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With our global presence for opening a shop in Dubai and subsequent accounting services, we operate across multiple jurisdictions, including the UAE, Dubai, and other emirates, through our extensive partner networks. Our distinguished services cover a wide range of professional offerings, including Audit, Assurance, Taxation, Accounting, and Consultancy. World Company Setup serves a diverse multinational client portfolio, ranging from medium and large-scale enterprises to small industries, family-owned businesses, entrepreneurs, and individuals.
Opening a shop in Dubai offers numerous advantages, from its strategic location and favorable tax environment to its robust infrastructure and diversified economy. With its commitment to innovation and business-friendly government policies, Dubai is poised to remain one of the top destinations for businesses worldwide.
Opening a shop in Dubai offers various advantages for businesses seeking to expand their reach due to its geographical location. Dubai serves as a gateway to markets in the Middle East, North Africa, and beyond, providing companies with access to more than 2 billion consumers. World-class ports and airports such as Jebel Ali Port and Dubai International Airport facilitate seamless global trade and logistics.
The cost of opening a shop in Dubai depends on several factors, and it is important for investors/entrepreneurs to be aware of the initial fees involved. World Company Setup’s experienced shop setup consultants guide investors on potential expenses and provide advice to help avoid unnecessary costs. The cost of opening a shop in Dubai depends on factors such as the type of business activity, the jurisdiction under which the company falls, and the required approvals and certifications. In the United Arab Emirates, the cost of opening and setting up a shop typically ranges between AED 25,000 and AED 45,000; however, this may vary depending on multiple factors such as the size and type of the business, the type of business license, the type of free zone, and more.
The United Arab Emirates offers various company formation options catering to a wide range of business needs and investor preferences. Opening a shop in Dubai is categorized into several types, each with its own regulations and advantages, allowing business owners to choose the structure that best aligns with their strategic goals.
Types of shop setups in Dubai include Mainland, Free Zone, and Offshore establishments.
Free Zone companies: Free Zone Companies in the UAE are business entities established in designated economic zones in Dubai that benefit from 100% foreign ownership, tax exemptions, and customs duty advantages. Investors from around the world are attracted to Free Zones due to their simplified setup processes and a wide variety of license types tailored to specific industries.
Offshore companies: UAE Offshore companies refer to businesses registered in Dubai but operating outside the UAE. They offer confidentiality and a favorable legal framework and are often used for asset protection or tax planning. Their key features include legal protection for shareholders and financial confidentiality.
Mainland companies: Mainland companies are registered under Dubai jurisdiction and are allowed to conduct business and trade both within the local market and outside the UAE without restrictions.
Opening a shop in Dubai is a significant step for entrepreneurs entering the business world. It marks the beginning of a legal entity capable of operating, growing, and developing within a specific jurisdiction. The first step is to determine the type of business activity you intend to conduct in Dubai. There are more than 2,000 business/economic activities to choose from. Since each business activity requires specific licenses or permits, selecting the correct activity is essential. In general, the required documents for opening a shop are listed below.
Although the shop registration process in Dubai is relatively simple, it requires careful attention to documentation. Understanding and preparing these documents in advance ensures a smooth transition during the registration stages. Regulations and requirements may vary depending on the company type and structure; therefore, it is recommended to consult World Company Setup experts for the most up-to-date information.
Dubai is one of the most important commercial and financial hubs of the United Arab Emirates (UAE) and hosts various types of companies. The main types of companies that can be established in Dubai include:
Limited Liability Company (LLC): The most common type of company. A local partner (UAE national) must hold at least 51% of the shares, while foreign investors can own up to 49%. LLCs can operate in the trade, industrial, and service sectors.
Free Zone Company: Companies established in Dubai’s free zones. Foreign investors can own 100% of the shares. They offer tax exemptions, full ownership, and customs advantages. However, such companies generally operate only within the relevant free zone; to sell directly in the UAE market, they may need to work with a distributor.
Branch Office: A branch of a foreign company established in Dubai. The branch carries out the activities of the parent company and cannot generate independent profits. A local sponsor is required, but the sponsor cannot interfere with the company’s operations.
Representative Office: Established for foreign companies to conduct marketing and promotional activities in Dubai. It cannot engage in direct commercial activities or generate profit. A local sponsor is required.
Public Joint Stock Company (PJSC): Publicly listed companies whose shares are traded on the stock exchange. Their establishment is more complex and requires high capital. They are generally preferred for large-scale projects and investments.
Private Joint Stock Company: Non-public joint stock companies. Share transfers are restricted, and shares are not traded on the stock exchange.
Professional Company: Suitable for professionals such as doctors, engineers, and lawyers. A local sponsor is required; however, in some free zones, 100% foreign ownership is possible.
Holding Company: Established to control and manage shares in other companies. There are specific regulations for setting up holding companies in Dubai.
Sole Establishment: Companies established and managed by a single individual. The owner bears full responsibility for the company. A local sponsor is required.
Government-Owned Company: Companies established by the Dubai government or government entities.
The UAE banking system is one of the world’s leading systems, offering seamless customer service, high transfer limits, attractive loan and mortgage conditions, and economic stability. Therefore, entrepreneurs, foreign investors, and expatriates in Dubai, UAE, can open personal or corporate bank accounts.
World Company Setup assists you in opening a bank account in Dubai and provides detailed advice on the features of various banks, helping you choose the institution that best suits your goals.
