Business setup in Dubai is a dream of many entrepreneurs. The strategic location, tax benefits, and easy registration process are some of the main attractions to open a company in Dubai. Many people wonder if they can open their company in Dubai without any money. Honestly, it is practically not possible. Be it a limited amount for investment but it is needed eventually. You can go for a business setup in Dubai that requires little to no investment. But before that, you must know the process to open a company in Dubai.
How to Open a Company in Dubai?
A simple step-by-step process to open a company in Dubai with the right support is straightforward and affordable than you might think. We have broken down this process into the following six steps:
Choose Your Business Activity
You must select the business activities of your company as per the nature of your company. The DED will provide you with a list of business activities to choose from. Once you choose your business activities, it will be easier to decide the category of your business. It will also help you determine the type of trade license you need.
If you want 100% ownership of your company, you must consider registering it in a UAE-free zone.
Choose Company Name
While choosing a name for your company, you must adhere to a few rules. You must not use any foul, controversial or religious words in the name of your company. If you choose to name it after the name of a person, make sure to use the full name of that person. Once you have decided on a name, it is important to register it with DED.
Partner With an LSA
You must get in touch with a Local Service Agent. That LSA will further help you in drafting a Memorandum of Association. Make sure you get it signed by all your business partners and stakeholders.
Secure an Office Space
It is necessary to rent an office space to open your company in Dubai. You must choose a location and the space suitable for your business activities. Once you have secured a place, you have to register it online through Ejari to obtain your tenancy contract. Without a tenancy contract, you won’t be able to register your company. You must also obtain your unique Ejari number for future references.
Obtain Trade License
The DED offers 4 main trade licenses. A commercial license, Professional license, industrial license, and tourism license. You can choose any one of these according to your business category. The process to apply for a trade license can be complex.
We suggest you connect with experienced business setup consultants to help you with the paperwork and acquiring your license at a low cost. Once you obtain your trade license, you can start operating your business activities in the country.
What are the Required Documents to Open a Company in Dubai?
As there are different forms of businesses in Dubai that need a different set of documents. The following documents would be required to register your business setup in Dubai:
- Application form to start your company in Dubai.
- Present a proper plan
- Keep Memorandum of Association and Article of Association duly notarized by the respective legal authority.
- Copies of passports of your business managers.
- Copy of the passport of the sponsor to prove they are a UAE National.
- Get a NOC from the Sponsor.
- Acquire bank reference letters for each of the shareholders.
For an industry license you need to present the following documents:
- Present the existing company profile.
- Mention all the information related to the investor.
- Mention all the necessary details for setting up branch offices.
- Copy of Certificate of Incorporation.
- Board resolution of the company.
- Three months bank statement of the parent company.
- Original Power of Attorney.
How to Open a Company in Dubai Without Money?
To open a company in Dubai without any money at all is practically not possible. But we have listed down a few business options that require very less investment or next to no money at all:
Dubai is popularly known for fashion apparel. It is said to be one of the most popular destinations for shopaholics. Apparel is a lucrative sector to invest in for startups in the Emirates.
Ed Tech has been blooming for the last few years. It is one of the most profitable businesses to start with next to no investment. All you need is a good internet connection, a device to take classes at, and the right skills for whichever subject you decide to teach. You can also build up your own team and scale it up with time.
Consulting business is like an ed-tech business. You may already be skilled enough in whichever field you pick. If that’s the case then you’ll need very little investment to get started – acquire your license, design a website, perhaps print a few visiting cards and you’re ready to start a consultancy business setup in Dubai.
Social Media Management
Almost every business today has a social media presence. Starting a social media business step in Dubai can be a fun, exciting, and learning experience. Being a social media manager does not require any initial costs. Just post a couple of personally designed creatives on various platforms. With time, when you get 3-4 clients at the same time, you can scale up your team accordingly.
An E-Commerce Store
E-commerce is a rapidly growing enormous sector. It’s very easy to tap into in less time. To start an e-commerce business in the UAE you will need an e-trader license. You can even run your business from outside the country. All you need is an understanding of how to run a business digitally and be fluent with digital applications.
What is The Cost to Open a Company in Dubai?
Acquiring your trade license is the key financial outlay that you need to calculate to open a company in Dubai. In addition to your trade license, you must choose the right type of business setup in Dubai. It should be legally registered, or you won’t be able to trade, open any bank accounts, publish any advertisements, or recruit. You need to choose between a free zone or a mainland setup. The fast and better way to do this and establish your needs and costs is to get in touch with company formation specialists in Dubai. They are experienced and will walk you through the free zone and mainland options.
The cost for business setup in Dubai mainland can be as little as AED 30,000. This includes:
- The trade license fees
- Company registration fees
- Opening a bank account
- Renting office space
- Acquiring your immigration card
- Partnering with UAE local partner
- Your business visa cost
- Stamping from the company
- Medical fitness test fee
- Your Emirates ID
Connect With Shuraa
If you would like to get more details about how to open a company in Dubai with next to no money, you can get in touch with the expert consultants at Shuraa Business Setup. Our expert consultants will share all the necessary details about the business setup in Dubai and guide you throughout the process. We can also help you acquire your trade license at a low cost. All you have to do is connect with us and share your requirements and we will take care of the rest.