Business Setup in Dubai
The UAE is a popular destination among investors and entrepreneurs. Its low tax rates and ease of doing business have strengthened its position as a business hub in the Middle East in addition to the fact that it is an investor-friendly nation. Additionally, the government has policies in place that support and encourage business owners.
There are lots of reasons why so many businesspeople from around the world decide to conduct their operations in the UAE.
The country’s advantageous tax structure, which imposes zero percent on both personal and corporate incomes, is a significant attraction. The UAE is the ideal center from which to conduct international trade due to its strategic location in the Middle East.
The benefits of starting a business in one of the nation’s free zones are endless, including complete exemption from customs duty, no currency restrictions, and the option to repatriate all capital and earnings, to mention a few.
Ready to Start Your Business in Dubai?
How to setup a business in Dubai – The Company Formation Process
Select a business activity:
Making a decision about your business’s activities is the first step to making a company in UAE. There are thousands of possible activities, therefore it’s crucial that you identify any that you plan to engage in on your license application. Consider the feasibility of the chosen activity in respect to the UAE market when choosing a business activity for your startup. Before starting a business in Dubai, thoroughly investigate the feasibility and profitability of the venture. Then decide when to launch a business in Dubai, UAE.
Select the jurisdiction:
The UAE market is divided into different jurisdictions – Mainland, Free Zone, and Offshore. Every jurisdiction has a unique set of rules and laws governing how businesses are established. The jurisdiction you choose for your firm will depend on your needs and business activity.
If you choose to start your business in a free zone, you’ll benefit:
- No personal or corporate tax
- 100% ownership of the company
- 100% of the capital and profits are returned
- No limitations on currencies
- 100% exemption from import and export taxes
If you choose to start a business setup in the Dubai mainland, you will be able to trade directly with both local and international markets. Unless your field of activity falls under the category of professional services, you will need to collaborate with a local partner who will control 51% of the shares in your company.
Select the company structure or legal form
When starting a business in the UAE, some of the legal formats or business structures that you can used to register are listed below.
- Limited liability company(LLC)
- Sole establishment
- Civil company
- GCC company branch
- Foreign company branch
- Free zone company branch.
Get approval for your company name and activity
Before you can proceed the process of company formation in the UAE, the Department of Economic Development (DED) must approve the trade name for your company.
Apply for a license
You are normally required to provide a few details and some basic documentation such as:
- Completed application form
- Passport copy of the proposed owners
- Two passport sized color photos
Apply for a visa
Congratulations on reaching this point! The final step in setup a business in Dubai is to apply for a visa. In addition to applying for your own visa, many free zones allow you to apply for staff and dependents. The exact number you can submit will be determined by the free zone in which you choose to establish yourself.
If you want to obtain visas for a spouse, child, maid, or driver, you should seek expert advice to ensure that, first, it is possible to do so in your chosen free zone, and second, that both you and anyone you want to sponsor for a visa meet all of the entry criteria.
Assuming everything checks out, the procedure consists of four simple steps:
- Entry permit
- Status adjustment
- Medical fitness test
- Registration of Emirates ID cards and visa stamping
A mainland company can apply for an unlimited number of visas, whereas free zone companies are subject to restrictions that vary by free zone.
Contact Eagle Wings Business Consultant at +971 4 824 9940 or whatsApp message to +971 52 420 0436 to get in touch with one of our knowledgeable business advisers.