Frequently Asked Questions



Is it a good opportunity to start up a business in Dubai, UAE?

Yes, as Dubai is one of the main business hubs in the world and it is also stationed between Africa / Europe and Asia. It also has advanced business infrastructure. Dubai is also part of UAE which is a tax-free city. Even though VAT is expected in 2018, but the upcoming VAT is only 5% and no other taxes apply for business. So you income is protected and is free to mobile as per your business strategy with no currency restrictions.

What type of business Licenses are there in Dubai?

There are three types of Trade Licenses; Commercial License that are usually issued for any kind of trading activity, Industrial License that are issued for any kind of industrial or manufacturing activity and Professional License that cover various types of professional services such as health, consultancy, craftsmen or so

How is the business setup categorized in Dubai?

Every business set up is controlled by a set of terms that apply to it. You can set a solely owned company such as a consultancy firm owned 100% by you and deploy a local sponsor as service agent. You can also establish a joint venture or a Limited Liability Company (LLC) that has more than one partner or a public shareholding company or a private shareholding company.

Can a foreign investor obtain a License without a UAE local sponsor, service agent or partner?

All Trade Licenses require a UAE national to be either a service agent sponsor or partner. However, the ownership rights are fully protected through official memorandums signed legally at the Notary Public that grants the investor the rights to manage bank accounts and business. Furthermore, other internal legal agreements are usually made by lawyers to design the share distribution or share selling rights for the investor to protect his capital and investment. Some business licenses such as the professional business license assigns a UAE national sponsor as a service agent and therefore the 100% of the company ownership remains in the investor name.

How many Business activities can be added to one business license?

Usually a single business license can include up to 10 business activities maximum that are within the same category of business, but cannot completely divert to other type of business categories i.e. activities need to be homogenous and based on the activity group. More details on this will be available at the Department of Economics of Dubai

What is the role of a local sponsor or services agent in a foreign investment?

The responsibilities of a local sponsor or service agent is limited to governmental applications, work permits and other governmental documentations signing. Also for the initial support of obtaining a new trade licence. However, he or she do not usually cover for a PRO role that runs around to finalize governmental transactions. A local sponsor does not interfere in the way or activity of your day to day business nor is he required to receive any reports or know any details of the company status or profitability. A local sponsor is usually available when you need him or her for governmental support or as otherwise necessary to your business only

How much time does it take to setup a business in Dubai?

In normal circumstances a trade licence issuance in Dubai is fast and may take 2 to 4 days if you are contracted with the right service consultant / agent and all prerequisites are in place.

The prerequisites are usually documentations whether personal or official to submit for your trade licence. Please see the below prerequisite examples for your information:

  1. A local sponsor already selected and agreed

  2. All personal IDs for the investor and local sponsor are available

  3. Investor university certificates are attested by UAE Embassy in home country & the Office of Foreign Affairs locally in UAE for an investor who wishes to invest in a professional trade licence such as consultancy services organization or so

  4. The office or showroom unit needed for the business is already rented and the tenancy contract is ready etc

8. Why do I need XR Corporation to setup my business in Dubai?

In some circumstances, it takes the investor some time to find the right sponsor that he can trust and to find the right office unit to be rented for the business or may require to get his certificates attested to opt for a professional licence or so. In such circumstances, the waiting time is added to the duration suggested above

If you don’t have a reliable service provider such as XR Corporation Management Consultancy to setup your business you may suffer a lot of time loss or from taking the wrong turn which in return delays your processes, waste your time and money. You need the support and guidance of a professional organization that can accomplish all requirements in within a time frame that is acceptable to you. As setting up your business is not only a 4 day trade licence matter, but it also includes a lot of logistical and other governmental transactions that you need to accomplish respectively such as:

  1. nitial approvals

  2. Memorandum of association or service agent agreement

  3. Notary Public signings

  4. Completing the issuance of business trade licence

  5. Ijari tenancy contract issuance

  6. Creating your company stamp

  7. Registering and obtaining a P.O. Box for the company

  8. Labour card

  9. E-signature labour card

  10. Establishment card for General Directorate for Residency and foreigners

  11. On line account for General Directorate for Residency and foreigners

  12. Telecom services for your new office (telephone, fax, etc)

  13. Assistance to obtain a Domain and hosting services for your company (optional)

  14. Medical test for owner(s) / investor(s)

  15. Emirates ID for owner(s) / investor (s)

  16. Visa stamping on the passport of owner(s) / investor(s)

Let XR Corporation save you the time, money and effort and accomplish all requirements for you from A to Z with full guidance and support all through your business setup and settlement in Dubai

Why should I assign a specialized consultancy company to setup my business / to complete all governmental transactions for my business setup?

Some people may prefer to spend their own personal efforts to setup their business license. The consequences of such is the following:

  1. Wasting a lot of your personal professional time in administrative tasks that require long hours of work and procedures which in return is very costly for businessmen who wish to progress in building up the core business objectives and preparations instead

  2. Taking a wrong turn in your transactional work can cause you a considerable financial loss and lead for more time and efforts loss

  3. Considering a supporting agent for your administrative governmental paper work is faster, more efficient and is considered part of the business setup and investment costs that also keeps the business investor more focused on the business objectives

How to select the right consultancy company to finalize your governmental transaction?

Please find below the three most important factors in selecting the right setting up agent:

  1. Has been in the market for at least 2 to 3 years

  2. Has a proper website that gives you the information you need and the proper contact and feedback links/channels

  3. Has a team of professionals who are organized and well trained to do the job fast and efficient