How To Register Company in Dubai?

For starter investors, Dubai is one such place on earth where they can safely & conveniently start their business. As per the report generated by the World Bank Survey, Dubai has acquired the 33rd position as a convenient destination for conducting business activity. However, starting your business at this place, especially if you are a first timer, is a bit challenging.

“Data of new businesses licenses issued in 2022”

What is the way to start business in Dubai?

The first & foremost aspect that foreign investors must look into while starting any sort of business in this place is to pay close attention to all the regulations and requirements of the Company law of the place. This provides them all the requisite steps that need to comply to register company in Dubai, and keep up running.

This can be attributed to the Government of UAE which is already placing the most stringent of the regulations for qualifying the business standing at this place. So, if you have the goal to put up your business in one of the cities of Dubai then you must be aware of all legal regulations as well as the terms and conditions before finally getting started.

Multiple Perks of company registration in Dubai

• The UAE is not having a capital gain tax.
• Since the English language is being widely spoken all across the country, it becomes convenient for foreign investors to explore innumerable investment opportunities at this place.
• Business owners who have started their business setup in Dubai, UAE are required to pay income tax only under the condition that they are working in foreign banking/oil or gas industry. All other types of companies are exempted from levying taxes within the place.
• The least capital investment to be made by the applicant while incorporating is AED 0. Thus, there is no need for capitalization for business setup in Dubai.
• Also, there is no provision of the value-added tax/sales tax in the country.
• Since Dubai is a diverse place and the economy of the country is ever growing and expanding, it is offering several distinct types of lucrative business opportunities for foreign investors.

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Company Jurisdiction in Dubai

In this country, there can be setup of the business in three distinctive places which include the mainland, free zone as well and offshore. The authority which is responsible for providing the licensing on Dubai mainland is the Department of Economic Development. Within the free Zone, the concerned authority is liable for charging licenses. However, in the case of an offshore jurisdiction, the responsible authority is the offshore only.

Mainland Company Setup

The LLC (Limited Liability Companies) is the most common type of commercial entity that business owners can utilize for establishing a business within this country.

Free Zone Company Setup

The free trade zones are regions that have been demarcated within this country which allows complete ownership of the foreign business owners and in majority of the cases, dedicated to establishing business within specific industries.

Offshore Company Setup

The Offshore company is a type of legal business entity that has been set up to earn profit. So, the business entity that is established outside the country of residency is considered as the offshore company. For offshore company, there is no requirement for the office setup.

What are major business setup licensing categories within the UAE?

There are majorly three types of UAE licensing for business endeavors.

Professional Business Setup Licensing

Professional business licensing is for all those organizations that are looking forward to setup up service-oriented establishments. It involves activities like licensing. The overall cost of acquiring professional business formation licensing is comparatively low in comparison to other types.

Commercial Business Setup Licensing

Under commercial licensing, the businesses are involved in the sales, and purchase of goods/services, or trading. This is quite a common form of licensing within the Gulf Region.

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Industrial Business Setup Licensing

This type of licensing is required to register company in Dubai that is operating in the manufacturing sector. So, this type of licensing is to be acquired by the industries/factories as they have to seek approval from the Government authorities as well as the external ministries for their specific industrial activities.

What documents are needed to register company in Dubai?

Business formation in Dubai is straightforward. So, business owners in order to set up their establishment within this region need to assign the company’s name with which they are planning to register. Also, they need to provide the passports as well as the photographs of the directors of the corporation.

Even a single individual is also liable for LLC company registration in Dubai. There is no requirement of the two individuals for registering a company in Dubai. But under the condition when the business owner registers the subsidiary/branch within the Dubai mainland, there is a need to submit additional documentation which includes MOA, AOA, Board resolutions and more paperwork would also be needed for submission.

What steps are followed for company registration in Dubai?

The procedure of setting up onshore/ offshore company registration in Dubai comprises of steps mentioned below:

• Choosing Company Type

The businesses provide several of the provisions. There is the possibility of registering an LLC, setting up the branch office of your parent company, or any other type of corporation.

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• Choosing Commercial Region

Make sure to choose the commercial area where you would like to seek to license. There are free trade zones within the UAE and you can carry out the operations or register business in Dubai. There are two options for the applicant, one option with free zones as well as another external to free zone area.

• Company Name Registering

This is also a very important step. The name of your entity is being closely related to all the products/services, whatever you are offering. Apart from that, you are also required to add the LLC/PLC name to your corporation while you launch the business.

• Choice of Physical Space

In the case of opening your online store in Dubai, although there is no need of physical premises, you need to have the legal address, to fulfill the requirement of the registration. It is due to the reason the Gulf authoritative bodies oblige the e-commerce setups to have their physical space.

• Bank Account Opening in Dubai

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Each & every organization will need a bank account, for carrying out the transactions in relation to the business. So, business owners can set up their account in any of the local banks operating in UAE country.