Key steps to start a business
- Determine the type of legal entity.
- Choose a trade name.
- Apply for a business licence.
- Choose an office space.
- Get pre-approvals, register your business and get your licence.
How much does it cost to set up a company in Dubai?
Company Registration Fee The exact fee will be determined according to the company’s legal structure, and of course, the chosen free zone. The costs for registering a company in a Dubai free zone is not exceptionally varied; it is usually around the range of AED 9,000 to AED 10,000.
Can a foreigner start a business in Dubai?
Yes, a foreigner can start a business in Dubai, and many do. Dubai actively welcomes investors and business owners from overseas. The emirate is home to many company formation experts and setup agents, created to help guide foreign entrepreneurs through the license, visa, and business incorporation processes.
Can I set up a business in Dubai?
There are plenty of business opportunities available in Dubai, as well as in the other Emirates of UAE. However, if you really want to start a business that must exploit the potential of Dubai then you need a locally registered LLC business. A UAE national must be taken as a 51% partner who is called a local ‘sponsor’.
How long does it take to create a company in Dubai?
Company formation in Dubai is not only simple, thanks to the accommodating conditions of the free zones, but with the right experienced support, the process can be completed in just over one week.
How much money do you need to start a business in Dubai?
To set up an onshore business in Dubai costs a minimum Dh34,340 ($9350), the rankings note, and requires payment of myriad fees. These include Dh15,000 for a general trading licence, plus fees of Dh10,000 to Dubai Municipality, Dh3,000 to the Ministry of Economy and Dh1,200 to Dubai Chamber of Commerce.
What is the cheapest Freezone in UAE?
Ajman Media City is the cheapest free zone in UAE. This freezone offers investors a range of business activities and business license types at the lowest cost.
Can anyone open a company in Dubai?
For a company to be issued a General Trading Licence, it should have a minimum of AED 1 million share capital. In Hamriya Free Zone, you can form an FZE with a share capital of AED 150,000. While you are deciding upon the type of legal entity your business should take, you should choose a trade name.
What is the most profitable business in Dubai?
Top 10 Successful Business Ideas in Dubai, UAE
- Construction Sector. Dubai is continuing the growth with the establishment of infrastructure facilities, skyscrapers, industrial units and so on.
- E-Commerce Solutions.
- Travel and Tourism.
- Real Estate Agency.
- Health Sector.
- Handyman Business.
- Consultancy Service.
- Beauty Salon.
How can I start a business with no money in Dubai?
Low cost business ideas in Dubai, UAE
- Pet sitting. An increasing number of UAE residents now own pets.
- Tutoring / Instruction.
- Cleaning Services.
- Build websites.
- Social media expert.
- E-commerce store.
How can I register a company in UAE?
Below is the step-by-step a PROCESS and cost breakup of company registration in Dubai, UAE:
- Select business activity.
- Get a local partner (if required)
- Select a company structure.
- Finalise your company name.
- Get initial approval and external permits.
- Rent a commercial space.
- Make relevant payments.
- Get your trade license.
How can a foreigner start a business in UAE?
Five steps to start a business in Dubai as a foreigner or non-resident
- Step 1 – Work with BIZ.
- Step 2 – Choose your business activities.
- Step 3 – Free zone or mainland.
- Step 4 – Choose a company name.
- Step 5 – Apply for your license.
- Documents required to start a business in Dubai.
- Start your business in Dubai with BIZ.
Do you really need a sponsor to start a business in UAE?
A corporation formed and licensed in Dubai must have a local sponsor to set up a business in Dubai. The UAE national, which is the sponsor, will hold 51% of the shares of a company owned by individuals or a group of expats.
How can I open a company in Dubai?
Documents required for open an IT company in Dubai Passport of the owner and the partners of the firm. The local partners chosen by the investor need to submit a neutralization book. NOC for expatriate partners’ from the various sponsors chosen. The agreement of partnership must be signed in front of the notary.
Does Dubai have corporate tax?
In the United Arab Emirates, there is no general Corporate Income Tax Rate levied by the Federal Government. Only major petrochemical companies and foreign banking institutions are liable to corporate taxation.
How can I get investor visa in UAE?
To get an Investor Visa in Dubai or anywhere else in the UAE, you must invest at least AED 10 million in the public sector in UAE or invest at least AED 5 million in a property.
The How-To: Forming A Company In Dubai
Entrepreneurcontributors express their own opinions, which are not necessarily those of Entrepreneur. Entrepreneur Middle East is an international franchise of Entrepreneur Media, and you are now reading it. When it comes to business creation in Dubai, there has never been a more favorable time. Those are words that might have been said at any point in the last decade or so, but the signals are particularly encouraging right now. An ambitious project is announced or delivered almost every week, and the UAE’s growth expectations imply that it is a bandwagon that is well worth hopping on at this point in time.
Shutterstock These results, together with the country’s outstanding development in past years, have contributed to the country attracting an ever-increasing number of firms.
There are a variety of different alternatives for the kind of businesses that may be established in the UAE, whether onshore or offshore, but free zones are particularly popular with international entrepreneurs, and for good reason as well.
- So, what is the best way to go about it?
- We have assisted a large number of enterprises in establishing themselves in various free zones and can break the process down into the six phases outlined in this article.
