Last updated on January 12, 2022
Company formation in Dubai
We are expert in the free zone company formation in Dubai (UAE); such as for example DWC free zone company formation; we can also start offshore companies as well as mainland company formation in Dubai; for those interested in the Dubai market.
UAE is well known for its free trade zone (over 40 free zone exist in the UAE); offering a good conditions for different type of start ups; industrial, technology and auto etc. Each and every Free Zone in UAE is designed for a particular activity.
The best known example of a free zone is DWC free zone which providing a wide range of facilities; like 0% corporate tax, 100% foreign ownership allowed and 100% capital repatriation etc. for investors interested in Open new company in Dubai.
With a long tradition in offering company set up services to expat; who are interested in starting up their firm in the UAE; We are the one to offer complete business set up as well as advisory service; to those who are interested in the UAE market.
With a huge experience in company formation in Dubai; our local company formation consultants in Dubai can help you in business registration in Dubai.
Legislation on setting up mainland and free zone company formation in Dubai
The central law that provides for the set up of main land company in Dubai is the Company Law. It sets out all the rule that should be match with before and after the registration of a company.
In case of offshore or free zone business setup in Dubai, each and every authority imposes its own registration requirements.
If you need some info on the rule use for company formation in Dubai; and details on opening a business in Dubai, our local advisers will help you.
Offshore or mainland company formation in Dubai
The process to open an offshore company in Dubai varies; much from the one necessary to open in a main land. If you are not sure at this step that which one you need, please consider the following:
An offshore company does not have any special requirement about the owners or Shareholders. While a main land company does not allow complete foreign ownership; as the it need one local partner.
A UAE offshore has a 0% corporate tax; while a main land company has tax obligations as well as filing requirements per the law of the UAE.
Offshore company can not run its operation inside the UAE; while a main land company is design in way to operate in the UAE.
To summarize: if you are not interested in the Dubai market; or in other word if your clients are not in the Dubai; and your only starting your company to take benefit of the tax regime, privacy as well as offshore banking; then it is wise to start an offshore company rather than an mainland one.
Opening a company in other country need thorough research; and most of the time it need the services of professionals. The procedure of company formation in Dubai is look like to the reset of the world; provided that the you need to obtain all the information about the business activity that they will undertake; and know all the business licensing requirements. Our company formation consultants in Dubai can support you with more details; that is about the major steps if you want to open a company in Dubai.
company formation consultants in Dubai
Our company formation consultants in Dubai can assist local as well as foreign investors; to follow the main steps for business setup in Dubai and open the required type of company. A company formation in Dubai is not tough, but you may not know the local rule as well as regulations; so we suggest you to contact a company formation consultants in Dubai for company formation in UAE. He or she will explain you the differences between main land and offshore company. And if you want to setup in the free trade zone; and need help to choose the one which is suitable for you; then our company formation consultants in Dubai can also assist you in that. You just need to prepare the documents for company formation in Dubai; and rest of the thing we will take care of.
You can find some of the causes to open a company in Dubai in the scheme below:
Shareholders in Dubai
The term as well as condition for starting a business in Dubai are the same as in all other countries. The first thing to study when you are going to set up a company here; is the shareholding structure of the business. This is because, in the case of a main land company, you need a local partner. UAE local will hold at least 51% of the stock in the company; while the remaining share will be divide among expat partners.
A new law towards foreign direct investments offers for complete foreign ownership in mainland companies in certain industries in Dubai, making the UAE one of the most attractive states in the Middle East when it comes to foreign company registration in Dubai.
In the case of offshore or free zone companies, full foreign ownership is allowed.
An important aspect to study when you are going for company formation in Dubai; is that the company cannot issue shares, but the shareholders will have ownership interests; that imply the right of making management decisions.
No matter the nature of company you decide for; you can depend on our specialist of company formation in Dubai. They can also offer detail information on the rights as well as obligations of shareholders in Dubai companies.
Types of companies in Dubai
There are numerous types of companies available for Company formation in Dubai; as you will see in the table below:
- The mainland company – it operates on the UAE market
- An 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 natural person.
Our company formation consultants in Dubai can explain the requirements for each and every type of business form.
