28

PROVEN
THINGS
YOU MUST DO
TO START A
SUCCESSFUL
BUSINESS
IN THE UAE
The factual information in this document is applicable
at the time of publication and is subject to change
based on government policies.
CONTENTS 01 Cook up a solid business idea

02 Craft a clear and viable business plan

03 Identify the correct industry for your business

04 Pinpoint the ideal location (or jurisdiction)

05 Get to know the most popular free zones in the UAE

06 Pick the right legal/corporate structure

07 Brainstorm a catchy name that

resonates with your brand

08 Follow the UAE’s rule for choosing

a company name

09 Forge a strong brand presence and

digital footprint for your company

10 Tackle your paperwork like a boss

11 Apply for your trade licence

12 Secure visas for yourself,

your team and your family

13 Open a bank account for your business

14 Get access to corporate services

to support your business growth
CONTENTS 15 Learn the 3 things all businesses must
do for corporate tax

16 Stay on top of your accounting and bookkeeping

17 Keep an eye on when you might need

to register for VAT

18 Build a foolproof legal framework for your company

19 Ensure your business and your team are protected

20 Avoid heavy fines by complying

with UAE’s business laws

21
Build a team of rockstars who share
your vision and passion

22 Keep your team happy and motivated

23 Manage your cash flow and keep your

business from sinking

24 Win investors over and fuel your growth

25 Know the top proven ways

to finance your business

26 Re-evaluate and refine your business strategy

27 Think ahead and have an exit plan in place

28 A story of a successful exit

01
Cook up a solid business idea.
Start by identifying a problem or a market gap that you can solve or fulfil
with an innovative product or service. Consider your own skills, interests
and experience. What are you passionate about and can you turn that
passion into something profitable?
Think how you can leverage it to create a unique and valuable offering.
Don’t forget to research your target market, analyse the competition
and get feedback from potential customers to validate and refine your
business idea.

Imagination will take you everywhere.

- Albert Einstein

Need inspiration?
Get your creative juices flowing with
these online business idea generators.

The AI idea generator

ideanote.io/idea-generator

The smart generator tool to

kick off your small business
stratup.ai

AI-powered startup ideas

pagefly.io

01
02
Craft a clear and viable
business plan.
Your business plan is the roadmap of your company and should lay out
your vision, goals and strategy. It should include an executive summary,
company description, market analysis and financial projections.
Aside from giving an overview of your business, this document also
communicates your long-term vision to others and can help you secure
funding from investors and financial institutions.

In the UAE, you need to submit a business plan when applying

HINT: for a trade licence and opening a bank account.

Create a business
plan in 10 minutes.
Don’t have the time, skills or experience to
create a business plan? Check out SWYFT Plan
by Virtuzone – the only AI-driven business plan
builder in the world. Create an account now
and start building clear, detailed and visually
attractive business plans.

The region’s first business

plan software powered
by OpenAI

app.swyftplan.com

02
 UAE BUSINESS ADVANTAGE

100% capital and

profit repatriation

03
03
Identify the correct industry
for your business.
When setting up a business in Dubai, it’s crucial to determine its nature
and corresponding industry. The UAE has restrictions on specific
business activities, and it’s essential to research which industries and
areas permit them.

Take a look at the top and most profitable

industries in the UAE as of 2023:

Construction Real estate Tourism

Logistics and Financial services Healthcare

transportation

Retail E-commerce Oil and gas

To learn more about the UAE’s top-performing

HINT: industries, click here.

04
04
Pinpoint the ideal location
(or jurisdiction).
The UAE’s business landscape is divided into different economic zones
or jurisdictions – mainland, free zone and offshore. Each jurisdiction has
its own pros and cons when it comes to business setup.

Having a Dubai address can enhance your business’s competitive

HINT: edge. Even if you have a trade licence from another emirate, you can
still secure a premium Dubai office address. Click here to learn more.

Assess the pros and cons of each jurisdiction

and choose the best for your business.

