Company Registration in Dubai

Introduction

Dubai is becoming the best place to start a company nowadays. According to Mohammad Ali Rashed Lootah, president and CEO of Dubai Chamber of Commerce & Industry, Indian Entreprises thrive in Dubai’s Business Ecosystem and that’s evident from a remarkable 39% uptick in the registrations of Indian-owned companies. Dubai has more than 25 Free Trade Zones (FTZ) which attract entrepreneurs and business owners globally. Company Registration in Dubai includes several steps and documentation. In this article, you’ll get the complete details including types of business setup, documents required, company registration procedure, advantages, etc.

Company Registration in Dubai

In order to run a company in Dubai, individuals need to do Company Registration in Dubai. The process is an essential step to run a company in Dubai and without this registration, you are not allowed to run your company in Dubai. The company registration process in Dubai includes choosing the right business structure whether mainland, free zone, or offshore. Let’s discuss the types of business structure in detail.

Types of Business Structure

Before starting your company in Dubai, you need to select its business structure. Dubai offer three major business structure to start a company and these business structure are as follow:

1. Dubai Free Zone Company Registration: Dubai Free zone companies are located within FTZs (Free Trade Zones), where unique regulations on taxation, ownership, and customs apply, differing from those in mainland Dubai. Foreign entrepreneurs can enjoy 100% ownership of companies set up in these zones. There are two types of companies they can establish in an FTZ: Free Zone Establishments (FZE) and Free Zone Companies (FZC).
2. Limited Liability Company (LLC): A Limited Liability Company (LLC) in Dubai requires a minimum of two shareholders and can have up to 50 shareholders. Each shareholder's liability is limited to their respective contributions to the share capital. LLCs can engage in any type of business activity, except for banking, insurance, or financial investments.
3. Dubai Onshore Company Registration: An onshore company refers to a business set up in mainland Dubai and managed by its directors locally. Previously, foreign entrepreneurs could hold only 49% ownership, requiring the involvement of a national sponsor or agent for the remaining share.
4. Dubai Offshore Company Registration: An offshore company is established and operates outside the jurisdiction of the country where it is registered. In Dubai, it is fully foreign-owned but typically based in another country. Foreign entrepreneurs enjoy 100% ownership of these offshore companies.

Types of Business License

There are three major types of business license required to start your company in Dubai. These are as follow:

1. Commercial License: Commercial License is required for trading purposes, mainly suitable for buying and selling of goods.
2. Industry License: It is ideal for companies engaged in production or industrial operations.
3. Professional License: Professional License is required to those who are engaged in professional activities such as artist, technical, etc.

Documents Required for Company Registration in Dubai

Following is the list of documents required for Company Registration in Dubai:

• Memorandum of Association (MoA) and Articles of Association (AoA) of company is required
• Board Resolution along with the formation detail of the branch
• Shareholders and Directors Passport Copy is required
• Copy of the national identity card of the Directors and Shareholders
• Share Capital Information
• Shareholders and Directors recent bank statement or utility bill or credit card statement containing the name and residential address.
• Duly authenticated contract of appointment of a company or service.

Procedure of Company Registration in Dubai

Company Registration process in Dubai includes several steps and they are as follow:

• Step 1: Choose the Business Structure: To register a company in Dubai, you need to choose the right business structure. An individual can go for a free zone company, LLC, onshore or offshore company.
• Step 2: Select your Company’s Name: Once you choose the business structure for your company, next you need to select its name. Make sure the name is unique from competitors and easy to recognise.
• Step 3: Apply for a Business License: After selecting the name for your company, you need to apply for business licenses. These licenses include commercial license, industry license, professional license.
• Step 4: Jurisdiction: Once you get your required licenses, you need to select the location of your office. It totally depends on the type of your business. Also, you have to select the number of employees and the office. Dubai has different locations for different purposes of the company.
• Step 5: Opening a Bank Account: After successfully registering your company, you need to open a corporate bank account for payment purposes.

Advantages of Company Registration in Dubai

There are certain advantages of company registration in Dubai and they are as follow:

• 100% Repatriation: Company Registration in Dubai allows 100% repatriation of capital and profit.
• Physical Infrastructure: Dubai is considered as one of the best places for modern and royal infrastructure.
• Cost Effective: Due to lenient labour laws in Dubai, it is cost-effective to recruit labour forces.
• Shared & Virtual Office: In Dubai, shared and virtual office facilities are offered by some of the Free Trade Zones.
• Income Tax Exemption: Company Registration in Dubai offers some exemptions in personal and corporate income taxes.
• Custom Duty Exemption: Dubai companies are excluded from import and export duties.

Why Choose Bizfoc?

Company Registration in Dubai includes various complex paperwork which can be tough for an individual to manage, Bizfoc has a team of professionals with multiple years of experience. We will guide you throughout the process and make the registration process easier for you. Also, we value money and thus offer the most affordable price to register a company in Dubai.

Conclusion

Setting up a Company in Dubai opens the doors to exciting business opportunities including the location, infrastructure, tax exemption and business friendly rules. Dubai is one of the popular choices for entrepreneurs as Dubai offers different business structures such as free time zones, LLC, onshore company, offshore company, etc. With the right advice and careful planning, the process can be smooth and hassle free.

Frequently Asked Questions (FAQs)