#LinktoSuccess, as the hashtag reflects the connection between an idea of an entrepreneur and how it is successfully launched in the market. Do you have a business idea to start with? If yes, then read more as we decode the process of company formation in Dubai for all savvy entrepreneurs and business owners who wish to set up a business in Dubai.
Starting a company can be an exhilarating process if done with the right guidance and assistance. Here, we will give you a breakdown of how you can establish your business in Dubai so that you don’t miss out on all the important information.
The three main types of company formation in Dubai are:
- Mainland or Onshore – Onshore is another name for a mainland company; it is the most common type of business setup in Dubai. A mainland company can operate without limits both inside the UAE and in the international market. However, you will require a local sponsor who will hold a 51% stake in the business. Stakes will however depend on the business activity and industry. To conduct business on the mainland, you will require a physical office.
- Offshore – If you are looking to set up a business in Dubai but also have operations from outside the city, an offshore company is your ideal location. The fact that an offshore business enjoys complete financial anonymity is one of the key justifications for its formation. When compared to other business options, setting up an offshore corporation in Dubai is a quick and easy process. A non-resident firm is another name for an offshore enterprise.
- Freezone – Owning a freezone company comes with many benefits, from 100% ownership, and tax benefits to ease of conducting business and even doing multiple activities under one license. These zones don’t require 51% local partner ownership and can be entirely foreign-owned. Establishing a company in a Dubai freezone opens you to a world of possibilities for collaboration, networking, and rapid business expansion.
Branch Office – Foreign companies can establish their business presence in Dubai by setting up a branch or representative office. They can choose to do this on the mainland or freezone.
It is also essential to note the different types of business entities your business can be under:
- Limited Liability Company (LLC)
- Joint Venture
- Shareholding Company
- Branch/Representative Office
Why Choose Dubai For Company Formation
Setting up a business in Dubai comes with many perks from 100% foreign ownership to various government incentives. Let’s look at the many benefits a company setup in Dubai provides:
- 100% foreign ownership for free zones and offshore companies
- 0% income tax
- Fewer renewal costs for licenses
- Easy company liquation
- Multiple activities permitted
- Cheap labour
- Single owner
- Global networking opportunities
- Strategic location
- World-class infrastructure
- Low import duty
- Investor visa for 3 years
- Quick company registration process
Procedure for Company Registration in Dubai:
Below are the steps to get started with a business setup in Dubai:
Pick an ideal trade name
The name of the business must be creative and adhere to all Department of Economic Development guidelines. The DED will ultimately approve the name you select.
Chose the business activity you wish you establish
To know what kind of business license to apply for, you must select what kind of business activity you will operate in.
Choose an office location
This is an important step, especially for company registration in Dubai. Be wise when picking a location as your footfall will depend on that. Your office location can heavily influence the progress of your business.
Get your documents ready
You’re almost there! Have your Memorandum of Association (MoA) ready for submission. A Memorandum of Association (MOA) is a legal document that describes how the business deals with the outside world. Before making the business’s final application, it must be prepared.
We recommend consulting a business setup professional during these stages. Due to their knowledge and expertise in dealing with the local market, they can better guide you
Required Documents For A Company Setup in Dubai:
- Residence Visa
- No Objection Certificate (NOC)
- Proof of Shareholders’ addresses
- Government application forms
- Copy of Passport of the owner, shareholders, and managers
Next, it is also crucial to know which business license you will need to carry out your business operations. Consulting a business professional will help you understand how many activities you can get under one license.
In the UAE, the following forms of business registrations are the most prominent:
If you are an entrepreneur or business owner looking for a company formation in Dubai, feel free to reach out to professional business setup consultants.
Business setup professionals offer a range of services, including:
- Company formation advice and guidelines
- PRO services
- Business licenses
- Government approvals
- Legal documentation processes (notarization, attestation, translations, etc.)