Starting a business in the UAE is daunting. However, these steps/tips can help you overcome challenges and achieve your goals!
How to start a business in UAE
UAE offers entrepreneurs and business owners a wide range of benefits, including zero percent income tax. It is one of the most strategic locations in the Middle East to start a business, build a brand reputation, increase profits, and live your dream life. However, starting a business in the UAE requires a step-by-step procedure. Today’s article will highlight the steps to creating a lucrative business in the UAE.
Validate Your Business Idea
Idea validation is the first and most important step in starting a UAE business. In other words, it is about choosing a specific industry and narrowing down your search results to select a niche that best fits your requirements.
Most people go wrong thinking that developing an idea is unnecessary. However, Tarek Riman, a professional entrepreneur, says that creating a vision, choosing a specific niche, and validating the business concept is critical.
The purpose is to turn your unique idea into a practical business and offer solutions to your target audience to address their concerns and needs. Therefore, you must decide on your company’s activities.
There are thousands of activities to choose from, but selecting the most appropriate one means the idea, niche, or industry aligns with your business goals. So, before you apply for a business license in the UAE, come up with an idea and validate it to move forward.
Choose Your Company’s Name
Once you have outlined a business niche or industry, the next step is to choose your company or business name. There are numerous things or factors to consider when choosing a name for your business in the UAE.
Remember, UAE has strict laws and regulations, meaning you have to choose a name that does not violate the rules. You can hire a business expert to help you with the company name if you find it challenging to select the most appropriate name for your organization.
Choose a Free Zone or Mainland
You have two choices in the UAE when choosing a location for your company. Before applying for the business license, decide on your business location. Do you want to operate your company in a free zone or on the mainland?
For example, the UAE has several free zones, such as Fujairah Creative City, offering a wide range of business incorporation or implementation benefits. It supports business development and offers financial incentives, such as zero currency restrictions and taxation exemptions.
In contrast, mainland business enables entrepreneurs to trade directly with the markets in the United Arab Emirates. Mainland business allows you to leverage government contracts compared to the free zone. Choosing a free zone or mainland business depends on your unique needs or requirements.
Obtain a Business License
Obtaining a license for your company is a more streamlined process for free zone and mainland businesses. You can apply for a business license at the Department of Economic Development. On the other hand, you can submit the application at the Municipality in the Emirate when setting up your business.
It takes around three to four weeks for the department to entertain and issue a business license. Apply to the relevant authority if you want to set up a business in the free zone. You can get the permit in a few days! Complete the form and attach your passport copy with color-size photos when submitting your application.
Open a Business Bank Account
The United Arab Emirates has strict money laundering rules and regulations, making it challenging for foreign entrepreneurs to access banking facilities. However, Tarek Riman recommends hiring a financial expert to help you streamline the entire process by opening a business bank account.
A professional company formation agent has an extensive network with local and international banks and ensures you open and maintain a business bank account in the UAE without hassle. A bank account is critical to streamlining your business financial processes, including expenses, revenues, and profits.
The UAE is one of the best places in the Middle East to start and run a successful business. Although you have to follow a step-by-step approach when setting up and legalizing your company, it is worth your efforts. Until Next Time!
- Article based on personal opinion, experience and research.
- Photos from Unsplash & canva.