Mainland Business Setup in Dubai, Sharjah, Abu Dhabi, Ajman - UAE
Welcome to the world of endless opportunities in business.
COMMERCIAL, PROFESSIONAL & INDUSTRIAL LICENSING.
COMMERCIAL - Commercial business licnese is LLC (Limited Liablity Company) where UAE Natinal is 51% share holder & expat investor is 49% share holder. However 100% of assets and profit & loss is protected in favour of expat investor by internal agreement signed between UAE National and expat investor.
PROFESSIONAL - Professional business license is 100% owned by expat investor. UAE national is a service agent for the company.
LICENSE AUTHORITY - Department of Economic Development (DED) is the responsible Government Department to issue the license.
RESIDENCE VISA - Expat share holder will be entitled for 3 years renewable reisdence visa.
BRANCH - By Opening Branch or Representative Office of Foreign or Freezone Companies to exercise its main activity in Mainalnd UAE.
RENEWAL : Cost Effective Trade License Renewal for LLC, General Trading & other licenses in Dubai, Sharjah, Abu Dhabi, Ajman and RAK Mainland.
Offshore or on-shore company in Dubai?
The procedure for opening an offshore company in Dubai differs very much from the one necessary for incorporating an on-shore company. If you're not sure at this stage which one you need, please consider the following:
1) a) an offshore company (RAK Offshore for instance) does not have any special requirements or limitations regarding the owners/shareholders of the company while
b) an onshore company does not allow full foreign ownership (the company requires a local "sponsor"). For more info on requirements please see: Incorporation of an UAE Onshore Company.
2) a) an UAE offshore company pays 0% corporate tax while
b) an onshore company has tax obligations and filling requirements per the legislation of the UAE.
3) a) an offshore company cannot activate within the UAE;
b) an onshore company is designed to do business in the Emirates.
To summarize: if you are not interested in the Dubai market (your clients are not located within Dubai) and your solely starting your company to take advantage of the tax regime, privacy and/or offshore banking, then it is advisable to start an offshore company rather than an onshore one.
Starting a business in another country requires a thorough research and most of the times appealing to the services of professionals. The company incorporation procedure in Dubai resembles the procedures in most European countries provided that the foreign investors have acquired all the information about the business activity they will undertake and know all the business licensing requirements. Our company formation agents in Dubai can help you with more details about the main steps if you want to open a company in Dubai.
How easy is to open a company in Dubai?
In most cases, the Dubai Company Act requires a foreign investor to have a local partner who will own the majority interest. The only places investors may incorporate fully foreign owned companies are the Dubai free zones. The company registration requirements will be different from case to case because of the type of company one chooses to open in Dubai. According to the Company Law, investors may set up the following types of companies in Dubai:
- limited liability companies,
- private and public joint stock companies,
- branch offices,
- free zone limited liability companies,
- free zone establishments.
For those seeking a simpler form of doing business in Dubai, the sole proprietorship could be an appropriate choice. Depending on the selected type of company and licensing requirements, the company formation in Dubai procedure with the Companies Registration Office will take several days.
What are the requirements to open a company in Dubai?
Many foreign investors choose to open a company in Dubai in one of the free zones as these offer an easy procedure and require a few documents. Here are the main steps to follow:
choose the type of legal entity - there are two types: Free Zone Limited Liability Company or Free Zone Company and Free Zone Establishment;
choose a business name for your company and verify its unicity and conditions imposed by the free zone authority;
apply for a business license with the local authorities, depending on the primary activity of your business;
find a space for your office (we can help with a virtual office); you can buy or rent it;
register your company and obtain the license.
There are various capital requirements that differ from a free zone to another. For example, you will need AED 150,000 to open a company in KIZAD, AED 1000 for an LLC in Dubai Airport Free Zone and AED 50,000 in DMCC. Every free zone has an authority that regulates the business activities performed there. It is recommended to get in touch with the respective authority before you open a company in Dubai in order to find out the permitted activities in each free zone and the procedure for company formation. Generally, you can perform businesses in different fields in the free zones: finance, education, retail, hospitality etc.
The Commercial Law does not require Dubai limited liability companies to deposit a minimum share capital before registration, therefore the shareholders will decide the amount they need to help them reach their goals. For joint stock companies, there are different share capital requirements depending on the business they will undertake:
- public companies will require a minimum share capital of 10 million AED,
- insurance and investment companies will require a minimum share capital of 25 million AED,
- financial institutions require a minimum share capital of 40 million AED.
The Dubai Chamber of Commerce and Industry (DCCI) issues the following types of business licenses:
- commercial or trade licenses,
- industrial licenses,
- professional licenses.
Our company formation agents in Dubai will help foreign entrepreneurs with the business license applications.
Are there other requirements for company formation in Dubai?
Other requirements for company formation in Dubai are:
- drafting and notarizing the company’s memorandum and articles of association,
- opening a corporate bank account,
- registering native workers with the Ministry of Labor,
- registering native workers with the social security authorities.
Whenever you want to open a company in Dubai, you may contact our company formation representatives who can also help you incorporate companies in other important business destinations, such as Singapore.