Lots of entrepreneurs are choosing to start a small business in the UAE. For many, it is the favorable tax regime that draws them in; however, others like the strategic location of the country, and how easy it is to start a business as a foreigner. In this article, we’ve taken a look at the steps you need to take to get started.
1. Determine Your Business’ Activities
The first thing you need to do is determine what your business will be doing as you will need to include these on your licensing application form. Speaking to an expert like Creative City Dubai can help you here, as they’ll be able to explain your options and help you choose those that best align with your business.
2. Choose a Company Name
Choosing a company name is an important part of branding, but in the UAE you also need to be careful not to choose anything that could be deemed blasphemous or offensive. In addition, you’ll also want to avoid giving your business a name that is already in use. Most companies won’t struggle here, but if you plan on using your given name – i.e. James Brown – you may want to opt for something like James Brown Designs to avoid any problems.
3. Choose a Setup: Mainland or Free Zone
The next step is to determine whether you want to set your business up on the mainland or in one of the free zones. Mainland businesses can trade with the UAE market and take on government contracts while free zone benefits can take advantage of financial incentives. Which is best for you will depend on the type of business you are running, and again, an expert formation company could be useful in helping you decide this.
4. Apply for a Business License
With all the above determined, your next step is to apply for a business license. Thankfully this is a simple process, although there are different ways to apply depending on your business setup. You will usually need to fill in a form, and send over a copy of your passport, plus two passport photos.
5. Obtain a Visa
Filing for a visa is a straightforward process, but you will need to take care to do it correctly. Once you have a business license, you can also obtain visas for employees and family members. The number of visas you can apply for will depend on your personal earnings and the size of your business.
6. Open a Corporate Bank Account
Finally, all that’s left to do is open a corporate bank account. This can be difficult to do as money laundering regulations do make it difficult for foreigners to open bank accounts within the UAE. Again, working with a local business formation expert could help here. You should expect to attend a face to face meeting as part of this step.
Starting a small business in the UAE is a lot easier than in many other countries, and there are many benefits to doing so.
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