Steps to Establish a Company in Dubai
2023-08-08
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Table of Contents
Can Foreigners Set up a Company in Dubai?
Let's begin with the fundamentals. Yes, and many foreigners do, set up shop in Dubai. Over 80% of the residents are foreigners, and many of them own their own enterprises. Dubai aggressively invites foreign investments and entrepreneurs. The emirate is home to a large number of setup agents and company formation specialists who were established to assist international business owners with the licensing, visa, and business incorporation procedures.
In Dubai, foreigners are permitted to establish a mainland firm that gives them access to the local market. In this instance, however, they would require a local Emirati sponsor who owns a majority (51%) of the company's shares. A person or UAE-owned business may serve as the sponsor.
Additionally, foreigners have the option of forming a business in one of Dubai's several free zones. Free zones are places that have been set apart with particular rules that provide a range of benefits, including 100% foreign ownership, tax exemptions, profit repatriation, and streamlined business creation procedures. It's important to conduct research and pick the best free zone for your business operations because each one may have its own set of rules and limitations.
What Are the Benefits of Establishing a Company in Dubai?
Ease of Business Setup
Dubai provides a quick and easy company formation procedure. The government has put policies into place to streamline bureaucracy and lower administrative barriers, making it relatively simple for company owners to launch their ventures.
Recruit Expatriate Employees
As a company owner in Dubai, you can access a wide range of skills thanks to the city's sizable expat community. The city draws experts from all over the world, giving employers access to knowledgeable personnel with a range of educational backgrounds and specialties.
No Taxation
The lack of corporate and personal income taxes in Dubai is one of the main benefits of doing business there (with a few exceptions). Businesses may greatly benefit from the low Corporate tax in Dubai, which enables them to optimize revenues and reinvest in expansion.
More Than 20 Free Zones
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There are around 20 free zones in Dubai, each serving a particular industry or area. These free zones provide benefits including 100% foreign ownership, tax exemptions, capital and profit repatriation, and streamlined customs processes. For businesses in sectors including technology, media, finance, logistics, and more, they offer the perfect setting.
Technological Advancements
Dubai has a reputation for being dedicated to technological advancement and digital transformation. The city promotes enterprises to implement digital solutions, which may increase operational efficiency and competitiveness, and it embraces innovative technology.
Top-notch Infrastructure
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Dubai is home to top-notch infrastructure, including cutting-edge telecommunications networks, cutting-edge logistical facilities, and a well-established banking and finance industry. This reliable infrastructure helps to enable international trade while supporting efficient corporate operations.
Advantageous Geographical Location
Dubai benefits from a strategic location that acts as a gateway to local and global markets because it is situated at the intersection of Europe, Asia, and Africa. It is a perfect center for companies with international aspirations because of its strong connectivity through its cutting-edge airports and seaports.
Learn more about The Best investment opportunities in Duba.
What Are the Steps to Establish a Company in Dubai?
Starting a business in ordinary ways involves a series of steps, including:
- Identifying a business activity
- Selecting an appropriate legal form
- Registering the trade name
- Applying for an initial approval
- Drafting a Memorandum of Association and local service agent agreement
- Select a business location
- Get additional government approvals
- Submit documents and pay fees
Costs of setting up a company in Dubai
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Description
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Price, USD
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Registration fee (one time)
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500 - 2000
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License fee (annually)
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From 700
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Office rent (annually)
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From 750
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Residence visa fee (3-year validity)
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From 1500
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Make Fortune Business Solutions fee: the company set up
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From 1700
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Make Fortune Business Solutions fee: obtaining visa assistance
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From 675
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Make Fortune Business Solutions fee: opening bank account assistance
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From 1000
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Types of Companies in Dubai
- Public shareholding company
This kind of business, sometimes referred to as a public joint-stock company (PJSC), can sell its shares to the general public. It needs a sizable quantity of share capital and a minimum of ten founding stockholders. In contrast to other business categories, PJSCs are subject to stricter rules and monitoring.
- Private shareholding company
A private shareholding company (PSC) can issue its shares to a small number of owners (often up to 200), similar to a public shareholding company. PSCs are also required to have a certain amount of capital and adhere to applicable laws.
- General partnership
In order to operate a business with shared profits, liabilities, and duties, two or more people or entities can form a general partnership. Each partner is solely responsible for the debts and liabilities of the partnership.
- Limited partnership
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One or more limited partners (LPs), whose responsibility is restricted to their investment in the partnership, and at least one general partner, who has unlimited liability, make up a limited partnership (LP). Limited partners are not permitted to actively engage in the partnership's management.
- Joint venture
A joint venture is an agreement between two or more parties to work together on a certain project or enterprise. Joint ventures can have many different legal forms, and a joint venture agreement usually specifies the rights, obligations, and profit-sharing agreements.
- Limited liability company (LLC)
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Many companies in Dubai choose to form as limited liability companies. A limited liability corporation (LLC) must have a minimum of two shareholders and offers limited liability protection, which means that the shareholders' personal assets are often not at risk for the debts and obligations of the firm. SMBs frequently employ LLCs for their business structures.
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Edited by Imtilak Global ©
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