In 2023, Dubai will become the core of success and opportunities where innovative ideas transform into reality. Dubai is a city surrounded by the energy of high achievers who leave behind the idea of relying on a single income stream.
With an exclusive aim of financial freedom, individuals are emerging as entrepreneurs and working on ideas to step into a world that hold the power to transform their lives. They want to start a business in Dubai and the UAE, which would be a step closer to their ambitions.
Starting a new business is just beginning; much effort, planning, research, and actions must occur to transform your dreams into reality. It would be best to have detailed step-by-step action plans that convert your startup into an incredible success. Our experts are writing this guide to help you with every stage of building a profitable corporation from scratch.
Steps to Start a Business in Dubai
To avoid unnecessary delays while you set up a business in Dubai, you must follow the process correctly, or you can take help from business setup experts who serve business persons like you.
Refine Your Business Idea
Before you take the plunge to start a business in Dubai, you must have a clear and unique business idea. A vague business idea will not assist you in establishing your business goals. You should ensure that you clearly state the below mentioned aspects to refine the business idea that are as follows:
- Business venture beginning
- The target demographics
- Different types of products or services
- Availability or launch of the product/services
- Usage of the product/services
If you are an entrepreneur who wants to start a business but have no ideas, you read through the business ideas in Dubai UAE that have have the future of business in Dubai.
Determine The Business Type and Jurisdiction
To setting up a business in Dubai, entrepreneurs can either start a free zone or mainland business setup. However, both of these options have a unique set of requirements to start a business and have their own pros and cons. Based on what you require, who you want to trade with, what your products/services are, and where you would launch your business such as consultancy, trading, Project Management, Marketing consultancy, accounting and bookkeeping, restaurants, café, import export, cleaning business or others, you can determine the kind of setup.
Precisely, free zone business setup is the one in which you trade with international markets or outside of the UAE. Also, you can conveniently run activities in the designated zone. For instance, entrepreneurs have the leverage to deal with the other company in the same free zone. On the other hand, mainland business is the one that is established in the local market like trade within or outside the UAE. More Avyanco can assist and guide you on how to to open a business in Dubai in different jurisdictions without hassle.
Do Market Research
The next step after you have identified the business type is to do market research. In other words, this is the step that helps you identify the winning strategy. This is where business owners get to identify their target market. Once you research well on your industry before starting a company in Dubai, it will be easier for you to penetrate in it and come up with appropriate tactics and marketing strategies. Always ensure researching your market first and sorting out the hobbies, interests, likes and dislikes of your market before setting up a business. Also, with this study, you will be able to identify the gap and fill it in with the most appropriate products and strategies.
Create a Business Plan
After you have done the market analysis, now is the time to prepare for the funds. The best way to get them is to invest in your business and by taking loan or credit from others. The latter can be possible only when you write a detailed business plan of your idea. Make sure that your plan includes the idea in detail, problem that the business is trying to resolve, pitch for the investors, the benefits for them, target audiences, marketing strategies, SWOT analysis, environmental analysis and complete financial projections. Once you prepare this plan, you will be able to get funds from potential investors so that you can start a business in the UAE smoothly.
Find a Business Name: Naming Rules, and Requirements in Dubai
One of the most challenging pieces of the startup puzzle is selecting a brand name for your business. Considered as the brand identity of your business, the name assists your customers in remembering your entity. Your business name is a part of your entity that develops your brand identity and entire visual image. There are a few things that business owners must keep in mind while deciding a name. Here are the factors that entrepreneurs must consider:
- No contradictory name or activity
- Unreserved or non-copyrighted name
- No obscene or indecent word
- No God’s name or his divine attributes
Consult a Company Formation Specialist
After finalizing a name for your business, you should consult a credible local business setup company like Avyanco to assist you properly. These professionals are responsible for overseeing lead development, sales consultations and license application processes. They ensure establishing a company in an expert manner, fulfilling all the requirements right from the beginning. Whether business owners want a mainland or a free zone business setup established, these professionals are experienced in developing all. Service providers and company formation experts like Avyanco can assist struggling business owners in this regard. So, approach these experts before setting up a business in Dubai to ensure you that you are following the rules and regulations.
