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Company Formation in Dubai

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With its tax breaks and passage to international markets, registering a company in Dubai is becoming as appealing as setting up a company in other famed destinations. Our team at InteliumLaw is ready to help you navigate the process of company formation in Dubai and ensure that you succeed with the best setup for your organization.

Benefits of a Company Setup in Dubai

The UAE has become a prestigious location in the world of business and global investment. Being able to get your company setup in Dubai is like a seal of approval that grants you strategic global positioning and several other benefits. Furthermore, the world-class infrastructure gives you easy access to key technologies, advanced logistics, and support to help your business grow. The key benefits of setting up a company in Dubai are:

  • Diverse Culture
  • Government Initiatives
  • Strategic Location
  • World-Class Infrastructure

Chiefly, a company setup in Dubai will benefit from government initiatives. The UAE government vigorously seeks to encourage businesses to come to hubs like Dubai and grow for their investors. So, you’ll find free trade regions that allow startups to be wholly owned by foreign bodies, customs duties exemptions, and even zero taxes.

The strategic location of the UAE is also a major selling point. Overlooking the Persian Gulf with the Arabian Sea to the south, Asia to the east, Europe to the north, and North Africa on the other side of the region, the UAE is ideally situated and capable of connecting its businesses to these major markets.

Tokyo to Dubai takes around 11 hours; it’s under 16 hours from San Francisco; and investors across Europe can arrive in under eight hours. Its positioning in the world has helped Dubai to attract talent from far and wide to create its futuristic metropolis in the heart of the Middle East.

Powered by state-of-the-art facilities and services, investors and entrepreneurs won’t have any issues connecting to a company setup in Dubai. It’s these elements that have encouraged so many other companies from all different sectors to come to Dubai. From those looking to open an IT company abroad to business management services, all have flocked to the UAE, creating a uniquely diverse location.

Options for Company Registration in Dubai, UAE

Company registration in Dubai can take many forms. The government website offers a ten-step layout for creating a company on the mainland and a six-step way to go about company registration in UAE free zones. You get many options, but for most of our customers, it tends to boil down to one of these:

  • Free Zone Business Formation: There are many free zones in the Emirates, with each focussing on different industries – usually services, finance, media, logistics, or technology. Company registration in Dubai to one of these free zones could open your business up to incentives and total foreign ownership.
  • Mainland Business Formation: While you usually need a UAE national or business to have at least 51 percent ownership for mainland business formation, you will be permitted to do business and engage in several commercial services across the Emirates. As a standard, there are legal agreements and structures that you need to adhere to in the interest of protecting all parties involved. However, this can be waived if the business activities meet the qualifications for 100 percent ownership by foreign investors.
  • Offshore Company Incorporation: Offshore company registration in Dubai will register your business with UAE authorities while also permitting you to conduct business beyond the borders of the Emirates. Businesses registered in Dubai in this way get a certificate of incorporation rather than a business license, and investors aren’t eligible for a UAE visa. Primarily, Dubai offshore company registration is for tax breaks, for holding investments, and for asset protection. The UAE is home to these three offshore business jurisdictions:

For each of these options for company registration in Dubai, there are different legal entities to consider. Generally, these are the main types chosen:

  • Free Zone Companies: From a free zone, companies get to benefit from the slew of investor-encouraging laws passed by the UAE government, including tax-free breaks, the straightforward business setup that can be done digitally, and the allowance of 100 percent of the company to be owned by foreign entities.
  • Mainland Limited Liability Company: To achieve mainland company registration in Dubai, most opt for a limited liability company. To meet the requirements of an LLC, you need between two and 50 shareholders, each of whom is only liable for their shares.  In many cases these companies need UAE national as one of shareholders, please check with us further.
  • Offshore Companies: Offshore companies have a special appeal in the UAE as investors don’t need to pay income tax for offshore companies. Nor do they need to pay corporate tax on them. As foreigners can own 100 percent of an entity that passes offshore company registration in Dubai, they’ve become very popular.

