Dubai

Dubai is a perfect avenue for businesses across the world. It offers remarkable growth opportunities to new and established enterprises, thanks to relaxed compliance and lower taxes. The Middle East welcomes businesses with open arms and provides a flourishing environment. Setting up a new venture in Dubai is a win-win proposition for any entrepreneur. Let’s unfold the legal requirements for securing company registration in Dubai

Why Choose Dubai as Your Business Destination?

• Lower taxes, ensuring more profit and revenue.
• Seamless credit availability for business growth and expansion.
• Minimal compliance for establishing new ventures and executing business affairs.
• Formidable legal structure, safeguarding businessmen from illicit practices.
• Thanks to the transparent environment and unwavering authority support, there is no risk to investment and capital.
• Hassle-free Visa maintenance.

Business structure

Types of Business Structures in Dubai

The following business structures are available in Dubai. You can choose an apt option based on your requirements:

Limited Liability Company (LLC)

A Limited Liability Company (LLC) is a widely used business structure in Dubai. It has a better defense mechanism against fiscal and legal risk. Also, the partner's liability is limited to the amount of capital contribution. LLC poses no risk to personal assets if the business fails to survive or confronts unprecedented legal issues.

Branch Office

A branch office refers to a broader version of the foreign company. It is helmed by the parent company and abides by similar compliance. The brand office does not adhere to a separate legal entity; hence, losses incurred is compensated by the parent company.

Trade Representative Office

A Trade Representative Office is ideal for foreign entrepreneurs aiming to explore Dubai’s market. Laws limit the activities that the Representative office can perform. They are not free to pursue commercial trading or reap separate revenue. They are primarily into performing market research, reinforcing customer interplay, and promoting the parent company’s offerings.

Free Zone Companies

Free Zone Companies belong to dedicated economic zones, aka Free Zones. These entities can claim benefits like tax exemptions, incentives, hassle-free EXIM activities, and 100% foreign ownership. It is a perfect business model for those seeking to set up trading or production-based business. It provides for the complete repatriation of profits and capital, ensuring peace of mind for overseas investors.

Joint Stock Companies

A Joint Stock Company refers to a public entity whose capital is bifurcated into shares and traded on the recognized stock exchange. This business model works great for companies with ample capital. Joint Stock Companies adhere to immense growth potential because of their ability to garner substantial funds through share trading.

Also, these entities do not compel shareholders to compensate for the entire company’s losses. Unlike the above structure, these companies are supervised by the Board of Directors.

Paperwork Required for Company Registration in Dubai

• Notarised and attested documents of LSA and MoA
• Copies of passports for all legal participants
• Applicant’s Tourist Visa
• Completed application form
• Passport-size photograph of the applicant
• Ejari Number (verification of business place agreement/contract)
• Copy of LSA Emirates ID
• Any external approvals or documents, if applicable.

Guide to Secure Company Registration in Dubai

While applying for Company Registration in Dubai, you may need to abide by the following steps:

Step 1: Choose an apt Legal Structure

Legal structure plays a vital role in your business success, so you must choose it wisely. Selecting the wrong structure can lead to several problems, including hefty compliance, management haywire, tax surges, etc. Your selection should be based on compliance threshold, risk appetite, and business footprint.

For instance, if you want to capitalize on the local market, you can opt for a structure like a Limited Liability Company. Furthermore, if you expect 100 percent foreign ownership, this structure works just fine.

The recent amendments to the UAE company law support over 1,000 company activities for 100% ownership. In the case of Join Stock Company, you are not required to include local shareholders to sanction your company in the mainland, thanks to the recently promulgated reformations.

Step 2. Register the Company name

The next important step in this process is registering an apt business name. Go to the government portal and dig into available naming conventions. Make sure the selected name is free from any legal or religious disputes.

Step 3: Select the Business location

Selecting a location can make or break your business. While figuring out which location suits you best, take parameters like infrastructure, taxes, credit availability, market exposure, etc, into account. Avoid selecting a location that could potentially hinder your business goals or growth prospects.

Step 4: Contact LSA and Draft MoA

Get in touch with a Local service agency, aka LSA, to secure company registration in Dubai mainland. LSA shall ensure 100% transparency and zero intervention in business affairs. They specialize in compliance and legal requirements, ensuring seamless registration for clients.

Based on the business model you choose, you need to draft a Memorandum of Association. It must reflect the statutory framework of the company along with its objectives.

Step 5: Applying for a Company License

Those opting for a mainland location must head to the Department of Economic Development (DED) for business registration. Similarly, the free zone seekers must contact local authorities to legalize their business model. Upon securing registration, get in touch with relevant governing bodies to secure industry-specific approvals.

Step 6: Opening a Bank Account

Lastly, you are left with one crucial step- opening a bank account for addressing business-related transactions. Although plenty of banks in Dubai offer conducive services, choose the one that fits your business requirements and promises unwavering support. Opening a bank account attracts a myriad of paperwork, including tenancy contracts, utility bills, charter documents, agreements, etc.

What is the cost of company registration in Dubai?

Factors like company type, size, location, and activity decide the cost you need to bear for company registration in Dubai. The cost includes paperwork expenses, legal permission charges, tenancy contract preparation, etc. All these factors contribute to the overall registration cost. Get in touch with Adviso to get insight into it.

Merits of Securing Company Registration in Dubai

Executing business affairs in Dubai hardly offers any trouble to an overseas business owner, thanks to minimal compliance and favorable business conditions. Those seeking company registration in Dubai can expect the following benefits.

1. Say Goodbye to stringent taxes

Dubai sits on the most conducive tax structure in the world- something that suits most entrepreneurs. The low taxes imply that your earnings and revenue will attract a low tax cut. The VAT rate in Dubai is at the lowest level compared to what other nations offer.

2. End-to-End Investments Security

DLD, RERA, and DED laws are business-friendly and reinforce transparency, allowing businesses to thrive seamlessly. The statutory framework in Dubai mitigates crimes from its roots, ensuring zero threats to business investment.

3. Hassle-free Visa processing

Visa processing in Dubia is swift and seamless. Once you start your business affairs, you can get a Visa for your relatives, business partners, and employees in no time. Authorities support mainland businesses by offering Visa services for hassle-free business execution- thanks to favorable norms.

Adviso: Access Top-Tier Global Incorporation Services

Setting up a new business beyond national boundaries can be a rewarding experience, provided you have the right acumen. Every nation adheres to different regulations and laws for allowing new businesses to settle. Therefore, going global won’t be easy for new entrepreneurs.

That’s where we come in!

Adviso helps its clients establish new ventures abroad with zero hassles. We provide our clients with the right acumen and direction when going global. With us, you can expect the seamless establishment of your dream business on foreign soil with minimal compliance and paperwork. So, do not waste time! Get onboard and start exploring limitless growth opportunities with us. 

Why us?

• We possess an in-depth understanding of prevailing regulations concerning global incorporation.
• Our experts ensure seamless incorporation through hassle-free paperwork and application filing.
• We foster a wide network of seasoned professionals operating worldwide, helping us speed up the process.
• We have a proven track record of incorporating a handful of companies with 100% success rate.