Jurisdiction Mainland Free zone Offshore

Foreign 100% of shares can be owned

100% * 100%
ownership by a non-UAE resident

Trading All over the UAE Within the free zone Cannot conduct
regulations and internationally only and internationally commercial activities

Audits Required Might not be required** Not required

Employee Unlimited number Limited number

Cannot obtain resident visas
visa quota of visas of visas**

Subject to Might not be subject Might not be subject

Corporate tax
corporate tax to corporate tax*** to corporate tax***

Office Requires an office Office space is not

Cannot have a physical office
Requirements lease agreement always required**

*Except in strategic sectors **Depending on the free zone ***Depending on activities/operations

05
05
Get to know the most popular
free zones in the UAE.
The UAE has more than 40 free zones, each with its own unique
advantages, requirements, processes and infrastructure. Choosing the
free zone that best fits your business needs and goals is critical to your
success.

DUQE AJMAN Free Zone

DUBAI World Trade Centre (DWTC)
UMM AL QUWAIN Free Zone
DUBAI International Financial Centre (DIFC)
RAS AL KHAIMAH
Economic Zone (RAKEZ)
DUBAI Multi Commodities Centre (DMCC)

JEBEL ALI Free Zone (JAFZ) SHARJAH Media City

(SHAMS)
DUBAI South Free Zone
Creative City Fujairah
ABU DHABI Global Market (ADGM)

Khalifa Economic Zone Masdar City

ABU DHABI (KEZAD)

ABU DHABI Airports

Free Zone (ADAFZ)

twofour54 ABU DHABI

While we’ve listed some of the most popular free zones in the map
HINT: above, you can see the complete list here.

06
 DID YOU KNOW?

You can bid on

government contracts
and projects with a
mainland licence.

07
06
Pick the right legal/corporate
structure..
Choosing the legal form of your company is crucial. Before applying for
a business licence, you must determine your company’s legal form.
Below are the main corporate structures available in the UAE.

Your corporate structure can have a significant impact on the future

HINT: of your business. Speak to a business setup expert to avoid future
complications.

Mainland

✓ Single shareholder
Sole Proprietorship
✓ Unlimited liability

✓ Two to 50 shareholders
Civil Company
✓ Unlimited liability

Limited Liability ✓ Up to 100 shareholders

Company ✓ Limited liability

Free zone

Free Zone ✓ Single shareholder

Establishment ✓ Limited liability

Free Zone ✓ Up to 50 shareholders

Company ✓ Unlimited liability

08
07
Brainstorm a catchy name that
resonates with your brand..
When choosing a company name, it is best to keep it simple, memorable
and unique. Make sure it is easy to pronounce, spell and has a positive
connotation. You can draw inspiration from your brand values and
mission, industry keywords, your own name, or even competitor names.

Before you register your company name, make sure it is still

HINT: available and not copyrighted. Have two to three alternative
options ready in case the name you want is already taken.

Add magic and pizzazz

to your business name.
Give these business name generators a try!

Next-generation brand
naming agency
squadhelp.com

Multinational
e-commerce company
shopify.com

AI-powered graphic design

and branding company
looka.com

09
 UAE BUSINESS ADVANTAGE

Ranks 16 on th

The World Bank’s

Ease of Doing
Business Index

10
08
Follow the UAE’s rules for
choosing a company name..
The UAE has some strict naming conventions, so before you commit to
a company name, make sure it is legally acceptable. For example, you
cannot include any offensive words and your company name cannot
include names that refer to Allah, Him or any other religious, sectarian or
political groups, such as the FBI or Mafia.

Check our quick checklist of business name rules in the UAE below
HINT: to make sure your chosen name will be accepted. If you want to learn
more about the UAE’s rules for choosing a company name, click here.

Quick checklist of business name

rules in the UAE:
✓ Avoid including offensive words or names that refer
to Allah or anything related to Him.
✓ Make sure all words are non-offensive when said in Arabic.
✓ Your business name shouldn’t start with words such as
“International, ” “Middle East,” or “Global.”
✓ Words or phrases referring to political, religious or sectarian
groups are not allowed (e.g., FBI or Mafia).
✓ Do not include the name of a country or government. BUSINESS NAME
APPROVED
✓ Punctuation marks should not be included in your business name.
✓ If you’re naming a company after a person, then
that person should either be a company owner or partner.
✓ Only full personal names can be included
(both first name and last name are required).

