The process of establishing a company in Dubai is relatively straightforward, and there are a number of benefits to doing so, including access to a large and growing market, a skilled workforce, and a favorable business environment.
Choosing the Right Business Structure
The first step in establishing a company in Dubai is to choose the right business structure. There are a number of different business structures available, each with its own advantages and disadvantages. The most common business structures in Dubai are:
- Free Zone Company: Free zone companies are not subject to the same regulations as onshore companies, and they offer a number of benefits, such as 100% foreign ownership, no corporate tax, and no personal income tax.
- Onshore Company: Onshore companies are subject to more regulations than free zone companies, but they offer a number of advantages, such as access to the local market and the ability to conduct business with government entities.
- Branch Office: Branch offices are a good option for companies that want to test the waters in Dubai before committing to a full-fledged operation. Branch offices are not subject to the same regulations as onshore or free zone companies, but they have a number of limitations, such as the inability to raise capital or issue shares.
Obtaining the Required Licenses and Permits
Once you have chosen the right business structure, you will need to obtain the required licenses and permits. The specific licenses and permits required will vary depending on the type of business you are establishing. However, some common licenses and permits include:
- Trade License: A trade license is required for all businesses that engage in commercial activities.
- Commercial Registration: A commercial registration is required for all businesses that have a physical presence in Dubai.
- Labor Card: A labor card is required for all employees who work in Dubai.
Registering Your Company
Once you have obtained the required licenses and permits, you will need to register your company with the Dubai Department of Economic Development (DED). The registration process is relatively straightforward and can be completed online.
Opening a Bank Account
Once your company is registered, you will need to open a bank account. There are a number of different banks in Dubai that offer accounts to foreign companies. When choosing a bank, you should consider the fees charged, the services offered, and the location of the branches.
Obtaining a Work Visa
If you are a foreign national who will be working in Dubai, you will need to obtain a work visa. The work visa process can be complex and time-consuming, so it is important to start the process early. The DED can assist you with the work visa process.
Settling In
Once you have established your company and obtained the required visas and permits, you can start settling in. This includes finding a suitable office space, hiring employees, and marketing your business.
Dubai Free Zones offer a number of benefits to foreign investors, including 0% personal tax, low corporate tax rates, 100% company ownership, 100% repatriation of capital and profits, and no currency restrictions. This makes them a popular choice for businesses looking to set up in the UAE.
steps you need to take to set up a company in a Dubai Free Zone:
- Define your business activity
The first step is to determine the nature of your business. There are over 2,100 business activities available to choose from, all falling into different groups within the industrial, commercial, professional, and tourism space. You can find the full list on the DMCC website.
- Select a free zone
There is only one free zone in Dubai, the DMCC.
- Choose a company name
When choosing your business name, it’s important that it conforms to the UAE’s strict naming conventions. Names that include offensive language, could be perceived offensive to religion, or refer to political groups or the mafia are forbidden. If you’re naming the business after a person, you’ll need to prove the person is a partner or owner of the company (no initials or abbreviations allowed).
- Obtain initial approval
You’ll need to obtain initial approval to ensure that the DMCC has no objections to you starting a business so that you can get started in the next steps for your license.
You can apply for this online, in person or through a third party (like through a law firm). The documents you’ll need to provide will depend on your business nature, but generally are:
- Business registration and licensing form
- Copy of your passport or ID
- Copy of your residence permit/ visa
- The company’s articles of association
- Feasibility study of the project
- Set up your business premises
It’s compulsory for all businesses in Dubai to have a physical address. Fortunately, setting up in a free zone will help you find your new office space easily.
- Obtain final approval
Once you have your business premises and bank account set up, you can apply for final approval. This is the final step in the process and once you have been approved, you will be able to start trading in Dubai.
Steps of Establishing a Company in Dubai
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