Business set up in Dubai in 2020`

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Business Setup in Dubai in 2020
Dubai, an emirate of the United Arab Emirates, is
a vibrant economy and offers a politically stable
environment for businesses to sustain and grow.
As per the Annual Economic Report 2019 issued by
the Ministry of Economy, the total GDP of the UAE
at current prices was AED 1,521.1 billion in
2018. Dubai is located on the eastern coast of
the Arabian Peninsula, in the southwest corner of
the Arabian Gulf. It is the second-largest
emirate of the UAE. Dubai is a commercial hub of
the country offering modern infrastructure,
malls, and shopping centers, hotels, restaurants,
and banks to anyone starting a business in Dubai.
Its a major tourist attraction for various
iconic buildings like Burj Al Arab hotel and Burj
Khalifa.
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Seven Steps for Business Setup in Dubai in 2020

1. Identification of Business Activities
2. Determination of legal structure
3. Business Location Selection
4. Trade Name Registration
5. Applying for initial approval
6. Prepare MOA or LSA
7. Obtain additional approvals

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1. Identification of Business Activities

• The first step towards starting a business in
  Dubai is the identification of business
  activities. Depending upon the nature of your
  business activities, you will need to select the
  license type. A trade license or a business
  license enables you to carry out a particular
  business activity you are licensed for.
• You can opt for a mainland company formation if
  you require a license for
• Industrial activities
• Commercial activities
• Professional activities
• Tourism activities
• Agriculture activities
• Occupational activities

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1. Identification of Business Activities

• One can opt for a Free Zone Business Setup in
  Dubai if he requires a license for
• Commercial/Trade activities
• Consultancy/Services related activities
• Industrial activities
• Educational activities
• Media related activities
• eCommerce related activities

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2. Determination of Legal Structure

• Once you finalize in between a mainland company
  and a free zone company, you need to determine
  the legal structure in which you want to run your
  business. While selecting the business structure,
  you need to give due consideration to business
  activities, business type, the number and
  nationality of owners, and the ownership pattern.
• Options available to mainland companies
• One Person Company (LLC)
• Sole Proprietorship
• Civil Company
• Options available to Free Zone Companies
• Free Zone Limited Liability Company (FZ LLC)
• Free Zone Company (FZ Co.)
• Free Zone Establishment (FZE)

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3. Business Location Selection
Depending upon whether you are forming a mainland
company or going for a free zone company
formation in Dubai, you have to select a business
location that is not only convenient for you but
also suitable for your business. If you are
forming a free zone company, then evaluate
whether you want to buy out the office or go for
a leased space. For a mainland company, the
business place must comply with the requirements
laid down by the DED and zoning regulations of
the local municipalities.
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4. Trade Name Registration
Another critical aspect of a company formation in
Dubai is, a business needs to have a trade name
representative of its business activities and
legal structure. For mainland companies, the
Department of Economic Development (DED)
regulates the trade name registration process.
DED has also laid down a detailed guideline as to
Trade Name selection, and one must adhere to it.
It is important to note here that one can not
register a Trademark with DED. The Ministry of
Economy handles trademark registration. When it
comes to Free Zone Companies, respective Free
Zone Authorities also follow the same general
guidelines as followed by DED. Some of the Free
Zones have their restrictions and guidelines in
this matter.
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5. Applying for initial approval
The expatriate investor must obtain prior
approval from the General Director of Residency
and Foreigners Affairs before applying for
initial approval and starting a business in
Dubai. The UAE Government will provide the
approval if it has no objection for the proposed
business intended to be established by you.
However, a grant of initial approval does not
mean you can start the business until you
complete all the formalities.
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6. Prepare MOA or SLA

• Starting a business in Dubai requires one to
  prepare the Memorandum of Association (MOA) or a
  Corporate Agent Agreement with the Local Service
  Agent (LSA) as per the legal structure of the
  business. Generally, a Memorandum of Association
  is required for
• Limited Liability Company
• Public Shareholding Company
• Private Shareholding Company

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7. Obtain additional approvals

• If a company is engaged in the following
  activities, then it has to obtain additional
  approvals from appropriate authorities before
  starting a business in Dubai
• Health-related activities Health Authority of
  the Emirate
• Driving Schools, Alarm Safety Systems, Used car
  dealers Ministry of Interior
• Telecommunications Telecommunications
  Regulatory Executive Council Authority, Licensing
  Department
• Travel Tourism, Charter Trading, Ship
  Maritime Agencies, Foreign Company Branches.
  Executive Council
• Food and Beverage related activities Municipal
  Government of relevant Emirate, Abu Dhabi Food
  Control Authority
• Legal activities, Legal Consultancy Ministry of
  Justice

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Advantages of starting a business in Dubai
Mainland

• A mainland company formation in Dubai allows one
  to choose from more than 2100 business
  activities.
• A mainland business setup in Dubai enables one to
  have unlimited visas. However, the actual
  eligibility for visas depends on the size of the
  office space.
• A mainland/onshore business has the liberty to
  have office premises anywhere in mainland Dubai.
• A mainland company can do business with other
  mainland companies, local bodies, and government
  authorities.
• There is no minimum capital requirement in the
  case of a mainland company formation in Dubai.

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Advantages of starting a business in the Free Zone

• Expat investor can have 100 ownership and
  control over his business
• A Free Zone Company need not invest in office
  space. They may operate through a Flexi desk.
• The free zone authority provides almost all
  necessary licenses to the Free Zone Companies.
  They only need to seek outside approvals if they
  are engaged in some specific activities.
• Free Zone incorporation is comparatively straight
  forward and quick.

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FAQs
What types of business can I set up in Dubai?
You can set up an onshore/mainland business, a
free zone business, or an offshore business in
Dubai.
What is a mainland company?
A mainland company is an onshore company or a
locally registered company. The Department of
Economic Development (DED) licenses such
companies. A mainland company can do business
locally as well as outside UAE.
What is a Free Zone Company?
A Free Zone Company is a company formed in a
designated Free Trade Zone or Tax-Free Zone. It
is allowed to have 100 foreign ownership in the
case of a Free Zone Company.
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FAQs
What is an Offshore Company?
An Offshore Company is a legal entity that does
not carry out any commercial activity in its
country of origin. Its a kind of non-resident
company with no office space in the UAE.
Investors form an Offshore Company to have better
tax and wealth planning.
What is an LLC Company in Dubai, and how do I
form it?
An LLC Company in Dubai is a Limited Liability
Company. To form an LLC Company in Dubai, you
need to follow all the steps identified in the
above article.
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FAQs
Do the steps remain the same for all types of
company formation in Dubai?
Yes, those Sevens steps for Business Setup in
Dubai in 2020 remain the same for all types of
company formation in Dubai. Wherever theres a
change, we have indicated the alternative process.
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Thinking of a Business Setup in Dubai?
We at N R Doshi Partners provide guidance and
help in choosing the right license, jurisdiction,
and emirate. We offer prompt and hassle-free
Company Formation services in Dubai. Be it a
mainland company formation or a free zone company
formation or an offshore business setup in UAE
we help you in all steps of the way. We also
provide our services as JAFZA Business Setup
Consultants and help you with offshore business
setup in UAE. Moreover, we are recognized by
JAFZA offshore as a Top Performing Offshore
Consultant 2013 and Best Strategic Partner
2017 and Best Strategic Consultant 2019.
Please get in touch with us for professional
assistance. You can reach us at email
enquiries_at_nrdoshi.ae or use the contact us form
on https//www.nrdoshi.ae. The first consultation
is FREE.
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