- Decide on a business activity to engage in.
- For example, certain free zones only permit specific categories of activity, such as media, medical, or transportation, and aside from the limits, it is frequently advantageous to be in close proximity to other firms in the same industry.
- If your company is significantly reliant on import and export, you will almost certainly want to locate it in one of the free zones that are located near an airport or port.
- The ultimate decision can be made later in the preparation process.
The United Arab Emirates has very severe naming practices, so before you commit to a firm name, be sure it complies with these rules and regulations.
The individual who inspired the name of your firm must be a partner or owner of the company, and their entire name must be used – no initials or abbreviations are permitted.
Taking the time to run your suggested name by them can save you a lot of time and effort.
You will be asked to complete an application for your selected business name and activity, which will be sent to the appropriate government authorities together with copies of the shareholders’ passports as proof of ownership.
Even though it is the most time-consuming of all of these stages, the paperwork does not have to be too onerous if it is completed with the assistance of a professional.
This is the simplest of all the steps.
When our clients’ papers are ready to be picked up, we notify them by email or phone.
Establish a bank account.
Several banks, both local and foreign, are headquartered in the United Arab Emirates, including Emirates NBD, Abu Dhabi Commercial Bank, and the Commercial Bank of Dubai, as well as worldwide brands such as HSBC, Citibank, and Barclays.
And thus we get to the final stage in the process of forming a corporation in Dubai.
When applying for visas for a spouse, child, maid, or driver it is best to seek professional advice to ensure that, first and foremost, the visas are valid in the free zone in which you intend to apply, and secondly, that both the sponsoring individual and the person for whom the visa is being applied for meet all of the entry requirements.
- That’s all there is to it!
- Make things easier for yourself by working with a company setup partner.
- Of course, I’ve made it a little easier to understand.
- Even a little local know-how may be quite beneficial, and we can assist you in navigating all six processes, as well as interacting with UAE government agencies on your behalf along the road and recognizing possible difficulties before they happen.
Related: The Formation of an Offshore Corporation: A Springboard to Success
Steps to start a business on the mainland
Starting a business the traditional method entails a number of steps, which include the following:
- Identifying a commercial operation
- Determining the most appropriate legal structure
- Obtaining the right to use the trade name
- Submitting an application for preliminary approval
- Creating a Memorandum of Association as well as a contract with a local service agency
- Choose a location for your business
- Obtain further clearances from the government. Submitting paperwork and paying fees are required.
Identify business activity
The legal form and kind of license to be used for a particular business activity (commercial, industrial, or professional, for example) are determined by the nature of the business activity. There are six different kinds of licenses. Industrial, commercial, professional, tourist, agricultural, and occupational are some of the categories. Notes:
- An investment/company can engage in more than one type of commercial activity
- For example, In the United Arab Emirates, there are more than 2,000 different business activities to select from.
Select the legal form
The legal structure is determined mostly by the needs of the business. Furthermore, the legal form serves as the foundation for establishing the laws and regulations that apply. In the United Arab Emirates, an investor can choose from one of the following legal structures:
- The legal structure is mostly determined by the needs of the business. The legal form also serves as the foundation for distinguishing the rules and regulations that apply to a certain circumstance. The following legal forms are available to investors in the UAE:
It is important to note that the legal form of the business must correspond to the business activity. Check out the following pages if you want to learn more about the requirements of each company activity and legal form in greater detail:
- Invest in Dubai’s economy by establishing a company there. The Sharjah Investment and Development Authority’s procedure and requirements are described here. Business licenses are issued by the Ajman Department of Economic Development
- Licenses are issued by the RAK Department of Economic Development. Government of Fujairah doing business in Fujairah
Register the trade name
Using a trade name, one firm may be distinguished from another. It also reflects the type and form of the company’s operations. An investor can submit an application for a trade name through the economic department in each emirate, which can be done online or using a mobile application. Provisions for deciding on a trade name include: The trade name must have the following elements:
- Be preceded by the acronym of the business structure (legal form of the firm), such as LLC, EST, PJSC, or PrJSC
- Not offend public morality or the public order of the country
- Not be a violation of international conventions
- Comply with the requirements for the appropriate kind of activity and with the legal status of the corporation or business organization not contain the names of any religion or governmental authority, nor the names or logos of any external organizations
- Not have been previously registered
- Not be a derivative of another trademark
In the course of the application process, you will be provided with a payment voucher or a transaction number, which you will need to use as a reference when making your payment. Notes
- The trade name is registered with the municipal department of economic development, while the trademark is registered with the Ministry of Economy. Trade name certificates are re-issued on an annual basis.
The trade name is registered with the municipal department of economic development, and the trademark is registered with the Ministry of Economy. Trade name certificates are re-issued on a regular basis.
- A request to book a trade name has been submitted to the Dubai Economy
- Trade names have been submitted to the Judicial Department in Abu Dhabi
- And a request to book a trade name has been submitted to the Judicial Department in Abu Dhabi.
An initial permission signifies that the UAE Government has no objections to the company’s establishment in the nation at this point in time. It also enables the investor to advance with the next steps in the process of establishing a company. It does not, however, confer the authorization to conduct or engage in the commercial activity in question. First and first, foreign investors must acquire permission from the General Directorate of Residency and Foreigners’ Affairs prior to obtaining the initial license from the government.
