Registering a new company can be an overwhelming task – especially if you’re an international entrepreneur, starting in a foreign country for the first time. Dubai is one of the few places on Earth where starting a business is a strenuous task. According to the World Bank’s Survey, Dubai ranks 33rd among the easiest places to do business—given its low rankings, we can confidently assume that starting a business in the city is going to be very difficult, particularly if it’s your first time. This is mostly due to the government bureaucracy, which puts in place rigid requirements to apply for a company status in the region. If you’re trying to put one up in the city, then here are some legal facts and words that you need to know before you get going.
Company Registration in Dubai
Everyone has two options when it comes to business registration Dubai, namely the creation of a mainland company and the establishment of a free zone company. The Government shall provide for the two forms, considering the complexity and technical requirements of the various businesses. The organizational capacity and range of the sector are two other considerations that influence the decision to select between the two company forms.
The two choices have been effective at supporting business activity by numerous opportunities for companies. The process of registering a company in Dubai is easy if the required set of documents is complete.
Types of Companies in Dubai
There are several types of companies available for company setup in Dubai. These are mentioned below:
- the onshore company – it operates on the UAE market
- the offshore company – it is registered in UAE but operates outside the country;
- the free zone company – it operates in one of the many free zones in the UAE;
- branch offices and subsidiaries – available for foreign companies operating in the UAE;
- sole trader – it can be used for activities completed by a single person.
Our agents in Dubai can explain the requirements for each type of business form.
Mainland companies in UAE can be classified into the following Company Structures.
Limited liability companies are the most common types of business enterprises owned by foreign investors in Dubai, as that is the only way to give them majority ownership. Dubai limited liability corporations require foreign nationals to hold 49%of its shares, whereas 51% must be owned by a local sponsor or associate. The process for the establishment of a limited liability partnership in Dubai is very simple and clear, requiring a few measures to be taken. The benefit of the limited liability corporation in Dubai is that it can be registered for any commercial activity. The number of shareholders can be from 2 to 50 while forming an LLC Company in the Mainland of UAE.
Professionals in the field of consulting, law, finance, healthcare, etc. may establish a Civil Work Company in the mainland of the UAE. The shareholder can maintain 100% ownership of the shares of the firm. In order to register a civil works business with the Department of Economic Development (DED), an annual fee is paid to select a local service agent for liaison with the government authorities.
Investors with an established office in the Free Zones of the UAE or any business outside the UAE may create a branch or representative office in the Mainland of the UAE. There are other conditions and guidelines for the creation of a branch or representative office.
The incorporation of the Free Zone Company in Dubai is comparatively simpler than the registration of the Mainland Company. The Free Zones in Dubai are favoured by businessmen for their ease of starting up a business, world-class facilities and market environment. One of the key benefits of the Free Zone Business System is 100% foreign control. There are several other company incentives for the Free Zone Company Establishment in Dubai, such as tax-free revenue, no customs, no duties, etc. Free Zones in Dubai provides one of the finest business training deals at a very reasonable price. An entrepreneur can select from a Flexi-Desk office to completely equipped office room. Free Zones in Dubai provides investors a broad variety of market practices to start their business.
An Offshore Company in Dubai is a legal corporation established to promote foreign trade. Offshore firms are licensed as International Business Company (IBC) and are outside the control of local company and legal structures in the UAE. These are beyond the domain of the VAT & UAE Customs Act. Nevertheless, offshore firms are not entitled to operate on the local UAE market. Mostly foreign investment firms, banking businesses, advisory agencies, real estate owners, etc., file for offshore companies. Offshore businesses are not qualified to apply for a Residence Visa for their workers. Opening a bank account is feasible but time-consuming due to tight regulatory measures. Offshore Company Setup in Dubai is secure and offers the investor a whole lot of benefits such as tax savings, profit repatriation, foreign ownership, etc.
Requirements for Business Licensing
- Issuance of licenses for banks and other financial institutions must have the approval of the UAE Central Bank
- Issuance of licenses for manufacturing companies must have the approval of the Finance and Industry Ministry.
- Issuance of licenses for companies engaged in insurance and other relevant firms must have the approval of the Economy and Commerce Ministry
- Issuance of licenses for medical and pharmaceutical products must have the approval of the Health Ministry
- For companies engaged in gas or oil production, additional endorsements and approvals from other government agencies may be needed
- In addition, business registration must also have the involvement of the Dubai Chamber of Commerce and Industry
How to Setup A Company in Dubai?
The exact process for launching a new company can appear complicated, and maybe even overwhelming. But following a basic step-by-step plan with the right assistance, it is much easier than you would expect. We have helped numerous companies establish themselves in various free zones and throughout the UAE mainland, and can break the process down for you into the following steps.
- Select your business activity; Our consultants can help you decide on the most appropriate business activity and establish your visa requirements to identify the total cost of your company set up.
- Decide your company name; To make sure your name is clear to register we will perform a check. If it’s not, we will help you decide on a suitable alternative.
- Completing the paperwork; Now we will complete and finalize the registration paperwork before managing your license process with the government.
- License notification receiving; Once we have received your company license, you will be immediately notified so you can pick up the original corporate documents.
- Opening a bank account; Since all the paperwork is now in place to open your corporate bank account. You can either approach a local or international bank yourself or we can easily introduce you to specialist advisors in several the main banks to make the process even easier.
- Processing of business immigration card; If you have selected a visa trade license package, we will apply for your immigration card via the immigration authority.
- Processing your visa; We will guide you through the process of applying for your visa.
Why Consult Riz & Mona?
We make it as simple as possible to set up a company in Dubai and the UAE. We are connected with the appropriate authorities and government offices along the way to bring the mess out of the UAE business set up.
We at Riz & Mona handle both the technical and regulatory dimensions of the creation of a company in the UAE – and we will also consult with you to evaluate the most suitable authorization depending on the activities and services you intend to offer. Our multi-layer infrastructure that has rendered Rizmona is one of the leading consulting experts in the country – and therefore thousands of companies have come to us for help and advice while establishing a business in Dubai or the greater UAE.