Dubai is amongst the top places to establish a company because of tax benefits it offers. It is a top capital city and one of the most desired destinations for global investors. Whether you are a startup or well-established business in India, Dubai should be on your list to do business setup as it has world-class infrastructure, strategic location, and an easily accessible and diversified market offering low operational costs and logistics. Let’s learn all about the Dubai Company Registration process through this article.
Stepwise Process to Business Setup in Dubai as Foreigner
Step 1: Select a Commercial Activity
Firstly, Pick a business activity that you intend to operate. This allows you to identify the type of license you will require in Dubai.
Step 2: Select Jurisdictions
You must make a decision whether the company will be in the Mainland, Free Zone or Offshore. Each zone has different policies concerning company registration in Dubai. For an ideal one for your business, it’s best to consult our experts. They will guide you and resolve all your doubts.
Step 3: Choose Legal Structure
Next, you have to select a legal structure according to your business type which may include LLC, Sole Proprietorship, or Branch Office.
Step 4: Trade Name Reservation
The fourth step is to make an application for approval of a trade name with the Department of Economic Development (DED).
See also: How Can I Register a Trademark in The UAE?
Step 5: Initial Approval Application
After approvals you get a government certificate of no objection for you to continue with the course of action you have set for the setup of a business.
Step 6: Draft MOA and LSA Agreement
Once you have all the approvals and business documents you need to draftand notarize the appropriate legal documents.
Step 7: Secure Physical Office Space
Lastly, A physical office is crucial, particularly for Mainland and certain Free Zone companies.
Step 8: Business License Acquisition
Collect all required documents and collect your business license from the relevant authority if needed depending upon the business type.
See also: How many Types of Business Licenses in Dubai?
Step 9: Open a UAE Corporate Bank Account
Open a UAE corporate bank account to manage business finances, receive international payments, and build credibility with clients and partners.
What are the advantages of Company Registration in Dubai?
- Complete return of investment and earnings
- No tax on personal or corporate income
- Advanced infrastructure with technology support
- Office space including shared and virtual offices in Free Trade Zones
- No tax on imports or exports
- Flexible policies for employment and visas
Documents Required for Company Registration
- Passport copies of shareholders and directors
- National ID copies of shareholders and directors
- Proof of residence (utility bill, bank statement, etc.)
- Memorandum and Articles of Association
- Board resolution for setting up a branch or subsidiary
- Share capital details
- Appointment contract of company manager
Types of Company Registration in Dubai
You can have business setup in Dubai through following business entity types:
Free Zone Companies/Establishment : These are situated in Dubai FTZs which have separate governing policies. Foreigners can possess 100% ownership of the company.
Free Zone Establishment (FZE): It is formed by one shareholder who has a limited liability.
Free Zone Company (FZC): It is formed by 2-5 shareholders.
Limited Liability Company (LLC) : An LLC can be formed with no less than two shareholders and no more than 50. Share ownership is determined by how much one contributes to the share capital. Foreigners can now obtain up to 100% ownership in several LLCs depending on the activity.
Onshore Company : Earlier a UAE national partner had to be included holding 51% shares but now the majority of business activities allow foreigners to own 100% shares. Onshore allows operation all over the UAE.
Offshore Company :These companies are registered in Dubai but do not function under UAE jurisdiction. Ownership is entirely foreign which is why they are popular for international trading or for holding assets.
Branch Office :A branch office functions as the representative of a foreign company. It can be set up in Free Zone and also in Main Land, making it convenient for foreign firms wishing to penetrate the UAE market.
Conclusion
Dubai continues to grow as a global business center. With simplified processes and relaxed ownership laws, company registration in Dubai is now more accessible for foreign investors than ever before. A well-planned business setup in Dubai can open doors to a wide international market, making it a smart move for you and your business.
FAQs
How much time is needed to finish setting up a business in Dubai?
It usually takes between 7 to 10 working days to finish the entire process. This, however, is dependent on the business type,the jurisdiction as in the Mainland, Free Zone, Offshore, as well as how fast the documents are prepared and given the necessary approvals.
Is a local sponsor needed to register a business in Dubai?
For the Mainland companies, a local service agent or sponsor was necessary for the longest time. But after the recent changes, now many business types can be owned by foreigners without requiring a local partner, albeit some strategic sectors still are dependent on local sponsors.
Is it possible to open a corporate bank account after registering the company in Dubai?
After registering the company in Dubai, yes, you can open a corporate bank account. You will have to submit your license along with the possessed company documents, the shareholders IDs, and other KYC documents. This will be slower for some banks where it could take a few weeks while others a few days.
Do you need a business visa to set up a company in Dubai?
Indeed, you will have to get a business visa or an investor visa as a foreign entrepreneur. It also permits you to stay in the UAE and take care of the company operations in person. The packages also differ according to the Free Zone or Authority.
Are there annual fees to retain a business in Dubai?
Yes. Dubai businesses need to renew their trade licenses every year. In addition, there are some office rental, visa renewal, and audit report (if applicable) fees based on the company’s structure and location.
Can an Indian start a business in Dubai?
Of course! Indians can easily establish a business in Dubai. In fact, numerous Indian business people operate successful businesses there in various fields.
Can I open a business in Dubai if I don’t live there?
Yes, one can set up a business in Dubai even in the absence of residence there. A local service provider or an agent will process the legal requirements on your behalf.
Can a foreigner own 100% of a company in Dubai?
Yes, foreigners are now able to possess 100% ownership of a business in Dubai. This is especially true for free zones, and, thanks to new laws in the UAE, even a mainland for numerous business activities.
Which business is most profitable in UAE?
Some of the businesses with great potential in UAE are E-commerce, real estate, tourism, and technology services. These sectors are always in demand and business activity in them is constantly growing.
How to check if a company is registered in the UAE?
To verify if a business is registered in the UAE, one can utilize the DED and . National Economic Register. With the company name or license number one can search and retrieve the requisite registration information.
Moreover, If you want any other guidance relating to VAT Registration in UAE, Corporate Taxes in UAE, or UAE Company Registration, please feel free to talk to our experts at 8881-069-069.
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