How to Start a company in Dubai from Bangladesh
Starting a company in Dubai involves several steps, ranging from selecting the business structure to obtaining necessary approvals and licenses. Here's a detailed guide to help you navigate the process:
1. Choose a Business Activity
Identify the nature of your business activity, as Dubai’s regulatory framework classifies companies based on the type of activity they undertake. Common categories include:
- Commercial: Trade-related activities.
- Industrial: Manufacturing or production.
- Professional: Consultancy or professional services.
Your chosen activity determines the type of license required.
2. Select the Appropriate Jurisdiction
Dubai offers three main jurisdictions for business setup:
- Mainland: Allows businesses to operate within Dubai and across the UAE without restrictions. Requires a local service agent or UAE national as a partner for certain activities.
- Free Zone: Provides 100% foreign ownership, tax benefits, and simplified business setup processes. Businesses operate within the confines of the free zone.
- Offshore: Suitable for international trade or holding companies. Offshore entities cannot operate directly within the UAE market.
3. Choose a Legal Structure
Your business structure impacts licensing requirements, ownership rules, and operational scope. Common structures include:
- Sole Proprietorship: Owned by a single individual.
- Limited Liability Company (LLC): Requires at least two shareholders and is the most common structure for foreign investors.
- Branch of a Foreign Company: Enables existing companies to establish a presence in Dubai.
- Free Zone Company: Fully owned by foreign investors and limited to free zone operations.
4. Reserve a Trade Name
Choose a unique trade name that complies with Dubai’s naming conventions, including:
- No religious or political references.
- Avoidance of offensive terms.
- Relevance to the business activity.
Submit the chosen name for approval with the Department of Economic Development (DED) or the relevant free zone authority.
5. Obtain Initial Approvals
Apply for initial approval from the DED or the free zone authority, which involves:
- Submitting details of business activity and ownership.
- Verifying compliance with regulatory requirements.
6. Draft and Notarize Legal Documents
Prepare and notarize the necessary documents, such as:
- Memorandum of Association (MOA) or Local Service Agent Agreement.
- Lease agreement for office space.
For Mainland companies, notarization must be done through the Dubai Notary Public.
7. Secure Office Space
Every business must have a physical address in Dubai. Options include:
- Shared Office: Cost-effective solution for startups.
- Dedicated Office: Mandatory for certain business types, especially in the Mainland.
8. Apply for a Business License
Apply for a license based on your jurisdiction and business activity:
- Mainland: Submit your application to the DED.
- Free Zone: Apply through the specific free zone authority.
- Offshore: Obtain the license from the offshore jurisdiction authority.
License categories include commercial, industrial, and professional licenses.
9. Register for Taxes (if applicable)
Register for VAT if your taxable turnover exceeds the mandatory threshold. Free zone businesses may enjoy tax exemptions but must ensure compliance with UAE tax laws.
10. Open a Corporate Bank Account
Open a business bank account with a local or international bank in Dubai. Requirements typically include:
- Business license.
- MOA.
- Proof of business address.
- Passport copies of shareholders.
11. Hire Employees (if applicable)
If your business requires employees, you must:
- Register with the Ministry of Human Resources and Emiratisation (MOHRE).
- Obtain work permits and residency visas for employees.
12. Finalize Visa Applications
Obtain the necessary visas for you and your employees. The process involves:
- Entry permit application.
- Medical fitness test.
- Emirates ID registration.
13. Start Operations
After completing all formalities, you can begin operations in Dubai. Ensure ongoing compliance with UAE regulations, including timely license renewals and tax filings.
Contact TRW Law Firm for Assistance
Starting a company in Dubai involves navigating legal, regulatory, and administrative procedures. TRW Law Firm specializes in business setup services in Dubai, offering expert guidance tailored to your needs.
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Global Law Firm Locations:
- Dhaka: House 410, Road 29, Mohakhali DOHS
- Dubai: Rolex Building, L-12 Sheikh Zayed Road.
