Empowering Your Business Journey:
Seamless Setup and Visa Solutions in Dubai

The UAE government actively advocates for businesses as an integral part of its enduring economic stability strategy.

Dubai provides a tax-friendly atmosphere along with competitive labor and financing expenses.

It imposes no foreign exchange controls, trade barriers, or quotas.

Dubai's strategic location facilitates business operations, offering convenient access to 1.5 billion consumers in Africa, West Asia, Eastern Europe, and the Middle East.

The presence of world-class transport links enhances the city's appeal as a business hub.

The process for business setup is both straightforward and cost-effective.

Dubai boasts a substantial pool of highly educated talent and top-notch infrastructure, making it an ideal environment for startups.

The city's high standard of living, coupled with unparalleled safety measures, renders Dubai an enticing destination for global talent.

Conducting market research in Dubai is simplified thanks to transparent procedures and robust legal frameworks.

Fortunately, Dubai's economy has been intentionally designed to foster local business growth and innovation. Through the Department of Economic Development (DED), the UAE government not only encourages entrepreneurship but also ensures the stability of economic activities, providing incentives such as low corporate taxes and simplified business setups.

This strategic focus has positioned the UAE at the 16th spot in the global Ease of Doing Business Index. With a vibrant economy, Dubai attracts a diverse range of industries and, thanks to its strategic location, provides access to extensive markets spanning East and West. The city's free zones, including DWTC, JAFZA, and RAKEZ, enhance opportunities, and initiatives like Scale2Dubai offer funding for the expansion of ventures.

Business Idea: Clearly define your business concept and identify your target market.

Business Plan: Develop a comprehensive plan outlining your objectives, market analysis, and financial projections.

Legal Structure: Choose between Free Zone, Mainland, or Offshore company structures.

Trade Name: Select a name that complies with the regulations set by the Department of Economic Development (DED).

Business License: Depending on your business activities, apply for a commercial, professional, or industrial license.

Documentation: Submit necessary documents, such as passports, visas, and a No Objection Certificate (for expats), to the relevant authorities.

Office Space: Secure a physical address, which is crucial for the registration process.

Corporate Bank Account: After obtaining your license, select a bank that aligns with your business requirements and open an account.

Visas: If hiring, process employee visas, with the number often determined by office size and license type.

Operational Setup: Once administrative tasks are completed, establish operations and commence your business journey.

Note: Requirements may vary based on the specific structure chosen for your new business setup, so it's essential to thoroughly research the specific steps applicable to your chosen framework.

Establishing a business on the UAE mainland grants unimpeded access to the local market, enabling participation in over 3,000 business activities, issuance of unlimited employee visas, and the option to sponsor family and domestic staff. This setup is well-suited for enterprises focusing on the local Dubai mainland market. In contrast, a free zone business setup provides advantages such as 100% foreign ownership, exemption from personal taxes, unhindered profit movement, and a streamlined setup process. This configuration is preferred by companies targeting international markets or specific industry clusters within designated free zones. Choosing between a Dubai mainland and Dubai free zone setup demands careful consideration of your business objectives and requirements.

Consider the following factors:

Business Activities: Dubai mainland offers a broader spectrum of business activities, whereas free zones often specialize in specific sectors or industries.

Trading: If your business involves direct trading with the UAE market, a mainland license may be more advantageous.

Ownership: Opt for a free zone setup if 100% foreign ownership is a crucial requirement.

Expansion Plans: If your business plans involve scaling up within the UAE, a mainland setup might offer more flexibility.

Cost: Setup and operational costs vary between mainland and free zones.

In Dubai, businesses can apply for one of three main types of licenses based on the nature of their activities:

Commercial License: Geared towards businesses involved in trading activities, this license encompasses a wide range of operations, spanning from retail to transportation services.

Professional License: Primarily intended for individuals providing expertise or services, this license is applicable to consultancies, accounting firms, architectural firms, and similar entities.

Industrial License: Tailored for businesses focused on manufacturing or industrial activities, this license is typically associated with transforming natural resources or materials into finished products.

Each license category is overseen by the Department of Economic Development (DED) in Dubai. It is crucial to accurately define your business activities, as each license permits up to ten activities. For businesses located in specific Free Zones or considering offshore operations, distinct license types and requirements may apply.

Establishing a business in Dubai involves several critical legal and regulatory procedures:

Identifying Business Activities: Crucial for determining the type of license required, as each license permits a maximum of ten activities.

