Process for Business setup in Dubai
There has been a noticeable economic growth in Dubai since a decade. This has attracted a number of entrepreneurs to invest in the country. It offers a stable financial climate, which helps businesses from start-ups to international companies operate successfully. Before you get started with the legal formalities, there are some important things you should consider through the process of business setup in Dubai.
- Type of business: First find out what business would you like to get started with. The type of business you choose will determine the kind of license you need. You can inquire at the Department of Economic Development (DED) in Dubai. They provide you a list of 2100 businesses to choose from. If you’re unable to find your specific one in there, you can contact the D.E.D.
- Ownership: Dubai offers different types of zones for operating a business. There are freezone, offshore and the mainland. Freezone offers you 100 percent foreign nationals ownership of the company. There are more than 45 free zones to choose from. benefits of setting up a business in the free zone include 100% repatriation of capital and profits, no corporate tax, no personal income tax, no import/export tax and easy start-up and licensing procedures. Whereas, mainland lets you operate locally in Dubai mainland but with a local partner who is a UAE national, holding the majority interest of the business. He should own 51% shares in your company. Benefits of company formation in Dubai in mainland includes flexibility to do business in any part of the UAE, an unlimited number of visas, more business types available for licensing, no business or personal taxes. You have to get a license from the Department of Economic Development (DED).
- Capital Investment: Setting up a business in mainland needs investment that may vary according to the legal form of business. While setting up a business in a free zone needs no capital investment.
- Prepare agreements: A detailed agreement should be prepared that states the responsibilities of the chosen sponsor towards the business. This should also include his/her annual fee to be paid. A no-objection certificate from the local sponsor is also required for running your business activities. Create and sign a Memorandum of Association (MOA) with local support based on the legal form of your business. Also, obtain preliminary approval for the company at DED.
- Finalize the office location: Arrange for an exact location or office space for the company. The office ownership contract will help you further in serving as proof for a registered office address. In the case of an offshore company, the address of the registered agent can be provided as the official address of the company.
- Choose a trade name: This is an important part of setting-up-business in Dubai. Select a trade name that reflects the nature of your business or matches the services your company plans to offer. You must choose a name that has not been registered earlier. Also, make sure the name should not violate the public morals or should not contain matches names of any religion, or governing authority or logos of any external bodies. You then have to pay trade name reservation fees within 72 hours of receiving this voucher.
- Apply for a Trade license: The kind of business activity you select will identify the type of license you need. Again, DED is responsible for the issuance of a license. The DED license comes with certain restrictions on the share of ownership for foreigners, based on different legal structures under DED. Mainly there are three types of licenses: Limited Liabilities Company (LLC) License, Industrial License, and Professional License.
- Submit documents and get a license: Submit all the documents to the DED and the commercial registration Department and process all the payments. You have to pay for your trade license within 30 days of receiving a payment voucher. If not paid for six months, the transaction will get automatically canceled.
Company setup in Dubai is a very simple and speedy process. If you are ready with all the required documents, it takes 8 to 10 days for company formation in Dubai. The government has established an entirely different set of rules and regulations to foreign investors. To understand them, find a reliable expert pro team to help you with the registration which is full of paperwork. They will ensure your business is fully legalized.