As a South Korean entrepreneur, you must be eyeing an expansion into the Middle East to tap the global opportunities. Dubai continues to be a lucrative destination as a focal point of businesses, offering a business-friendly environment and world-class infrastructure. Dubai also shares strong economic ties with South Korea.
Entrepreneurs in South Korea looking for company formation in Dubai will find this guide helpful. We have comprehensively discussed the legalities, license requirements, and procedures to set up a business in Dubai in this article.
- Why Choose Dubai as a Business Location?
- Different Business Structures in Dubai
- Types of Trade Licenses in Dubai
- Steps to Set Up a Business in Dubai
- Documents Required for Business Setup In Dubai
- Crucial Things to Consider While Setting Up a Business in Dubai
- Get Expert Assistance for Setting Up A Business In Dubai
Why Choose Dubai as a Business Location?
1. Strategic location
2. Business-friendly environment
3. World-class infrastructure
4. Government initiatives
5. Economic ties between UAE and South Korea
Different Business Structures in Dubai
During the business setup in Dubai South Korean entrepreneurs can choose between two main structures.
- Mainland: Businesses in the mainland of Dubai can trade both locally and internationally. The process is straightforward, with the option to apply for a business license in just one day. Mainland companies allow broader access to the local market but require a local sponsor who owns 51% of the business.
- Free zones: New companies in South Korea that expand to Singapore can ideally set up their ventures in the free zones. Here, enterprises can enjoy several benefits like tax advantages and simplified procedures. Some of the popular free zones in Dubai are the Dubai Silicon Oasis, the Dubai Airport Free Zone (DAFZA), and the Jebel Ali Free Zone (JAFZA).
Types of Trade Licenses in Dubai
The Department of Economic Development (DED) in Dubai issues four types of business licenses:
- Commercial License: For trading businesses.
- Professional License: For service-oriented companies.
- Industrial License: For manufacturing and packaging businesses.
- Tourism License: For businesses in the tourism sector, issued jointly by DED and the Department of Tourism and Commerce Marketing (DTCM).
Steps to Set Up a Business in Dubai
Determining the Type of Business
Choose a trading name
Obtain a license
Working closely with one of the reputed business setup consultants in Dubai, entities need to apply for the relevant business license. This depends on whether you are operating in the mainland or a free zone.
Register and incorporate your business
Obtain a Business Visa
Documents Required for Business Setup In Dubai
South Korean enterprises need to furnish the following documents as a part of their business setup process in Dubai.
- Passport copies of shareholders and directors
- Visa copies (if applicable)
- Business plan
- No Objection Certificate (NOC) from the sponsor (if applicable)
- Proof of address
- Memorandum of Association and Articles of Association (for company formation)
Crucial Things to Consider While Setting Up a Business in Dubai
Banking Options
On-going Compliance and Support
