Dubai has never been a more attractive place to start a new business. Especially when it comes down to 100% ownership and freedom from tax burdens.
If you are moving an established company or looking to start your business in Dubai from scratch. You must be aware that it is not always easy. You can benefit from getting help from company formation experts. They are specialists in the visa requirements, tax rules, business licenses, banking setup and other services you might need.
1. Prepare Documentation
To begin your journey and to start your business in Dubai, you will have to find the right company name and choose the free zone which fits your company interest. Obtaining a trade license can involve a lengthy process if you don’t know what you are doing. You need the right documents required, this includes proof of identity, address, and citizenship.
In most cases you need to work with company formation experts. The company formation experts will be able to advise you. They will make sure that you are aware of all the details when you start your business in Dubai. You are required a trade licence, when you start your business in any of the free zones in Dubai. Once you have received your trade license and your residence visa, you can continue to open a business bank account.
2. Open a Bank Account
Financing your business in a free zone in Dubai means getting the right bank account. In this case it is also valuable to work with company formation experts. They understand the process and will guide you when you start your business in Dubai. You need to find the right banking solution that is appropriate to you and your business.
Once you open a business bank account it requires a massive amount of paperwork. Some original documents are required, and others needs to be attested as genuine. The bank cannot accept large documents by email due to AML (Anti Money Laundering) checks. Be aware that failure to supply the documents to the bank will cause serious delays. In some cases it can lead to the account being declined.
If your business is taking a physical office. The bank will come to your office to check if it is real. This is part of the bank physical substance requirement testing. This basically means, that your business can show it has commitment in the form of taking office leases and not just a tax vehicle.
The turnaround time can be as little as 10 days, for a low-risk company (digital design or no trading) with all documents available. In the right order and signatories available. A medium to high-risk company (trading of any kind, real estate, currencies, oil) bank account can take up to 90 days. The bank will continue to request additional information until they are confident, they understand the risk your company poses to the bank. This allows the bank to request the right level of security deposit on account opening.
Most banks will request from 150,000 AED up to 1 million AED as an opening deposit. The logic here, is the bank wants to see they can earn enough from your account to maintain it properly and can allocate staff and resources to look after your business account. Many banks offer a “Priority” style banking service, if your company has high value transactions and regular activity, this is usually the smartest option.
3. Start Your Business in Dubai
Now you are ready to start your business in Dubai. You can contact our company formation experts at Aston Advisory Group today and start your business in Dubai. We work with selected free zones in Dubai which have highly proven success with all banks in Dubai. Also, we typically work with three banks at the same time to give the best possible results.
