COMPANY REGISTRATION IN DUBAI
Dubai is a popular purpose for entrepreneurs looking to start a new business setup. Company formation in Dubai is the dream of every third of entrepreneurs because of its brilliant tax setup. Dubai is the one of the most desired destinations for global investors because Dubai is at top in conduct business. For starting a company legally in the Dubai we have to Registrar our company in Dubai and company registration procedure have several steps includes company name approval, selection of company activity, document submission and getting license. It is a general choice among foreign investors therefore Dubai has 100% foreign ownership, full profit repatriation, and many other business benefits. Others benefits also attract foreign investors to start a company in Dubai such as tax savings, ease of doing business, top-class lifestyle, and up-scaled business organization etc… after company registration process investors can start a company in Dubai the most hassle-free way.
Types of Company Registration in Dubai
The types of company registration in Dubai is categorized are as follows
The Mainland Company can now be registered as 100% expatriate owned entity in Dubai. This type of company allows for conducting business within the local market of Dubai. Depending on the business activity that requires a local sponsor or service agent, and the company can engage in a wide range of business activities.
Free Zone Companies/Establishment
Free zone companies or establishments in Dubai are entities set up within specific zones that offer various benefits to businesses include:
- 100% Foreign Ownership
- Tax Exemptions
- Repatriation of Profits
- Customs Duty Benefits
- Simplified Procedures
- Specialized Zones
- Flexibility in Employment
Natural and legal Entrepreneurs can begin two types of companies in a foreign-trade zone such as Free Zone Establishment and Free Zone Company. The minimum cost of Company Registration in Dubai starts from AED 9,050 in Free Zones. This cost will vary depending on the facilities and visa availability.
Limited Liability Company (LLC)
A Limited Liability Company (LLC) in Dubai is a business structure that offers limited liability to its owners while allowing flexibility in management and operations. A single shareholder with limited obligation can establish a free zone establishment. A free zone company has more than one shareholder (up to five). A minimum of two shareholders or maximum of 50 shareholders can establish a Limited Liability Company (LLC) in Dubai. An LLC can carry out any business except banking, insurance or monetary investment.
An onshore company is a company established in mainland Dubai. The company is managed by its directors from Dubai. Dubai allowed only a foreign entrepreneur can have 100% ownership in a Dubai onshore company, excluding companies established for economic activities with a strategic impact relating to seven sectors. It had to be established along with a national sponsor or agent.
An offshore company in Dubai refers to a company business is formed and operated outside the country’s jurisdiction in an offshore company, often in a low-tax or tax-neutral environment. It is a wholly foreign-owned company registered in Dubai but has a base in another country. These companies are commonly used for international trade, investment activities, asset holding, and wealth management. Foreign entrepreneurs have 100% ownership of offshore companies.
A branch office in Dubai refers to an extension of a parent company that any foreign company can established a branch office in mainland Dubai and most FTZs across Dubai. It is a good option for companies to establish a branch office looking to expand in the UAE local markets.
Steps of Company Registration Process in Dubai
The company registration process in Dubai involves several steps such as which can vary based on the type of company and the nature of the business activities. Here are the general following steps for every entrepreneur/applicant should follow in Dubai:
Select your business activity
The entrepreneur/applicant investor has to choose a business activity like fun zone, trading, service, restaurant, etc.
Approval Business Structure
An entrepreneur/applicant should first decide on the business structure before applying for company registration in Dubai. An entrepreneur/applicant have to be choose type of business structure such as establish a free zone company or free zone establishment in the FTZ, LLC, onshore company, offshore company or a branch office. The picked business structure type depends on the number of shareholders, capital requirements and the commercial activities undertaken.
Registration of Company Name
Find a best name for your company after listing out all the business structure. By following name issued by the government, that will help you to avoid delays in the registration process. The entrepreneur/applicant should decide on the company name as per the regulations of the law of the land. Confirm the proposed company name’s availability with the Dubai Economic Department (DED) or the respective Free Zone Authority. The entrepreneur/applicant should keep the following opinions in mind while choosing the company name:
The name should not violate the public morale of the country not be insulting, controversial or derogatory.
The entrepreneur/applicant should decide on the company name as per the regulations of the law of the land.
It should not be taken by any company it has to be new and unique.
Company name should be in accordance with the business activities.
Names should reflect the full name of the person and not nicknames.
Selecting on your Location of Business
After company name & business activity or structure approval now it’s time to deciding on your location of Business. While selection of the location of business depends on the chosen business activity, the number of employees and the company budget vary for the same from one area to the other like regulations on taxes etc. The different free zones in Dubai have different office sizes ranging from 20-30 sq.m to 2000 sq.m and beyond.
