All You Need to Know About Company Formation in Dubai and UAE: 2019

Starting a business in Dubai implies understanding the difference between the formation of free zone and offshore companies. Next, you must choose a license based on the activities and services you want to provide. Finally, you must prepare all legal documents, open a corporate bank account and start the visa process.

The above tasks may seem like a lot of work, and in fact they can be. That's why the business setup consultants of the Business Link UAE will manage all the heavy work, which means you don't need to visit countless government authorities to do the job. And it all starts with a free and no obligation consultation where we will guide you through all the latest information on how to start a business in Dubai. Business setup in Dubai is made easy with UAE consultancy. Contact us today to start your business dream.

Opening a company in the UAE is prestigious! Today, the United Arab Emirates is a global economic center that has rapid development, a stable economy, favorable tax preferences and unsophisticated legislation, which attracts investors and entrepreneurs from around the world. The consulting company Business Link UAE offers a full range of UAE business registration services. Our team of lawyers and professional economists with extensive experience will help you open a company in Dubai and other emirates.

The UAE business registry is a demanding procedure complex. The qualified Business Adviser professionals are ready to help you. By trusting us, you will save your valuable time and money, since our company is located in the United Arab Emirates and provides services directly without any intermediary. That is why we have reasonable prices.

Once you have decided to open a company in the United Arab Emirates, you must first choose a location. It is noteworthy that each of the seven emirates has its own regulations and terms for records. In addition, there are free zones that have their own rules.

A local company is registered in the emirates territory of the country to operate within the emirates. According to national legislation, said company can only register if one of the partners is a citizen of the UAE and owns 51% of the shares.

If you want to open a company in Dubai with a 100% foreign participation, we recommend that you choose one of the free economic zones. And still, if you want to open a local company in the UAE, you must know its characteristics:

• A foreign citizen may own only 49% of the company's shares, while 51% will be owned by a local sponsor;
• The sponsor will receive an annual reward and will not participate in the company's operations.
• A company can participate in any type of activities within the UAE and abroad;
• A company provides a residence visa and a tax certificate;
• The location of the main office depends on the registry emirate;
• No audit requirements;
• No restrictions on the minimum authorized capital (1 AED is sufficient)
• Possibility of opening an account in any bank of the UAE.

Experience has shown that the registration of a local company in the UAE is only required in exceptional cases. Most of the activities can be carried out through a company registered in a free zone.

DUBAI COMPANY TRAINING OF A RESIDENT COMPANY (LLC)

• Opening a company in the UAE with a relevant local sponsor in the following cases:
• Cooperation with government organizations;
• Participate in public tenders
• UAE pit trade;
• Carrying out activities and providing services with the need for assistance and presence in assets in the other emirates;

When the activity of a company requires a large space and more visas, since the costs of office in the local land are lower than those of the free zones.

Generally, a local sponsor is required to open a restaurant, school, kindergarten, construction, travel or insurance company.

But there are exceptions. Companies targeting professional activities, such as legal, auditing and consulting, do not require a local sponsor. In such cases, a foreign entrepreneur who works in the emirates and outside a free zone has a 100% interest. Official support from a sponsor is required only during visa processing for employees and dealing with local authorities.

Business Setup in Dubai: Everything You Need to Know

The business setup Dubai has always been encouraged in Dubai. It is not surprising that Dubai is beginning to attract the attention of business investors since it began to show its economic stability to the international market.

The current market trends in Dubai offer many opportunities for foreign investors to take advantage of imports and exports of commodities, in addition to taking advantage of the city's growing tourist traffic for an almost unlimited number of potential clients and customers in their own way.

You should familiarize yourself with the various facts associated with a new company in Dubai and avoid the problems that are found mainly when launching a profitable company in the United Arab Emirates [UAE].

What to Do When Starting Your Business in Dubai?

1. Select a local sponsor, a UAE citizen to start local business

You should familiarize yourself with the various facts associated with starting a business in Dubai and avoid the problems encountered when launching a profitable company in the UAE.