Dubai banks offer many advantages;
Commercial banks serve individuals and legal entities, offering personal and corporate accounts as well as loans, mortgages, and leasing facilities.
Industrial banks focus on serving companies and firms and provide financing for business establishment and operations.
Investment banks specialize in stock trading and fund management.
Golden Visa: The UAE Dubai Golden Visa is a long-term residence permit that allows eligible foreign nationals to live, work, and study in the UAE, provided they meet all criteria. This residence visa allows stays ranging from five (5) to ten (10) years.
Residence visa for working in Dubai (Green Visa): The UAE Green Visa is a long-term residence permit that allows the holder to act as their own sponsor for five (5) years. The Green Visa is generally reserved for freelancers, self-employed individuals, and skilled employees.
Residence visa for working outside Dubai: This type of residence visa is for foreign nationals who wish to reside in the UAE while working remotely for an employer located outside the country. This one (1) year visa allows self-sponsorship, provided you earn a minimum of USD 3,500 per month or the equivalent in another currency.
Residence visa for retirees: Retired foreign nationals aged 55 and above residing in Dubai may apply for this residence visa, which allows them to reside in the UAE for five (5) years. Applicants must meet investment and financial criteria.
Residence visa for doing business in Dubai: This Green Visa is granted to investors who are conducting or planning to conduct commercial activities in the UAE and who meet the specified criteria.
Residence visa for education in Dubai: This residence visa is granted to foreign nationals coming to the UAE to participate in an educational program. Applicants must be residing in the UAE OR be sponsored by a parent or an accredited academic institution. Student visas are generally issued for a one (1) year stay and can be renewed for a similar period as long as the applicant remains enrolled in an academic program.
Residence visa for family members: Foreign nationals holding a valid Dubai residence permit or visa may sponsor their dependents for this residence visa, allowing them to reside in the UAE.
Dubai also offers entry permits to foreign nationals who must enter the country to complete residence visa procedures. Entry permits are valid for two (2) months for regular visas and Green Residence Visas, or six (6) months for multiple-entry Golden Visas.
Travelers wishing to visit the United Arab Emirates for tourism purposes may also apply for the Dubai Tourist Visa issued by the General Directorate of Residency and Foreigners Affairs (GDRFA) of the Emirate of Dubai. This visa grants the holder access to the entire UAE for tourism-related purposes.
While countries around the world are strengthening their tax policies, Dubai continues to maintain its strong position, with entrepreneurs, individuals, and multinational companies relocating and establishing their strategic bases here.
This also means aligning the UAE with global tax standards while requiring businesses to manage additional obligations, including understanding corporate tax rates, exemptions, reporting requirements, and VAT compliance.
UAE Dubai Corporate Tax: Corporate Tax (CT) came into effect for financial years starting on or after 1 June 2023. It is applied at a standard rate of 9% on taxable profits exceeding AED 375,000. Businesses with taxable profits below this threshold are taxed at 0%.
This implementation aligns the UAE with global practices and ensures compliance with international frameworks such as the OECD’s Base Erosion and Profit Shifting (BEPS) initiative. It also offers one of the lowest corporate tax rates globally.
UAE Dubai Value Added Tax (VAT): Introduced in 2018, VAT is applied at a standard rate of 5% on most goods and services invoiced in the UAE. Unlike many jurisdictions, VAT compliance is relatively straightforward, and registration is required for businesses providing services within the country.
If annual taxable supplies exceed AED 375,000. Voluntary registration is also possible for businesses earning AED 187,500 or more annually.
Main transactions subject to VAT in the United Arab Emirates include:
Companies must maintain detailed financial statements and bookkeeping in accordance with international accounting standards for corporate tax filings. Compliance with regulations reduces audit risks and prevents financial penalties. For business operations, World Company Setup has extensive experience with UAE tax regulations. Having a reliable team to manage your accounting and bookkeeping requirements is essential. We provide services ranging from corporate tax registration to ongoing compliance and reporting, ensuring our client businesses remain compliant.
The process of opening a shop in Dubai involves a series of steps and must be carried out in compliance with local regulations. Below are the key steps to follow when opening a shop in Dubai:
Preparing a Business Plan: Prepare a detailed business plan that includes the shop’s line of business, target market, financial projections, and marketing strategies. This plan may be shared with investors, banks, or relevant authorities.
Determining the Company Type: Choose the most suitable company structure for opening a shop in Dubai. The most common options include:
Defining the Business Activity and Location: Determine the sector in which the shop will operate (retail, food & beverage, fashion, etc.). Select the shop’s location (for example, within a shopping mall, on a main street, or in a free zone). Keep in mind that certain commercial activities in Dubai may be restricted to specific areas.
Obtaining a Trade License: To open a shop in Dubai, you must obtain the appropriate trade license. License types may include retail trading, wholesale trading, and others. The license is issued by the Dubai Department of Economy and Tourism (DET) or the relevant free zone authority.
Leasing or Purchasing Premises: Find a suitable location for your shop. This could be a unit in a shopping mall, a street-facing retail space, or a free zone office. Sign the lease agreement and register it with Dubai Municipality.
Recruitment and Visa Procedures for Employees: Begin the recruitment process for your staff. Employees must obtain a work visa and an Emirates ID to be legally employed in Dubai.
Opening a Bank Account: Open a corporate bank account in Dubai. This is required to manage your business operations and financial transactions. Once all permits and licenses have been obtained, you can open your shop and commence operations.
With proper planning and professional support, the process of opening a shop in Dubai can be completed smoothly and efficiently.
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