11
09
Forge a strong brand presence
and digital footprint for your
company..
In this digital age, the next thing you have to do once you’ve finalized
your company name is to secure your website domain and social media
usernames. If your top choices are not available, make sure you always
have alternative options.
Your website and social media profiles will primarily be your online
identity, and you will need to come up with a comprehensive and
omnichannel digital marketing strategy that will help you build a strong
brand presence and extensive digital footprint.

Choosing between a .com and a .ae can have a great impact on your
HINT: Google rankings. As a general rule, for international reach, opt for
.com; if you’re primarily offering services in the UAE, consider .ae.

Here are 5 platforms where you

can secure a website domain:

godaddy.com domain.com namecheap.com shopify.com tasjeel.ae

World’s largest and Leading domain ICANN-accredited All-in-one e-commerce One of the UAE’s
trusted domain registrar and web domain name registrar platform leading domain name
registrar hosting provider and web hosting providers
company

12
10
Tackle your paperwork
like a boss..
Whether you are applying in the mainland or a free zone, you may be
required to submit a few basic documents, which include:

✓ Attested copy of shareholder and director passports

✓ Proof of address
✓ Minimum 3 months’ bank statement
✓ Education certificates (if applicable)
✓ Certificate of share capital deposit (if required)

Additional documents may be required depending on your company’s

HINT: legal structure and the jurisdiction where you are setting up.

13
 DID YOU KNOW?

Not all online

businesses need an
e-commerce licence.

14
11
Apply for your trade licence.
Once your application has been processed, the government will issue
your trade licence. Regardless of your chosen location or jurisdiction,
you’ll usually only require a few standard documents: a completed
application form, shareholder passport copies, and the like.

Some free zones may also require a business plan, so better

HINT: prepare one in case you need it.

3 types of mainland
licences in Dubai

Commercial licence
A commercial licence is issued
to businesses that carry out
trading activities.

Industrial licence
An industrial licence covers
businesses engaged in industrial
and manufacturing activities.

Professional licence
A professional licence is for
professional services,
craftsmen and artisans.

15
12
Secure visas for yourself,
your team and your family.
After your trade licence is issued, you can now apply for residence visas
for yourself, your employees and your dependents.
There is no limit to the number of visas a mainland company can apply
for, whereas free zones will have a limit on the visas you can get. This
limit varies from one free zone to another.

To fast-track your visa application, you can opt for the VIP route. It’s
HINT: also crucial to work with a trusted PRO service provider to ensure you
complete your application without any hitch. Click here to learn more.

Different types
of visas in the UAE

Residence visa Partner visa Golden visa

Investor visa Employment visa Green visa

CLICK HERE TO LEARN MORE ABOUT

GETTING A UAE RESIDENCE VISA

16
 UAE BUSINESS ADVANTAGE

Around 80% of Fortune 500

companies, including the top
10, have a presence
in the UAE.

17
13
Open a bank account
for your business.
Once you have your trade licence, visa, Emirates ID and other corporate
documents ready, you can now open a bank account for your business.
You will need a bank account before you can start trading in the UAE.
Opening a bank account is one of the biggest challenges that UAE
startups face, which is why it’s important to find a bank that matches
your needs. For a faster process and minimum requirements, consider
digital banks like Wio or Mashreq Neo Biz.

The UAE is home to many banks, both local and international,

HINT: including:

18
14
Get access to corporate
services to support your
business growth.
Setting up your business in the UAE goes beyond just getting a trade
licence. That is why it’s important to choose a corporate services
provider that can support your business as it grows.
Look for company formation specialists that can offer you support not
just in getting a licence and visa, but can also help you with bank account
opening, accounting, corporate tax, compliance, legal, insurance, and
more.

Virtuzone provides end-to-end corporate services designed to

HINT: accelerate your business growth and give you the biggest savings.

Common corporate services in the UAE

Bank Account Accounting Corporate Tax Compliance Health Golden

Opening & Payroll & VAT Services Insurance Visa

Mail Virtual Legal PRO Trademark Wills

Management Receptionist Services Services Registration Registration

IT Crypto & Web3 Second Real

Services Licensing Citizenship Estate

19
15
UAE corporate tax is here
and every business must do
3 things.
There are three things that every business in the UAE must do to comply
with the country’s new corporate tax law:
1. Register for corporate tax.
2. Keep proper accounting records.
3. File a corporate tax submission with the Federal Tax Authority (FTA).
Whether you’re set up in the mainland or free zone, you need to comply
with these three steps.

