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.