There are many business opportunities available in Dubai, as well as in the other UAE Emirates. However, if you really want to start a business that should exploit the potential of Dubai, then you need a locally registered business LLC.

A UAE citizen must be taken as a 51% partner called a local "sponsor." A local company provides the freedom to locate the business anywhere in the city. For a new company in Dubai, this is a blessing because it offers the best choice of locations to fit your budget.

2. Select a Free Zone if you want to own your business 100%

Keep in mind that the only way for a business startup in the UAE to start without taking a UAE citizen as your partner is to place your business in one of the Free Zones. This is not practical for companies that must be in city markets such as restaurants and retail stores. In addition, companies that work with the government must register with a local sponsor.

3. Select a location that optimizes suitability, convenience and costs

Another important step in planning a new company in Dubai is to determine the most suitable location for the business. Establishing a for-profit company in the city would not do you much good despite the growing economy if your clients cannot communicate with you.

You need to establish your business in an area that is more profitable for your business or more convenient for your business. You can select a location in the right city for a store or an office that is best known for the type of product or service you are dealing with.

4. Hire a registration agent to guide you through the business startup process

The best option is to hire a business consulting company to register the start of your company.

These consultants will not only help you during the setup process, but they will also register the company for you. And it will help you open your bank account, organize an auditor, make your renovations and offer you nominated services.

In most cases, these firms offer a team of experts to plan your company's registration from scratch: this includes the strategies you should follow to establish your business without problems, detail potential costs, offer licenses and location options, and devise solutions for possible trade barriers, etc.

In addition, they will take care of all the necessary requirements to help you register your business legally with a minimum of problems on your part.

According to the above details, it is clear that the Business Setup in Dubai is an extensive process! However, you can do it quickly and profitably by designating a business setup consultant. With an expert business advisor, you will not waste your money on unwanted documents. In addition, as they are well versed in the procedure, the formation of the company can be instantaneous. Then, all the best with your business!

How to Setup a Company in Dubai

As a geographical and economic hub of the Middle East, global investors see the United Arab Emirates (UAE) as a vital element of their operations. Dubai is the second largest emirate and is located as the most important port and commercial center of the UAE. It has worked to become a widely diversified economy. Critical sectors include manufacturing, logistics, financial services, information technology, retail, travel, tourism, medical care and education, as well as a strong focus on green technologies.

To attract international business, Dubai has invested heavily in its transportation, telecommunications, energy and industrial infrastructure. There are no taxes on income or capital in Dubai, except for oil and national banks, and there are no withholding taxes. Businesses in Dubai can gain additional significant advantages due to the absence of foreign exchange controls, trade barriers or quotas, which makes it an ideal place for business creation and business formation.

The main law that provides for the registration of companies on land in Dubai is the Companies Law. It establishes all the rules that must be met before and after the registration of a company.

In the case of offshore companies or free zones in Dubai, each authority imposes its own registration requirements.

The procedure to open an offshore company in Dubai differs greatly from that necessary to incorporate a company on land. If currently, you are not sure which one you need, consider the following:

1) a) an offshore company (RAK Offshore, for example) has no special requirements or limitations with respect to the owners / shareholders of the company while

  b) a company on land does not allow total foreign ownership (the company requires a local "sponsor"). For more information on the requirements, see: Establishment of a company on the UAE land.

2) a) an UAE offshore company gives 0% corporate tax while

    b) a company on land has fiscal obligations and compliance requirements according to UAE legislation.

3) a) an offshore company cannot be activated within the UAE;

     b) a company on land is designed to do business in the Emirates.

To summarize: if you are not interested in the Dubai market (your clients are not within Dubai) and only want business set up in UAE to take advantage of the tax regime, privacy and / or offshore banking, then it is advisable to start an offshore company in one place on land.

Setting up a business in Dubai requires a thorough investigation and most of the time it is attractive for professional services. Our business training agents in Dubai can help you with more details on the main steps if you want to open a business in Dubai.

