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Company formation in the UAE is on the rise, owing to the region's expanding commercial prospects. Factors such as ease of doing business, government support, a strong network of international and local commercial banks, no personal or corporate tax, 100 percent foreign ownership, and a slew of other business advantages have made the UAE the No. 1 destination for investors looking to start a new business.

Thousands of global corporations, including Fortune 500 organisations, call the UAE home. There are about 40 Free Trade Zones in the UAE that provide various options for establishing a business. The UAE's Free Zones enable expats to control 100% of a firm and hire personnel from any nation. For a worldwide investor, forming a corporation and opening a corporate bank account in the UAE is completely free.

The cost of forming a corporation in the UAE starts at AED 25,000 for a mainland trade company licence. For AED 20,000, investors can form a civil business with a single shareholder and local service agent. There is no necessity for a local service agent for GCC and UAE nationals to register a civil corporation.

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Company Formation in Dubai, UAE

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AED 5,500

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Mainland company setup

Get your UAE license with full ownership and no corporate or income tax.



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AED 18,000

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Office Space Setup

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AED 15,350

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Company Formation in Dubai - An Overview

The United Arab Emirates (UAE) is a federation made up of Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, umm al-Quwain, and Ras al Khaimah that was created in December 1971.

Dubai is one of the major cities in the Middle East, with several prospects for foreign investors to establish various types of businesses. This city has increased its opportunities to guarantee that it continues to grow. Aside from that, the Middle East is one of the world's top oil exporters. There is no tax imposed on people and individuals in Dubai, either directly or indirectly. As a result of all of these possibilities, more people are interested in going through the business registration procedure.

There is a dedicated space in Dubai where different types of registration operations linked to compliance may be carried out. The Dubai International Financial Centre is the name given to this location (DIFC). Different types of financial hubs exist not just in Dubai, but across the Middle East, allowing for the convenience of carrying out various businesses in Dubai.

When it comes to foreign ownership of a corporation in the DIFC, there are no restrictions. As a result, the directors and shareholders of a Dubai-registered company might own the whole firm.

Indirect taxes, such as VAT, are present in Dubai when it comes to taxation. This is a 5% value added tax on all goods and services delivered in Dubai. Employees working in Dubai are not subject to any sort of individual income tax. As a result, all of these benefits would be a compelling reason for an investor to register a company in Dubai.

Dubai Regulatory Authority for Company Registration

The Registrar of Companies is Dubai's primary regulatory body for business creation. This registrar would serve as a centralised authority for completing various types of company compliance and registration. In most cases, a business registration application in Dubai is submitted to the Registrar of Companies.

Areas Concerning Dubai Company Registration

In Dubai, you have the option of registering your business in one of the following areas:

Inside DIFC

DIFC is a viable option for a company formation for an investor. There are several advantages to choosing this location, which include more than simply the simplicity of forming a business or complying with regulations. When it comes to foreign ownership of a corporation in the DIFC, there are no restrictions. As a result, the directors and shareholders of a Dubai-based corporation might be entirely foreign-owned.

Outside of the DIFC

This is the territory or jurisdiction that is not part of the DIFC. Outside of the DIFC, a corporation can be formed. According to the Federal Commercial Companies Law No. 2 of 2015 (Companies Law), companies that are not subject to the DIFC's jurisdiction must adhere to the foreign investment rules.

The citizenship factor would be used to categorise the ownership component of the organisation. The UAE national must own 51% of the company. Any entity owned by a UAE national would be included in this category. In 2018, these prohibitions on foreign investment were lifted in a number of areas.

The Advantages of a Dubai Company Registration

The following are the advantages of forming a corporation in Dubai:

Provided Regulatory Environment

Dubai's courts adhere to the common law system. However, precedents from court cases are handled in Dubai by attorneys with US and UK legal degrees. Dubai has a one-of-a-kind regulatory system.

Foreign ownership is permitted in its entirety.

A corporation incorporated in the Dubai DIFC is permitted to have 100 percent foreign ownership. As a result, a foreign investor or shareholder might possess 100 percent of the firm.

