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Do’s & Don’ts While Setting up a Business in Dubai

6 min read

Dubai is one of the best regions where you can start a company at lower cost. As the government is interested in making UAE a business friendly country, many types of facilitates have been provided for business people. To make the country a commercial hub, the government has relaxed business laws. Like other ventures, while doing business in Dubai one should know the do’s and don’ts. Otherwise, you will face troubles in company formation and many other procedures related to it.

We will check the Do’s and Don’ts while registering a company in Dubai.

Do’s of start up business in Dubai

Through study about the region – You should have a sound knowledge about the region where you are planning to have a business start up in Dubai. Many people just read the published contents and book office spaces in industrial areas. This is not a good approach. An extensive research by yourself or a research consultancy can help in understanding the business conditions prevailing in each area. A good business space allows you in measuring the competition and forecasting results. A thorough business plan will assist you in moving forward confidently.


Selection of a local sponsor – To setup a business in Dubai you should find a local sponsor. It is not always easy to find a sponsor. As per law the sponsor should be a UAE citizen. The sponsor is entitled to get 51% of the company shares. A local sponsor can help you in many ways. You should find a local sponsor with whom you can develop a good rapport.

Eligibility for visa and other requirements – To start a company and run a business with employees from other countries you need a Visa that permits you and your employees to stay and work in the country. You can apply for a Business visa application in Dubai. Rules related to visa processing is not very strict in the country.

Don’ts of start up business in Dubai

Don’t take firm business plans based on published contents – Foreign investors always depend on internet to collect information related to business registration in Dubai. It is not always wise to depend solely on published contents. Business plans should be plotted after getting an expert advice from consultancies or any companies in UAE.

Availability of office space in Dubai free zone – Never register a company without confirming the availability of space in any free zone where you prefer to start a business. Many business men move forward with registration process without checking the availability of space and later went through lots of chaos and financial loss.

Don’t choose a license without confirming the category in which your business model belongs to – Each type of business license allows you to do carry out certain type of business activities. You should be careful while selecting a license. Wrong choice can hinder your business activities.

Don’t open a bank account without collecting information – It is wise to choose a bank after inquiring about the charges applied for each type of banking transaction.

A foreign investor will face difficulties while carrying out company registration processes in Dubai. They can hire a consultant and perform registration process, pre-management process and post-management process without much difficulty.

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