A foreign company that wishes to setup a business in the UAE may choose to establish operations as a branch, representative office or registered company, or it may designate a commercial agent for selling its products in the UAE market or export them. New companies may also choose to carry out their activities from a Free Zone, which is a designated and self-regulated area established to catalyze economic activity within an emirate and is governed by its own set of rules and regulations. There are about 40 free zones in the UAE, with more in development.

It is important to have a complete understanding of your options before deciding how to establish your company's presence in the UAE. The overall growth of your company in the United Arab Emirates may be hindered when making the wrong decision, therefore, consider the following points when deciding the best structure for your needs.

Business Link UAE’s team of professional business training specialists help local and foreign investors to follow the main steps for business formation in the UAE and open the type of business required. The business configuration in the UAE is not difficult, but many foreign entrepreneurs do not know the local regulations, so it is recommended to contact a local agent for the configuration of the company in the UAE. The agent will explain to the foreign investor the differences between local and foreign companies and those established in free zones and will help him choose the one that is suitable for his business needs. Then, the entrepreneur must prepare the documents for the formation of the company in the UAE and begin the incorporation procedure.

What & How-to Setup Business in Dubai Mainland?

Setting up a Business in Dubai Mainland

Many investors investigate Dubai mainland destination to start-up a new company. This location has attained such popularity among investors due to the business freedoms present in Dubai, UAE. Dubai is a city which is reaching huge growth due to the wide presence of start-up companies. Being a golden city for business investors, it has created ample opportunities for businesses. All over around the world, the city offers a great platform to formulate a business enterprise.

The business innovators are highly motivated with a wide list of factors present in the regions of the UAE. It includes operating exposure across the boundaries of the nation, genial government for investors, and so on. In addition, the company formation attracts hefty overseas funding and several advantages received from perks in Dubai Mainland. 

The Benefits of Setting Business in Dubai Mainland

The main benefit derived from starting a business in Dubai Mainland is the corporate tax indemnity. Apart from them, ample of advantages fall for the businessmen in Dubai. Other benefits of mainland company setup are mentioned below:

• Freedom of currency.
• Uncomplicated and quick employment visas processing.
• Freedom of choosing any location.
• Liberty to run the enterprise from anywhere in the UAE.
• Not essential to maintain a proper capital amount for getting a Dubai Mainland business license.
• Easy processing of legal documents without any constraints.
• Dubai Mainland company setup invites 100% profits repatriation.
• Easy to get registration and license.
• Presence of an uncomplicated process for incorporating any company.
• Liberty from any kind of yearly audits

How to Set up Business in Dubai Mainland?

In the UAE, any marked legislation rules are not applied for starting any company. The registration and license procedure follow an easy path. Though, it is necessary to keep in mind certain points essential before setting up a company in Dubai Mainland. Procedures for Dubai mainland business startup includes the following points:

1. Getting a license:

The business license in Dubai Mainland includes three types of licenses. It includes the industrial, commercial, or professional license. The industrial license is permitted to the industrial-based companies. The commercial license belongs to the trading companies. The professional license permits to the professional service providing enterprises.

2. Other miscellaneous considerations:

In addition to the license, it is necessary to consider certain other things also which includes the following:

• Government laws.
• Proper bank accounts.
• UAE bases legal conducts.
• Taxation policies.
• Eligibility criteria for getting the Visa.
• Shareholder’s meeting.
• Board meeting.
• Various chambers.

What does it take to Set up a Business in Dubai Mainland?

In this section, several points are necessary to consider which are mentioned in the following points:

• Meet a local sponsor.
• Get registered with the Department of Economic Development.
• Hire Company formation consultant in Dubai.
• Conduct the verification of your business location or address.

Business setup in Dubai is a lot easier when you have the right company formation consultant like Business Link UAE, to guide you. Our Professionals assist all entrepreneurs with business formation procedure, registration and more. Serving in UAE from past so many years, makes Business Link UAE a preferred choice for investors. Whether you require visas for your business partner, employees, your family or you need an office space which suits your requirements, Business Link UAE is here for you. For any query, please contact us at info@businesslinkuae.com or call us on +971 43215227.