Dubaiis an attractive destination for entrepreneurs looking to set up a business due to its strategic location, tax-free environment and pro-business regulations. The process of setting up a business in Dubai is relatively simple, especially in the form of the free zone company. A free zone company is a limited liability company (LLC) that is 100% foreign owned and offers many benefits such as 100% ownership, no personal income taxes, no corporate taxes and no restrictions on repatriation of profits.
How to Start a Business in UAE:
The UAE offers many incentives for starting a business, making it an attractive option for entrepreneurs. The process of setting up a business is relatively simple and can be done in a matter of minutes.
The first step is to choose a business activity and obtain the necessary approvals from the Economic Department.
Once this is done, the investor can apply for a trade name and register the company with the Chamber of Commerce. Starting a business in the UAE is a straightforward process that can be completed quickly and easily
Who can start a business in Dubai?
The process of starting a business in the Emirates is quite simple. This is due to the fact that the government provides many benefits for those who choose to establish a company there.
The key point to remember is that, with the exception of a sole proprietorship, most types of businesses will require an Emirati partner who owns 51% of the enterprise. Once that’s been taken care of, you can move on to registering and licensing your business.
An advantage to starting a business in the United Arab Emirates are the Free Zones. These areas are specially designated for foreign investors. The benefits include 0% corporation and personal tax, 100% foreign ownership, and import and export tax exemptions.
Legal corporate structures for businesses in the UAE:
There are many different legal corporate structures for businesses in the UAE. Below are a few of the most common and some of their requirements.
- Sole Proprietorship
This type of company is 100% owned by one individual. Because of this, that person has full control over operations and profits. Although all nationalities can create a sole proprietorship company, only UAE and GCC nationals can have a commercial or industrial company. - Civil Company
A civil company business can be opened in the UAE by professionals such as doctors, accountants, and lawyers. An Emirati national must own 51% of the business. - An LLC is a business
An LLC is a business entity with two to 50 shareholders. Each shareholder is only liable for their percentage of shares. Additionally, profits and losses are divided between shareholders according to their holdings. A UAE national must own 51% of shares. Furthermore, an LLC with more than seven partners must appoint a board with at least three shareholders. - A foreign company
A foreign company has the ability to set up a branch in the UAE. In this event, the company would be entirely owned by the parent company. However, any goods would have to be imported through a local trading firm.
The company needs two to five stakeholders to operate in a Free Zone. Even though there are plenty of advantages and benefits for setting up the business in the UAE Free Zones, you should be aware that these businesses cannot trade directly with the UAE market. Consequently, there might be other necessities for setting up a company there. For example, twofour54 Abu Dhabi doesn’t require any capital.
For freelancers, it’s a cakewalk to establish a business in the UAE. The only requirements are registering in a Free Zone with an application form, CV, bank reference, and notarized Registry Identification Code Form. You can also apply for a visa.
Are you an expat looking to start a business in the UAE?
If so, below is some useful advice on getting started.
This is how you can get a business visa to the UAE:
If you are hoping to establish a business in the UAE, you will need to acquire a visa that will let you live and work in the country. For entrepreneurs, there are two types of visas available. There are two ways to get a five-year visa. Firstly, you must have ties to an existing project. Secondly, you must have the approval of an accredited business incubator within the UAE.
The 10-year visa can be more difficult to obtain. There are again two options. With the first way, you must deposit at least AED 10 million in a public investment. Alternatively, you could also set up a company with at least AED 10 million in capital or invest AED 10 million in an existing company. Creative individuals with the approval of the Ministry of Culture and Knowledge Development may be granted a 10-year visa, for example.
Business Registration in uae:
If you’re looking to set up a business in the UAE, you’ll need to choose a trading name. Talk to your local Free Zone authority or Department of Economic Development to see if your desired name is acceptable. UAE laws state that trading names cannot go against public morals, should not be previously registered, and must comply with the business’ required activity and legal status.
After finding an available name, you will need to apply for a business license. There are four types of licenses available on the UAE mainland: commercial, professional, industrial, and tourism.
If you work in a Free Zone, you will need to apply directly to the zone in question. The application process will depend on your business activity. For example, Abu Dhabi’s offers services mainly for creative industries such as graphic design, advertising, and app development. Conversely, Dubai’s DMCC focuses on energy, commodities, gold and diamonds, construction, healthcare, and shipping.
The following documents are needed to register your business:
- Completed application form
- Business plan
- Passport copies of shareholders/directors
- Specimen signatures of shareholders/directors
- Letter of intent
In order to finalize the licensing process, please provide the following documentation:
- A board resolution appointing a company manager/director
- A power of attorney given to manager/director
- Memorandum and articles of association
- Specimen signature of manager/director
How can we help in opening a business in Dubai?
We have extensive experience supporting investors and setting up companies in Dubai. We can help with all procedures, such as opening a Dubai commercial registry and obtaining the necessary commercial licenses to establish the company.
We have a team of legal experts who can provide advice and support to companies and investors. We also offer feasibility studies for investors and entrepreneurs, as well as office and warehouse space for companies.
Our team of experts can assist you with all the necessary procedures to invest in Dubai, obtain commercial licenses, and set up companies. For more information about the Dubai Commercial Registry, don't hesitate to contact us