These include actions including legal concerns, security affairs, financial securities and commodities, and other connected matters.
MOA and LSA
A completed and signed Memorandum of association (MoA) or a local service agent agreement (LSA) of the business is necessary, depending on the legal structure of the firm. The memorandum of association is necessary for the following commercial legal forms: partnership, corporation, and limited liability company.
- Limited partnership
- Limited liability company (LLC)
- Public joint stock company (PJSC)
- Private joint stock company (PrJSC)
- Limited partnership
- Law firms, courts, and notaries public in the United Arab Emirates produce and certify to memorandums of understanding and agreements. Businesses that are entirely owned by non-GCC residents require the services of a local service agent based in the UAE. The appointment of the local service agent will be made pursuant to an agreement that will be attested by a notary public or a court of law
Select a business location
All businesses in the United Arab Emirates are required to have a physical address in order to function. The business premises and location must meet the standards set out by the Department of Economic Development of the each emirate, as well as the land planning legislation of the local municipality in where the business is located.
An agreement for the renting of an office and a warehouse must be given. Some emirates need the agreements to be authenticated before they may be implemented. In Dubai, the agreement must be recorded with the Ejari (Dubai Registry of Agreements).
Get additional government approvals
Additionally, permissions from government agencies that regulate certain commercial activity may be necessary in some circumstances. The following are some examples of such activities, which are organized according to ministry: Interior Ministry (Middle East) Activities connected to general transportation, such as driving schools, fire equipment, alarm and safety systems, used-vehicle dealerships, used auto-parts, and automobile rental, are subject to clearance by the Ministry of the Interior.
Department of local government Affaires pertaining to architecture and engineering Regulation of telecommunications and digital government by the Telecommunications and Digital Government Regulatory Authority (TDRA).
The Ministry of Economy is a government agency that is responsible for the administration of the country’s economic affairs.
Departments of health at the local level Activities that are beneficial to one’s health Onshore and offshore gas and oil-field services, as well as onshore and offshore oil drilling activities, are all provided by the Supreme Petroleum Council.
How to Start a Company in Dubai (2022)
The process of establishing a business in Dubai is divided into eight major parts, which may be finished in a week or less if you follow the processes attentively and have all of your legal procedures in order. However, bear in mind that before you begin any formalities, you will need to take into consideration the following critical elements.
Table of Contents
- Determine the type of business
- Determine ownership
- Choose a trade name
- Designate share capital
- Secure the premises
- Hire employees
- And so on and so forth. Obtain Local Assistance
- Frequently Asked Questions (FAQs) regarding starting a business in Dubai
1. Determine Type of Business
The sort of license you require will be determined by this. Commercial, professional, and industrial licenses are among the several types of licenses available. A few examples of activities that require clearance from other departments include: food dealing, jewelry trading, veterinary activities, and legal consultation. Business owners can pick from a list of over 2,100 activities provided by the Department of Economic Development (DED). If you require assistance, you may reach out to DED. In the United Arab Emirates, there are 45 free zones, each with its own set of restrictions and requirements.
2. Determine Ownership
If you want to control 100 percent of your firm, you must first seek a license and establish a physical presence in one of the several free zones in the United Arab Emirates. Consultancy Firm in the Legal Field The establishment of a legal consultation business may only be accomplished through the establishment of a branch office or as a separate entity. Sole proprietorship is not permitted in this industry, and each free zone has its own regulations on the type of business structure that can be established.
More information about this may be found on the official website of the relevant freezone, which is accessible to business owners. For further information, please see the Department of Environmental Defense website.
3. Choose a Trade Name
The nature of the business should be reflected in the company’s name, and vice versa. If, on the other hand, it is a branch of another firm, there are certain requirements that must be followed when it comes to trade names.
4. Designate Share Capital
The minimum share capital of your prospective business is determined by the firm’s Memorandum of Association. The majority of the time, business owners are not required to pay the bare minimum in capital while forming their firm.
5. Secure the Premises
After you’ve completed all of your paperwork and legal processes, you may decide on a place for your office. The pricing, size, location, and other characteristics may all be considered while searching for office space.
6. Hire Employees
Before your registration can be accepted, your firm must have a manager in place to oversee operations, and he must be prepared to come on board. In other instances, though, you may not be permitted to hire employees. It is possible that you may need to hire outside contractors in this situation. Please refer to the regulations here.
7. Get Local Support
It is required to have a local agent, partner, or sponsor in order to receive a license from the Department of Environmental Defense. Furthermore, having a local contact may be quite beneficial in moving a firm forward efficiently in a free zone.
8. FAQs about Setting Up a Business in Dubai
Why should I start a business in the United Arab Emirates? Because of its strategic location in the Middle of Asia and next to Europe, the United Arab Emirates is a popular business destination for a wide range of industries. The highly organized environment in the United Arab Emirates conforms to global best practices and encourages entrepreneurs to invest in promising company ventures. Furthermore, activities are associated with cheaper taxes and allow for total capital repatriation with no limits on the currency used.
- What sort of business may I start in the United Arab Emirates?
- A local sponsor, who will own a portion of your firm, is required for a business setup in the United Arab Emirates’ mainland.
