Setting up a business in Dubai offers a range of opportunities, but it also comes with specific legal requirements that entrepreneurs must steer. Complying with local regulations is essential to ensure the smooth operation of your company. If you are planning to business setup in Dubai free zone, the legal process may vary based on the type of business and the free zone chosen. Below is a step-by-step guide to help you steer the legalities involved in establishing your business.
Obtain a trade license:
Every business in Dubai needs a trade license to operate legally. The type of license you require—commercial, industrial, or professional—depends on the nature of your business. If you’re setting up in a free zone, you will apply for a free zone license, which is specific to the activities allowed within that zone. The process involves submitting your business plan, securing approvals, and paying the necessary fees. Consulting with a local business setup consultant can streamline this process and ensure all necessary paperwork is in order.
Register your business name:
Choosing and registering your business name is an important legal step. The name should comply with Dubai naming conventions, meaning it cannot be offensive or identical to existing businesses. You will need to submit your proposed business name to the relevant authority for approval. Once approved, the name is registered, and you will receive a certificate. This step is required before proceeding with other legal aspects of business setup.
Lease office space:
Many businesses, including those in free zones, are required to have a physical office address. This office can range from shared spaces and virtual offices to dedicated office premises. In most free zones, you will need to secure a lease agreement as part of your license application. Ensure that your office space complies with local regulations regarding size and functionality, and that the lease agreement meets the requirements of the free zone authority.
Visa and work permit applications:
Once your business structure and location are finalized, you will need to apply for visas and work permits. These are essential for both the business owner and employees. For free zone businesses, the number of visas allowed may be linked to the size of the office space you lease. Each individual working in your company will need a work permit, and you will need to ensure compliance with local immigration laws throughout the hiring process.