Business setup in Dubai For Russian Entrepreneur

Dubai, the largest city in the United Arab Emirates, has become an attractive destination for entrepreneurs from around the world, including Russia. The city’s strategic location, business-friendly environment, and supportive government policies have made it an ideal place for Russian entrepreneurs to expand their businesses. In this blog post, we will provide a practical guide for Russian entrepreneurs for business setup in Dubai.

1. Choose the right business structure

There are three main types of business structures for foreign entrepreneurs in Dubai:

· Free Zone Company (FZCO): This type of company can be 100% foreign-owned and is set up within one of the many free zones in Dubai. Free zones offer tax incentives, simplified registration processes, and no restrictions on capital repatriation.

· Mainland Company (LLC): This type of company requires a local sponsor who holds at least 51% of the shares. The remaining 49% can be owned by foreign investors. Mainland companies can operate in any part of Dubai and can engage in a wider range of business activities.

· Offshore Company: This type of company is incorporated outside of Dubai but can still conduct business within the city. Offshore companies are often used for asset protection, tax planning, and international business.

2. Choose a suitable business activity

Dubai offers a wide range of business activities for foreign investors, including trading, manufacturing, professional services, and tourism. It is important to choose a business activity that aligns with your expertise and the market demand in Dubai.

Some popular business activities for Russian entrepreneurs in Dubai include:

· Import/export

· IT services

· Tourism and hospitality

· Real estate

· Retail

3. Obtain the necessary licenses and approvals

Depending on the type of business structure and activity you choose, you may need to obtain one or more licenses to operate legally in Dubai. The most common types of licenses are:

Trade License: Required for trading, import/export, and retail businesses

Industrial License: Required for manufacturing, processing, and industrial activities

Professional License: Required for professional services, consultancy, and other service-oriented businesses

To obtain a license, you will need to submit an application to the relevant authorities, such as the Department of Economic Development (DED) for mainland companies or the respective free zone authority for free zone companies. You may also need to obtain additional approvals from other government departments, depending on your specific business activity.

4. Set up a corporate bank account

To operate your business in Dubai, you will need to open a corporate bank account. There are many local and international banks in the city that offer accounts tailored to the needs of foreign entrepreneurs. Some popular banks for Russian entrepreneurs in Dubai include:

· Emirates NBD

· Mashreq Bank

· First Abu Dhabi Bank

· Dubai Islamic Bank

To open a corporate bank account, you will need to provide the bank with your company’s registration documents, proof of identity for the account signatories, and a business plan or financial projections.

5. Find office space

Depending on the type of business structure you choose, you may need to rent or purchase office space in Dubai. Free zone companies are generally required to have a physical presence within the free zone, while mainland companies can operate from any location in the city. There are many commercial properties available in Dubai’s business districts and free zones, catering to various budgets and requirements.

6. Hire staff

As a foreign entrepreneur, you may want to hire local or expatriate staff to help run your business. To do this, you will need to obtain work visas and residence permits for your employees. The process for obtaining these permits varies depending on the type of business structure you choose and the specific free zone or government department you are dealing with.

In conclusion, setting up a business in Dubai as a Russian entrepreneur can be a rewarding venture, offering access to a thriving market and numerous growth opportunities. By following the steps outlined in this guide and seeking professional advice when needed, you can ensure a smooth and successful business setup process.