To learn more about UAE Corporate Tax,

HINT: you can download our quick guide here.

Want to get specific

answers to your tax
questions?
Try TaxGPT – the UAE’s first AI-powered
corporate tax assistant, developed by Virtuzone.

TaxGPT is trained on the latest

corporate tax laws and will give you
TaxGPT answers to your tax questions.
asktaxgpt.ae

20
 DID YOU KNOW?
✓ The SME sector accounts for 53% of the UAE’s non-oil GDP.
✓ You can incorporate a trade license remotely, which means you
don’t need to travel to the UAE.
✓ You can obtain a corporate bank account with zero minimum balance.
✓ You can live in Dubai even if your visa is issued by another emirate.
✓ You can run multiple e-commerce websites on one e-commerce license.
✓ Your business activity can affect your bank account approval.
✓ A penalty of up to AED 50,000 may apply to your business
if you don’t complete your UBO declaration on time.

21
16
Stay on top of your
accounting and bookkeeping..
Regardless of the size of your business, accounting is necessary to
help you with decision-making, cost planning, and measurement of your
economic performance.
With the UAE’s new corporate tax law, ensuring your bookkeeping is
accurate and updated is more essential than ever. Below are some
essential accounting processes that you need to do or outsource to an
accounting firm or reliable corporate services provider:
✓ Bookkeeping ✓ Auditing ✓ Payroll management
✓ Account reconciliations ✓ Financial reporting ✓ Filing for VAT
or corporate tax

If you don’t have time or the knowledge to handle your

accounting, Virtuzone can handle all your requirements. Book a
HINT: 15-minute consultation to find out what your business will need.
Book Consultation

Top 5 accounting software to help you manage

your day-to-day accounting requirements:

xero.com quickbooks.intuit.com wafeq.com freshbooks.com sageone.com

Cloud-based Cloud-based E-invoicing and VAT- Online accounting and A family of online
accounting software accounting software compliant accounting invoicing services for accounting and
for small and medium- accessible on multiple software powering small and medium- business services for
sized businesses devices anytime and small to medium sized businesses small businesses
anywhere businesses in the
Middle East

22
17
Keep an eye on when you
might need to register for VAT..
Once your company’s value of taxable goods and services exceeds
AED 187,500, you will fall under the voluntary registration category.
However, once it goes over AED 375,000, it will be mandatory for you
to register for VAT.
Levied at a rate of 5%, UAE’s VAT applies to all taxable supplies of goods
and services, including imports. A taxable supply refers to any goods or
services from a person conducting business in the UAE, including retail
businesses, restaurants, hotels, and entertainment activities, among
others.

VAT is different from corporate tax. Companies must pay corporate tax
HINT: on their annual net profits, while businesses collect VAT from customers
when selling a product or service and then remit it to the government.

Zero-rated VAT
Even if you have a taxable supply, certain services
have a 0% VAT rate, which means businesses must
include zero value in their invoices. The 0% VAT
applies to goods and services that are exported
outside the Gulf Cooperation Council (GCC) member
states. It also applies to international transportation
and supplies of crude oil, natural gas and investment-
grade precious metals. Sectors like healthcare and
education also benefit from 0% VAT rate.

VAT-exempt services
Unlike zero-rated services where businesses have
to charge 0% VAT, exempt services are completely
exempt from VAT. These are financial services, supply
of residential property, vacant land and local public
transportation.

23
 UAE BUSINESS ADVANTAGE

Strategic geographic position

that offers easy access to
markets in the Middle East, Asia,
Africa and Europe

24
18
Build a foolproof legal
framework for your company..
When it comes to running a business in the UAE, it’s crucial that you
ensure your company is protected from a legal standpoint. Connect with
a trusted legal firm or reputable lawyer to help you draft shareholder
agreements that establish clear guidelines and protocols for decision-
making, profit-sharing and dispute resolution among the shareholders
of your company. In addition, prepare a will that ensures your assets
are distributed according to your wishes. In the absence of a will, the
principles of Sharia law will be followed in distributing your assets.

Based in the Dubai International Financial Centre, the DIFC Courts is

HINT: an independent regulatory framework that follows English Common
Law in governing commercial and civil disputes.

