Business Setup in Dubai, UAE

Why to Setup Business in Dubai?

Setting up a Business in Dubai: Tips, Tricks, and Expert Advice

With the growing popularity of Dubai as a business and economy hub, more and more people are setting up in the country. The contribution of the real estate, financial, tourism and trade industry in the revenue of the country is huge. It is strategically located with an environment that ensures complete trade freedom.

The business friendly policies and diversification is all you need to step up your business’s growth rate. And who doesn’t want tax benefits when starting with their company formation Dubai? Why would anyone want to lose such a chance? You are just a step away from your company setup in Dubai with our experts at RadiantBiz. company formation in Dubai

Steps to setup a business in Dubai

Essential steps to setting up a business in Dubai

With more and more people setting up their business in Dubai, there has been a common query on how to set up your business in the Emirate. The steps are quite simple and can be followed by the individual themselves or with the help of a trusted business setup consultant in Dubai
Please keep in mind that every step of the process is essential and should be followed with care to ensure that nothing is left. Leaving even a single document can cause your business license to get rejected in Dubai.

Decide on the legal structure and activity of your business
Shortlist and register a trade name
Decide the location of your business
Collect the documents for submission
Apply for license
Open a corporate bank account

Benefits of doing business setup in Dubai

In recent times, people have noticed a high rate of growth in the economy of the emirate as well as their business. Due to this upward trend in companies’ revenue, more and more people are going for business setup in Dubai. The emirate has now become the first choice for foreign investors and entrepreneurs.

Open economy and sector oriented trade are the key factors that draw people to this place.By setting up your business in Dubai you get the following benefits

Lower taxes- Dubai has lower taxes and even no tax facilities for the businesses operating here. With tax exemptions, business setup in Dubai is getting popular day by day. The lower tax policy attracts many people and helps in diversifying the economy.
Higher connectivity – Since Dubai is a hub for investment and business, it provides a higher level of connectivity between flourishing businesses and other people in the industry.
More than 20 free zones – The emirate has more than 20 free zones that provide 100% ownership to expats and are exempt from tax payments. Dubai Free Zone business setup is extremely popular due to the same reason and is preferred for business setup
Technological advancements – The Emirate of Dubai is technologically advanced as it is the home to many technological and innovation advancements. Startups in the IT industry have flourished beyond any other sector.
Easy visa procedures- Getting a visa for yourself is an easy process in Dubai. You can also apply for the visas of your dependents once a business license is issued to you.
Governmental support and initiatives – The government in the UAE has been extremely supportive of startups and other initiatives in Dubai. They have come up with laws to provide support to businesses, whether setup by locals or expats.
Considered a business and investment hub-People from all over the world come here to invest and start their own businesses since UAE is a tax haven.
Highly developed infrastructure- The infrastructure in Dubai is highly developed and modernized facilities are available for the residents of the emirate.
High standards of living- Dubai is a comfortable place to live. The low crime rates have made it a safe place to live in. The high standards of living are making people prioritize this location for their business setup.
Accessible location- The location is near the airport and connects various locations by water and road routes as well. The accessibility of this location is a plus point for those who want to set up a business.

Hasslefree, Fast and Secure Business Setup

Business setup in UAE is an easy process. You can setup in one of the following jurisdictions

Freezone License

A Free zone is an area where you can do business while getting tax exemption and custom duty benefits even as an expatriate. The following are the benefits of setting up your business in a freezone:

Tax Exemption
No import and export duty
100% ownership
100% profit repatriation
Easily available workspaces
Ease of setting up business
Infrastructure and support
Access to global market
Legal & regulatory framework

Mainland License

The mainland includes the area except the free zones and business activities here are regulated by the Department of Economic Development. The benefits of setting up here are as follows:

Location flexibility
No trade restrictions
100% ownership
Broader scope of trade
Exemption from corporate tax
No restrictions on number of visa that you can obtain
100% repatriation
Access to global market

Offshore License

Offshore companies are registered in Dubai but set up their base outside Dubai. The benefits of setting up your business in Offshore are the following:

Flexibility of having anyone as your investor
You can trade universally along with your other ventures
You can maintain your secrecy
Exclusion from taxes
No minimum capital needed
100% repatriation
Asset insurance
Venture expansion

What are the documents required for company setup in Dubai?

Company formation in Dubai gives you the advantage of being able to run your company in the investment and business hub. With a business friendly environment, it is one of the best choices for anyone who wants to get started with their business setup process and reach great heights.

Here are the list of documents required at the time of business setup in Dubai:

Applications for the Business Plan
MOA and AOA that has been duly notarized by the authority
NOC from the Sponsor
Copy of the Sponsor’s passport certifying that they are United Arab Emirates citizens.
NOC from the Sponsor.

What are the different corporate setup entities in Dubai?

The structure of your company decides where you can operate and the types of business activities you can take up. It also determines the stakeholders, ownership and the board of directors of your company. The following are the types of corporate setup entities in Dubai-

Sole Proprietorship

Only one individual may own sole proprietorship. When it comes to the business, the owner has 100% Ownership in Dubai Mainland. Any person of any nationality may own a sole proprietorship of any professional kind.

General Partnership

A general partnership is formed when two or more UAE citizens come together and assume joint responsibility for the partnership’s debts. Transferring a partnership stake requires the consent of all partners.

Limited Liability Company

Up to 50 shareholders may be part of a limited liability company (LLC). Each shareholder is accountable for their respective firm shares. Following death, the shares are given to the heir. They have to choose 1–5 managers.

Representative Office

A representative office is not the same as a branch office. Foreign businesses can establish representative offices in the UAE to spread the word about their products, but they are not allowed to conduct business here.

Public Joint Stock Company

The public must have access to at least 25% of the shares. A board of directors with a term limit of three years should be in charge of managing the organization, and a minimum of ten founding members are necessary.

Private Shareholding Company

Any type of business or sector may incorporate a private shareholding company. It must have at least three GCC or UAE citizens present in order to form. Two years or more after their formation, they may go public.