Things to consider while setting up business in Dubai

Idyllically located on the crossroads of Europe, Africa, and Far East Asia, Dubai is the second largest State of UAE that has enlisted itself among the most desirable places to set up a business. After securing 23rd position among the Easiest places to start up a business, the territory has become equally alluring for both entry-level entrepreneurs and owners planning to extend their organizations abroad. Rising interest of investors identifies State Government the need to implement flexible policies. Although, these policies are made to facilitate ambitious investors and small enterprise owners to establish their setups in the city, foreign industrialists might face difficulties, especially if they are not very well aware with the Government legislative policies. In addition, to legal complexities, bulk availability of opportunities also confuses candidates who are not sure about their personal intentions.

Irrespective of being a local entrepreneur or an expat, everyone who is planning to start up an enterprise in Dubai, should pay attention to understand the process and associated financial risks. Registration is the first step of the process. A good lawyer can simplify the things and give you complete and authentic information. He will guide you throughout the process and enable you to categorize the things into legal and illegal.

Here I am sharing few important things everyone should consider who is seeking for an authentic guide about how to set up a business in Dubai.

Pick the right activity according to your needs

Activity is actually the idea, the reason to set up the company. Don’t make random selections while picking up the activity, as it will lead you to failure. Careful planning is essential for every entrepreneur. Once you have chosen an activity and obtain a license for that you can’t switch it suddenly. As licenses are issued for every specific business activity, you can’t run the import, export and manufacturing plant on the same license. You can’t proceed to trade on the consultant license.

Company type is the next big concern

UAE offers three options regarding the type of company. You can either choose LLC, offshore, or a freezone establishment to operate your company in the city. If you are planning to serve the local market, LLC will be the better option. All you need to do is to find a reliable local partner with 51% partnership. In case, you want to enjoy undivided ownership, pick a freezone to establish a company. Once you have made this decision you will be restricted to do business in freezone only. However, the offshore setup allows entrepreneurs to use UAE as a base to trade across the world.

Location is also important

You can’t establish a manufacturing house in a commercial tower; similarly, you don’t want to open an office on a deserted road, which is hard to access. Consider the business type to select an ideal location for your setup. If your idea demands direct exposure with clients, consider opening your company in an easily accessible location. Availability of transport in surroundings is crucial not only to facilitate customers, but also for your workers.

Select financial institution wisely

Although, there are a number of good banks and financial institutions that are purposefully serving the foreign investors and entrepreneurs coming to invest and inaugurate business in Dubai and UAE, you should select the bank fulfilling your needs. Most of the banks offer both conventional and Sharia financing. If you are corporate model supports profit sharing Sharia is the right option, in contrast to those who find interest based financing more suitable.


Whether you are planning to extend your business abroad, or it’s your first attempt to setup any business in Dubai, considering these simple things will assure success.

Credit: Dubai Science park –