Presenting you with a detailed guide on business setup in Dubai. Read on for learning about the process and the requirements.
Dubai City, one of the economic powerhouses in the Middle East, is providing numerous commercial prospects to foreign investors. As a result, these foreign companies are establishing a variety of operations in the Emirate.
It has increased the possibilities for ongoing trade and economic growth in the region. Despite having a large oil industry, Dubai has diversified its economy so that less than 1% of its GDP is currently derived from the oil industry.
Business-friendly government policies and programs, tax structures, and infrastructure, to name a few, are the key drivers of the expansion. So, it is clear that a business setup in Dubai is a great choice, and business owners, especially international investors will benefit immensely by setting up a business here.
All About Business Setup in Dubai – Benefits, the Regulatory Body, and Entities
The advantages of setting up a business in Dubai are as follows:
- Favorable regulatory environment for business
- Foreign ownership at 100%
- There are more than 30 free zones available.
- Government-Offered Tax Benefits
- A location that is both advantageous and strategic
- Built-in Infrastructure.
Dubai’s Regulatory Body/Agency for Company Registration
The Registrar of Companies is Dubai’s primary regulatory body for business formation. The new applications for company registrations are submitted to this authority.
It is the location where businesses must submit their compliance and registration paperwork.
The Eligible Organizational Structures
A candidate registering a business in Dubai will need to select an appropriate business structure. The following business models are available in Dubai for entrepreneurs to use:
- Limited Liability Company (LLC)
- Joint Stock Company
- Branch Office
- Free Zone Companies
- Trade Representative Office
- Dual License branch office
The Dubai Business Setup Process
Let us quickly go through the complete process for setting up a business in Dubai.
1. Choosing the Company’s Location and Legal Jurisdiction in Dubai
The choice you make about the office’s location will completely alter the course of your company. As a result, the location of the company’s office space must be carefully considered. The business owner might decide between purchasing the office space and leasing the land.
The type of business activity selected, the number of personnel hired, and the budget earmarked for the same all influence the choice of office space. Office sizes in Dubai’s various free zones range from 20 to 30 square meters to more than 2000 square meters.
2. Choosing the Best Business Structure for the Applicant’s Firm
The applicant should first choose the best business structure for the applicant’s company. An LLC, branch office, joint stock company, free zone company, or trade representative office are among the legal forms that may be used.
The number of shareholders, the commercial operations carried out, and the amount of cash required by the company all play a role in choosing an appropriate business structure.
3. Choosing and Reserving a Name for the Business
Reserving a name for the business is the next stage. The corporation will conduct its business operations under this name.
The applicant should check with the relevant Free Zone Authority or the Department of Economic Affairs of the UAE to see if the chosen name is available. The applicant must confirm that the name they have selected is available and has not previously been registered by another business.
4. Apply for a Business License
The applicant should submit an application for a business license in accordance with the business activities the company wishes to conduct in Dubai after selecting and reserving the name with the relevant authority. The business license is the legal instrument that entitles its owners to engage in specified commercial activity.
The various license kinds are as follows:
- Commercial license: Companies that conduct business must obtain a commercial license.
- Industrial license: Organisations that engage in manufacturing and other industrial operations must acquire an industrial license.
- Professional license: A professional license should be obtained by technicians, artisans, and professionals providing services.
5. Obtaining the Necessary Business Licenses, Registrations, and Pre-Approvals from the Relevant Authorities
Companies that are registered anywhere are subject to the laws of the respective jurisdictions in which they are situated. In order to receive pre-approvals, business registration, and the proper business license from the relevant authorities, enterprises must apply with the appropriate paperwork.
The documentation is based on the company’s location, corporate structure, and the type of commercial activity it engages in.
6. Establishing a Bank Account
The business must run a corporate bank account in its name to receive and transfer money to pursue its business endeavors, provided all necessary registrations and approvals have been received from the relevant authorities.
Documents Needed For Business Formation in Dubai
The following documents are needed for your business formation in Dubai.
For Initial Approval
- Application for initial license approval and name reservation
- An excellent business plans
- If the company already exists, a copy of the trade license or registration certificate.
- Two years worth of the company’s audited financial statements and board decisions
- Documents of the corporate shareholder
- Colored copies of the shareholders’ passports and those of the newly appointed directors and managers
- Sample signatures of the new business’s directors and managers as well as the shareholders of the company
- The local sponsor’s NOC
- Director/Manager Registry Identification Code (RIC) Form (Original and Notarized)
- Name of the business (at least three choices should be provided).
- Entry visa page or stamp
- Copies of passports
- Passport-sized pictures.
The following documents must be submitted by Freelancers:
- Filled-out registration application
- CV of the independent contractor
- Reference letter from a bank
- Original RIC with a notary.
Documents for Registering the Firm
The following paperwork must be submitted:
- A filled-out company registration application
- Information about share capital.
When requesting a business registration in Dubai, the following documents need to be notarized and attested:
- Resolution of the Board naming the Director/Manager
- Articles of Association (AOA) and the Memorandum of Association (MoA)
- Power of attorney granted to the company’s director or manager
- Passport-size images of the director or manager.
Finally, you need to pay the registration and license fees after the initial approval has been received. The cost of setting up a company in Dubai is based on the type of license that is needed and the business activity that you are engaging in.
Dubai has recently developed into a desirable travel destination and a hub for accessing the Gulf market.
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