Starting an Online Education Business in Dubai – All Things to Know

Online education Business in the UAE is on a growth trajectory. Ever since the Pandemic, the education sector in UAE is one of the most affected and most of the education centers have adapted to new trends.

Now the traditional education system of teaching has shifted its base from classroom to online classrooms using video conferencing apps.

Growth of Online Education

The online education sector in the UAE was worth USD 4.4 billion in 2017 and is expected to grow to USD 7.1 billion by 2023. There is an immense business opportunity in this segment ranging from providing tutor and coaches support to educational tool creation, curriculum planners, and online training centers.

Specifically, in UAE, there are a host of benefits for the investors starting an online education institute that is 100% foreign ownership, no income tax, supporting business environment, and more.

How to start an Online Education Business?

To start an online Education Business in UAE, getting the support of a top-rated business consultant is ideal. It will help to save time and money eventually.

For entrepreneurs who are new to UAE, the company setup process could be tedious due to the documentation and clearance required for setting up an online education business.

Experienced Business Consultants like Aurion will guide you by providing the right Free Zone or mainland according to your business objectives, budget, and other requirements.

Steps to Set up an Online Education Business in UAE

To setup an Online Education Business in UAE there are certain steps to follow. The investor must get pre-approval from the regulatory authorities to proceed with the issuance of Online Education Business License. It can be easily obtained by seeking assistance of AURION.

Let’s look at the basic steps in setting up an Online Education Business in the UAE

1. Selecting the Right Business Activities

Under the education sector, there are many subcategories like online tutoring, learning material preparation, etc. Choose the right category which suits your Online Education Business in UAE.

The investor must choose the desired business activities from the list of activities permitted by the respect free zones.

2. Decide on the Company Name

Finalize three names and send them for approval by the Free Zone authorities. Get one name approved out of the three names for your business from the respective authorities.

Choose the Name with due diligence as this name would be your business name and eventually the brand name of your company.

3. Choose the right Business Jurisdictions

Entrepreneurs must choose the right business jurisdiction for the education business depending on the specific requirements.

For example, for a training institute, it is best to be on the mainland close to residential areas or a well know location in UAE for students to easily come in.

There are many business Centres in the mainland of Dubai that offer an attractive price for a small office space to conduct the training.

To enter a few Free Zones there is a gate pass to be obtained and visitors coming daily must be taking the pass to enter the Free Zones which could be a hassle for some.

4. Choose the Right Company Structure

Choosing a company structure is a critical element for the Online Education Business in the UAE. Based on the number of shareholders the right company structure must be chosen from the Free Zones.

In the case of a mainland company (Limited Liability Company), a UAE national must be appointed as the local sponsor. Aurion will assist you in finding the right Partner for your LLC Company in the Mainland of UAE.

Investors can also look at the option of taking a professional license from the Dubai Economy and setting up an education company in the UAE. The foreign investor must appoint a Local Service Agent for the professional type company.

The LSA will have no control of the business but acts as a liaison between the government and the company for administrative work.

5. Get the Required Clearance from the Regulatory Authority

The education sector in UAE is regulated by the UAE Government and the respective Education Departments of each Emirate. For example, in Dubai, the Knowledge and Human Development Authority (KHDA) is the governing body.

All educational institutes, professional training centers, Colleges, and online educational sites operating in Dubai must adhere to the KHDA regulation and approval.

During the setting up of the education company in Dubai, the investor must get the required approvals from the KHDA to obtain the professional license and successfully start the operations.

To know more about the KHDA Approval read: Starting an education Training Center in UAE

6. Submit the Application Form and Documents Required

Submit the required documents to the Free Zone or the Dubai Economy to secure the professional License for your education company.

Documents required to get an Education Centre License

• Passport copy of the Investor and Photograph
• Filled -in Application form (Free Zone/Dubai Economy)
• Tenancy Contract and Office Plan Approvals
• KHDA Approval
• Shareholder certificate and Memorandum of Association

Along with the documents submit the required fee to be paid for securing the educational training license in UAE.

7. Visa Application and Bank Account Opening

Once you receive the professional license from the respective authorities proceed to the UAE residence visa application and opening of the corporate bank account in the UAE.

Benefits of Online Education Business for the Investor

The major advantage of an education institute is the professional license category. It allows 100% foreign ownership in Free Zones as well as in the Mainland of UAE.

Only if you choose to go with the LLC Company Setup will additional Shareholders and Local partners would come into the picture.

With the migration to online education, now training centers require reduced office space and can be operated from anywhere with a valid professional license.

Also, it helps in reducing the administration and other overhead costs of taking a business center or a physical office.

Flexible work hours and the ability to cater to a wide audience globally by adding more engaging courses into the website and coordinating the classes make it a lucrative business investment for passionate entrepreneurs in the education sector.

Talk to our expert business consultant team to learn more about setting up an online education institute in the UAE or an Education Technology Start-up in UAE !