Why start a business in the UAE?

Starting a business in the UAE as an entrepreneur is an exciting opportunity, offering access to a thriving business environment, world-class infrastructure, and strategic location. This guide will walk you through everything you need to know about relocating to the UAE and starting your entrepreneurial journey.

The UAE is one of the top destinations for entrepreneurs to start a business due to:

  • Tax benefits: The UAE offers a favourable tax regime, with 0% personal income tax and a low corporate tax rate in free zones.
  • Business-friendly environment: The government provides incentives, infrastructure, and support for startups.
  • Access to a global market: The UAE is a strategic hub connecting the Middle East, Asia, Africa, and Europe.
BUSINESS SERVICES FOR ENTREPRENEURS

Step 1: Determine the Right Visa Type

For entrepreneurs, the most popular visa options are:

1. UAE Golden Visa for Entrepreneurs:

The Golden Visa offers a 5-year residency for entrepreneurs who meet specific criteria, such as:

  • Owning a project worth at least 500,000 AED (approximately $136,000 USD).
  • Obtaining approval from a UAE-based auditor, relevant emirate authorities, and an accredited business incubator.

Advantages:

  • Long-term residency for you and your family.
  • Multiple entry and renewal options.

Learn more: UAE Government Golden Visa Information

2. Investor Visa:

For those who invest in a UAE business, this visa allows a 3-year stay and can be renewed.

Requirements:

  • Minimum investment of AED 72,000 (around $19,600 USD) in an existing business or startup.

Step 2: Choose the Right Business Structure

The UAE offers different types of business setups:

  • Mainland Company: Allows you to operate anywhere in the UAE, but requires a local sponsor.
  • Free Zone Company: Provides 100% foreign ownership, tax exemptions, and simpler processes. However, business activities are limited within the free zone.
  • Offshore Company: Ideal for international trade, with 100% foreign ownership and no physical office needed.

Popular Free Zones for Entrepreneurs:

  • Dubai Multi Commodities Centre (DMCC)
  • Dubai Internet City (DIC)
  • Abu Dhabi Global Market (ADGM)

Visit the official DMCC website for more information: DMCC Free Zone

Step 3: Register Your Business

To officially start your business, follow these steps:

  1. Choose a Business Name: Make sure it aligns with UAE naming regulations (avoid offensive terms or religious references).
  2. Obtain Initial Approval: Submit your business plan to the relevant authorities for approval.
  3. Apply for a Business License: Choose from different licenses (commercial, industrial, professional) based on your activity.

You can use services like the Dubai Department of Economic Development (DED) portal for licensing.

More info at: DED Business Licensing

Step 4: Open a Corporate Bank Account

Having a UAE-based corporate bank account is crucial for your business operations. Requirements may vary by bank, but typically you need:

  • Business license
  • Shareholder passport copies
  • Proof of residency and office address

Top Banks for Entrepreneurs:

Step 5: Find a Suitable Place to Live and Work

The UAE offers plenty of options for accommodation and office space. Consider the following:

  • Co-working Spaces: Ideal for startups and freelancers, with options like WeWork, Regus, and NEST.
  • Residential Areas: Popular expat communities include Dubai Marina, Jumeirah Lakes Towers (JLT), and Downtown Dubai.

Tip: Use websites like Bayut or Property Finder to explore housing options.

Step 6: Understand the Legal and Regulatory Requirements

Ensure compliance with UAE laws:

  • Visa and Work Permits: Make sure your visa is valid and renewed as needed.
  • Tax Registration: Register with the Federal Tax Authority if your annual turnover exceeds AED 375,000 (approx. $102,000 USD).
  • Accounting and Auditing: Maintain proper financial records; many free zones require annual audits.

Step 7: Network and Connect with the Business Community

Networking is vital for business success in the UAE. Join events, seminars, and organizations such as:

  • Dubai Chamber of Commerce & Industry
  • Entrepreneur Middle East Events
  • Meetup Groups for Entrepreneurs

Frequently Asked Questions

Q: How much does it cost to start a business in the UAE?

  • Costs vary based on the type of license, location (free zone or mainland), and office requirements. Expect to pay anywhere between AED 15,000 to AED 50,000 (approx. $4,000 to $13,600 USD).

Q: Can I sponsor my family with an entrepreneur visa?

  • Yes, the UAE Golden Visa allows you to sponsor your spouse, children, and up to three executive directors.

Final Thoughts

Starting a business in the UAE as an entrepreneur can be a game-changer for your business. With the right visa, business setup, and understanding of the local market, you can tap into a thriving ecosystem and enjoy long-term success. Start your journey today and take advantage of the UAE’s vibrant entrepreneurial landscape!

For more information, consult the UAE Government’s Official Portal and always seek professional guidance when needed.

By following these steps, you can smoothly transition into the UAE as an entrepreneur and leverage the country’s favourable business environment for your success!

Explore my services to start a business in the UAE. I help foreign entrepreneurs with their business relocation, building on my own experience.

About | My name is Sohrab Vazir. I’m a UK-based entrepreneur and business consultant. At the age of 22, and while I was an international student (graduate), I started my own Property Technology (PropTech) business, StudyFlats. I did so by obtaining an endorsement from Newcastle University under the Tier 1 Graduate Entrepreneur Scheme. Subsequently, I obtained a further 3-year Tier 1 Entrepreneur Visa (replaced by the Innovator Founder Visa). I grew my business to over 30 UK cities, and a team of four, and also obtained my Indefinite Leave to Remain (Settlement) in the UK. I now help other migrant entrepreneurs, such as myself, with their businesses.