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Want to Setup Small Business in Dubai? Don’t Miss This

Want to Setup Small Business in Dubai? Don’t Miss This | Dhanguard

When it comes to starting a small business, many new-age investors and entrepreneurs prefer the United Arab Emirates. Due to the robust working environment, business-friendly legislation, and a helpful government, local enterprises in Dubai enjoy enhanced surplus and generate significant revenue right from the start. The country's favorable tax policy, which levies 0 percent on both personal and corporate incomes, is a big lure. There's also the UAE's strategic location in the middle of the Middle East, which makes it an ideal hub for worldwide trade.

The benefits of establishing a business in one of the country's Freezones are numerous: 100 percent exemption from customs duty, no currency restrictions, and the freedom to repatriate all capital and profits, to name a few.

Setting up a Small Business in Dubai isn't difficult, and if you follow the appropriate steps, you may have your company up and running in two to three weeks. As a result, it's a good idea to contact the business advisors at Dhanguard, who offer end-to-end business aid by handling everything related to business creation in the UAE at a low cost.

What are the steps to starting a small business in Dubai?

To legitimate their company activities, entrepreneurs who want to start a small business in Dubai must apply for a small business license. The best news is that the cost of a small company License in Dubai is relatively low, and here's how you get one:

Decide about your company activity

Choosing your business activity is the first step in starting your UAE company. There are thousands of possible activities to choose from, and it's critical that you include all of them on your license application.

Failure to specify every one of your proposed activities may result in problems down the road. As a result, consulting with a business formation professional is recommended while making this decision. Such professionals are aware with permitted activities and can recommend those that are most appropriate for your company.

Pick a Firm name

Now that you've established your business activities, it's time to choose a name for your organization. When naming a company in the UAE, there are a few factors to consider. You must follow a set of naming rules that are both stringent and simple to follow. This is another step where a company setup specialist can assist you.

In short, any disrespectful or profane words should be avoided. If you're naming your company after yourself, avoid well-known company names and abbreviations – for example, John Mathews Consulting rather than J Mathews Consulting. You should also double-check that the name you want to use is available for registration.

Complete the legal framework of your firm

One of the most appealing aspects of establishing a small business in Dubai is the wide range of legal business structures available. In the UAE, you have complete control over your firm by forming a sole proprietorship.

Furthermore, you can establish a wholly owned business mainland region and take advantage of Dubai's local market. Local firms in Dubai can also start their dream venture by establishing a digital venture at a low cost.

Obtain office space

Renting an office space in the UAE is a practical option because it avoids large upfront real estate investments and the difficulty of selling the property once you've decided to leave.

All you must do is sign a sustainability agreement with us, and we'll handle the rest. Keep in mind that all legal entities in the UAE require a professional address to receive any formal paperwork and legal correspondence pertaining to their Dubai-based operations. Connect with Dhanguard to obtain your office space.

Choose between a free zone and a mainland arrangement

The last step before submitting an application for a license is to decide whether you want to start your business in a free zone or on the Mainland.

Both have numerous advantages. Free zones like Fujairah Creative City provide advantages like a simple and rapid incorporation process, ongoing business support, and financial incentives like tax exemptions and no currency limitations.

On the other side, doing business on the mainland allows you to trade directly with the UAE market and possibly lucrative government contracts.

The best setup for you will be determined by the type of your business. Again, a company formation specialist can help you decide what is the best course of action.

Get a business license by filling out an application

It's time to apply for a small business license once you've completed all the preceding stages. In order to show their validity in the UAE, organizations must always have a valid business license.

Furthermore, a business license serves as a formal record of all your allowed business activities, and any activity not covered by your license will require external approval. This license must be renewed every year, and the charge for doing so is included in the overall cost of a small company license in Dubai.

Obtain further authorizations

Do you want to engage in any commercial activities in the UAE that aren't covered by your small business trading license? Don't be concerned if you answered yes. All you must do now is get further approval from the relevant bodies for such activity.

Based on your business needs, these may include approval from a local governing body, permission from the customs authority, an agreement with a regional transportation facility, and so on. Dhanguard’s business specialists handle all of this and more for you by handling all the heavy lifting so you can focus on other growth-related activities.

Getting a Business Bank Account

Due to the UAE's strong anti-money laundering legislation, access to corporate banking facilities is difficult for foreign entrepreneurs. Working with a professional in the sector makes the process go much more smoothly.

Experts in company formation have strong ties to both local and international banks and can quickly connect you with the one that best suits your needs – even setting up face-to-face meetings if necessary.

If you're looking for a company license in Dubai, a Dubai free zone visa, or the lowest trade license in the UAE, you've come to the right place. Then our team can assist you.

Obtaining visas

A UAE Visa is another important need for starting a small business. The procedure for applying for your personal visa, as well as the visas of your staff, is specific yet simple. This is another step where an expert in UAE business formation can assist you.

You can also sponsor others for their visas if you have a UAE company license. A spouse, parent, or kid, as well as a domestic worker such as a housekeeper, could fall into this category.

The maximum number of visas you can apply for is determined by the size of your business, the configuration you choose, and, in the case of dependent visas, your personal earnings.

Make sure your timelines are in order

The registration of a firm in the United Arab Emirates involves a number of interconnected stages. As a result, postponing one stage will cause the company's incorporation to be delayed overall.

So, before you start, talk to your Business Consultants about the dates and actions that need to be taken. Doing so prior to beginning the registration process will save time and effort during the procedure, resulting in a stress-free registration process.

Read More: Growing Business Ecosystem how Freezone Support Business Setup in UAE

What paperwork is required to start a small business in the United Arab Emirates?

When applying for a small company license, make sure you have all of the required documentation. To make things easier for you, we've compiled a list of documents:

  • A business plan that is detailed.
  • Completed application form
  • Agreements on MoAs and LSAs
  • Receipt of payment for a trade name reservation
  • Copies of all your company's shareholders' passports (if any)


We assist you in establishing your brand in Dubai's marketplace and take care of all your small business needs. Our business experts handle the paperwork, banking, and licensing so you can concentrate on growing your small business in Dubai. Thus, we hope this blog provided you with incite full information. For more information on other related aspects, feel free to check out our website as well.

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