How does Company Formation in Dubai Happen?
The United Arab Emirates is a nation which has a booming economy and is the top business destination for global investors. It also records an increase in migration every year due to the easy visa approval process.
To start a company in the UAE you need a trade licence and the company formation can take place in any of the three jurisdictions – Mainland, Free Zone and Offshore.
It is mandated for the promoter or business owner who intends to establish the Mainland company needs to make a decision on which type of licence is required.
Licences under mainland are:
· Professional licence
· Commercial licence
· Industrial licence
· Tourism licence
Company Registration in Dubai via DED
To form a new company in Dubai, you need not have a physical office premises. The DED licence allows you to work with the UAE government entities and operate your business across the UAE.
Dubai’s eTrader licence allows company formation to the UAE and GCC nationals in Dubai to carry their business through social media networks. The UAE Government permits the holders of the eTrader licence to get registered under a single owner name.
Locations for Company Registration in Dubai
You can register your company in any of the below-given locations in Dubai-
1. Mainland
2. Free Zones
3. Offshore
How long does it take for a company to form in Dubai?
You may expect anywhere between 4-45 days for setting up business in Dubai depending upon –
· The nature of your business
· Jurisdiction of your business
· Structure of shareholding
· Your residency status in UAE
What is the validity of a Trade Licence in Dubai?
The validity of the Dubai DED and Mainland licence is valid for up to one year.
Different types of trade licence in Dubai under the mainland are:
· Commercial licence
· Industrial licence
· Professional Licence
· Tourism licence
Free Zone Licence
If Free Zone is where you intend to form your company then you are entitled to these benefits-
· Foreign Business Ownership -100%
· Import & Export tax exemptions- 100%
· Capital and Profits Repatriation -100%
· Currency Restrictions - None
· 15 years corporate tax exemption with a renewable option
· No incidence of personal income taxes
COMPANY FORMATION DUBAI – Broad Overview
Getting a work visa, study visa and business permit in the UAE is not complex. The immigration laws are simple and easy to understand but need to be adhered to strictly. Not only you, but a footfall of investors determined to form a company in Dubai queues long.
The company formation process starts with registering your company’s name, and then the next step involves acquiring a business licence. After successfully completing these two steps, the third step is the visa processing and finally the bank account opening.
Depending upon how accurately you have filled in details and are subject to the verification of documents, you will be allowed to form your company in Dubai.
Simplified Steps in the Company Formation in Dubai-UAE
1. Finalise/Decide about your business activity
2. Registration of Trader (You)
3. Get the Visa
4. DED Registration & Documents submission
5. Get the sanction
6. Notarize your business Memorandum of Association (MOA)
7. Obtaining Trade Licence
8. DCCI Membership Registration
9. Application to the Ministry of Labour
10. Employee Registration for Pension and Social Security
Types of Companies in Dubai – UAE
Public and Private Shareholding Companies – T
The Private shareholding requirement is 2 million and 10 million dirhams for Public shareholding companies.
In Private shareholding, the ownership of shares is 51% with GCC nationals and 49% with foreign investors. Whereas, 55% of shares are open to the public with 25% paid subscriptions in Public companies.
General and Limited Partnership Companies - Only for UAE nationals in both companies.
Joint Venture Company - Also known as Consortiums and need two UAE nationals for company formation
Limited Liability Company – The liability of partners is limited to their shareholding and the minimum share capital requirement is 300000 dirhams.
With the right advisory setting-up company in Dubai is quick and easy
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