Choose Your Business Jurisdictions: Location Options in Mainland, Available Locations in Free zone
After consulting a specialist for your business, you will have to specifically decide in which jurisdiction you want to operate. Free zone is the one that trades in the international markets or outside of the UAE. Also, business owners operating in the free zone can deal with the companies in the same free zone. The perks you get when you start a business in Dubai free zone are quite a lot that lets you retain 100% of the ownership where you also do not need UAE national to appoint over your business.
On the other hand, if a business owner wants to setup their roots in mainland that means that they want to enter the local market and trade within UAE or outside the UAE. Those who want to provide services to the UAE can get exposure of several opportunities. And more importantly foreign national can get 100% of the ownership of their company in UAE as per the recent amendment law no 2 of 2015.
Select a Physical or Virtual Office: [Ejari: Tenancy agreement]
Nowadays, businesses can be established in two ways, either physically or virtually. Business owners must decide about their business’s store if they want to operate physically. However, these days virtual or online firms are also making in millions in Dubai. Once business owners have decided how they want to operate, they will have to sign the contract, Ejari. The term means “my rent” in Arabic. This is a mandatory contract/agreement between the parties that is not limited to the initial rent contract registration. It involves a wide variety of services including registration, transfers, cancelations and termination of rental contract.
Finalize a legal form
It is one of the most important decisions in business owner’s company formation journey to decide the legal form or company structure. With the legal form, the business owners are able to form the structure for dealing with profits and losses and how one should organize their assets and resources. Entrepreneurs must ensure that they decide the form of the company initially only. This will assist the entrepreneurs in getting a company layout and apply them to their entity. Some of the famous legal forms include sole established, limited liability company, local company branch, free zone company, holding company, branch of foreign company, civil company and others.
As soon as you have paid for the legal services, you will receive your legal documentations. With them in your hand, you will be good to go to proceed further with other aspects of your business such as recruiting team and choosing who the right fit for the job is. Getting trade license in Dubai will allow you to work legally in UAE.
Once you get your trade license, the company formation process in Dubai or other UAE emirates is completed. Below steps will give you a depth insight into everything you need to follow to run your business smoothly and expand it in the market.
Get Your Visa
Make sure that you get your visa to start a business in Dubai. You can contact Avyanco experts to get access to your visa. Note that you require visa for your employees, spouse, and family members as well if you are planning to bring them all here. Before issuing any visa under the company investor must get registration of the company in immigration department, labour department.
Open a Corporate Bank Account
The UAE’s strict money laundering rules make it very hard for entrepreneurs to access the corporate banking facilities. However, if you contact a seasoned expert like Avyanco, the process can be smooth. All bank account formalities and the required documents will be given by customer only and if any rejection of the corporate bank account of the company, Avyanco is not responsible for the outcomes.
Find a good accounting and bookkeeping system
In addition to the steps mentioned above, all company and business owners require financial assistance. Someone who can oversee the complete financial aspects such as income statements, balance sheets, and other taxation matters. With Avyanco’ s expert bookkeeping and accounting services, business owners need not worry at all. These experts are certified from authentic institutes and have years of experience in handling the financial matters with ease. Therefore, business owners who plan to start a business in Dubai can contact them today.
Value added Tax is levied on the goods and services consumption. The UAE offers several tax-free business zones that make it an attractive region for the local and foreign business owners. Under the VAT law in the UAE, the rate is in between 0% to 5% for the business owners. Since VAT is a prerequisite for the establishment of any business in Dubai, whether it is large or an SMB, there are certain conditions that apply and VAT registration in Dubai includes a few more important and tedious measures. So, it is good to always hire an expert for VAT registration.
Check Dubai Financial Compliance Regulations
As a foreigner, you may not be fully aware of the Dubai or Middle East rules and regulations therefore, you must ensure hiring someone who is in the field for years. Companies like Avyanco can surely assist you in understanding the city laws and complying with your business setup’s rules and regulations of the city. You need to check financial compliance in UAE to avoid any penalties so that you start a company in Dubai the right way with a proper assistance.
