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Selection of Business Structure:

The first step in the process is the selection of a suitable business structure. The foreigners are permitted to open business in the mainland, free zones or offshore of their choice. There are separate regulations and benefits for each option. Free zones offer 100 % foreign ownership, tax exemptions and simplified export/import procedures, making them the first choice for international trade.

Selection of Jurisdiction:

As we already discussed, the selection of jurisdiction is very key before moving the authority for business approval. The selection should be made based on the nature of the business and its growth potential. It can be on the mainland, in the free zone or offshore. The operational scope, taxation and ownership structure will be related to the choice.

Registration of Trade Name:

A unique name with the punch to attract customers is the first step to establishing any business. It should reflect the nature of the business and should be free from offensive or blasphemous content. Once the name selection process is over, the entrepreneur concerned will have to approach the Department of Economic Development (DED) to complete the registration process.

Obtaining Initial Approval:

An initial approval will have to be obtained by the entrepreneur after completing the registration formalities. It is issued by the Department of Economic Development. The approval proves that the government is not having any objection to your project. In some cases, additional approvals may be required from specific regulatory bodies.

Drafting Memorandum of Association (MOA):

The purpose of MOA is to outline the business structure, its activities and the details of share distribution among other partners. For the companies that operate from the mainland, the MOA will have to be drafted with the support of a local service agent. The MOA will have to be notarized. It should explain in detail the roles, responsibilities and ownership percentage of each partner in the industry. This document is also known as the Articles of Association in some locations.

Securing office space:

For all businesses in Dubai, physical office space is a legal requirement. The location of the office can be selected in line with the approved business activity. There are zoning regulations of the DED or free zone authority, which will have to be abided by the entrepreneurs.

Final Licensing and Approvals:

The final licensing procedures begin only on completion of all the above conditions without fail. One will have to submit all key documents, such as MOA, office lease agreement and initial approvals, to the DED or free zone authority to obtain the final license. They may also seek additional approvals from other government bodies after checking the nature of the business.

Visa application:

After securing the much-awaited business license, the entrepreneurs can apply for a visa for themselves and their employees. The number of visas issued by the country will depend upon the size of the business venture and the number of employees required for operations.

Opening of bank account:

A corporate bank account is important for any new business in Dubai. The procedures for the same can be initiated once the business license is secured. The basic requirements for opening the account are the business license, MOA and the passport copies of the shareholders. There are different rules for different banks.