- While establishing an offshore firm in the United Arab Emirates will help you to protect your money and assets, you will be unable to trade in the country and will only receive a certificate of incorporation rather than a trading license.
- What kind of business should I start?
Before founding a business in the United Arab Emirates, you should think about the numerous types of company structures available. The region has a number of business structures that are ideal for a wide range of different types of entrepreneurs. These are the ones to look out for:
- Freezone Company / Free Zone Enterprises
- Mainland Business / Onshore Structures
- Professional Services
- Branch Office / Representative Office
- Offshore Company
- Freezone Company / Free Zone Enterprises
How much money will it cost to start a business in the United Arab Emirates? If you do not have all of the essential paperwork and documentation that has been authorized by various government authorities, the process of forming a company in the UAE may take a long time. With the appropriate advisors on your side, you can get your company up and running in the UAE in as little as three days. The licensing and registration of a business can be completed in three weeks. When a commercial action requires certification or attestation from another judicial authority, however, the process may be lengthened significantly.
What are the many types of businesses that may be established in the UAE?
The following are the seven categories to which they belong:
- Companies that are not limited liability companies (LLCs) or share partnership companies are known as general partnership companies, partnership-en-commendams, public shareholding companies, private shareholding companies, joint venture companies, limited liability companies (LLCs), and share partnership companies.
Open a new company in Dubai: Step-by-step guide
When considering which nation to establish a business in, the United Arab Emirates – and notably Dubai – is frequently towards the top of the list. The emirate is renowned for its low level of bureaucracy, its strategic worldwide location, and, of course, its extraordinarily cheap tax rate, which remains at a low of 0 percent on both personal and corporate revenues today. Many people are also drawn to Dubai because of how simple it is to establish a new business, regardless of how familiar you are with the United Arab Emirates and its corporate standards.
As a temporary measure, here’s a straightforward, step-by-step instruction to assist you become acquainted with the procedure.
Should you choose mainland or free zone?
The first and most significant decision you must make before beginning the application and incorporation process is whether to locate your business on the mainland or in a free zone. In addition, the mainland provides benefits such as the opportunity to trade directly with the local market without the use of an agent, as well as the ability to establish a business anywhere in the United Arab Emirates. In the vast majority of circumstances, however, the establishment of a free zone corporation is the most cost-effective and advantageous option.
There are plenty more to be found outside of Dubai.
As a general rule, it’s a good idea to establish your firm with the assistance of a company formation professional to ensure a swift and seamless transition.
If you are seeking for a company license in Dubai, a visa for a free zone in Dubai, or the lowest free zone license or visa in the UAE, our staff is here to assist you. Company registration in the United Arab Emirates can be paid in monthly installments.
How to open a company in Dubai
The process of forming a corporation in Dubai may be rather uncomplicated, provided that you obtain and adhere to the appropriate guidance. To start a business in Dubai, you just need to follow these four easy steps if everything is done right. When forming a company in Dubai, the first step is to determine the nature of your business operations. One thing to keep in mind while making this decision is that your selected activities must be in accordance with those listed by the Department of Economic Development (DED).
- Then there’s the very crucial matter of deciding on a company’s name.
- Keep in mind that you must adhere to a particular set of naming rules in order to avoid confusion.
- Avoid using well-known company names, and if you are calling your firm after yourself, avoid using abbreviations — for example, Dave Mann Consulting rather than D Mann Consulting.
- After the requirements are completed, we may move on to the most critical stage of all: submitting an application for your trade license.
- If your company’s operations come under the category of industrial or manufacturing, you will need to get an industrial license to conduct business.
- Individuals who provide professional services will be required to have a professional license in the same way.
- Application form that has been completed
- A copy of the intended owner’s or owners’ passport
- And Two color passport-size images
- Two black and white passport-size photos
- Putting together your visa applications Working in the UAE will also necessitate a visa for you and any staff you may have on the payroll.
As previously said, with the proper counsel, the visa application procedure may be quite uncomplicated. Most company formation agencies can assist you with this phase, as well as with the application for your business license. As the owner of a UAE business license, you have the ability to sponsor people for visas to the country. If you are married, you may want to consider having a domestic worker such as a housekeeper come in to help you out. The maximum number of visas you may apply for will be determined by the size of your firm, the configuration you choose, and, in the case of dependant visas, your personal earnings in the country in question.
What is the cost of starting a new business in Dubai?
Several variables influence the overall cost of establishing a new business in Dubai, including whether you want to establish a mainland or free zone entity and the size of your organization. A free zone license, which includes the use of co-working spaces and the cost of a visa application may be obtained for around AED 25,000, which is a good starting point for many entrepreneurs.
In the event that you want to relocate to the mainland, need extra visas, or require the use of a big facility, you may expect this number to rise.
Are you ready to start a new business in Dubai?
Hopefully, this tutorial has demonstrated that, if you have the correct information, starting a business in Dubai does not have to be a difficult or time-consuming endeavor. Having said that, it does need some prior understanding of the procedure. Furthermore, it is crucial to note that the application procedure will be easy only if your license application is full and free of mistakes when it is submitted for consideration. When forming a new business in the United Arab Emirates, it is a good idea to consult with a company formation specialist such as Business Incorporation Zone (BIZ) to guarantee that this is the case.