Get your Local Service Agent (LSA)
Choose a Local Service Agent (LSA) for the company. For a professional business local service agent only required to provide assistance. They will provide assistance to you in maintaining all your legal and operational control of your business and also in getting all the required licenses and mandatory approvals.
Applying for a Company License
For conduct business activities business license is very important without this you cannot continuous business activities the company wishes to undertake in Dubai. The business license is a legal document allowing its company holders to conduct business activities that are mentioned in the license. If you are registering your company in mainland, you have to get this license from Dubai Economic Department (DED). If the registration of your company is under the free zone, then this license will be issued to you by local authorities. The DED is responsible for issuing local company licenses that are different types of licenses such as
Commercial license: For trading commercial license are issued
Industrial license: Production and industrial operations should apply for industrial license
Professional license: Professionals offering services, artisans, and technicians should obtain this license.
Required Document Submission for Registering a New Business in Dubai
Prepare all the required documents that includes
- Applicant passport-size 2 Photographs (white background)
- Passport Copy
- Form of the application
- All the shareholder details and passport copies
- Recent bank statement, credit card statement or utility bill containing the name and residential address of the shareholders and directors
- LSA Emirates ID copy
- Notarized and attested documents of LSA and MoA
- Share capital information
- Applicant’s Tourist Visa
- Location Map
- Designation Details: Higher Designation Requires Degree Certificate (Attested)
- Ejari Number (verification of business space agreement/contract)
- Duly authenticated contract of appointment of a company or service
- External documents of approvals, if any
Applying For Residency Visa & Emirates Id Processing
Apply for the Dubai residence visa for the applicant soon after the company documents are approved and license is obtainable. The applicants who want to start a business in the Dubai are eligible for a long -term residence visa. The applicant has to fly to Dubai for doing medical test and stamp residence visa on their passport. The processing of the emirates id application requires an in-country medical examination for the investor.
Bank Account Opening
All the above-mentioned steps once done, the next step is to open a bank account for your company. The company needs to open a corporate bank account for handle all finically relating company’s affairs. Select a bank that best suits all your business needs and demands with benefits and offers for reducing your business costs.
Benefits of Registering a Company in Dubai
Starting and setting up a company in Dubai has many advantages, whether you are going to start in Dubai mainland or free-zone. For investors, entrepreneurs and businesses seeking have lots of benefits of registering a company in Dubai such as:
- Strategic Location
- Business-Friendly Environment
- Diverse Economy
- Infrastructure and Connectivity
- Free Zones
- Access to Talent
- High Security for Your Investments
- Stable Political and Economic Environment
- Managing Your Visa is Hassle-free
- Quality of Life
- Low Tax Policies
- Global Events and Expos
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1. Why Register a Company in Dubai?
Dubai is strategically located and has already made its mark as a global hub for trade. It is also one of the easiest places to conduct business with minimal red tape. It has a robust infrastructure that supports setting up and running a business. Moreover, companies in Dubai are not subject to corporate tax, Income Tax, capital gains tax, or withholding tax. Which makes company registration in Dubai easy and hassle free.
2. How can I Register an LLC Company in Dubai?
The following steps can guide you for an LLC company registration:
- Select a local sponsor for the company
- Select the right business activity and legal structure of the company
- Reserve a trade name of an LLC company
- Get pre-approval (Initial approval) from the relevant authority
- Sign the memorandum of the company either in Notary public or DED E notary
- Prepare the lease agreement of the office
- Submit the documents to the Department of Economic development
- Pay for your company license
3. Can Foreign Nationals Get 100% Ownership of a Company in Dubai?
Yes, they can. Suppose the nature of the business is providing services in the UAE. In that case, a foreign national can get 100% ownership of the business. However, they must appoint a UAE national as an agent of the company.
4. If I Register a Company in Dubai and Get a Residence Permit, can I Travel to Other Emirates Freely?
Yes, you can. A residence visa for foreigners is issued by the UAE government. So, they can travel to any of the emirates in the UAE. After company registration in Dubai and you residence visa is out you are always free to visit and travel every where in UAE.
5. How Much Time is required to Setup a Company in Dubai?
Company formation in the free zones will take around 1-5 days. In contrast, an offshore company can be established in 48 hours if the proper documentation and resources are presented. Mainland company registration, business license, as well as registration, depends on the necessary paperwork and documentation requirements. However, these licenses also can be obtained in a day or two. We at Avyanco make it easy for the investor to start their business in Dubai.