Protect Your Intellectual Property
When you are running a business in Dubai, you must make sure of your property that your business is associated with. Intellectual property consists of all the pieces of your business that you or your employees are associated with. As a business owner, you must ensure taking care of your skilled employees and other items. If you are unable to do so, hire an expert in this regard. With Avyanco, you need not worry about your Intellectual Property Protection Services including trademark registration. Avyanco has experts that can take care of this matter.
Create a Website
Once you are done with the legalities, you need to focus on your business. Develop a suitable website that will be your online identity. You must have a site that distinguishes you with others and assists your audience in finding you. These days, websites are made to generate online sales. If your business is of that type that can have online sales, make sure that you find suitable developers to create a good user friendly site.
Create a Strong Brand
With your site, you must reflect the brand to your audience. How is that possible? Find suitable content creators that can draft your content in a compelling manner and engage your audience. In addition to a good site, make sure that you have an integrated marketing strategy. All of the above the line marketing and below the line marketing must be in consistency with your brand to help your customers remember your business. To open a company in Dubai you have to be ready to sacrifice everything so that your brand will be well represented.
Secure Social Media Accounts
A business that is not on social media will always be left behind in this age. Therefore, whether you have an industrial, manufacturing, marketing, financial or any other sector business, you must have well-maintained social media accounts. With social media, you must make sure of maintaining all the platforms such as Facebook, Instagram, LinkedIn and other relevant platforms if appropriate will help you to start a business in Dubai with proper social media marketing.
Promote your Business
Always choose the right strategies to promote your business and its services. If you are unable to do so, consult a team of marketing experts who can assist you in devising and executing strategies that can help you achieve your goals and achieve better results. Make sure that you promote your business using all the platforms and the right tactics. Whenever you start a company in Dubai you do not have to worry because Avyanco marketing team can assist you to promote your business.
Improve your sales skills
You should always work on improving your skills and business activities. If you have achieved a milestone before, make sure that you seek a better and more lucrative one after. If you are not good with sales skills, hire an expert and enthusiast who can do the job for your business. Because to open a company in Dubai successfully you will need sales skills.
Sell your Products or Services
When you will hire someone better for the sales team, you will be able to sell your services or products even better. After establishing a business in Dubai is good to come up with unique selling points for your services to set your product and business apart from others.
Learn Financial Statements and Budgets
You should learn the financials too in order to run your business successfully. Understanding the basics of accounting will help you in the long run and assist you in the financial viability of your business. If you think that you are not good with numbers, consider hiring experts. So, starting a company in Dubai or like anywhere else you will need to have at least a basic accounting knowledge.
Find Great Partners and Vendors
Vendors and partners that can assist business owners in the long run can definitely reach the entity new heights. Such partners and vendors profit the company in many ways. So, always make sure of finding credible vendors and not fall in the trap of fake people. It is always recommended to research about partners even before you decide to open a business in Dubai because they could help you scale up your business.
Fund your business
If you have enough investments for your business, you may not really require funds from investors. But if you do not have them, always seek investments from potential and interested third parties. If you show them their benefits in your business, they will definitely give you funds and investments to run your business. Getting fund may drastically help you after establishing a business in Dubai and the minimum investment to start a business in Dubai ranges between AED 15 000 - AED 4 0 000 then you can get the rest amount from funding
Set Goals and Growth Path Plan
A roadmap that can assist you for starting your business in Dubai must be planned beforehand. You should list down your milestones and growth in measurable ways so that you are able to achieve them seamlessly too. When you will have them in black and white in front of you, you will be able to get there.
Every entrepreneur who wants to achieve his dreams has to set achievable goals and work hard towards them. You can set weekly, monthly and year goals and evaluate your performance always so that you can reward yourself whenever you achieve a new milestone.
How Avyanco can Help you Open a Company in Dubai?
Avyanco, the seasoned company formation service provider has the answers for all entrepreneurs who are asking “how to start a business in Dubai.” We can assist business owners in establishing companies in mainland and free zone. Providing multiple business setup services, potential entrepreneurs can reach out to Avyanco business setup today and avail services in reasonable rates.