Set up a main land company in Dubai
As compare to offshore which is only use for services to the clients outside the UAE; the main land company is use to provide services to the clients in side the country. The main land company will require a business license, while the offshore will not.
You have also to pay the corporate tax, establish a real office as well as have a local (UAE) shareholder. The procedure for incorporating a main land company is more challenging; than for an offshore one and the costs are much higher. Even so, the mainland company offers several types of benefits; among that is a large and wealthy market and various tax incentives and breaks etc.
- The LLC company formation in Dubai, that can be private or public and is subject to very few incorporation requirements,
- the private shareholding company that can be form by foreign investors in partnership with a local company or entrepreneur,
- the public shareholding company, also famous as the joint stock company;
- The sole proprietorship that can be used by accountants, lawyers as well as other categories of professionals.
Any expat who are looking for to set up an LLC company; must know that they need to have at least one UAE partner; who will enjoy a minimum of 51% of the paid-up capital.
Exactly like many European jurisdictions; for instance, Switzerland and Dubai offers the possibility for foreign companies to do their branch setup in Dubai. You need to take a proper license for a main land company in Dubai.
The entrepreneurs who pick Dubai mainland company setup will have the possibility of purchasing real estate properties and benefits from a skilled workforce etc.
Company formation in Dubai steps
Following are the procedure for Company registration in Dubai
- selecting the right business form in accordance with your needs and requirements – our local advisers can assess you;
- reserving a trading name for the company is the first requirement before initiating the registration procedure;
- drafting as well as notarizing the company’s MOA;
- The documents will then be file with the DED approval;
- Then you need to register your firm for visa as well as you need to get a VAT number; according to the latest changes in the law;
- The last but not the least step is applying for one of the license; that will enable the company to start operating.
License for companies in Dubai
The license procedure of a company formation in Dubai is finish at the same time with the incorporation process. The following types of licenses are available when registering a company in Dubai:
- The trading business license in Dubai;
- the industrial license;
- A commercial license;
- The professional license in Dubai.
These are the general type of license that you need to take while you aim to open a company. Apart from these, for all other activities, such as import and export etc. special licenses must be obtained.
In the case of Dubai free zone company formation, it is important to note each of them; allow only a specific activity. For some of them, special licenses are obligatory by the authorities governing them.
Our company formation consultants in Dubai can support you apply for the necessary licenses when starting a business.
Company formation costs in Dubai
The following costs must be considered when you in to a company setup in Dubai:
- The company registration in Dubai fee with the DED is around 10000 AED, however, the license fee should also be included;
- The virtual office costs start from 4000 AED per month; but it depend upon the office building it will be set up in;
- the minimum share capital: there is no minimum share capital requirements for starting a limited liability company in Dubai;
Why should I open a company in Dubai?
Dubai is the most fruitful emirate in the UAE and it offers many tax advantages to overseas investors. Apart from this, Dubai is also one of the most important business center in the region.
What kind of tax apply to company in Dubai?
In Dubai company does not have a corporate tax; it do not operate in the oil and banking sectors; however, the UAE gov’t introduce the VAT at the starting of 2018.
Can I be the only shareholder in a Dubai company if I am a foreigner?
Yes but this is only possible in all the free zone of Dubai; but if you plan to start a business in the main land of Dubai; then you also need a a local partner who will hold 51% of the share of the company.
Can I register a company remotely in Dubai?
Yes, you can open a company without having to travel to Dubai through our local company formation consultants in Dubai . All you need to do is grant us power of attorney to represent you.
Dubai is one of the main likable state in the UAE; and this is because of the great number of free trade zone; however, those who are looking to open company in a free trade zone; can only offer their services in that specific free zone. But main land company can offer their services or sell out side the country.
From an economic point of view:
- Dubai is predictable to register a 2.1 % increase in its GDP in 2019;
- The global Monetary Fund write a 1.9 % economic growth for Dubai in 2019;
- And there is also an estimate about 2020 that its GDP growth will be 3.8%;
- 2021, however, is forecasting to bring a slower increase in the city’s GDP of 2.8%.
If you want to set up an offshore company in Dubai or any other type of company; then you can contact our company formation consultants in Dubai; who will handle the whole procedure of company setup.