various nationalities have been successful in establishing and running businesses in the city. However, certain nationalities have been particularly successful in Dubai’s business landscape. Here are some of the most successful nationalities in business in Dubai:

Emiratis – Emiratis are the native population of the UAE and have a strong presence in the business community, particularly in government-related sectors and large conglomerates.

Indians – Indians are the largest expat community in Dubai, and many have established successful businesses in sectors such as retail, hospitality, and technology.

Pakistanis – Pakistanis have a strong presence in the retail and hospitality sectors in Dubai and have established successful businesses in areas such as textiles, jewelry, and food.

Iranians – Iranians have a long history of business in Dubai and have been successful in sectors such as trade, hospitality, and real estate.

British – British expats have been successful in establishing businesses in sectors such as finance, consulting, and legal services.

Americans – Americans have a strong presence in the technology and hospitality sectors in Dubai and have been successful in areas such as entrepreneurship, innovation, and marketing.

It is important to note that success in business in Dubai is not limited to any specific nationality, and people from various backgrounds have been successful in different sectors and industries. The business community in Dubai is diverse and welcomes entrepreneurs and investors from around the world.

Names of some big business men or women in Dubai

There are several prominent business men and women in Dubai who have made significant contributions to the city’s economy and business landscape. Here are some of the most well-known:

Sheikh Mohammed bin Rashid Al Maktoum – Sheikh Mohammed is the Vice President and Prime Minister of the UAE and Ruler of Dubai. He is also the founder of the Dubai World Cup horse race and the Dubai International Film Festival.

Hussain Sajwani – Hussain Sajwani is the founder and chairman of DAMAC Properties, a leading luxury real estate developer in Dubai.

Khalaf Al Habtoor – Khalaf Al Habtoor is the founder and chairman of Al Habtoor Group, a conglomerate that operates businesses in several sectors, including hospitality, real estate, and automotive.

Raja Easa Al Gurg – Raja Easa Al Gurg is the Managing Director of the Easa Saleh Al Gurg Group, a diversified conglomerate with businesses in several sectors, including retail, healthcare, and industrial products.

Faisal Bin Qassim Al Thani – Faisal Bin Qassim Al Thani is the founder and chairman of Al Faisal Holding, a diversified conglomerate that operates businesses in several sectors, including real estate, hospitality, and healthcare.

Abdullah Al Ghurair – Abdullah Al Ghurair is the founder and chairman of Mashreq Bank, one of the largest banks in the UAE. He is also the founder of several educational initiatives, including the Abdulla Al Ghurair Foundation for Education.

These individuals have played a significant role in shaping the business landscape of Dubai and are widely respected for their contributions to the city’s economy and society.

Retail business in Dubai

Dubai’s retail sector is one of the most vibrant and diverse in the world, with a wide range of offerings to cater to the city’s diverse population and large number of tourists. Here are some important things to know about the retail business in Dubai:

Malls – Dubai is known for its massive malls, which offer a wide range of shopping and entertainment options. Some of the most popular malls in Dubai include The Dubai Mall, Mall of the Emirates, and Ibn Battuta Mall.

Souks – Dubai also has several traditional souks (markets) that offer a unique shopping experience. Some of the most popular souks in Dubai include the Gold Souk, Spice Souk, and Textile Souk.

Duty-free shopping – Dubai is a major hub for duty-free shopping, with several large duty-free shops located at the airport and other major transportation hubs.

E-commerce – E-commerce is a rapidly growing segment of the retail business in Dubai, with several major online retailers operating in the city.

Luxury brands – Dubai is a popular destination for luxury brands, with several high-end stores located in the city’s malls and shopping districts.

Food and beverage – The food and beverage sector is also an important part of the retail business in Dubai, with several popular restaurants and cafes located throughout the city.

Overall, Dubai’s retail business is highly competitive and dynamic, with a wide range of offerings to cater to different tastes and preferences. The city’s large and growing population, coupled with its popularity as a tourist destination, make it an attractive market for retailers and investors.

Dubai has become an increasingly popular destination for medical tourism in recent years, thanks to its world-class medical facilities, highly trained medical professionals, and attractive tourism offerings. Here are some important things to know about medical tourism in Dubai:

World-class medical facilities – Dubai has several world-class medical facilities, including the Dubai Healthcare City (DHCC), which is the largest healthcare free zone in the world, and the Dubai International Healthcare City (DIHC), which is a state-of-the-art medical facility that offers a wide range of medical services.

Highly trained medical professionals – Dubai has a large number of highly trained and qualified medical professionals, many of whom have trained in Western countries and are fluent in multiple languages.

Attractive tourism offerings – In addition to its medical facilities, Dubai is also a popular tourist destination, with a wide range of attractions, including luxury hotels, shopping malls, and cultural and recreational activities.

Popular medical treatments – Some of the most popular medical treatments for medical tourists in Dubai include cosmetic surgery, dental treatments, fertility treatments, and orthopedic procedures.

Competitive pricing – Dubai offers competitive pricing for medical treatments compared to other Western countries, making it an attractive option for medical tourists looking for high-quality medical care at a lower cost.

Overall, Dubai’s medical tourism industry is growing rapidly, thanks to its world-class medical facilities, highly trained medical professionals, and attractive tourism offerings. With its competitive pricing and high standards of care, Dubai is poised to become one of the leading destinations for medical tourism in the world.