We can assist you whether you are trying to register a new company in Dubai, obtain a Dubai trade license or free zone license, or start a small business in Dubai.
Company Formation in Dubai
We are experts in business creation in Dubai as well as the incorporation of free zone firms in Dubai (UAE), such as RAK Free Zone, among others. In addition to Dubai free zone company registration, we can also help individuals and businesses interested in the Dubai market establish offshore and on-shore entities.
|Types of companies||Limited liability companyGeneral partnershipLimited partnershipJoint venture companyPrivate shareholding companyPublic shareholding companyBranches of foreign companiesSole proprietorship|
|Minimum share capital for LTD Company||USD 1|
|Minimum number of shareholders for Limited Company||2|
|Time frame for the incorporation (approx.)||1-3 weeks|
|Corporate tax rate||No (except oilgas, banking)|
|Dividend tax rate||–|
|Number of double taxation treaties (approx.)||123|
|Do you supply a registered address?||Yes|
|Local director required||Yes|
|Annual meeting required||Yes|
|Is accounting/annual return required?||Yes|
|Foreign-ownership allowed||100% ownership in Dubai free zones|
|Any tax exemptions available?||No VAT and custom duties in Dubai FTZs|
|Tax incentives||For hiring local staff|
UAE is well-known for its free zone firms (about 40 free zones are accessible), which provide great circumstances for a variety of start-ups, including industrial, technology, car, and other businesses. Each Free Zone in the United Arab Emirates is dedicated to a distinct activity. The most well-known example of a free zone is Ras Al Khaimah (RAK), which provides a wide range of benefits to investors interested in founding a business in Dubai, including zero percent corporate tax, 100 percent foreign ownership, and 100 percent capital repatriation.
Our local advisers have a wealth of knowledge and expertise in company creation in Dubai, and they can assist international investors interested in beginning a business in Dubai with the registration of any sort of corporation.
Legislation on setting up onshore and free zone companies in Dubai
The Company Law is the primary piece of legislation that governs the establishment of onshore businesses in Dubai. It outlines all of the rules and regulations that must be followed both before and after the registration of a company is completed. For offshore or free zone corporations in Dubai, each government has its own set of registration criteria, which may be found here.
Our local experts can assist you if you want information on the regulations pertaining to the establishment of a company in Dubai as well as information on launching a business in Dubai.
Offshore or on-shore company in Dubai?
The method for creating an offshore business in Dubai is quite different from the procedure for incorporating an on-shore firm in the United States. You may want to investigate the following options if you are unsure which one you require at this time: The owners/shareholders of an offshore firm (such as RAK Offshore) are subject to no specific criteria or limits, whereas an onshore corporation does not permit complete foreign ownership (the corporation requires a local “sponsor” to be established.
2) A UAE offshore business is exempt from corporate tax in the UAE, but an onshore company is subject to tax responsibilities and reporting procedures in accordance with UAE legislation.
It is preferable to establish an offshore company rather than an onshore one if you are not interested in the Dubai market (i.e., your clients are not located in Dubai) and you are solely interested in taking advantage of the favorable tax regime and/or privacy afforded by a foreign jurisdiction, such as the United Arab Emirates.
It is very similar to the company incorporation procedures in most European countries, provided that the foreign investors have obtained all necessary information about the business activity that they intend to engage in and are aware of all applicable business licensing requirements in their home country.
Business setup in UAE
Our company formation professionals assist local and international investors in completing the major processes for company formation in the United Arab Emirates and establishing the appropriate type of business. Business establishment in the United Arab Emirates is not difficult, but because many international entrepreneurs are unfamiliar with the local legislation, it is advised that they consult with a local agent for business setup in the UAE. In order to assist the foreign investor, he or she will explain the distinctions between onshore/offshore firms and those founded in free zones, and he or she will assist him or her in selecting the one that is most appropriate for his or her company needs.
Shareholders for setting up a company in Dubai
Establishing a business in Dubai is no different than establishing a business in any other nation. When forming a corporation in this country, the first item to examine is the ownership structure of the organization. The reason for this is because a local partner is necessary in the event of an onshore corporation. In order for a corporation to be formed, UAE shareholders must own at least 51 percent of the stock in the firm, with the remaining shares being allocated among international shareholders or belonging to a single foreign stockholder.
In the event of offshore or free zone corporations, foreign ownership is permissible in its entirety.
You can rely on our company registration professionals to help you set up a company in Dubai, no matter what form of business you choose. They can also provide comprehensive information on the rights and duties of shareholders in Dubai-based corporations.
Share capital requirements for opening a company in Dubai
The Dubai Company Law has specific regulations about the share capital requirements for enterprises wishing to establish themselves in the city. For investors looking for a share capital structure, the limited liability company is by far the most appealing because there are no minimum capital requirements for forming one; however, investors must provide proof that they have sufficient funds to cover their investment in order for the activities to be carried out. In the case of offshore firms registered as private or public joint stock companies, the minimum share capital to be placed is AED 5 million, and the maximum share capital to be deposited is AED 30 million, respectively.
In addition, it is crucial to note that, while some local governments require a certain minimum amount of money to be invested as share capital, others do not do so.