25
 I have been using Virtuzone since I came to Dubai for all my
business and visa needs, and Virtuzone has always made
the process super quick and easy for me.

Caroline Stanbury
Businesswoman and reality TV personality

26
19
Ensure your business and
your team are protected..
In the UAE, you should consider taking out business insurance, not
just for your company but also for the employees. The right insurance
protects you against loss in case of unforeseen events and keeps you
in compliance with the law.

Getting health insurance for your employees is mandatory in the

HINT: UAE. Click here to get your insurance quote in just 30 seconds.

Common insurance
policies for UAE-based
businesses include:

Group health Group life Public liability

insurance insurance insurance

Workmen’s SME office

compensation package
insurance insurance

27
20
Avoid heavy fines by
complying with UAE’s
business laws..
If you’re running a company in the UAE, there are rules and regulations
that you need to comply with to verify that your business practices are
in line with the law.

Take note of the deadlines for complying with these regulations

HINT: to avoid hefty fines. Make sure you’re on top of your compliance
requirements with the expert guidance of a Compliance Team.

Here are a few major

policies you need
to be aware of:

Economic Substance
Regulations (ESR)

Ultimate Beneficial
Owners (UBO)

goAML Registration

28
 Setting up a business can sometimes be very difficult
and you need the right guys around you. Big shoutout
to Virtuzone that helped me set up Fade Fit. We’ve now
become one of the biggest with the help of Virtuzone. They
really directed me when we were launching the business
and getting it all right.

Kris Fade
Radio presenter, host, musician | Founder of Fade Fit

29
21
Build a team of rockstars who
share your vision and passion.
A study by Deloitte showed that 88% of employees who shared a strong
connection with their organisation’s purpose felt more engaged at
work, which suggests that hiring employees who have the same vision
and passion as you can lead to greater satisfaction, engagement and
retention.

Under the Emiratisation initiative launched by the UAE in 2022,

private companies with at least 50 employees must ensure 3% of
HINT: their workforce is composed of Emiratis. This percentage will be
raised to 10% in 2026.

Easily find new talent

and freelancers with
these online platforms:
Connects businesses with
independent professionals
around the world
upwork.com

World’s largest marketplace

for digital services
fiverr.com

Exclusive network of the world’s

top talent in business, design
and technology
toptal.com

30
22
Keep your team happy
and motivated.
According to a study cited by Forbes, happy employees are 20% more
productive than unhappy employees.
Keep your team happy by giving them the benefits they are entitled to,
as mandated by the law.
From providing them with paid leave and end-of-service payments to
following mandated working hours and standard employment contracts,
make sure your employees enjoy the rights and benefits they should
have.

Here are 6 proven ways to inspire, motivate

and keep your employees happy:
Reward and recognize
Foster a positive, safe and
their hard work and
open work environment.
achievements.

Make work-life balance

Introduce employee-focused
an integral part of your
programs and activities.
company culture.

Create opportunities for

Be open to honest and
your team to grow and
transparent communication.
upskill.

31
 UAE BUSINESS ADVANTAGE

Global connectivity supported by

the country’s two flagship airlines:
Etihad Airways and Emirates

32
23
Manage your cash flow and
keep your business from
sinking.
According to the Association of Chartered Certified Accountants, 82%
of startups fail due to poor cash flow management. With this in mind,
you should have a budget and financial strategy for managing the costs
of setting up your business, as well as enough capital to cover your
expenses, especially during the first year of your operations.

Google Docs has templates designed to help users with basic cash flow
HINT: management. Click here to view a guide from Spreadsheet Point, an
entity dedicated to helping people become masters of Google Sheets.

Looking for cash

flow management tools?
Here are a few to get you started:

planguru.com floatapp.com
Business planning software An award-winning software
that offers budgeting and that lets users get real-time
forecasting tools cash flow forecast

pulseapp.com cubesoftware.com
A powerful cash flow A next-generation FP&A
management software platform that provides dynamic
that can forecast your financial planning solutions
company’s financial future

33
24
Win investors over
and fuel your growth.
If you want to increase your start-up’s chances of succeeding, then
dedicate time, effort and resources to woo and win investors, so you can
acquire funding that will help fuel your company’s growth.
According to a study done by CB Insights, a New York-based private
equity company, lack of funding is one of the major reasons start-ups fail.
So create a winning business plan that showcases your business’s
potential and growth strategy. PitchBook conducted research that shows
start-ups with a compelling pitch deck have a 14% higher chance of
securing funding.

