Many key factors make Dubai an attractive business destination. It is one of the most productive places to set up and run a business. There are many reasons why Dubai is still the best place to set up a company.
A mainland company is a legal entity that can operate within and outside the nation without any restrictions. It’s a business entity falling under commercialized geographical areas and directly registered under the Emirates government and its authorities. This type of company can carry out business across the UAE and can indulge in any industrial, commercial, trading, professional, or tourism activities.
Benefits of Mainland Business Setup in Dubai
Free Zones are designated locations in UAE, where the expatriates can fully own and operate their business. It is one of the most sought-after locations for business operations. Due to its liberal policies and various incentives provided by Government, there is a huge surge of foreign direct investment.
Free zone company formation in Dubai is a great option for businesses because of various benefits like:
Free zones in Dubai provide a great range of business activities.
List of Free Zones in Dubai, UAE
An Offshore company is owned and managed by foreign investors who want to enter into international markets. It is ideal for entrepreneurs and investors who are looking to expand their business presence in Dubai, UAE. It is also known as a non-resident company. The income obtained from a holding company (offshore company) is not taxable.
As a holding company people can hold:
Advantages of Offshore Business Setup in Dubai
JAFZA, which was established in the year 1985 by the Dubai government, is the most popular Offshore in the UAE.
Dubai has created different legal forms to help companies establish and achieve growth. Business needs are different and each company requires a unique structure to incorporate. Here is the list of different types of business entities offered by the UAE to its entrepreneurs for business setup in Dubai and the UAE.
Sole Proprietor Company is a legal entity that is owned and operated by one individual. A sole proprietor is in complete control of the company’s operations and holds 100% shares to any profits. The person concerned is fully liable for the company’s debts or obligations. It does not need any special requirements other than having a residence permit in case of a foreign citizen.
A General Partnership Company in Dubai is owned by two or partners who bear unlimited liability. General partners, who must be UAE nationals, are liable for the partnership’s debts and obligations. It may dissolve at the time of bankruptcy, death of a partner, etc.
It consists of one or more general partners who bear the unlimited liability and are responsible for the company’s profits, losses, debts, and obligations.
A joint venture is referred to as a consortium and is formed by two or more legal entities or natural persons. A contractual agreement between an international party and a regional party licensed to conduct the business activity is signed here.
This type of company incorporation in Dubai is the most widely used in the region. It can be created by at least 2 but not more than 50 persons. The liability of the partners in an LLC is limited to the extent of their shareholding in the company. LLC may conduct different types of business activities except for insurance, banking, and or money investment. Here 51% ownership should be with the UAE national and the remaining 49% can be owner-owned.
A Professional Company in Dubai operates based on the intellectual efforts of its partners. Professional companies need to stringently follow the norms that are created by the government and a professional license is a must requirement to start a Professional Company.
This company allows for the most number of shareholders. A public Shareholding Company is also called a Public Joint Stock Company. It is a legal entity with the minimum capital amount and transferable shares of equal value with each shareholder liable only to the extent of their capital.
A private shareholding company is required to have no less than 3 shareholders. It is owned by a non-governmental organization and the minimum capital needed to register a private shareholding company is AED 2 million. At least 51% of the shares must be owned by a UAE national and GCC national can own up to 100% of the shares.
Limited Liability Company (LLC) in Dubai is the most popular form of company formation used by foreign investors. A 51% participation of UAE nationals is the general norm in all the company types with some exceptions.
The Department of Economic Development (DED), Dubai is the authority that provides the license for various business activities. One has to apply for a license to start business operations in Dubai. The 3 main types of licenses in Dubai are
Anybody who wants to involve in trading activities or buying and selling of goods, have to acquire a commercial license in Dubai.
The manufacturing businesses and industrial companies need an industrial license to operate in Dubai. It is issued for businesses that convert natural resources into products.
A Professional license is issued to various individuals or companies such as service providers, artisans, and/or craftsmen. It is required for an individual or a company to practice any profession in which he/she relies on talent and intellectual abilities.
These are the license types in Dubai. Apart from these three, one can apply for other licenses such as-
Firstly you have to determine the type of business you want to start. Choosing the business activity is one of the most important steps in the business setup. The different zone is created for different business activities and after the selection of the business activity, only the type of license is determined.
After deciding your business activity, you can choose your company name. You have to keep in mind different factors while naming a business. There are a set of naming conventions created by the authorities. So you have to follow all these and do the research to make sure that the name isn’t already in use.
You have to decide the type of entity you wish to incorporate in Dubai. The type of business depends on your business activity. There are various business entities available in Dubai and a Limited Liability Company is the most preferred one.
The next step for business setup in Dubai is to determine the most suitable location for your business. You need to set up your dream business in a place that is most convenient for you and meets all your business needs. There are types of locations like Mainland, Free Zone, and Offshore available in Dubai. The selection of region must be based on factors like costs, business activity, trade requirements, etc.
The details of shareholders and the company are included in MoA. Minimum share capital is usually presented in the Memorandum of Association of your company. You have to get the company’s Memorandum of Association notarized for the completion of business setup.
The most important step for starting a business is the submission of required documents. You have to apply for registering a Dubai business at the Dubai company register. You need to attach all the documents of the company with the DED to obtain a trade license from the Chamber of Commerce and Industry. A business consultant can help you with various paper works that are needed to complete the setup.
Documents required for setting up a business in Dubai and the UAE
The cost of business formation in Dubai will vary depending on the nature and location of the business. For the successful setup of a company, clarity on the cost of setup is a must requirement. Be it mainland, free zone, or offshore setups, we help you analyze all the costs and take care of the various challenges that you might face.
For mainland incorporation, various factors need to be considered. The total fees include
|Trade License fees|
The cost varies depending on the type of free zone one. The fee includes:
|One-time fee for registration|
|One-time fee for trade name-reservation|
|Annual fee for a business license|
|Annual fee for building|
The cost of setting up an offshore company in Dubai includes:
|Bank opening assistance fee|
Why Bizvise Business Setup Consultants?
Are you planning to set up a business in Dubai? Bizvise has carried out various business setup processes for diverse clients in Dubai. We are fully committed to helping entrepreneurs and investors realize their goal of business setup. Our team is well versed in business setup procedures and maintain a good relationship with all the government authorities
Bizvise’s business setup consultants take care of all the business setup services and assist businesses in various processes like documentation, tax, visa, legal, and licensing formalities. We work with your team through ought stages of business setup and help you in achieving your business objectives. If you are a foreign investor looking to start your business or intend to invest in an existing business, we can assist you in the provision of investor visa in Dubai.
If you are dreaming of starting a business in Dubai, then Bizvise is the perfect business consultant for you. We have designed our solutions in such a way that all the setup procedures are done in a cost-effective and timely manner.
We offer wide range of business setup services in Dubai .Our professional team can help you transform your business with the following services.
Register your business in Dubai with Bizvise business consultants and get customized solutions. We are experts in setting up new businesses in Dubai and understand the needs of every client. Our advices and solutions will definitely help you in your business journey. We can transform your dreams into reality!
Contact Us for Business Counselling to assist you from Formation and choose the proper jurisdiction or establish your business in Dubai or elsewhere in the UAE. The company formation processes, rules and requirements for incorporating a new company can vary wildly. We at Bizvise can help you navigate the complexity.