Dubai, with its robust economy and excellent infrastructure, has become a top destination for entrepreneurs worldwide, including those from Indonesia. With policies that support foreign ownership, Dubai offers businesspeople the opportunity to set up and grow their enterprises in one of the world’s most dynamic markets.
Also Read: Business Guide in Dubai: Expansion Opportunities for Indonesian Entrepreneurs
Can Indonesian Entrepreneurs Own Businesses in Dubai?
Dubai is known as a global business hub with a welcoming investment environment. As an Indonesian entrepreneur, you can have 100% ownership of your business, whether in the mainland or in a free zone. Each free zone is designed to support specific sectors, allowing you to choose a location that best suits your business type.
Also Read: Business Opportunities in Dubai and Potential Sectors
Location Choices: Mainland vs. Free Zone
Mainland: If you want to operate across the UAE and work with local companies, establishing a company in the mainland is ideal. However, specific regulations may apply, and for some sectors, a local partner may be required.
Free Zone: Free zones offer advantages such as tax exemptions and lower customs fees. Here, you have more flexibility in managing your business, though you’ll generally focus on business outside the UAE.
Steps to Set Up a Company in Mainland Dubai
Here is a guide for setting up a company in Mainland Dubai:
- Determine the Business Activity Type
Choose the type of economic activity to be conducted. You must identify from over 2,000 types of activities registered in the UAE.
- Select the Company Legal Structure
Legal structures can include:
- Limited Liability Company (LLC)
- Sole Establishment
- Civil Company
- Branch of a local or GCC company
- Representative Office
Select a structure that meets your business needs.
- Register the Company Name
Choose a unique name relevant to your business activity. Submit your name registration through Dubai’s Department of Economy and Tourism (DET).
- Apply for Initial Approval
Get initial government approval to proceed with the company formation.
- Draft the Memorandum of Association (MOA)
The MOA is required for specific legal structures, such as LLCs.
- Select a Business Location
Rent office space that meets DET requirements. Register the lease contract through the Ejari portal.
- Submit Additional Documents
Some business types may need extra approval from relevant ministries or government agencies.
- Pay Fees and Obtain the License
Once all documents are complete and fees are paid, receive your business license from DET.
- Register the Company with the Chamber of Commerce
Finally, register your company with the Dubai Chamber of Commerce.
Also Read: Dubai’s Tax Rules Beneficial for Businesses
Steps to Set Up a Company in Dubai Free Zones
For those interested in starting a business in a Free Zone, follow these steps:
- Determine the Business Activity Type
Choose the license type that matches your business (e.g., commercial, industrial, or service license).
- Select the Company Legal Structure
Free zone legal structures typically include:
- Free Zone Limited Liability Company (FZ LLC)
- Free Zone Establishment (FZE)
- Free Zone Company (FZ Co.)
- Register the Company Name
Ensure the name is unique and complies with your chosen free zone’s regulations.
- Select a Business Space and Location
Choose from over 40 free zones in the UAE that suit your business type.
You can choose to rent an office or use virtual office services.
- Apply for Initial Approval
Complete all requirements and submit documents to obtain initial approval from the free zone authority.
- Register the Company and Pay Fees
Fill out the registration form and pay fees to obtain the company license.
- Prepare Supporting Documents
Prepare necessary documents such as the Business Plan, shareholders’ passports, and any other required documents.
- Collect the License
After completing all steps, collect your business license from the free zone authority.
- Register with the Chamber of Commerce (if required)
Although not always mandatory, some free zones may require additional registration with the Chamber of Commerce.
Legal Considerations: Key Factors in Starting a Business in Dubai
Starting a business in Dubai comes with specific challenges. Legal processes are essential, and vOffice offers the right solutions to assist Indonesian entrepreneurs with legal matters for businesses in Dubai.
As the first Indonesian office and business service provider to expand to Dubai, vOffice provides a range of services to support you, from company incorporation to virtual office services. With a history of serving over 50,000 clients across Indonesia, vOffice is a trusted partner that understands entrepreneurs’ needs.
vOffice is also part of the Dubai Chamber’s Global Partnership Programme, an official partner supporting investment in Dubai. One initiative launched is the Dubai Global Gateway forum, which aims to be a gateway for Indonesian entrepreneurs investing in Dubai.
With ISO 9001 certification and a satisfaction guarantee, vOffice is here to simplify the legal process so you can focus on growing your business.
Check the vOffice Dubai page for full details.
Contact the vOffice Dubai team now and get a special offer!
References:
investindubai.gov.ae – Dubai Department of Economy and Tourism
