How to Setup a Non Financial Company in Dubai
Setting up a non-financial company in Dubai, especially within a free zone like DIFC (Dubai International Financial Centre), involves a strategic process but offers immense benefits. A non-financial company refers to any business not engaged in financial services like banking, insurance, or asset management. These can range from tech startups, legal and consultancy firms, to restaurants and retail businesses.
How to Setup a Non-Financial Company in Dubai:
1. Choose a Business Structure
In Dubai, you have several legal structures to choose from:
- Limited Liability Company (LLC): Popular for businesses with multiple shareholders.
- Sole Proprietorship: Suitable for individual entrepreneurs.
- Limited Liability Partnership (LLP): Ideal for partnerships with minimal liability.
- Company Limited by Shares (LTD): Used primarily by larger corporations.
2. Select a Business Location
Dubai offers various options, including free zones (like DIFC, Dubai South, or JAFZA) and mainland areas. Free zones provide tax exemptions and full foreign ownership but often restrict business activities to within the zone or internationally. On the mainland, you can conduct business across the UAE, though you may need a local sponsor.
3. Obtain Licensing
To operate a non-financial company, you need to secure a trade license. For non-regulated activities, free zones like DIFC offer simplified licensing procedures. In DIFC, the process doesn’t involve the Dubai Financial Services Authority (DFSA) since it regulates financial companies only.
Required licenses include:
- Commercial License: For general trading and non-regulated professional services.
- Service License: For consultancy or advisory firms.
- E-Commerce License: For online businesses operating within the UAE.
4. Submit Documentation
The necessary documents for setting up a non-financial entity include:
- A completed application form.
- Passport copies of the owners and managers.
- A detailed business plan outlining the company’s objectives and financial projections.
- Proof of capital, which varies depending on the business structure. For instance, DIFC typically requires a minimum share capital of USD 50,000 for an LLC.
5. Leasing Office Space
To complete the registration, you’ll need a physical office in the designated area, particularly if you’re setting up in a free zone. Some free zones offer flexi-desk options, which are affordable for startups and small businesses.
6. Corporate Bank Account
Once your company is registered, open a corporate bank account in the UAE. This step is essential for handling the financial transactions of your business. DIFC’s regulatory framework ensures a smooth banking process, making it easier for businesses to manage their finances.
7. Visas and Employee Sponsorship
If you plan to hire employees, you’ll need to apply for employment visas. The number of visas you can apply for depends on the size of your office space. Free zones like DIFC offer visa quotas based on your office capacity, allowing you to sponsor employees as part of your setup.
8. Compliance with UAE Laws
Make sure your company abides by local laws and regulations. This includes adhering to the UAE Commercial Companies Law, following proper employment regulations, and filing annual audited financial statements.
Benefits of Setting Up a Non-Financial Company in DIFC:
- Tax Advantages: DIFC offers great tax advantages.
- Legal Framework: DIFC operates under an independent legal system based on English common law, offering international standards of governance.
- Ownership and Profit Repatriation: You can enjoy 100% foreign ownership, with no restrictions on repatriation of profits or capital.
Setting up a non-financial company in Dubai, particularly in free zones like DIFC, is designed to be straightforward and beneficial for businesses looking to operate in the UAE's diverse and growing market.