The Registration Process for Company Formation Dubai

Part of the requirements for company formation Dubai enforces is a clear-cut registration process. When registering a UAE company, you’ll be expected to:

  • Select Your Organisation Type
  • Declare Your Business Venture
  • Pick Your Business Name
  • Prepare All Relevant Legal Documents
  • Complete Extra-Legal Processes and Finalise Formalities
  • Ensure Continued Compliance with Laws and Regulations

As a part of the process of company formation Dubai requires, you’ll also need to provide at least the following documents as standard:

  • Articles of Association
  • Bank Account Reference Letter
  • Local Service Agent Agreement
  • Memorandum of Association
  • No Objection Certificate
  • Passport Copies
  • Tenancy Contract
  • Trade Name Reservation Certificate
  • Visa Copies
  • Bank Reference Letter
  • Passport Copies
  • Power of Attorney
  • Proof of Address
  • Director and Shareholder Resolutions

Costs of Company Formation in UAE

The costs of company formation in UAE are clear-cut but do vary between the different business types, activities, the region of registration, the use of agents, and additional services that may be required. On average – for civil corporations on a one-year trade license and with a virtual office – it’ll cost between AED 25,000 and AED 29,000 (€6200-€7,200, £5,000-£6,050, $6,800-$7,900).

We prefer to arrange these costs into three brackets: Business License; Documentation and Attestation; and Visa Processing and Immigration. Within those categories, you can expect the costs of the company setup Dubai requires to include:

  • Authorization Fees
  • Legal fees
  • License Fees
  • Local Sponsorship Fees
  • Visa Costs

How We Can Help You With Dubai Company Formation

Here at InteliumLaw, we have an expert team ready to accomplish your business registration abroad. Overall, Dubai company formation paths are straightforward, but there’s always a lot of paperwork, options to select from, and other such formalities that you may not be expecting from the outset.

Our goal is to help you register company in UAE. To do this, we’ll create tailored solutions to get you established in the Emirates. This will include access to our legal expertise and our comprehensive support for Dubai company formation throughout. Our affordable Dubai company setup packages have proven to streamline the whole process, and we’re happy to provide ongoing legal support.

To commit to a Dubai company formation or to register a company in the UAE is to set yourself up in one of the most accessible and investor-friendly environments in the world. When you’re ready, the InteliumLaw team will be here to help secure your company formation in Dubai.

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FAQs

Can a foreigner start a company in Dubai?

Dubai has come up with many policies that support foreigners owning their companies. The foreigner can set up a company in Dubai. The available types are free zone company. For Mainland company the activity should be analyzed to identify whether 100% foreign ownership is possible.

How can I check a company in Dubai?

You can use services from The Ministry of Economy, the National Economic Register, and the Unified Commercial Registration System.

Is UAE good for starting a business?

UAE has a business environment suitable for foreigners who want to setup their startups. This is due to its location, distribution networks, and incentives. These include 100% non-domestic proprietorship and tax breaks.

What is the difference between establishment and company in UAE?

A sole proprietorship is owned by a single individual and cannot offer real estate or trading services. In contracts to that, there is no limit on the number of investors in an Limited Liability Company, as well as their services.

How long does it take to establish a company in UAE?

The average time is two weeks. A conventional business can take longer due to the varying services required. Note that for some industries, this time is longer, even reaching months.

Can you own 100% of a company in UAE?

Yes, In the United Arab Emirates, the companies registered in free zones and offshore companies could be fully investor-owned, even in case it is non-resident investor. For mainland companies such possibility also exists.

What are the restrictions on doing business in the United Arab Emirates?

The UAE offers many investment benefits. However, there are a few restrictions. For example, foreigners must follow local laws, and foreign investment is limited in some zones.

Are there any share capital requirements for specific organizations?

Requirements might vary depending on the type of company and free zone used. For example, in Dubai basic capital ranges from AED 1000 to AED 300,000

How do I open a corporate bank account for my company in Dubai?

To open a business bank account in Dubai IntelliumLaw requires the following documents from you:

  • Valid Trade License
  • Certificate of Incorporation
  • Share Certificates
  • Passport Copies.

InteliumLaw will help open bank accounts for investors. In most cases personal visit to the bank is needed.

Do I need a physical office to start a business in Dubai?

For certain type of businesses, it is possible to start without a full-scale office. Flexi desks, virtual offices, co-working spaces are available depending on the type of the company.  

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The accumulated experience and tracking of future changes in this area allow us to be proactive
for our clients and develop the most adapted business structures to modern conditions.

By submitting this form, you hereby authorize Inteliumlaw to process your information for the purpose of addressing your inquiry. You retain the right to revoke this consent at any point. For further details, please review our Privacy Policy.