Types of companies in Dubai
According to the table below, there are numerous types of corporations that may be formed in Dubai. These include the following:
- The onshore company is one that operates on the UAE market
- The offshore company is one that is registered in the UAE but operates outside the country
- The free zone company is one that operates in one of the many free zones in the UAE
- Branch offices and subsidiaries are available for foreign companies operating in the UAE
- The sole trader is one that is used for activities completed by a natural person
- And the limited liability partnership is one that is used for activities completed by a limited liability partnership.
In the event that you decide to establish a company in Dubai or another place, our company formation in UAE representatives can explain the criteria for each sort of business form available.
How to open Dubai free zone company
Foreign investors interested in establishing a business in the United Arab Emirates, and particularly in Dubai, should be aware that the nation has a large number of free zones in which they may profit from preferential business conditions for conducting operations. We welcome you to view the following video on how to create a company in Dubai’s free zone: In this country, one of the most popular free zones isRas Al Khaimah (RAK), where investors may take advantage of a 0 percent corporation tax rate as well as the ability to repatriate their earnings.
In Dubai, there are over 20 free zones dedicated to a diverse range of economic activities, such as Dubai Media City, Dubai Healthcare City, Dubai Maritime City, Dubai Outsource Zone, and so on.
For more information about forming a business in Dubai or any other location of the United Arab Emirates, please contact one of our company formation agents.
Open an offshore company in Dubai
8 of 1984, as revised by Federal Law No. 13 of 1988, controls the activities of offshore companies in Dubai (the Commercial Companies Law). The following are the primary advantages of establishing an offshore corporation in Dubai:
- There are no personal, corporate, capital gains, or VAT in the UAE (with the exception of foreign banking branches and oil producers)
- Anonymity and privacy protection are guaranteed by the UAE’s Company Law
- There is no requirement to deposit a share capital in a local bank
- Full foreign ownership is permitted in the case of offshore companies
- There is no minimum share capital required in the free zones
- It is not necessary to submit the company’s account
- These accounts are not required to be submitted
- And it is not necessary to submit the company’
At least one shareholder is required to establish an offshore company in Dubai, and the firm can have a maximum of 50 members. For this sort of corporation, at least two directors and a secretary are required to govern it. Their names are included in the register of directors maintained by the Dubai Registered Office, but no more information about them is available to the public. In order for the general meetings of the offshore corporation to take place in Dubai, it is not required.
Set up an onshore company in Dubai
In contrast to offshore firms, which are utilized by investors who are interested in providing services to clients outside the UAE, the onshore company is used to provide services to clients within the UAE. Another distinction between the two sorts of businesses is in the licensing regulations that apply to them: The onshore firm will be required to get a business license, whilst the offshore corporation will not be required to do so. In addition, you must pay company tax, create a physical office, and have a shareholder who is a resident of the United Arab Emirates.
Despite this, the onshore firm provides a variety of advantages, including a vast and prosperous market as well as a variety of tax rebates and breaks, among other things.
- The limited liability company (LLC), which can be either private or public and is subject to only a few regulations when it comes to incorporation
- An unincorporated private shareholding company that can be established by foreign investors in cooperation with a local corporation or businessperson
- Public shareholding company (also known as joint stock company)
- Sole proprietorship (which can be utilized by accountants, attorneys, and other kinds of professionals)
- And limited liability company (also known as limited partnership).
Foreign entrepreneurs who wish to form a limited liability company in the United Arab Emirates should be aware that they must have at least one UAE partner who will own a minimum of 51 percent of the paid-up capital in order to do so. In the same way that several European countries, such as Switzerland, allow international corporations to operate branches or subsidiaries, Dubai allows foreign companies to do the same. For offshore firms operating in Dubai, it is necessary to secure a license that is specific to the sort of operation that will be carried out.
Company formation in UAE steps
When registering a corporation in Dubai, the following steps must be followed:
- The first step in the registration process is to reserve a trading name for the company
- The second step is to draft and notarize the company’s Memorandum and Articles of Association
- The third step is to submit the documents to the Dubai Department of Economic Development for approval
- And the final step is to register for employment. Our local advisors can assist you with all of these steps and others.
Company incorporation costs in Dubai
When establishing a business in Dubai, the following expenses must be taken into consideration:
- The company registration fee with the Dubai Economic Development is approximately 300 EUR, however, the license fee must also be included
- The virtual office costs start at approximately 200 EUR per month, depending on the office building it will be set up in
- The minimum share capital: there are no minimum share capital requirements for opening a limited liability company in Dubai
- Our company formation fee starts at approximately 2,300 EUR, and we invite you to contact us for a quote. The minimum share capital: there are no minimum share capital requirements for opening a limited liability company in
Licenses for companies in Dubai
The license procedure for a business in Dubai is performed at the same time as the firm’s incorporation procedure in Dubai. When forming a corporation in Dubai, the following types of licenses are available to choose from:
- The trade license
- The industrial license
- The commercial license
- And the professional license are all examples of types of licenses.
These are generic permits that must be secured regardless of where the firm is incorporated or registered. Special permits must also be sought for additional operations, such as import and export, in addition to the aforementioned ones. It is vital to remember that in the case of free zone firms in Dubai, specified activities must be carried out in order for them to be considered legitimate.
