Dubaiis a very straightforward place to start a business. Watch out for a few things, though. The process may seem lengthy and time-consuming, but there are important considerations along the way that you should know about. Make sure to get good advice about the implications of your decisions, whether you decide to undertake the process yourself or hire business setup experts.

Why start a business in Dubai?

There is a strong sense of welcome and support for business in Dubai and the UAE. There were more than 20,000 new business launches in Dubai alone last year. Overseas entrepreneurs registered most of these companies. There are between 80% and 90% of foreign nationals working in the UAE.
Business start-ups in the UAE and Dubai are popular for many compelling reasons.

Here are some of the main advantages:

• There is no personal or corporate income tax in the UAE. VAT - introduced in January 2018 - is the only significant tax to be aware of here in the Emirates.
• In the Arab world, the UAE is home to the second largest economy. In addition to its size, it is equally diverse. From healthcare and hospitality to technology and trade, you can start a business in a number of industries.
• A high standard of living: Only slightly behind Spanish and Irish and ahead of Portugal and Greece, the UAE placed 23rd in the Best Countries Index.
• A number of startup incubators and funding initiatives are available in the Emirates to assist entrepreneurs.
• It is also looking very bright for business in Dubai. The International Monetary Fund (IMF) predicts that the UAE will lead the Arabian Gulf in economic growth this year, increasing by 2.5%. Saudi Arabia, with a GDP of 0.4%, is expected to be the region's biggest economy this year.

In case you've been wondering how to start a business in Dubai, you're not alone. Using this guide, you can easily form a company in Dubai if you follow the steps.

Company Formation in Dubai - A Step-by-Step Guide:

2. Locate the location:
As soon as you've decided on an industry, you'll need to decide whether to launch in a free zone or on the mainland. Free zones offer the following benefits to businesses:

1. Taxes on corporations and individuals are 0%
2. Ownership of 100%
3. Profits and capital will be repatriated in full
4. There are no restrictions on currency
5. Tax exemption of 100% on imports and exports

It's necessary to work with a mainland company who will charge you if you want to trade directly with the local market in the UAE.
The mainland, on the other hand, allows you to trade directly with both local and international markets. A local partner, who holds 51% of your company's shares, must hold 51% if your business does not fall under professional services.

3. Choosing a company name
Be sure that your company name is legally acceptable before you commit to it. The UAE has some strict naming conventions. Language that is offensive is not allowed in names. This includes names of companies referring to Allah, Him, or any other religious, sectarian, or political groups, such as the FBI or the Mafia. Name your company after a partner or owner of the company if you choose to name your business after a person. Neither initials nor abbreviations can be used - their full name must be used.

4. Formally incorporate your company:
The most crucial decision you need to make when starting a business in Dubai has been made if you have reached this point. At this point, documentation must be completed.The relevant government authorities will need a copy of your shareholders' passports along with your company name and activity application. The Free Zones may require additional documents such as business plans, Non-Objection Certificates (NOCs), or permission letters from current sponsors to set up a new business in the UAE.
The UAE requires that you fill out an application to register the company name and activities you choose. Shareholders' passports are required for this application. A Memorandum of Association must specify the capital requirements for mainland companies.
5. Getting your paperwork in order and submitting it
Registering your business and trade name in your chosen emirate is as simple as contacting the Department of Economic Development and submitting the required documentation. The UAE government website provides links to the respective offices under Information and Services. Your company license will be issued once your application has been processed.
Your biggest challenge at this stage will be navigating the paperwork. The assistance you receive from Virtuzone at this stage of the process is often invaluable, even though it may take you weeks to months to complete the process. Anyone who dislikes tedious, difficult paperwork with lots of fine details should make use of our expertise. In this phase alone, you'll save a great deal of money and time.

6. Licensing application:
A company license will be issued to you by the government once your application has been processed. It is usually enough to submit a completed application form, a copy of each shareholder's passport and similar documents, regardless of where the company is set up. There may also be a requirement for you to provide a business plan in some free zones.

7. Open a bank account:
You will receive all the documentation you need for opening your corporate bank account once your paperwork has been returned. Many local and international banks are located in the UAE, including;

1. Emirates NBD
2. Abu Dhabi Commercial Bank
3. Commercial Bank of Dubai
4. Noor Bank, Emirates Islamic, Mashreq, RAKBANK and Ajman Bank.

As well as local banks, there are also global names such as HSBC, Citibank, and Barclays. Your specific requirements will determine which is right for you. Trading in the UAE requires a bank account.

8. Visa application:
Your hard work has paid off! Congratulations! The last step in starting a business in Dubai is to apply for a visa. Additionally to applying for your own visa, many free zones allow you to apply for the visas of your employees and dependents. Which free zone you choose will determine how many applications you can submit.
To ensure that, firstly, it is possible to apply for a visa for your spouse, child, maid, or driver in your chosen free zone, and secondly, that you and any person you wish to sponsor for a visa meet all of the entry requirements, it is best to seek expert advice.
It's that simple! Your Dubai business is ready to start once you complete these eight steps.