The process on how to start a business in Dubai starts with filing an application to the Dubai Civil Aviation Authority. This is needed if the applicant wishes to start a business directly or indirectly in Dubai. He can either do it online or by going to an agency that specializes in such things. Companies can get their own license or take one from the government. Either way, companies have to be ready with all the necessary documents and other fees.
One has to also pay attention to the foreign company formation fee because this represents the legal establishment of the company and all the related transactions that will be carried out within the country. A Dubai company formation can only be done by a UAE national, an individual who holds a valid passport, or a company that has its registration in the UAE. A Dubai trade license is also necessary for foreign investors and holding companies. A foreign investor will be required to have an investment plan that will be implemented and managed by him. Holding companies need to purchase shares from the capital markets of Dubai in order to fund their direct investments.
On top of all the requirements, companies also have to go through the Dubai government's commercial activity department. In this case, a detailed business plan has to be presented by the applicant. Foreign investors also have to apply for an exit and acquisition license. Holding companies also have to pay the applicable customs duty, obtain a trading license from the emirate, and submit annual reports to the concerned customs office. These are all mandatory activities that need to be completed in order to legally conduct business in Dubai.
Once all these papers are in order, one must then consider obtaining a copy of Dubai's International Business Steering Committee (IBSC) license. An IBSC license is one of the main requirements for foreign investors who wish to open a business in Dubai. This is issued by the Dubai Ministry of Economic Affairs and Trade. Holding companies have to get a foreign investment policy, business plan, and a project portfolio from an approved organization. This plan has to include all the expected activities for the year ahead and all the required documents.
As previously mentioned, a foreign investor has to hold a business license in Dubai as well. This is a document that proves that the individual or entity has been registered at the Dubai Development Company (DDC). The most popular business permits being used by most Middle Eastern countries and businesses are the business permits for Dubai Investment Authority (Dalai), Dubai Freehold Company (FDC), Dubai Permanent Corporation (DMC), and Dubai Metals Corporation (DMC). Each of these business permits is different in their own rights and privileges, but all of them still need to be renewed on a yearly basis.
Another important document needed when starting a business in Dubai is a valid UAE national identity card (EIC). This is another document that proves proof of a person's identity and nationality. It can also be used as proof of identity when applying for a job in Dubai. A valid EIC also provides evidence that the individual has the right to rent or buy property in Dubai. These two documents combined are very important in establishing any kind of business in Dubai. Companies need a business license while individuals need a UAE national identity card.
After obtaining all these important documents, it is now time to think about how to start a business in Dubai. Dubai has two main financial institutions - banks and non-banking financial companies. All commercial establishments (corporations and individual businesses) in Dubai need commercial licenses. Non-banking financial companies are only required to open their bank accounts. Banks in Dubai also allow direct deposit of salary payments.
Companies in Dubai can either operate onshore or offshore. An entrepreneur should decide beforehand whether he wants to establish a local business or a foreign subsidiary. For an offshore company, one must consider Dubai government regulations on ownership and investment of foreign currency in the emirate. For a local company, one must consider the legal structure and legal incentives offered by the government of Dubai.