Some of them are subject to particular licensing requirements set by the authorities in charge of regulating them. When launching a business in Dubai, our company formation agents can assist you in obtaining the essential licenses and permits.
Questions on business setup in the UAE
Why should I establish a business in Dubai? Dubai is the most populous emirate in the United Arab Emirates, and it provides several tax breaks to international investors. Beyond that, Dubai is also one of the most significant business centers in the Middle East and North Africa. Is it possible for me to be the only shareholder in a Dubai corporation if I am a foreign national? This is allowed in all of Dubai’s free zones, but if you want to start a firm in the emirate of Dubai, you’ll need a local partner who will own a majority stake in the company, which must be 51 percent.
- Companies that do not participate in the oil and banking industries are not subject to corporate taxes in Dubai; however, the UAE government implemented the VAT (value added tax) beginning in 2018 to cover these businesses.
- With the help of our local agents, you may register a business in Dubai without having to visit there yourself.
- Dubaiis one of the most enticing emirates in the United Arab Emirates, particularly because of the large number of free zones available; nevertheless, people establishing businesses in a free zone must only provide their services or finish their operations within that specific free zone.
- From a purely economic standpoint, we may say:
- In 2019, Dubai’s Gross Domestic Product (GDP) is predicted to expand by 2.1 percent, according to the International Monetary Fund
- In 2020, the city’s GDP is expected to grow even faster, by 3.8 percent
- And in 2021, the city’s GDP is expected to grow at a slower rate, by 2.8 percent.
In the event that you want assistance in forming an offshore business in Dubai or any other sort of organization, you may contact our company formation professionals, who will take care of the full method of company creation for you.
Steps to start a business in Dubai, UAE
The choice to establish a firm in Dubai, or anyplace else in the globe, is a significant one. It entails a variety of tasks such as planning, conceptualizing, researching, budgeting, setting up, and making decisions, among others. If you are a new entrepreneur, you will also want direction and support in acquiring the appropriate trade license for your company, as well as other services. You will learn about the necessary actions to take in order to start a business in Dubai, United Arab Emirates.
The country’s low tax rates and ease of doing business have not only made it a popular investment destination, but they have also helped to solidify its status as a corporate hub in the Middle East.
To start a business in the UAE, follow the steps mentioned below:
Choose a type of company activity. Remember to consider the feasibility of the chosen business activity in respect to the UAE market when picking a business activity for your entrepreneurial enterprise. Before establishing a business in Dubai, conduct extensive study about the viability and profitability of the proposed venture. Then determine when you want to establish your business in Dubai, United Arab Emirates. Select the appropriate jurisdiction. In the United Arab Emirates, the market is separated into three main economic zones: the Mainland, Free Zone, and Offshore.
- Each jurisdiction has its own set of rules and regulations that apply to the establishment of a business.
- The choice of a jurisdiction for your company is based on your company’s requirements as well as the nature of your business activity.
- When founding a business in the United Arab Emirates, selecting the appropriate legal structure for your organization is critical.
- During the first phases of planning, you should decide on your legal structure or the structure of your firm.
You will not be able to apply for your business license until you have determined the legal structure of your organization. The following are some of the legal forms or company structures that you may use to register your company in the United Arab Emirates:
- The following terms are used: limited liability company (LLC), sole establishment, civil company, branch office of a local corporation, branch office of a GCC corporation, branch office of a foreign corporation, branch office of a free zone corporation, holding company.
Obtain authorisation for the name and operation of your firm. Before you can proceed with the process of establishing your company in the United Arab Emirates, the Department of Economic Development (DED) must approve the trade name you have chosen for your firm. During this step, in addition to the approval of your company name, the approval of your chosen business activity is also required. Once you have received the necessary permissions, you will need to submit the necessary documentation in order to apply for your UAE trade license and begin the process of forming a business in Dubai.
There are four different categories of trade licenses in the UAE, which are sometimes known as business licenses, from which you can choose:
- Make sure your company’s name and activity are approved before moving on. Before you can proceed with the process of establishing your company in the United Arab Emirates, the Department of Economic Development (DED) must authorize the trade name that you intend to use. During this step, in addition to the approval of your company’s name, the approval of your chosen business activity is also completed. You will need to submit paperwork in order to apply for your UAE trade license and start the process of forming a business in Dubai after you have received the necessary permits. Obtain a business license by filling out an application. Trade licenses, often known as business licenses, are available in the United Arab Emirates in four different varieties:
If you want to start a business in the UAE mainland, you can apply for any of the trade licenses listed above. The license system in UAE free zones differs from country to country and is determined by the type of commercial activity that your firm chooses to engage in. Create an account for your organization. The registration and licensing of a company take place at the same time. The paperwork and approval procedure, on the other hand, is divided into several stages. In this stage, you will be responsible for obtaining the necessary clearances from the appropriate government agencies, as asked by the Department of Economic Development.
How to Form a Company in UAE at a Low Cost?
Starting a business in the United Arab Emirates might be a challenging option. In addition to this, it may appear to be a pricey endeavor, particularly if you are an overseas investor. As a foreign entity, you may have little awareness of the most cost-effective methods of establishing a firm in your home country. As a result, if you are interested in learning more about how to create a corporation in the United Arab Emirates for a minimal cost, continue reading this article. Setting up a business in the United Arab Emirates is simple and economical when you work with Shuraa Business Setup, a leading supplier of customised company formation services in the area.