HINT: Lack of funding is one of the major reasons start-ups fail.

Create a pitch deck Get inspired by the

that converts
Use a pitch deck software:
An online presentation
software that helps you
create professional-looking
presentations with ease.
slidebean.com
best pitch decks ever
Crafting a pitch deck involves following best
practices and knowing what investors want and
research. One of the best ways to learn is to see
how some of the most well-known companies
pitched their ideas.

A presentation software Check out this list of the 35 best pitch decks
that allows you to create ever by companies like LinkedIn, YouTube
presentations that are
interactive and visually
and Airbnb.
appealing.
Prezi.com CLICK HERE TO
SEE THE BEST
A presentation software that PITCH DECKS
helps you create engaging and
persuasive presentations for
investors.
pitch.com

34
25
Know the top proven ways
to finance your business.
The UAE attracted USD 23 billion in foreign direct investment in 2022,
representing 60% of the FDI poured into the GCC bloc, according to a
report by the United Nations. With a booming venture capital scene, the
UAE has become a prime business hub for start-ups looking to tap into a
lucrative market with robust financing options available.

Here are top 5 ways you can

secure business funding
in the UAE:

Local funding Angel Business

and outreach investors incubators
programs

Venture Institutional
capitalists investors

35
 DID YOU KNOW?

You can run multiple

e-commerce websites
on one e-commerce
licence.

36
26
Re-evaluate and refine
your business strategy.
Regularly reviewing and refining your business strategy can help keep
your business competitive in a rapidly evolving market. In fact, research
by global management consulting firm McKinsey & Company shows
that companies that periodically examine and modify their strategies
outperform their competitors by 20% in terms of shareholder returns.

Consider the 80-20 rule, which states that 80% of results come
from 20% of causes for any given event. Also known as the Pareto
HINT: Principle, this strategy can help you effectively identify and prioritise
key areas for improvement, maximising efficiency and profitability.

37
27
Think ahead and have
an exit plan in place.
Having an exit plan is usually the last thing on an entrepreneur’s mind.
However, data from PitchBook suggests otherwise: Companies that have
exit strategies have better chances of securing higher valuations and
attracting investors.
This highlights the importance of having an exit plan, which provides a
clear roadmap for achieving long-term financial goals and boosting return
on investment.

Here are top 5 business exit strategies:

Merger and acquisition

01 A business is either acquired or purchased by another company,
or is merged with another company to form a new entity.

Initial Public Offering

02 In an initial public offering (IPO), the entrepreneurs sell their business to the
public to raise more capital. It is the most preferred exit strategy and the
dream of many entrepreneurs.

Entrusting the business to family

03 This exit strategy entails handing over the reins of the company to a child
or a relative, thus keeping the business within the family.

Selling the business to managers/employees

04 Selling the company to another executive or to employees often leads
to a smoother transition since they already know the business.

Liquidating your business

05 Liquidating a business means stopping the company’s operations,
selling its assets and using the funds to pay off debts.

38
28
Refuel your drive with
stories of success.
I started the ENTERTAINER in 2001; I was driving down the then Sheikh
Zayed Road, and I was astounded by the number of restaurants I saw. I
wondered how they entice customers to visit, and that’s where the idea
for the ENTERTAINER came from. With AUD$3,000 in my bank account
and an internet café as my office, I began my business proposal. I met
with merchants and developed the Buy One Get One Free concept that
is now so loved. What started as a print publication 18 years ago, is now
an award-winning App with over 300 staff and 10,000 merchants in 15
countries. I’m incredibly proud of what we’ve achieved as a company.

Life is for living.

Donna Benton
Founder and CEO of Entertainer and The Benton Group

39
 We have set up more than 70,000
entrepreneurs from 180 countries
Established in 2009, Virtuzone is the UAE’s leading and most trusted company formation
specialists. Since its inception, Virtuzone has maintained a formidable reputation in the
industry and a stellar track record of helping over 70,000 entrepreneurs from 180 countries
set up businesses in the UAE.