Company Formation in UAE
The UAE undoubtedly is one of the best countries in the world to start a business. Just look at the number of businesses being registered in the country over the last few decades. One of the main reasons for this is that the company formation procedure in the country is relatively simple. Plus, the process is relatively faster, especially in the UAE’s free zones.
We offer complete guidance and assistance to you for company formation in Dubai, with help of our specialists.
Steps for the UAE Company Formation
Forming a company in a place that is completely alien to you can be a daunting task. But the process of setting up an office becomes hassle-free when you get the right guidance and support.
Similarly, if you have a dream of setting up a company in Dubai then, it is necessary to have the right guidance. Below mentioned are steps which will lead to a company set up in Dubai:
- Choose the business that you desire to set-up.
- Choose the name of the company.
- Complete all the incorporation paperwork.
- Receive the license notification.
- Open a bank account.
- Process the visa.
Offshore Company Formation in UAE and advantages/ benefits
Offshore businesses generally act as holding companies and do not carry out any commercial activities. These businesses are not intending to engage in any of the businesses inside the UAE.
- You will get operational freedom.
- It requires very minimal capital.
- You will get access to stable and business-friendly legal systems.
- You will get better access to global funding.
- You will get 100 percent foreign ownership.
Business setup in UAE
If you are an entrepreneur and are willing to start a business venture in Dubai then, there are certain rules and a process that every company has to follow.
- Selecting the business.
- Choosing the jurisdiction.
- Forming the legal structure of the company.
- Getting approval of the name and the business type.
- Applying for the trade license.
- Registering your company.
- Finding a local sponsor.
- Getting external approval.
- Drafting the memorandum of association (MOA).
- Renting an office space.
- Getting a tenancy contract.
- Getting approval from the Dubai Economic Development (DED).
- Collecting your trade license.
The process can be daunting if you are not well versed with the rules of UAE, the smartest choice would be to take the help of the business setup consultants in Dubai.
Mainland Business Setup
Mainland in Dubai is one of the prime areas which is specified by the Dubai Economic Development (DED). The companies which are present in this area are known as the onshore companies which are allowed to do business in the local area as well as anywhere outside of Dubai without any intervention of the Dubai government.
There are two types of business licenses in the mainland companies and they are:
- Commercial Business License
In this license, 51 % share will be with the UAE national and 49% will be with the ex-pat partner.
- Professional Business License
In this license, the ex-pat partners will hold 100 % of the share, and the UAE nation act as a local service agent.
Shareholders in Dubai
Forming a company in Dubai is not as easy as in other countries. There are certain rules are regulations that have to be followed by every organization in Dubai. However the rules and regulations are not the same in entire Dubai, it keeps changing in every jurisdiction for example there are different rules in mainland, offshore and free zone companies. Similarly, you cannot start a company without finding a local investor without which you cannot move ahead in the process of forming a company.
How to open Dubai free zone company
UAE consists of around 40 free zones and setting up a business in the free zone area is relatively easier than other zones as this involves minimal paperwork and takes less time. The steps to open a company in the free zone is given below:
- Determine the legal entity’s type.
- Choosing a name.
- Applying for a business license.
- Choose an office to operate from.
- Get pre-approvals.
- Register your business and get the license.
Set up an onshore & offshore company in Dubai
Onshore companies are also known as mainland businesses, which are established anywhere within the commercialized geographical areas in Dubai, and falls under the jurisdiction of the Emirati Government. It takes around 4 to 6 weeks for an enterprise to completely form including the paper works.
Offshore companies are registered as international business companies that do not engage with the business in UAE and they act as a holding company which does not carry any commercial activities.
Company incorporation costs in Dubai
The cost of forming a company varies from places to places and it is dependent upon the zones, i.e. Free Zones and the Mainland Zones.
Questions on business setup in the UAE
- Why should you set-up a company in UAE?
If you an entrepreneur then, UAE is the apt option for you to invest in the company and reap the maximum benefit as it is the hub of the trading activities in the middle east.
- What is the cost involved in business formation?
The cost of forming a firm depends on the zone that you select, the cost varies in Free Zone and Mainland Zone.
- What is a Free Zone?
Free Zone are the companies that are 100 % owned by expatriates.
- What type of business license should you choose?
Depending on your business activity you can choose a Commercial, Professional, or Trading license.
- Whom to contact to register your company in UAE?
There are a plethora of business consultants in UAE, you can choose the one who offers the best service who takes care of all the paperwork activities, and supports you through the process.