Compliance Ease

When compared to other types of jurisdictions, Dubai has lower compliance.

Reduced Tax Burden

When compared to indirect tax, the amount of direct tax collected on a person would be smaller. In Dubai, indirect taxes such as VAT exist. This would be regarded a value added tax, which is levied at a rate of 5% on the quantity of products and services offered in Dubai. Employees working in Dubai are not subject to any sort of individual income tax.

Types of Business Structures Used in Dubai

For business registration in Dubai, the following structures would be used.

A corporation whose capital is restricted by shares

This type of corporation is sometimes referred to as a private limited company, and it is restricted by a set number of shares.

Limited Liability Corporation (LLC)

These corporations' liability is often restricted to the number of shares issued.

Regional Office

Typically, this type of organisation is founded outside of Dubai. However, an office has been established in Dubai to continue out activities.

Limited Liability Partnership

The limited liability partnership, sometimes known as an LLP, is a partnership entity governed by many partners. The partners' liabilities are restricted.

Foreign Limited Liability Partnership (FLLP)

This sort of partnership business is often a foreign-owned firm managed by shareholders who are primarily foreign residents.

Eligibility Criteria for Dubai Company Registration

For business registration in Dubai, the following qualifying conditions must be met:

Requirement for Licensing

A firm is created with the primary goal of carrying out some activity. For a corporation registered in Dubai, there are three types of licences available. The following are the licences:

  • Commercial licences that cover all types of trade activities.
  • Professions, services, craftspeople, and artisans are all covered by professional licences.
  • Industrial licences are required for the establishment of an industrial or manufacturing facility.

Execution of Free Zone Business

In most cases, a local sponsor is necessary for business registration in Dubai. Finding a local sponsor is a crucial need for a person. As the local sponsor must be a UAE national with more than 51% ownership of the firm. Typically, a person would engage into some sort of profit-sharing arrangement with the local profits and agree on a sharing ratio that the parties would choose.

Choose the Form of Business Structure

When applying for company registration in Dubai, the applicant must choose the kind of business structure that will be used. There are several benefits and drawbacks to selecting the kind of business structure.

Documents Required for Dubai Company Registration

Because there are several types of enterprises in Dubai, each would require a unique set of documentation. For business registration in Dubai, the following papers would be required:

  • Application form of the Business
  • Bank Reference Letter for Each Shareholder
  • Business Plan
  • MOA and AOA which is duly notarised by the authority
  • NOC from the Sponsor
  • Passport of the Sponsor to prove that he/she is a UAE National
  • Passports of the Managers of the Business

For an industry license apart from the above documents the following documents have to be provided:

  • Copy of the Feasibility Study
  • Existing Company Profile
  • Information related to the Investor

For Setting up Branch Offices

  • Copy which is attested related to the Certificate of Incorporation, MOA and AOA
  • Board Resolution of the Company
  • Three months bank statement related to the parent company
  • Passport Copy and Original Power of Attorney

Why Choose Dhanguard?

Dhanguard will assist foreign investors in establishing a company in the UAE by using a comprehensive strategy that will allow investors to focus on their primary business operations while our PRO Agents manage the administrative requirements.

The establishment of a firm in the UAE The investor begins by picking three tradenames for the newly founded firm. The name is subject to approval by the relevant authorities (Dubai Economy/Free Zones). The investor then selects the appropriate connected business activity and business licence type. In addition, the appropriate business jurisdiction (Mainland/Free Zone/Offshore) for establishing the firm must be determined.

Once the business jurisdiction has been established, hunt for suitable office space and draught the rental agreement. To acquire their firm licence, the investor must now submit the relevant documentation as well as the business licencing money. Apply for a residency visa in the UAE and create a corporate bank account in the name of the newly formed firm.

With Dhanguard Business Consultants assisting you throughout the whole business formation procedure, you can sit back and relax knowing that our Expert PRO Agents will handle all of the above responsibilities tirelessly. We guarantee that you will have the most frictionless company formation in the UAE and that you will obtain all company documentation in the shortest amount of time feasible in order to begin commercial activities as soon as possible.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

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