In order to save you as much money as possible on UAE company setup fees, we work in your best interests at all times.
Furthermore, we strive to keep your business startup costs as low as possible in the beginning so that you may expand as your company grows.
Whether you want aid with governmental papers or support with the formation of a UAE business, we have a cost-effective option for you! Indeed, it is via this method that we have been able to provide the most competitive company setup packages in the UAE.
Dubai business setup package
According to the Department of Economic Development, Shuraa offers special company formation packages that make it simple to start a business in Dubai. For more information, visit www.shuraa.com (DED). Our packages also include a professional business setup adviser, one FREE visa with your company establishment in Dubai, one FREE session of VAT counseling, and much more. If you are still unsure about how much it will cost to establish a company in Dubai for your unique business activity, you can schedule a free consultation with one of our professionals.
Cost of company formation in Dubai
|Professional company||Commercial LLC company|
|AED 25,999* (first year)||AED 29,999* (first year)|
|License fee||License fee|
|Registration fee||Registration fee|
|Flexi desk – office space||Flexi desk – office space|
|Immigration card||Immigration card|
|UAE local partner||UAE local partner|
|Visa cost for owner / partner||Visa cost for owner / partner|
|Stamp of the company||Stamp of the company|
|Owner / partner medicalEmirates ID||Owner / partner medicalEmirates ID|
Abu Dhabi business setup package
Exclusively via Shuraa Business Setup, it is possible to get 100 percent foreign ownership in Abu Dhabi, as well as a two-year mainland license, for as little as AED 29,500*. Unlike other company establishments on the UAE mainland, there are no requirements to rent an office in Abu Dhabi. As a result, the cost of forming a corporation in the UAE is reduced even further. Furthermore, because the business license is valid for two years, you won’t have to worry about renewing it or making additional yearly fees while running your firm.
Cost of setting up a company in Abu Dhabi
|Limited Liability Company (LLC) license|
|AED 29,500*(For two years)|
|UAE local sponsor|
|Visa cost for owner / partner|
|Stamp of the company|
|Owner / partner medical testsEmirates ID|
|Provision for three employees’ visas|
Sharjah business setup package
Shuraa Business Setup is now giving up to a 25 percent discount on company creation charges in Sharjah, according to the business. For as little as AED 18,000*, you can have your Sharjah business up and running. Company formation in Sharjah mainland with Shuraa is the most cost-effective and time-efficient option available, with the fewest administrative formalities. The services of our company setup specialists take care of everything, making the process of launching a business in Sharjah quite reasonable.
Business setup package in Sharjah
|Professional CompanyAED 18,000 (first year)||Normal Trading ContentAED 18,500 (first year)||General Trading CompanyAED 25,500 (first year)|
|Free business setup Consultation||Free business setup Consultation||Free business setup Consultation|
|Professional company license fees in Sharjah||Normal trading license fees in Sharjah||General trading license fees in Sharjah|
|UAE service agent||UAE service agent||UAE service agent|
|Dedicated consultant||Dedicated consultant||Dedicated consultant|
|Complete documentation||Complete documentation||Complete documentation|
|Continual reliabilitysupport||Continual reliabilitysupport||Continual reliabilitysupport|
|Package excludes – Market fee (AED250) Municipality fee (5% of tenancy contract) Foreign trade nameSEWA depositAll visa costs||Package excludes – Market fee (AED250) Municipality fee (5% of tenancy contract) Foreign trade nameSEWA depositAll visa costs||Package excludes – Market fee (AED250) Municipality fee (5% of tenancy contract) Foreign trade nameSEWA depositAll visa costs|
Ajman business setup package
With rates for Ajman business formation dropping by as much as 50% in recent years, there has been a significant increase in demand for company registration. The primary reason for this is Shuraa’s special offers as well as the high price of establishing a business in the Ajman peninsula. With Shuraa Business Setup, you can now take advantage of the low cost of Ajman mainland licenses as well as the countless opportunities that the jurisdiction has to offer at a fair price. To learn more about starting a business in Ajman, schedule a free consultation with one of our advisors or take advantage of one of our cost-effective packages.
Cost of Ajman business setup
|Professional CompanyAED 14,000(annual)||Normal Trading CompanyAED 24,000(annual)||General Trading CompanyAED 32,000(annual)|
|Free consultation||Free consultation||Free consultation|
|DED license fee||DED license fee||DED license fee|
|UAE service agent||UAE service agent||UAE service agent|
|Dedicated consultant||Dedicated consultant||Dedicated consultant|
|Complete documentation||Complete documentation||Complete documentation|
|Continual reliabilitysupport||Continual reliabilitysupport||Continual reliabilitysupport|
Would you want to know more about the costs of establishing a business in any of the other Emirates in the United Arab Emirates? Alternatively, are you interested in learning about the cost of business creation in a free zone or offshore in the United Arab Emirates?
Connect with us if you’d like to chat with one of our corporate legal advisers or learn more. You may reach us by phone at +971 44081900, through WhatsApp at +971 507775554, or by email at [email protected]. You may also visit the company’s website to learn more about it.