Choosing Legal Structure: The legal structure, whether sole proprietorship, partnership, or LLC, defines the operational framework of your business.

Applying for a Trade License: Depending on your business activity, obtaining a commercial, professional, or industrial license is essential. Operating without a valid license can result in substantial penalties.

Documentation: Submission of standard documents, including a completed application form and passport copies of shareholders. Some businesses may require approvals from specific authorities.

Registering Ultimate Beneficial Owners: Mandatory for all free zone and mainland operating companies, this registration ensures transparency and prevents illegal transactions.

Opening a Corporate Bank Account: A necessity for conducting business in the UAE.

Immigration and Visa Processing: After securing your business license, initiate the visa application process for yourself, employees, and domestic staff.

Adhering to Naming Conventions: Choose a company name that aligns with specific UAE naming conventions.

Compliance with Local Laws: Businesses must adhere to all local laws and regulations, including labor laws and environmental regulations, pertinent to their industry, to avoid legal issues, fines, or imprisonment.

Office or Physical Presence: Depending on your business nature and chosen jurisdiction, leasing an office or warehouse may be required. Given the multifaceted nature of these steps and potential complexities, engaging a company formation specialist can be highly advantageous.

Two pivotal aspects of establishing a business in the UAE are the Local Service Agent (LSA) agreement and the local sponsor system. The LSA agreement is relevant for specific licenses, such as professional licenses or branches of foreign companies. The LSA, who must be a UAE national, receives a fixed fee for serving as a representative for administrative interactions with the government. It's important to note that the LSA does not own any part of the company, nor do they receive any commission or share in profits.

In contrast, the local sponsor system pertains to Limited Liability Companies (LLCs). Under this system, a local sponsor is required to own a minimum of 51% of the company.

Limited Liability Company (LLC): A preferred option for many small businesses and entrepreneurs, providing operational flexibility and enabling trading across the UAE and the GCC. Members of an LLC benefit from limited liability.

Sole Proprietorships: Businesses owned and operated by a single individual, offering simplicity and fewer administrative tasks. However, the owner has unlimited liability.

Civil Companies: Typically established by professionals like lawyers and accountants, these professional companies allow 100% foreign ownership.

Private Shareholder Companies: Entities with limited liability, meaning shareholders' liability is confined to their shares in the capital.

Public Shareholding Companies: Companies with capital divided into transferable shares of equal value, where partners are liable only to the extent of their share in the capital.

Branch & Representative Offices: Foreign companies are permitted to establish a branch or representative office in Dubai.

Free Zone Companies: Entities set up in Dubai's free zones (e.g., DWTC, JAFZA, DUQE, RAKEZ, and Creative City) enjoying benefits like 100% foreign ownership, tax exemptions, and reduced restrictions.

Offshore Companies: Incorporated in the UAE but operating outside the country, used for purposes such as tax planning and asset protection.

Foreigners can attain 100% ownership in specific business setups in Dubai. In numerous free zones, foreign investors are allowed complete ownership of their businesses. Moreover, recent amendments to the UAE's Commercial Companies Law have extended the possibility of foreign investors holding 100% ownership in their businesses across various sectors, even outside free zones. However, it's important to note that certain strategic sectors, such as banking and telecommunications, still have some restrictions in place.

Managing legal documents and attestation in Dubai is generally a straightforward process, but it does require a comprehension of local regulations. When establishing your business, you will typically need to compile and submit various legal documents, including the application form and copies of shareholders' passports. Upon the submission and approval of your documents, you will obtain your business license. It's crucial to keep these documents current to prevent penalties or potential loss of your business license. Attestation, in this context, involves having your documents verified by the relevant authorities.

Renewing your business license in Dubai comprises several essential steps. Initially, it is crucial to confirm that your tenancy contract remains valid for at least three more months from the renewal application date. Subsequently, you will need to fill out a renewal form and collect the requisite documents, typically including attested authorization and approval letters, photographs of all business partners, and the payment number for renewal fees. Once these components are in order, you submit them to the Department of Economic Development (DED). Following the approval of your application, you can proceed to settle the renewal fees, and your business license will be successfully renewed.

The necessity for a physical office space when setting up a business in Dubai depends on the type of company you are establishing. If it's a Mainland company, compliance with the regulations of the Department of Economic Development (DED) requires having a physical office space. On the other hand, if you're establishing a free zone company, many free zones offer flexi-desk options, providing a more cost-efficient alternative to a full-time office space. Another option is a virtual office, allowing entrepreneurs to conduct business without the need for physical premises. This flexibility is particularly advantageous for certain business models and setups.

