A complete guide for business formation in DubaiSetting 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.
Steps to setup a business in DubaiEssential 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 an individual themselves or with the help of a business setup consultant.
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 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 exempted from tax payments. These free zones are extremely popular due to the same reason and are preferred for business setup
- Technological advancements- The Emirate of Dubai is technologically advanced as it is the home to many technological and innovation advancements.The 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 the startups and other initiatives in Dubai. They come up with laws and provide support to businesses whether setup by locals or expats.
- Considered as 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
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
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 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-
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.
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.
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.
Public Joint Stock Company/classic
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.
Limited Liability Company/classic
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.
Private Shareholding Company/classic
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.
Why RadiantBiz is the best option for business setup in UAE?
RadiantBiz provides guidance on choosing the right business structure, obtaining necessary licenses and permits, registering your company, and finding a suitable location. We also assist with hiring employees and complying with local regulations.
Some of the specific tasks that your favorite business setup consultant performs:
- Providing advice on the most suitable business structure for your company, based on your business goals and needs.
- Assisting with the process of obtaining licenses and permits, including trade licenses and work visas.
- Helping you to understand and comply with local laws and regulations, including those related to employment and taxation.
- Identifying and securing a suitable location for your business, based on your needs and budget.
- Providing guidance on hiring employees, including assistance with obtaining work visas and complying with local labor laws.
Frequently Asked QuestionsMost Popular Question asked on Cryptocurrency license in UAE
Business setup 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.
Which setup is better depends on everyone’s needs and wants. Some companies may flourish better in a freezone business setup while others need a mainland setup to stand out. To figure out the best choice for your business, book an appointment with our experts today.
The most common business setup entity in Dubai is setting up a Limited Liability Company
People opt for a business setup in Dubai due to the many benefits. Even though the company registration steps are quite easy, people tend to miss some steps because they have a lot of work to do for their business as well. When a business setup consultant takes over, they handle the hard tasks so that you can focus on your business and other strategies to take it to new heights.