Are you dreaming of owning your own business in the United Arab Emirates? Turn your business idea into a reality in Dubai. With over 35,000 startups registered in the UAE each year, it is safe to say that business in this Middle East country is booming. Dubai is a hub for business for foreign investment and entrepreneurship thanks, in part, to its zero-percent tax system and pro-business government rules and visa regulations.
This economic environment provides investors with a golden opportunity for both investors and entrepreneurs alike to reap greater financial rewards. The UAE is a business-friendly country, and it is doing all it can to boost its economy and benefit its citizens and residents.
Every startup and entrepreneur need funding, capital or investment to launch their ventures. Funding is the single biggest obstacle for the majority of startups. Accessing external financing sources or funding hubs is a genuine challenge to seed a business startup for success. Without a track record of customer sales, orders, and company age, it is difficult to source and secure funding for any new business from banks and other such institutions.
However, that shouldn’t stop you from exploring your business and entrepreneurship dreams. There are many ways to get funding for your business in the UAE.
Funding has been on the rise for startups in Dubai through venture fund partners, angel investors, business incubators, seed funding from seasoned investors, crowdfunding, and self-funding options. Banks and moneylenders were the traditional routes for business owners and startups. Investors and incubators have largely replaced this in Dubai in the UAE. The biggest growth sector for funding startups and SMEs in Dubai and the rest of the UAE has been crowdfunding, private equity, and venture capital networks.
We at Trade License Zone have helped thousands of new businesses to launch in Dubai and the United Arab Emirates Reach out to us to help you navigate the many systems, processes, and government agencies.
How to Get Funding for your Startup in the UAE?
The five most common financing sources in the UAE for startups are:
1) Friends and Family:
This is the first and easiest way to get funding for your startup. Asking family and friends who trust you and your vision for your startup will more than likely assist you with a loan to help your Dubai SME launch.
2) Alternative Funding Sources:
Pitch your business plan and initial stage financing options to microloan companies and on crowdfunding sites such as Eureeca, Zoomlaa, and Beehive. These platforms are gaining in popularity in the UAE just as they have around the world. Here, you’ll be able to raise small amounts of investment from numerous people when marketing your business plan in this way.
3) Local Investment, Funding and Support Sources:
Local small and medium enterprises can access and open doors to funding their startups through SME development centres. This includes business incubators, startup hubs, accelerators, the Dubai Chamber of Commerce, various industry associations, local business councils, and the many free zone startup programmes.
4) Angel Investors:
Angel Investors provide investment capital against equity shares in startups and established companies alike. The most popularly used angel investor networks are the Dubai Angel Investor Network, Women’s Angel Investor Network, and the Falcon Network.
5) Private Equity and Venture Capital:
Private equity and venture capital channels are a growing source of startup funding for Dubai SMEs. These Dubai economic and business tools have created a thriving business ecosystem. Venture Capital provides money for minor equity shares in startups, while Private Equity investors usually take a majority stake in an established company in traditional industries.
How to Fund your Startup in Dubai
Sourcing funding for your business or startup is never easy or straightforward. We have identified a few ways to make it slightly easier for you on your journey.
From first round investment funding to business incubators, seeking the relevant startup incubation programmes, innovation hubs, and accelerators for your industry and business activity are receiving greater investments than ever before.
Such platforms help to raise funding in Dubai’s business ecosystem. These help to grow startups even quicker through jobs that allow business owners more flexibility and opportunity.
An investor funding round generates much-needed capital for ventures. The total funding for startups usually runs from AED 100,000 and into the millions – depending on the products or services being developed and the region, sector, and market.
Steps to Start a Business in Dubai, UAE
By consulting Trade License Zone, we can help you decide on the company formation, trade licenses, visas, and banks’ requirements.
Next, we’ll guide you in choosing your company’s name. You must comply with the UAE’s naming criteria. You cannot include any offensive or blasphemous language, nor any references to Allah or Islam in your company name, and if you wish to include your name in your company name, you must use it in full rather than just your surname or initials. And, of course, we also check that your chosen name is available to be registered with the Registry Office in Dubai.
You’ll need to outline your business activities at this stage, too. The next step is to make your trade license application. To work in the UAE, you will also need to apply for your residency and employment visa. Our specialists will guide you through the entire process and assist you.
Providing you meet the salary criteria, you can also sponsor others for their UAE visas too, such as your children, partner, or parents.
Finally, you will need a corporate bank account to trade in the UAE. Opening a bank account can be a complicated process for foreign business owners, so once again, it is best to apply with the help of a local expert such as Trade License Zone.
Documents Required to Start a Business in Dubai
Starting a business in Dubai must meet the approval of local municipal and government authorities. The company structure is straightforward to create. You’ll need to submit a few details, your company’s trade name, and several identification documents.
Trade License Zone will work with you to collect your paperwork for a successful application. The documents you’ll need to apply for a trade license are:
- Completed application form
- Passport copies of all company shareholders
- Copies of residence visas of all shareholders
- Company’s Memorandum of Association (MOA)
- Company’s Articles of Association (AOA)
- Bank Account Reference Letter
- Copies Personal Bank Accounts
- Copies of Corporate Bank Accounts
- Business plan
Start your Business in Dubai with Trade License Zone
Setting up a business in Dubai is uncomplicated. However, the framework requires a trained eye and in-depth knowledge of the UAE and its changing business landscape and laws. Map your startup’s setup the right way without delay. Trade License Zone is a company aimed at helping and supporting your business – no matter your business size, budget, or market aims. Make use of our business setup services to gain peace of mind for your license and visa applications.
Trade License Zone’s experts only need some basic documentation and information about your business. Then, sit back and let the experts take care of the rest – managing your license and visa applications, communicating with all relevant departments and authorities, and reporting back when you’re ready to trade. It really is that simple.