Last updated on December 14, 2021
Company setup in Dubai
We know that new company setup in Dubai can be a daunting scene; mainly, if you are an entrepreneur from abroad; then opening for the first time in a new country. That’s why we are here to make new company setup in Dubai easy for you. We will ensure all the essential process for you; either it is liaising with the government departments; as well as with other related authorities; and along the way to take the disturbance out of new company setup in Dubai.
We cover each and every aspect; that is administrative as well as also technical aspect of setting up business in UAE. And we will work together with you to acquire the most appropriate license; that will be based on the services you hope to offer. At last but not least, we will arrange all the relevant and legal documentation; provide bank account opening assistance as well as help out with the process of visa application.
It is multi-layer service which made us one of the most prominent consultants in the whole region; and this is the reason why thousands of expat are consulting us for guidance as well as support; in open new company in Dubai or in UAE.
Approval process for a new company setup in Dubai
- The approval of the UAE Central Bank is have need of Issuance and banks as well as other financial activity.
- Approval of the Finance as well as Industry Ministry is involves for manufacturing companies.
- The approval of ministry of economy as well as commerce is have need; for issuing license to new company setup in Dubai involve in insurance as well as other correlated activity.
- The approval of the Health Ministry is important for Issuing licenses for products of medical as well as pharmaceutical.
- The approvals from other agencies of government may need additional approval; which is for new company setup in Dubai that are involve in production of oil and gas
- Furthermore, business set up should also have the involvement of the Dubai Chamber of Commerce and Industry
Business ownership for new company setup in Dubai
Each and every company, excluding those with a professional license in Dubai or elsewhere in the UAE is required to have not less than fifty-one percent (51%) shareholding by nationals of UAE.
The exception to such requirement would be any one of the following six conditions:
- The company is recognized at any place in the Free Zones of Dubai.
- In such cases the law requires 100% local ownership.
- Where a company owned entirely by the GCC (Gulf Cooperation Council) enters into a partnership with other company owned wholly by UAE nationals.
- 100% ownership for GCC nationals or entities is allowed in certain activities.
- New company setup in Dubai for professional activity in which total foreign ownership is permitted.
- In the case of a overseas entity registering a branch office or representative in the UAE.
- In case where a professional license is apply for professions such as architect; artist and doctor etc. The ownership can be 100% allow to outsider. However a local should be involve as a service agent.
Best uses for a new company setup in Dubai
A company setting up in Dubai can be a gateway to the Middle East as well as Africa because:
- Dubai is the historic trading home in the Middle East as well as in Africa (MEA). Due to its well established shipping sector and strategic location; the city currently host cargo as well as shipping companies; and so many other trading companies;
- Dubai has greatly develop infrastructure of logistics and also transportation; that make this city an ideal choice for product distribution. Additionally, the city tolerates to 17 Middle Eastern countries duty free exports; that encourages overseas investors to choose for formation of offshore company in Dubai;
- The Dubai Free Zone in several industries are specialize; that range from logistics to media power as well as IT. Additionally, the facility of world class infrastructural; along with world class quality business premises; makes an attractive place for investors to do business in Dubai;
- Dubai is popular as the most business-friendly city in the MEA; with easy import and export policies as well as has no trade barriers; more than a few international banking firms and none bank financial institutions operate here; making the city an outstanding source for trade as well as finance facilities.
Best uses for a new company setup Dubai
Dubai is a head quarter for a multinational Clients.
- Dubai was the 7th largest recipient among world cities of Foreign Direct Investment in the world in the year 2016. It is due to the fact that client observation about this city; as a business friendly and enjoy a tax free market;
- Majority of the cities in the region of Middle East do not positively interpretation of foreign companies. A Dubai company setup will help from the most liberal laws of business in the region; while giving it access to the markets of Middle East and Africa as well as Asia;
- Dubai is also famous as the most live able city in the Middle East; due to the availability of popular global brands along with access to a well develop infrastructure; for both residential studies, work, accommodation, entertainment as well as tourism. Furthermore, the city is not less than a paradise for high net value of foreign people; by providing luxurious life for them and their families;
- Business setup in Dubai also allows access to a number of international entrepreneurs as 80% of the city’s population is of foreigners. This form is the ideal ingredients of creativity and skills exchange across industries as well as cultures. The East and West mix together quite happily in the city;
- As a result, the number of active businesses in Dubai is 148,842; in which 20,000 new licenses were issue in 2017; furthermore, 130,000 licenses were renewed in 2017.
