Setting up a business in Dubai – 5 most important things to know

setting up a business

Setting up a business in Dubai

Setting up a business in Dubai has just become a little easier. Just remember this important guidance. 

These are the top 5 aspects of setting up a business

  1. Select the right activity
  2. Select the right type of company
  3. Select the right location.
  4. Select the right bank accounts
  5. Select the right free zone 

Dubai is a fantastic location for aspiring business owners. Setting up a business in Dubai will put you on the fast track to success.

However, beginning a business in Dubai might be highly perplexing for an outsider. There are numerous choices.

In order to make it easier for you to explore these choices, we have created important aspects with details.

1. Select the right activity

In comparison to other countries, Dubai places a considerably greater emphasis on selecting the appropriate activity when setting up a business. Why?

We need to walk you through some history to understand this.

In former times, the king might grant permission for particular business endeavors. You required specific authorization if you wanted to go pearl fishing. A license was required. This custom is still in use today.

Different types of activities

When setting up a business in Dubai, it’s critical to make the appropriate business activity choice early on.

Your activities will be limited to those listed on your license, which is the reason for this. Do you require examples?

  • You cannot suddenly import wood if you are importing shoes.
  • One cannot engage in any trading while holding a consultant license.
  • Starting a design firm means you can’t just create a factor.

Therefore, it’s crucial to have a solid plan and pick an activity that fits your demands. As well as in the future, when new chances might present themselves.

Masar Al Ameen company is the best business solution group that can help you about setting up a business in Dubai.

2. Select the right type of company

We’ve noticed that there are a variety of activities available. However, there are various ways to start up your business based on your business plan. So think and research more to select a good type of company before setting up a business in UAE.

There are three choices: a local LLC, a business in a free zone, or an offshore corporation.

Regional LLC

If you wish to offer products or services to Dubai’s regional markets, you must form a local LLC. This neighborhood LLC can be in a partnership with a neighborhood shareholder that holds 51% of the shares. However, nowadays, the UAE’s government offers more and more convenient options of 100% foreign ownership.

In order to rent an office or a warehouse outside of the free zone or in a mall, you will additionally require some extra approvals and documents.

Company in a Free Zone

You can start a business in a Dubai-free zone if you want to keep complete ownership of your enterprise. You can only do business from a free zone corporation when you own one. You are also limited to renting an office or warehouse within the free zone while working with a free zone company.

Offshore Company

You are prohibited from conducting business inside the UAE when you establish an offshore corporation in the UAE. The UAE can, however, be used as a base to conduct business throughout the rest of the world. In Dubai, you can establish an offshore business. There, you can only conduct the banking facilities.

3. Select the right Location

What location your firm need is a decision that must also be made. Does your company let you work remotely? Do you require a business place where you may receive clients?

As previously stated, not all are accessible in each free zone.

If you’re considering having an office, you want to be in a beautiful, convenient office building. You may not even need an office if you work from home. When you wish to manufacture or trade, you can pick a location close to a port.

Select your right location wisely before setting up a business in Dubai. By driving, Dubai is fairly accessible. However, if you have employees that must travel by public transportation, you need to be close to the metro.


The number of visas you receive depends on how much floor space you rent. Make sure to rent enough floor space if you expect to need to hire a lot of staff that require visas.


Law mandates that businesses operating in free zones lease office or storage space. Many free zones have the option to rent a Flexi desk in order to meet this criterion. You and other businesspeople share this workspace. It is a real place that you are permitted to use for a few hours each week.

Finally, attempt to negotiate a long-term rental agreement when renting to avoid having to move at the conclusion of the agreement or enter into negotiations about the rent.

4. Select the right Free Zone 

The majority of international entrepreneurs want to set up a free zone company. You should be careful about free zone while setting up a business.

The government created free zones to give international entrepreneurs the means to take advantage of the commercial prospects in the UAE while keeping full ownership.

There are a variety of limitations when working with a free zone company in order to safeguard local interests. This means that you must do business from the free zone, cannot lease space outside of the free zone for an office or warehouse, and cannot directly serve the local market.

5. Select the right bank accounts

You should carefully select proper bank accounts before setting up a business. In Dubai, there are a lot of excellent banks. UAE banks are accustomed to working with foreign investors and offer a caliber of service no longer seen in the West.

The banks provide both conventional and Sharia-compliant financial services in the UAE. Profit sharing rather than interest is the foundation of sharia-compliant products.

Dubai is one of the world’s easiest places to open a bank account in terms of procedure and paperwork. You must, however, be physically present before the banker. They want to know with whom they are speaking. In Dubai, people are accustomed to receiving big sums of (cash) money without a lot of fuss or paperwork.

Setting up a business in Dubai

You will enjoy a level of independence when setting up a business in Dubai that you cannot find elsewhere.

All of your earnings are yours to retain. This is the key reason that thousands of investors come to this region.

Life moves along quickly. New concepts can catch on quickly and prosper greatly.

A lot of businesses are clueless when it comes to marketing. They don’t come further than pushing business cards in the hands of unsuspecting by-passers. Or they walk into random offices to give a sales pitch. But even with these efforts, they are succeeding!

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