Complete Guide to Starting a Business in Dubai as a Vietnamese National

Anyone looking to start a business anywhere in the United Arab Emirates, especially in Dubai, possesses one of the most exciting experiences with a fast-paced and fast-developing market in the world. Due to its strategic location, tax-friendly environment, and world-class infrastructure, Dubai has become something of a darling for entrepreneurs the world over. For Vietnamese investors, the city offers the advantage of easy access to international trade routes, a welcoming multicultural environment, and supportive policies that encourage business growth. This guide will explain everything you need to know about starting a business in Dubai with confidence and clarity-from the right selection of jurisdiction to the implementation of an entire setup.

Key Benefits of Setting Up in Dubai

For setting up a business in Dubai, entrepreneurs are blessed with a global marketplace that provides unprecedented opportunities for expansion. The city has friendly features that help innovation, efficiency, and sustainable development. 

Here are the advantages of incorporation in Dubai: 

• Strategic Global Location – Dubai serves as the fulcrum formed between the East and the West for international trade, enabling businesses to connect with markets in Asia, Europe, and Africa with ease.
• Open Tax Regime – Very low or even zero rates of corporate taxes in a majority of sectors, VAT exemption in certain free zones, and free flow of repatriation of profits without any restrictions are some of the considerations.
• World-Class Infrastructure – The city possesses the latest ports, airports, transport systems, and advanced digital connectivity for smooth business practices.
• Business-Friendly Regulations – Efficient licensing procedures, granting full foreign ownership in various sectors, and a simple bureaucracy attract foreign investment and easy business operation.
• Diverse and Skilled Manpower – Professionals from all over the world are attracted to Dubai, giving businesses one of the most highly skilled and cosmopolitan labor markets.

Understanding the Business Jurisdictions in Dubai

The understanding of business jurisdictions in Dubai will help you identify the best setup for your aspirations. Each of the jurisdictions has its own set of advantages, ownership structures, and operational scopes that might influence different aspects of the success of your business. 

• Mainland – These businesses are allowed to operate in any part of the UAE and internationally. They permit direct trade in the local market and offer many sectors for full foreign ownership, along with flexibility in choosing office locations. 
• Free Zone – Free zones allow for 100% foreign ownership, tax exemptions, and simple procedures for in-setting. These are good for businesses that will be engaged in international trading, services, or other specific industries, and may impose restrictions on local trading directly without a distributor or local agent. 
• Offshore – Offshore companies are meant for international business, asset protection, and privacy. They may not enter the UAE market, whereas offshore benefits include no corporate tax, very light reporting requirements, and full profit repatriation.

Step-by-Step Process to Start a Business in Dubai

Among such steps, starting a business in Dubai is made easier than ever if followed in the correct order. Below is an easy process that will take you from planning to launching your company.

• Choose Your Business Activity- Stake the exact activity your business will be conducting, as this determines what type of license you are in need of and approved by who.
• Select a Jurisdiction- I recommend that you choose between mainland, free zone, or offshore, depending on whether you prefer to have local market access, full foreign ownership, or an international holding structure.
• Choose a Legal Form- Choose the type of business form that will suit your needs best, one of which is a limited liability company, branch office, free zone entity, or sole establishment.
• Reserve a trade name and get initial approvals- Along with the registration process, secure your company name and initial permission from the responsible authority.
• Prepare the Company Documents- These include drafting and notarizing the memorandum of association, getting passport copies of shareholders, and obtaining any required no-objection certificates.
• Arrange Office Space- Get a tenancy contract or flexi-desk agreement, which is mostly a requirement to issue a trade license and apply for a visa.
• Applying for a License- Fill out your application form with the appropriate authority, including all relevant attachments, and pay the fees for registration and license.
• Receive Your Trade License- Once granted, your trade license will then be issued with the corresponding company registration documents that authorize you to function legally. 
• Register for VAT or Customs (If Applicable)- Fulfill the right registrations according to those thresholds of VAT and also by businesses engaging in import/export activities, including registering for sea and air. 
• Open A Bank Account In The Name Of The Business- Open a corporate account in A UAE bank with your company documentation as per their compliance procedures, of course. 
• Application for Visas- Settle applications for visas such as investor, partner, or employee, and have related measures, including medical tests and registration of Emirates ID, completed. 
• Maintain compliance- Just as in the previous processes, license renewals, keeping accounting records, tax filings, and other continuous legal requirements must always be maintained.

Required Documents and Licensing Procedures

Business activities in Dubai can be fast-tracked if one is armed with the correct requirements. The specification may vary depending on jurisdiction and activity concerned, but typically required documents are:

• Passport copies of all shareholders and managers
• Recent passport-sized photographs
• Visa copy or entry stamp page (if already in the UAE)
• Proof of residence or address for shareholders
• Proposed trade name options
• Memorandum of Association (MOA) and Articles of Association (AOA)
• No Objection Certificate (NOC) from the current sponsor (if applicable)
• Initial approval certificate from the relevant authority
• Tenancy contract or Ejari certificate for office space
• Application form for trade licence issuance

Estimated Costs and Timelines for Setup

The cost of setting up a business in Dubai depends on several factors: the jurisdiction, the business activity, and the requirements for office space. Normally, one could expect to pay from AED 15,000 to AED 40,000 for free zone setups, while fees for mainland setups are slightly higher due to added approvals and fees. Timelines are quick in general, as many free zone companies are registered in 5-10 working days, while mainland setups take 2-4 weeks, depending on the complexity of the activity and the approvals required.

Turning Your Dubai Business Dream into Reality

For a Vietnamese national, starting a business in Dubai is an entrance to opportunities across the globe in a well-supportive and innovation-oriented environment. If proper planning is done, with an intelligent understanding of the setup process as well as compliance, you can grow a stronghold in one of the very active business hubs of the world. Whether your target is international trading, localizing the market, or raising a global brand, Dubai would offer the best platform to succeed and grow.

Ready to Start Your Business in Dubai?

StepUpMate accompanies you in each step of your business journey, from selecting the perfect jurisdiction to securing licenses, visas, and bank accounts. Smooth, efficient, and hassle-free company setup in Dubai is what we promise. With expert advice and hands-on support from StepUpMate, you are sure that your desired company will be built.