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Here’s What You Need To Start A Fresh Business In Dubai Legally

Dubai is considered the commercial center and the business capital for the United Arab Emirates, if not the whole Gulf area. Dubai has an inviting business atmosphere due to the diversity of the community of its residents, who share a peaceful, respectful, and secure lifestyle. 

Dubai’s strategic location encourages investors from around the world, and the international exposure in the city creates a vast and innovative business foundation for potential investors and business entrepreneurs. The government there gives support and offers more perks on investments for start-up businesses in Dubai. Such advantages are quite welcoming and encouraging compared to other regional business cities. Here’s what you need to start a fresh business in Dubai legally.


Company Formation

Doing business in Dubai is a great step that beholds potential future successes; however, before proceeding with business legalities and company formation steps, you have decided on the type and nature of business, as well as the business activity you intend to do. Each business activity is entitled to certain standards and legislation, and legal procedures must be strictly followed when forming a company in a city like Dubai. On the other hand, incorporating a company has several benefits, especially since it’s a tax-free zone. A handful of tax agreements are held to facilitate business with several countries in the European Union, as well as the US and China. 

E-Commerce Business in Dubai

Before starting e-commerce in Dubai, there are a number of steps that you need to fulfill. First, you must decide whether you’re going to set up your business on the mainland or in the free zone. If you intend to trade with the UAE local markets directly, this requires a business set up in the mainland, where government contracts are required. While establishing a free zone business setup won’t allow you to trade with UAE local markets directly, however, you’ll benefit from a 0% tax rate, exemptions from tax income payments, and no currency restrictions. As a second step, you should choose a name for your business following company naming regulations in the UAE. The third step is applying for an e commerce license dubai, and the application depends on the business setup you choose. For free zone businesses, apply for your license in your chosen free zone. For mainland business setup, applying should be through the Department of Economic Development (DED).

Corporate Bank Account

Opening a trading business in the UAE requires having a corporate bank account, for foreign business owners, this can be a bit of a complicated step. Consulting a company formation specialist can assist you with the process and in choosing an international bank that provides acceptance criteria that fit your company’s needs. Company formation specialists also help you to estimate license costs, the number of visas required depending on the size of your business, how to apply, and other office requirements like the space and location.


Opening a business in Dubai requires knowledge of the legislation and all the steps needed to complete your company formation procedures. Although Dubai is known for giving many benefits to entrepreneurs and business startups, it can be stressful if you’re unaware of the rules and costs required to establish your business in the right and legal way. Appointing a business setup consultant can accelerate the process without the chance of wasting your time and money.


Also published on Medium.

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