Wherever you look in Dubai, industries are thriving. Behind the headline sectors of technology, travel, health, and manufacturing, there are plenty more, equally lucrative.
One such niche is the rental industry. We are not talking about cars or property here, but anything else you can think of. There is great demand for all manner of goods, from clothes and shoes to decorations for weddings and other events.
And there’s more good news for entrepreneurs looking to do business in the UAE. With the right guidance from a local expert, starting a rental business can be both fast and affordable. There are rarely any additional approvals or steps required, meaning you can be trading within weeks.
Benefits of starting a rental business in Dubai
When you start your business in Dubai, you can take advantage of all the benefits of living and working in this part of the world. If you’ve done any research so far, you’ll be well versed in what that entails.
As well as the world-famous 0% tax rate on income, and low taxation elsewhere, Dubai offers a high standard of living and incredible ease of doing business. You’ll also benefit from a time tested and well-honed company setup process designed to welcome foreign investors.
Rental business ideas in Dubai
Rental is big business in Dubai. And the chances are if you can think of it, there’s a demand. In a land famed for its events, there are plenty of niches to be found in this area. You could rent out anything from artificial flowers to cutlery and glassware and any number of other party supplies.
The residents of Dubai also have a sense of adventure. So why not look to fill the need for camping gear or sports equipment rental?
Do your research, find your niche, and you’re sure to find a customer base.
Five steps to starting a DED business
Before making your application to start your business in Dubai, you should first familiarise yourself with the DED business.
DED businesses are incorporated in the Dubai mainland with licenses approved by the Dubai Department of Economic Development (DED). Key features of DED businesses include:
- Can trade internationally and internally with the local UAE market.
- Can take on government contracts.
- Liable to pay customs taxes.
- Can theoretically apply for unlimited employee visas. Actual number is tied to the size of business premises.
- Required to take on a physical workspace with a minimum size of 200 sq ft.
Once you understand the type of company you wish to form, you can begin the process of incorporation.
Step 1: Business activities
The first step in to outline your business activities. Here, you’ll need to stipulate everything that you wish to offer for hire. Failure to declare any activities could lead to problems further in the process.
Step 2: Company name
Next, you’ll need to choose a company name. Be aware that you must abide by a strict set of naming conventions. You should avoid any offensive or blasphemous language. Avoid names of well-known organisations and avoid abbreviations if naming your company after yourself – i.e., Dave Mann Consulting, rather than D Mann Consulting.
Step 3: License application
Now you can apply for your DED trade license. You can make this application yourself directly to the Department of Economic Development (DED). However, the process is much more straightforward when you work with a company setup agent such as Business Incorporation Zone (BIZ). We can make and manage the application to ensure a fast and smooth incorporation process.
In most cases, we’ll usually ask you to provide:
- A completed application form.
- Articles of incorporation (if necessary).
- Passport copies for all shareholders.
- Brief descriptions of intended business activities.
Step 4: Visas
As well as applying for your license, you can also apply for any visas that you may require. This includes your residency visa, visas for company employees and visas for domestic staff such as housekeepers or drivers.
The maximum number of visas you can apply for will depend on the size of your business premises, and for dependant visas, your personal earnings.
Step 5: Bank account
The last step in establishing your general trading business in the UAE is to open a corporate bank account. There are various local and international banks to choose from. However, opening an account can be a complicated process for overseas entrepreneurs.
Before making your application, you should first familiarise yourself with several financial institutions to find one best suited to your business needs and most likely to offer you corporate banking services. Once again, BIZ can help you with this process.
If your application is successful, your account is usually opened within two to four weeks.
Start your rental company with BIZ
If you’re armed with the right knowledge, starting a business in Dubai doesn’t have to be overly complicated.
That being said, it does require a level of prior knowledge of the process. What’s more, it is important to note that the application process is only straightforward if your license application is complete at the time of submission and free from errors.
To help you ensure that this is the case, it’s a good idea to work with a company formation specialist such as Business Incorporation Zone (BIZ) when establishing a new company in the UAE.
We are a team of company registration professionals who are passionate about bringing the dreams of aspiring entrepreneurs and SMEs to life.
As well as handling your license application, BIZ can also assist with the opening of corporate bank accounts and advise on the most appropriate financial institution to suit your specific needs.
We also offer visa and immigration services, and can handle all government formalities, permissions, work permits, and visas applications required to trade in the UAE.
In short, our experts can establish your company on your behalf, make your license and visa applications, and take care of all the necessary admin – leaving you free to get on with running your business.