Company Registration in UAE. Dubai has become one of the world’s most promising business hubs in recent years.
Acknowledged for its growing economy, strategic location, and business-friendly environment, the UAE has become the cornerstone for entrepreneurs.
If you are planning to start your business in Dubai, then starting with company registration certainly puts you in the right direction.
This blog will help beginners get acquainted with all the important details related to company registration in the UAE.
Selecting the Appropriate business setup: Mainland, Freezones, and offshore
Free zones, offshore, and mainland business registration are the three main alternatives that Dubai provides. Every choice has special qualities of its own and fits various business structures and goals.
Mainland Businesses: Establishing a business in Mainland UAE allows you to conduct business both inside and outside of the UAE.
Free Zone companies: There are several advantages to registering your business in the free zone, including duty-free imports and exports, tax exemption, and more. For businesses that primarily engage in foreign commerce and activities, this is the best option.
Offshore Companies: Despite being prohibited from conducting business in the United Arab Emirates, offshore companies enjoy benefits like asset protection, tax discounts, and anonymity.
Advantages of Company Registration in UAE
There are several benefits to company formation in the United Arab Emirates.
- Tax Benefits: The UAE’s tax-friendly environment is one of the main factors attracting investors and entrepreneurs. Within free zones, there are no import/export taxes, minimum corporate tax for the majority of firms, and no personal income tax.
- Ease of Doing Business: The UAE government has worked tirelessly to simplify business processes, making it incredibly easy for companies to operate and expand.
- Access to Global Markets: The UAE is ideally situated to facilitate international expansion, with easy access to markets in Europe, Asia, and Africa.
- Political Stability: The political environment in the United Arab Emirates is stable, guaranteeing the safety and protection of your company assets.
Procedure for Company Registration in the UAE
To ensure a seamless business setup, the UAE government has created a very straightforward and organized procedure for company registration in the UAE. Below is a step-by-step guide on how to register a company in Dubai.
STEP 1: Choose your business activity
The nature of your business will determine the rules, regulations, and requirements your company must abide by. You must also ensure that your business activity aligns with one of the categories specified by the Department of Economic Development, UAE.
STEP 2: Choose the legal structure of your company
It is important that you get familiarised with the legal structure available for companies in the UAE. The most common ones include a Free Zone entity, an offshore company, and a limited liability company (LLC). It is advisable you choose a legal structure as per your requirements.
STEP 3: Selection of trade name
Selecting a trade name that is reflective of your business activities is an important step. Ensure that your chosen name falls in line with the UAE naming conventions. The name should not contain any offensive word, and neither should the name be previously registered. To check the availability of your chosen name, you can visit the website of the Department of Economic Development.
STEP 4: Acquiring the initial approval and submitting legal documents
The Department of Economic Development must give its approval before you may register your business in the United Arab Emirates. The Memorandum of Association (MOA) for your business must be written and certified, and certain operations might require further clearances from relevant authorities or departments.
STEP 5: Lease Agreement and Business Location
It is essential to obtain a lease agreement and secure a business space. Every UAE-based business needs a physical location for their business operations. The commercial building and its location must adhere to the zoning laws set forth by the municipality or other appropriate authority, as well as the requirements of the Department of Economic Development in each Emirate.
STEP 6: Registration and Licensing
You need to apply for a business license, whether it be commercial, industrial, or professional, after completing all previous procedures.
STEP 7: Create a Business Bank Account
Finally, to manage your company’s finances effectively, you need to open a business bank account.
Documents required for company registration in UAE
Below is a list of the necessary paperwork required for company formation in Dubai:
- Application form for company registration.
- Copies of each director’s and shareholder’s passport and visa if they are non-residents.
- Business plan
- The articles of association (AOA) and the memorandum of association (MOA).
- Current sponsor’s No-Objection Certificate (NOC) for foreign nationals.
- Confirmation of the trade name reservation and original permission certificate.
Cost of Company registration in UAE
The cost of company registration in UAE is based on several factors such as your business activity, the license you are applying for, the location, etc. The starting price of company registration in UAE is AED 5699*. Please note that this is just the estimated price, and the final price will be based on your specific needs and requirements.
Company registration made easy with Dubiz!
Ready to explore the world of business opportunities?
With the assistance of our professionals, discover the endless opportunities that the United Arab Emirates offers to its inhabitants. To find out more about starting a profitable business in Dubai, schedule a free consultation with our experts at Dubiz.
For any questions or queries contact our specialist at info@dubiz.
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