How Much Time Does It Take To Start a Business in Dubai, UAE?

When people consider setting up a business in the United Arab Emirates (UAE), one of the most common questions is how long it takes to start a business there.
In this blog, we will explore the timeline of establishing a business in the UAE, the factors that can impact the time it takes, and the average time period for company formation.
By the end of this blog, you will be able to understand how long does it take to set up a business in Dubai and what steps you need to take to make the process as smooth and efficient as possible. So let’s start!
How Much Time Does It Take To Start a Business in Dubai, UAE?
Starting a business in the UAE depends on several variables, including the chosen business activity, jurisdiction, and business structure.
However, on average, it can take 4 to 5 working days to establish a company in Dubai, provided all the necessary documentation and requirements are in order.
It is important to note that the timeline can vary depending on the specific requirements of the chosen business activity and jurisdiction.
1. Business Activity
Yes, the chosen business activity can significantly impact the time it takes to start a business in UAE. For example, some business activities require additional approvals and permits from government agencies, which can prolong the registration process.
For example, starting a healthcare or food industry business may require additional approvals from the Dubai Health Authority or Dubai Municipality, respectively.
On the other hand, some business activities, such as consulting or e-commerce, may have a more straightforward registration process and can be completed relatively quickly. Therefore, it is essential to research the requirements for the specific business activity in advance to ensure a smooth and efficient registration process.
2. Choosing the Right Fit Jurisdiction
Choosing the right jurisdiction is also a crucial factor that can impact the time it takes to start a business. The UAE offers several jurisdictions, so you can set up your company in Dubai Mainland, or UAE Free zones, and offshore zones, each has its own regulations and procedures for company registration.
The registration process in each jurisdiction may vary, with some free zones offering a more streamlined and quicker registration process than others.
Furthermore, additional approvals and permits may be required depending on the chosen jurisdiction, which can prolong the registration process.
Therefore, it is essential to research the available jurisdictions and select the one that best suits the needs of the business and offers the most efficient and straightforward registration process.
3. Structure of the Business
The business structure can also impact the time it takes to start a business in Dubai. The UAE offers several business structures, such as a Limited Liability Company (LLC), sole proprietorship, and branch office, each with its own set of requirements and procedures for registration. For example, setting up an LLC involves:
- Obtaining initial approvals
- Drafting and notarizing the Memorandum of Association
- Obtaining a Dubai trade license, which can be a more time-consuming process than registering a sole proprietorship
Additionally, the business structure may also affect the availability of visas, the minimum capital requirement, and the ownership structure, which can further impact the registration process.
Therefore, it is essential to research the available business structures and select the one that best suits the needs and objectives of the business while also considering the time and resources required for registration.
4. Nationality of the Investor/Shareholding Company
Depending on the nationality of the owners or investors, separate approvals from foreign as well as UAE government departments are required. In addition, a list of certifications and approvals might also be included.
Consequently, depending on the nationality of the shareholders, different amounts of time will be needed to finish the process, ultimately affecting how long it takes to form a business in the United Arab Emirates.
Conclusion
Setting up a business in the UAE, specifically in Dubai, can be a relatively straightforward process that typically takes anywhere from 4 to 5 days working days, provided that all the necessary documentation and requirements are in order.
However, the time it takes can be influenced by several factors, such as the chosen business activity, jurisdiction, and business structure. Therefore, it is essential to understand how long does it take to set up a business in Dubai, research and understand the specific requirements for the selected business activity, jurisdiction, and structure in advance to ensure a smooth and efficient registration process.
Additionally, working with a reputable business setup service provider such as Airzone helps navigate the complexities of the registration process and helps expedite the company formation process.
Overall, starting a business in the UAE can be a rewarding and profitable venture with the right preparation and guidance.