Welcome to DhanGuard. Can I help you?
/ Blogs / Business Setup Consultancy / 11 Dos And Donts Of Doing A Business In Dubai

11 Dos and Don'ts of Doing a business in Dubai

By Ananya - 02 Feb 2022 Last Updated: 04 May 2022
11 Dos and Don'ts of Doing a business in Dubai

Table of Contents 

  1. 1. Dos and Don'ts of Doing a Business in Dubai
  2. 2. Conclusion

It's not easy to start a business. To establish a brand and conduct business ethically, there are approaches and strategies to employ. The formation of a business in Dubai comes with its own set of problems. Companies and firms must be on the right foot, adapting and optimizing their strategy in the face of ever-changing legislation and laws. What are these strategies, though? While it varies for each company, here are some dos and don'ts to keep in mind when setting up a business in Dubai and there are certain dos and don'ts of doing a business in Dubai, which our study further focuses on.

When pursuing any work or goal, there are certain dos and don'ts to keep in mind. You can complete your assignment in the most satisfying manner if you grasp the dos and don'ts and take the essential safeguards. The same is true when it comes to forming a business in Dubai. Dubai's transformation into a worldwide commercial and technology powerhouse is largely due to the UAE government's creative and business-friendly policies. Dubai is one of the most sought business destinations due to a variety of pro-business policies such as tax advantages, Freezone jurisdictions, personnel supply, infrastructure, raw material availability, and economic stability.

Dos and Don'ts of Doing a Business in Dubai

Here are some of the most important Dos and Don'ts when it comes to starting a business in Dubai. This will undoubtedly save you time, energy, and money:

Proper Time to be Invested in Market Research

Market research is the process of actively interviewing potential customers to determine the viability of a new service or product. Market research enables a business to identify its target market and obtain comments and other input from customers about their interest in a product or service. Have a thorough awareness of the many forms of business formations. The major forms of company formation procedures authorized by law in the UAE are Mainland company formation, Freezone company creation, and Offshore business formation.

Actively Look for a Local Sponsor

In order to start a business in Dubai, you may need a local sponsor or a service agent. A UAE national is the local sponsor. A local sponsor who holds 51 percent of the whole share of the company is required for mainland business creation. A Limited Liability Company (LLC) is one of the most popular company structures in Dubai. A limited liability company has a strong chance of capitalizing on Dubai's economic opportunities.

Selection of the Right Business License

The company license should not be chosen at random. Commercial, industrial, and professional licenses are the three main types of business licenses issued in the UAE. Choose the proper license for your business venture. The formalities associated with the issue of licenses vary, as do the licenses themselves. External Ministries and other bodies must approve certain licenses. The documentation and money required to differ depending on the type of license.

Choosing the Right Location for the Business

Mainland companies are permitted to conduct business within the UAE. This is a distinct edge over enterprises operating in free zones. Companies operating in free zones are permitted to do so under specific predetermined jurisdictions. A mainland company benefits from increased commercial visibility and reach. Another benefit is that mainland companies are permitted to bid on government contracts or projects involving large sums of money. Freezone business formation, on the other hand, ensures 100 percent ownership and tax benefits. Make the distinctions between the two as apparent as possible.

Establish Connection with Owners of Similar Fields

Make touch with other business owners in the same industry and jurisdiction. They may have followed the same steps as you in forming their company. They can also assist you with activities such as company establishment, operation, and office space.

Keep Activities aligned with Local Culture

Giving and receiving respect is a universal truth. Give adequate consideration and respect to the religious and cultural beliefs of the people in your area. Making insensitive or disrespectful remarks about religion or belief systems is strictly prohibited. The United Arab Emirates is a cosmopolitan culture where international expats from all over the world live in peace and harmony.

Active Participation in Social Events

Branding your company will be greatly aided by socializing. Business networking has the potential to propel your company to new heights. Expand your business ambitions by sharing your ideas, opinions, and vision with other investors and entrepreneurs.

Read more :-Myths vs. Facts about Business Setup in Dubai

Have a Clear Understanding of the Banking Structure

Don't open a bank account in Dubai just to have one or because the bank has a good reputation. You will be charged by your bank for a variety of financial transactions and other procedures. Before you begin, make sure you have a firm grasp of these concepts.

Maintaining Legal Relationships

Agreements or bargains made by word of mouth have no legal standing. To establish legal legitimacy, you'll need a genuine legal agreement between your company and a local sponsor. Legal documentation ensures that your business runs smoothly and avoids unnecessary issues in the future.

Have Proper Documentation regarding Visas

Once you have all of the essential documents and proofs in hand, the visa processes in Dubai are very quick. The type and duration of the business endeavor determine the type of work visa granted. When it comes to the issuing of a foreign investor visa, government authorities are considerate. The visa application process is handled by your local service agent for a local business setup. Before applying for a visa, double-check that all of your documents are legitimate.

Choosing the Right Consultant for Yourself

The registration process for your business can be made much easier if you hire an experienced business consultant, who will be able to assist you with the numerous sanctions and approvals.


Connect with Dhanguard for proper assistance in business setup our team of experts will guide you throughout the process. If you are looking for any services related to business setup, connect with us, we will gladly assist you.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Get Instant Advice