Business setup consultants, such as Virtuzone, play a vital role in simplifying the intricate process of establishing a business. They provide comprehensive guidance at every stage, from assisting in the selection of the appropriate business activity and name to navigating the complexities of free zone or mainland setup. These consultants handle all the necessary paperwork for securing your business license and facilitating the opening of a corporate bank account. Leveraging strong relationships with government departments, agencies, banks, and insurance companies, they serve as valuable assets during the initial stages of launching your business. Their expertise in local requirements, laws, and potential challenges can save you both time and effort. In addition, if you are hiring employees, these consultants can offer advice on the visa setup process. The overarching goal is to make your business setup process efficient and seamless, allowing you to concentrate on the core aspects of running your business once it is established.

Opening a corporate bank account in Dubai is a straightforward process, albeit requiring some documentation and a visit to the UAE. Here's a concise overview:

Choose a Bank: Select a bank that aligns with the specific needs of your business.

Schedule an Appointment: Set up an appointment with the chosen bank.

Prepare Necessary Documents: Gather essential documents, typically including your passport, proof of address, and proof of income. Some banks may request additional documents.

Credit Check and Identity Verification: The bank will conduct a credit check and verify your identity. Keep in mind that this process may take between two to four weeks.

Select the Right Account Type: It's crucial to choose the type of account that best suits your business requirements.

By following these steps and ensuring all necessary documentation is in order, you can facilitate the smooth opening of a corporate bank account in Dubai.

The process for obtaining employment visas and residence visas for staff in Dubai typically involves several sequential steps:

Apply for Entry Permit or Employment Visa: Initiate the process by applying for an entry permit or employment visa for your employee. This serves as a temporary visa valid for 60 days while the residence visa is being processed.

Conduct Medical Check-up: Once the entry permit is issued, proceed to conduct a mandatory medical check-up for the employee.

Apply for Emirates ID: After the medical check-up, apply for an Emirates ID.

Apply for Residence Visa: Subsequently, apply for the residence visa. It's important to note that if your business operates within a free zone, you'll need to coordinate with the relevant free zone authority to initiate the work permit and residence visa process.

By following these steps and adhering to the specific requirements of the process, you can ensure the smooth acquisition of employment and residence visas for your staff in Dubai.

The Golden Visa in the UAE is an extended residency program primarily tailored for investors, entrepreneurs, and high-skilled professionals. Distinguishing itself from regular visas, often valid for up to 3 years, the Golden Visa offers residency for 5 or 10 years, with the possibility of automatic renewal in certain cases. Notably, the Golden Visa does not require a national sponsor, streamlining the application process. Additionally, it grants the visa holder the privilege of 100% ownership of their business in the UAE. However, it's important to note that the Golden Visa program imposes strict eligibility criteria, targeting individuals intending to make substantial investments in the UAE..

The visa processing times in Dubai usually fall within a range of 2-4 weeks. Nevertheless, this timeline can be influenced by various factors, including the specific type of visa being applied for and the thoroughness of the application along with the completeness of supporting documents. It's essential to note that fees associated with visa processing can vary significantly, depending on the type of visa and additional services required. Applicants should be mindful of these factors and ensure that all necessary documentation is provided to expedite the processing of their visas.

Each free zone in the UAE is strategically designed to cater to specific industries, tailoring its offerings to meet the unique requirements of businesses within those sectors. Here are examples of some free zones and their ideal business focuses: JAFZA (Jebel Ali Free Zone Authority): Well-suited for businesses involved in logistics or manufacturing, given its strategic location near Jebel Ali Port and Al Maktoum International Airport. Perfect for businesses looking to establish themselves in the heart of Dubai’s bustling business district. Ras Al Khaimah Economic Zone (RAKEZ): Caters to a diverse range of sectors, providing cost-effective solutions for businesses. DUQE (Dubai Maritime City Free Zone): Located on the Queen Elizabeth Cruise Ship, it offers a unique business environment. Creative City: Specifically designed for businesses in the media, communications, and creative industries.

Each free zone operates under its own set of rules, offers unique benefits, and follows distinct processes. Therefore, it is crucial to carefully evaluate and choose the free zone that aligns best with the specific needs and goals of your business.