How to setup new company in Dubai
Step1. You have to decide who will be your local partner – “local sponsor in Dubai”
This very stage need careful consideration that what kind of services you expect from the sponsor.
- you would like that he has to help you in resolving your problem in procedures with the government
- you would just want his name and nothing more on the license
- What amount of fees you prepared are to pay per year.
A good understanding with your sponsor prevents many potential problems.
Step 2. You need to acquire approval from DED. To get such approval you need to apply through an application form.
Step 3. Look for premises of business as well as make occupation contract; as in Dubai All business must have office in Dubai. And tenancy contract attestation is also compulsory from rera.
Step 4. Make an MOA with the sponsor; and also submit it to DED; as any legal firm can make the memorandum; that should specify the percentage of ownership among all the partners.
Step 5. Submit it to the DED; the MOA as well as the License application along with the required legal documents and the tenancy contract.
At this stage you will pay all the charges. You can get a license after about a week from step 5.
8 reasons for company setup in Dubai
Some of these reason are very recognizable and some are not so
0% Taxes for company setup Dubai
In UAE, there is 0% corporate tax as well as 0% personal tax. Companies in UAE enjoy the minimum tax structure in the world. The auspicious nature of tax structure in UAE was highlight by the study Paying Taxes 2013. In practice; however only petro chemical companies and oil & gas as well as branch office of foreign banks are requiring to pay tax.
Strategic Location for Dubai company setup
A strategic location is the main advantage for each and every Dubai company setup; as a matter of fact UAE enjoys a prime location in the world; that it is a place in the center of Asia, Europe as well as Africa; so this provide a great trading conditions. Chinese companies use UAE as a hub for Africa. Western multi nationals companies use UAE as a hub for the Middle East; also the Indian traders use the UAE place to reach the rest of the world; as well as U.S.A use the UAE as a launch pad into south Asia. In addition to this it also help to target a wide range of geographical area with large business potential.
Low Import Duty for Dubai company setup
Import duties in UAE are very much low; which is around 5% for majority of the goods. But for goods imported for use within a specific Free Zone; there are no import duties. There are around 40 Free Zones in UAE; these free zone offer packages for llc company formation in Dubai.
Infrastructure for company setup Dubai
Infrastructure in the UAE is very much develops; and it is also growing in quick rate; that is the construction of a residential, tourism and industrial as well as commercial facilities at large. Development is in a great scale; as a matter of fact there are a great deal of opportunity; due to the highly develop infrastructure in the UAE.
UAE hosts some of see ports; as well as airports in the country; making it a logistics center for international companies. The infrastructures of UAE are according to the international standards; that make it easier for company setup in Dubai and run them suitably.
FTA and GAFTA for company setup Dubai
UAE is the part of the Gulf Cooperation Council (GCC); and therefore UAE base business (with the exclusion of Free Zone companies); enjoy duty free trade with all countries in GCC. It is also a member of the GAFTA; which is Greater Arab Free Trade Area; in which all the GCC state takes part. This enables UAE to trade with all the allies of G.A.F.T.A with lowest duties and barriers.
The GCC block is at this stage discussing to sign Free Trade Agreements; which is with the EU, Turkey, Japan, Australia, India, China, Pakistan and Korea as well as with the Latin American countries of Brazil; Uruguay, Argentina and Paraguay.
Those who target the GCC markets for business formation in UAE is a natural choice.
Strong and Competitive Economy
The UAE economy is in 3rd position among 15 countries; that is in the Middle East; and as a matter of fact it is standing 28th in the world; that is among 185 countries in the Index of Economic Freedom 2013; Wall Street Journal were prepare this; in partnership with the Heritage Foundation. UAE has created an exciting background for company setup in Dubai; because of its clear as well as favorable business set up environment; as well as a high level of political stability.
Availability of Manpower for company setup in Dubai
Due to a very large labor scheme of Dubai; employee hiring is very much easy; that you can hire employee from any part of the world; and also this make it easy for Business Setup in Dubai. Government of UAE across the 7 states is trying to bring flexibility; which is in their labor law; so that to facilitate the work force in their state. Dubai are intensely investing in training the national work force; so that to play a greater role in enhancing the UAE economy. At the same time 1.4 million people are now working in Dubai.