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How to Launch a Small-scale Business in Dubai

If you plan to start a small-scale business in Dubai, you have made the right choice. Dubai is ideal for prospective entrepreneurs and established businesses alike, offering 100% ownership, zero taxes, a perfect geographical location, and excellent infrastructure.

Here’s what you need to know before starting a small business in Dubai. We cover everything from primary benefits to cost to the steps for applying for licenses and visas. By the conclusion of this post, you will have a detailed understanding of how to proceed with your company formation in Dubai.

We will cover the following topics:

    • Benefits of starting a small-scale business in Dubai
    • Cost of starting a small-scale business
    • Steps to launch a small-scale business in Dubai
    • Small-scale business ideas for Dubai
    • Work with Creative Zone

Benefits of starting a small-scale business in Dubai

There are several benefits to setting up a small-scale business in Dubai. Among them are:

Quick setup: The process of forming a business is fast and straightforward. You can register your company with the Department of Economic Development (DED) in as little as 90 minutes. Typically the setup takes four to five days. However, a variety of reasons, including government certifications, might cause delays.
Tax benefits: Companies based in the UAE are 100% tax-free.
Range of business activities: You can apply for a DED license from any of the 2,000 permitted economic activities.
100% Foreign Ownership: Some company licenses no longer need a UAE national sponsor. This lets you own 100% of businesses even if they are not in a free zone.

Cost of starting a small-scale business

The cost of a small business license in Dubai is between AED 10,000 and AED 30,000 approx. However, many things could make it more expensive to get a business license in Dubai, such as:

• The type or nature of business
• The number of company partners
• The rental charges for the office space

To get an exact quote, contact Creative Zone. We can give you the most up-to-date price that matches the activities you want to carry out.

Steps to launch a small-scale business in Dubai

To launch your small-scale business in Dubai, you need to follow specific steps. This will ensure that you and your company comply with all the applicable laws and regulations of the emirate. Here are six easy steps to starting a company in Dubai:

Step 1: Select a business activity
The first step to starting a business and getting a license is to figure out what you want to do. Choose from more than 2,000 business activities that fall into the industrial, commercial, professional, and tourism groups. You can see the whole list on the DED website. Alternatively, Creative Zone can help you choose the correct type of business activity you need to start your new company.

Step 2: Choose a name
Your company must have a trading name, and it is an integral part of the legal process. Unless the company is a branch of another, its name should reflect what it does. It is also essential that you follow the strict naming rules in the United Arab Emirates. Using phrases that include bad words or are derogatory to any religion is strictly forbidden in the United Arab Emirates.

Step 3: Select a location
Dubai has three economic zones or jurisdictions: the Mainland, Offshore and the Free Zone. Each zone has its own set of business-related laws and regulations, and each one meets the needs of different types of business. Choose a jurisdiction for your business based on what you need and what kind of business you have. Also, when choosing a place for your office, you need to consider aspects like how easy it is to get to your customers, how well it fits your business and transportation accessibility.

Step 4: Documentation submission to the DED
After you pick a name, an activity, and a place, send all the paperwork to DED for approval. Company formation and licensing happen at the same time. Here you must get all the permissions you need from the DED, and that depends on the type of business and what it does.

Step 5: Obtain licenses
You can get the Memorandum of Association, a Certificate of Incorporation, and other legal documents once the appropriate authorities have approved your business activities. You can also obtain visas, tenancy agreements, and labour cards post-approval.

Step 6: Process your visa
It is time to start your business in Dubai. Along with your visa application, you may also apply for visas for your family and staff, if any. Assuming that all of the information is correct, there are four stages to the process:

• Getting an entry permit
• Changing your status
• Taking a medical exam
• Getting an Emirates ID and a visa stamp

Small-scale business ideas for Dubai

Dubai is a terrific location to conduct business. Entrepreneurs and established enterprises alike may benefit from the UAE’s rapidly developing economy. Here are some small business ideas for Dubai.

Recruitment agency
Dubai’s economy is growing, and many companies require competent staff. However, these organizations often struggle to locate qualified staff so recruiting agencies are in great demand. The biggest benefit of a recruiting agency is that it never runs out of supply of applicants. You can recruit highly competent people from anywhere globally with proper marketing.

Daycare centres
In Dubai, many families have both parents working, and as a result, they cannot care for their children during office hours. If they cannot afford a nanny, they leave their children at daycare centres. Furthermore, daycare establishments are in high demand in Dubai as the city strives to expand its female employment. Additionally, the Dubai government has made it easier for people that help working families to set up their businesses.

Dry cleaning service
Laundry, like cooking, is a challenging job for working people who are often searching for help. The most popular services in UAE are mobile laundry, and pick-up-and-delivery dry cleaning services are in high demand.

Work with Creative Zone

While starting a small-scale business in Dubai appears forthright, setting it up requires qualified and expert professionals to handle all government-related work. With the assistance of a business formation specialist like Creative Zone, starting your business can be quick, simple, and economical.

Creative Zone is UAE’s oldest and most trusted business setup expert, having assisted over 44,000 entrepreneurs in successfully establishing their businesses since our inception in 2010.

We specialize in delivering solutions that best fit your needs when starting a business by providing quick, dependable, hassle-free, and experienced assistance.

Assisting your business setup in Dubai is only the first step. We also provide a wide range of services, including tax preparation, legal advice, and human resources management.

The benefits don’t end there. When you become a client of Creative Zone, through our networking tool, CZ Connect, every client gets access to a thriving community of fellow entrepreneurs. This allows you to interact, network, and develop significant relationships with the region’s larger business community.

Take advantage of our free consultations today and get unbiased advice on UAE business formation, with the sole goal of finding the best possible fit for your needs


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