Undoubtedly, the UAE is one of the most sought-after business hubs for Indians to start a business in Dubai. Statistics show that trade volumes between India and the UAE have grown from $180 million in the 1970s to $60 billion in 2019 and are projected to reach the $100 billion mark by 2030. This shows that being a vital part of the region’s expatriate community, Indians have left a lasting impact on their respective industries in the Middle East.
Indian entrepreneurs turn to Dubai with their business ideas as it’s not just the environment that is feasible for businesses to profit there, but also because setting up a business in Dubai enables them to hire global talent and be better connected with other parts of the globe.
So, if you’re an Indian entrepreneur who wants to set up a business in Dubai, this blog will walk you through all there is to know about starting one. It covers everything from benefits to documents and the steps for setting up a business in Dubai.
Why Should You Start a Business in Dubai?
There are numerous reasons for starting a business in Dubai. Some of the prominent ones are as follows:
- Dubai has a multicultural environment with 0.13% of the world population within reach on flights of eight hours or less. This allows it to serve as a nexus for the East and West. Moreover, it is also the heart of the Africa-Middle East-Asia triangle. These factors favour Dubai’s rapid growth.
- The ease of setting up a business, low taxes on running a business, sound infrastructure, and one of the most friendly policies are some of the other vital attractions that pull more and more Indians to the Emirate.
- The UAE is the most accessible country to get electricity, the third-best for gaining construction permits, the ninth-best for enforcing contracts, and the tenth-best for registration of properties.
- The Golden Visa scheme, announced in 2019, is another major trigger for Indians to consider starting a business in Dubai. Under this scheme, notable expatriates apply for a long-term residential visa for conducting business, doing a job, or completing education to contribute to the emirate’s economy.
- Zero currency restrictions, total repatriation of capital and profits, and the flexibility to operate the company from any part of the world are a couple of other magnets for Indian entrepreneurs to start a business in Dubai.
- Dubai has a highly supportive government. From the very beginning of your process of starting a business in the emirate, the government officials are always there to help and guide you for the best.
How to Start a Business in Dubai?
The process of starting a business in Dubai is relatively straightforward. Moreover, if you follow the given steps in order, you can wrap it up within 3 to 4 days. The following is a general overview of the same:
1. Determine Your Business Activity
To start a business in Dubai, first, you must decide on your business activities. Choose the one that best meets your interest and abilities. The Dubai government makes this easy for you by providing a list of over 2,000 business activities to choose from. Once selected, mention those in your application form ahead. Note: You can only select 10 activities on one licence.
2. Decide the Location
The next step is to decide where in Dubai you want to start your business. You have got two options, the mainland region or a free zone. Both these locations have their own set of pros and cons. Hence, it is advised to go through each of these carefully and select the best suitable region for your business.
3. Name Your Company
In order to start your business in Dubai, you must decide on a legal name for your company. It is critical to ensure that it does not overlap with the existing firms. Moreover, it’s best if the name is short, easy to remember, and has no foul words or references to god. But that’s not all. Besides this, there are some other rules for naming your company. Ensure that your name complies with all of them. Once you decide on a name, register it with the DED (Department of Economic Development).
4. Get Initial Approval
You must get initial approval to ensure the DED has no issues with you starting a business in Dubai. This works like a green chit from government officials to start a business in Dubai. Therefore, to get initial approval, you need to submit a couple of documents like a business registration form, a business plan, and more.
5. Rent an Office Space
As per your business requirements, you must rent office space in a suitable location. It’s best to pick a place or locality that benefits your business. Moreover, ensure that your office space meets all the legal guidelines. Once you rent it, register it with Ejari and generate your unique Ejari number for future reference.
6. Apply for a Business Licence
Dubai mainly offers 4 business licences. You must select one of these as per your business activities. To apply for one, you must submit all the legal documents and a licence application form.
Once the government officials approve your application, they will issue your business licence within 1 to 2 working days. You must complete the necessary payment within 24 hours of receiving your business licence.
What Documents Do You Require for Starting a Business in Dubai?
Following is a list of basic documents you need to start a business in Dubai:
- A copy of your passport
- A copy of your visa
- Passport-size photographs
Additionally, there can be a requirement for a few special documents depending upon your business type. Experts at the UAE Expansion can help you with those.
What is the Cost of Starting a Business in Dubai?
Mentioning the exact cost of starting a business can be challenging as it varies from business to business. Several factors like company size, location, structure, visas, licence fee, etc., need to be considered. However, it can range from as low as AED 12,500 to as high as AED 28,500.
Start Your Business in Dubai with UAE Expansion
Setting up a business in Dubai is straightforward. But, it can get challenging if you’re going through the process for the first time. Business setup experts at the UAE Expansion can assist you at every step to make the registration process seamless for you.
Our experts are proficient and well-versed in all the legal requirements. We will take care of everything from application to gathering documents and getting your licence. All you need to do is get in touch with us!