Do’s & Don’ts to set up business in Dubai

Do’s & Don’ts to set up business in Dubai


The Dynamic Business World, Dubai, has become the center of attraction for business people. Setting up Business in Dubai requires quite a simple process to be followed. But you must have complete information about the limitations and benefits. Enlisted below are some Dos and Dont’s for every flourishing venture in Dubai.

Things to do to business setup in Dubai


1. Select a UAE national as a sponsor

There are many facts that you need to be known about before starting up your venture in Dubai. To cross the hurdles, you have to face during incorporation and identify new & profitable business opportunities, you always need a local sponsor.

For this purpose, you have to make the local sponsor your 51% partner and pay him a yearly fee.

2. If you want 100% ownership of your business, go for a Free zone

The only way for avoiding the partnership of local sponsor freezone. Free zones have gained fame due to three main benefits that they offer while business setup in Dubai:

  • Complete ownership
  • Tax redemptions
  • Quick start-up

3. Select a location that is suitable, convenient and cost-friendly

Keep these three criteria in mind while selecting the location. It would help if you chose a place that is easily accessible for the customers and is budget-friendly for your venture because your growing experience becomes meaningless if customers cannot reach you.

4. Get confirmation for visa eligibility and requirement

Visa permission is a necessity for you and your employees to carry your business in Dubai. Size of the office, nature of the company, and type of employees are the criteria on which several visas require to vary. You will strictly need a sponsor for this visa process.

5. For making your way through the start-up process, Hire an agent

There are well-established advisory firms that can help you with your business start-ups. Hiring them at the initial stages proves to be useful for new businessmen as there are many things that you don’t have an idea about. Just make sure you get a written agreement with them, and both of you agree with each other.

Things to not do to business setup in Dubai


1. Do not get your company incorporated in freezone until and unless you have seen the office size

You are shown a variety of offices to start-up in the free zone. But often, the available offices are of specific sizes only. So before finalizing the office, you must have a visit to it.

2. Do not rely on published information

Before finalizing everything, you should check whether the published information is accurate or not. Make sure to connect with the relevant authority and personally complete everything. Furthermore, Sometimes special permissions are needed, or some requirements may get relinquished as per your request.

3. Do not apply for a license without knowing if it allows your business model

Choose a license category that is wider enough to cover your business models. Be sure that you can conveniently make changes whenever necessary. Also, ensure whether it allows you for all the business-related activities or not.

4. Do not open a bank account without knowing about bank charges

Having complete detailed information about the bank you are planning to open an account in is a must. Bank charges and interest rates vary. You should not choose any bank just based on its reputation.

5. Do not get along with a local sponsor without a written agreement.

Verbal conversation is not enough for you and your sponsor. You will need his support numerous times at the initial stage, and he might charge additionally for some services.

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