A wise businessman knows the importance of opening a company and expanding the business in Dubai. Not only that, new-age investors, established businesspersons, and entrepreneurs from across the globe find a home in the Emirates for starting their businesses or startups.
But, the process of incorporating a business or forming a company in Dubai is not as simple as it looks. This is especially true for newbies or those who have recently stepped into this field. The government of the UAE has issued strict rules and regulations along with the hectic process that you have to follow if you want to register your company in Dubai.
But company incorporation in Dubai is extremely lucrative and offers tons of multifold growth opportunities to proactive entrepreneurs and investors. Special business privileges, many tax exemptions, the establishment of free zones, and much more are offered to the people who are looking to incorporate their company in the UAE.
But there are certain steps involved in the whole process of company incorporation in Dubai that everyone has to go follow. What are those steps? Let’s find out.
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Documents Required for Company Incorporation in Dubai
Before moving on to the steps that are taken for business incorporation in Dubai, let’s go through the list of documents that you have to submit at the time of the application process of registering your business in UAE:
- Your business plan with a complete description
- NOC from your currently active sponsor ( If applicable )
- Duly filled forms issued by the Trade Registrar
- Notarized and translated copies of the passports of the directors and shareholders of your company
- Payment receipt of your business’s trade name registration
- LSA and MoA agreements
- A valid sustainability contract or tenancy contract
Business Incorporation Steps in Dubai, UAE
Registering your company in Dubai is a wise move that every intelligent businessman takes because you can enjoy economical business establishment charges and benefit from the support of the government. The following are the steps you need to take to incorporate your business or company in the Emirates:
Selecting Legal Structure and Business Activities
The very first thing to do for company incorporation in the UAE is to select a legal structure and the business activities that you will conduct in Dubai.
When you will decide on the legal structure for your enterprise in Dubai, you will come across various options including branch office, online establishment, Limited Liability Company (LLC), etc. depending on the unique requirements of your company. Take your time and make this decision carefully and wisely. If you need expert guidance to make an informed decision, you can get in touch with experts at Riz and Mona to help you out.
As far as business activities are concerned, there is a list issued by the Department of Economic Development to choose from. You can also choose an activity offered by any other economic zone on the basis of your business’s legal structure and location.
Selecting Company Name
The next step is to choose the name of your company. If you have some names to consider, make a list of them and submit it to the relevant authorized body for acceptance and approval. There are some rules that you should follow when choosing the name of your business.
Whatsmore, If you select a foreign name, you have to pay some extra charges. No nicknames are allowed when selecting a trading name. Similarly, you can choose an individual’s name as the legal name of your venture but it should be a full name and not just the first, middle, or last name.
Choosing Business Location
The opportunities in the UAE are countless. But, how many will you get depends on the location that you select for establishing your business. Consider the example of a media house. Its venture should be running in the Dubai Media City (DMC) free zone and enjoy the advantages of a suitable working environment.
Mainland jurisdiction is best for companies that want to trade freely anywhere in and across the country. This economic zone offers you various business benefits including a doorway to the profitable local marketplace of Dubai. An incorrect decision at this step can result in a heavy price to pay because of reincorporation and relocation costs.
Rent an Office Space
Post that, you will be looking for a place to set up your physical office. There are several benefits of renting office space in Dubai. You are saved from paying big bucks for buying an apartment or building. Instead, you can invest that money in numerous other growth-related activities. Furthermore, you’re freed from the worries of selling the office property when you decide to relocate in the future.
It also allows you to explore various business sectors as you can effortlessly change your business location from zone to zone. In addition to that, you may opt for virtual office space to launch your company remotely in Dubai. If you have a small business to run, there is no better option than this one.
Completing the Paperwork
After acquiring the rental space for your office, you will be completing the incorporation paperwork. Registering a business in Dubai consists of a number of authority approvals and documents such as an initial approval certificate, payment receipt of trade name reservation, etc. There can be some business activities or exclusive privileges that require the approval of a few external approvals. They can be missing from your business license.
Completing the paperwork effectively is important because it will let you work for ex-pat business aspirants and local investors in a safe and professional environment. Hence, give special attention to all the documentation procedures and keep all the government approvals and fee receipts with you for using them as a reference in the future.
Applying for Business License
Once you are done with the paperwork, you can now apply for a business license by reaching out to the relevant authorities or the DED. You can find an LSA or Local Service Agent to acquire you a business license.
Opening Bank Account
Finally, you will open a bank account in a corporate bank for your company. Select any well-known bank either international or local depending on the needs of your business. Remember to go for a bank that provides reliable services and amazing bank facilities for your company.
Visa procurement in the Emirates is a structured process having four stages, each one different from the other. The process starts with the submission of your visa application and finishes with the issuance of the visa permit. You are allowed to apply for more than two Dubai visas to secure your stay along with your friends, office staff, family members, etc.
Types of Companies Which Can Be Incorporated in Dubai
A number of kinds of companies can be incorporated in Dubai including:
- Free zone establishments
- Branch offices
- Free zone LLCs
- Public and private joint-stock companies
An Offshore Company is a business arrangement that is managed and built outside the jurisdiction of the company.
Limited Liability Company (LLC)
The liability of the shareholders of a business is limited to their capital in a Limited Liability Company (LLC). 2 is the minimum and 50 is the maximum number of shareholders in an LLC in Dubai. the company is allowed to conduct any kind of business activity other than monetary investment, insurance, or banking.
An onshore company is a legal business configuration that is managed and built within the jurisdiction of the company. A person can reap several benefits of having an onshore company like broad networks of tax treaties, taxation policies for companies operating outside of the economic zone, suitable regulations, developed banking, business, and supporting sectors, etc.
Incorporate Your Company in Dubai with Riz and Mona
If you are looking to incorporate your company in Dubai, you should get in touch with professional business consultants in Dubai such as Riz and Mona. We will take care of your company incorporation procedure and handle your application as well to save you from the hassle. Our experts will also ensure the smooth incorporation of your business into UAE without any sort of issue or trouble. Book a free appointment today, and kick start your business in Dubai, UAE right away.