Company Setup In UAE
Company Setup In UAE:
Dubai is the best place to set up a business by Entrepreneurs. Whether it is a start-up or a small business or giant multinational corporates, Dubai will provide the same levels of ease, efficiency and services to all the establishments. Furthermore, it provides the multiple choices for every aspect of business setup in UAE i.e., budget, license, location, and premises.
Company Formation in Dubai provides several big benefits such as tax savings, good governance, superior infrastructure, premium lifestyle, and constantly developing opportunities to the established businesses. Dubai’s enviable location also results in an international and vastly multicultural workforce.
When considering a new business setup service in Dubai, location is a key decision. For the purpose of company registration in Dubai, you have to decide whether you want to establish your company on the mainland or in a free zone.
A Freezone company offers the immense tax advantages, including 100% repatriation of capital and profits. When a business is established in a Zree Zone, one can get the complete assistance from the respective Free Zone Authority in all Government-related matters. Since 100% foreign ownership allowed in a free zone, there will be more possibilities for several businesses to establish because capital investment is no longer an issue.
Setting up a business on the mainland is very easy. It enables the Entrepreneur to enjoy the ease of doing business which is backed by a world-class infrastructure. Various licensing categories such as Commercial Trade license, Industrial Manufacturing License, Professional Service License and General Trading / E-Commerce License can be availed. Likewise sole proprietorship, civil company, Limited Liability Company, branch office and representative office can be established on the mainland.
With an international business climate and a stable currency which is pegged in the US dollar, the UAE offers one of the best avenues for growth and development. With an offshore company, you can have full control over your operations, including repatriation of all capital and profits. To enjoy the tax benefits incorporating a company on offshore would be the most suitable option for an entrepreneur.
Deciding the type of business and the legal entity of the business set up in Dubai is an important decision, and this will depend on the number of shareholders. Whether these shareholders are natural persons or legal persons in the UAE is an important issue to consider.
If an entrepreneur is based in the UAE or he/she is from another part of the world with plans for providing service-related activities in the UAE market, then one can set up a new company in Dubai, with a sole proprietor mainland license. He/she can also register the new business in Dubai as a freelancer, free zone limited liability company (FZ LLC), free zone entity (FZE) or free zone company (FZ CO) at one of Dubai’s 30 plus free zones.
If the new business set up in Dubai is commercial in nature such as trading or contracting, the ideal option on the mainland is establishing a limited liability company (LLC), with a minimum of one and a maximum of 50 shareholders. Companies with more than 50 shareholders are typically registered in Dubai as a private limited company (PLC). The public joint stock company (PJSC) is a complex structure which involves a board of directors who act as trustees to the shareholders of business set up.
If an entrepreneur is specialised in a certain field, choosing a business activity will pose no problem. However, for broader business categories like ‘retail’ or ‘trade’, there are multiple options, distinct sectors, and several specialised activities available to decide the business activity.
Since free zones are broadly classified by industry, it is easy to find the right fit at well-established hubs like Dubai International Financial Centre (DIFC), Dubai Multi-Commodities Centre (DMCC), Dubai Media City (DMC), Dubai Internet City (DIC), Dubai Airport Free Zone Authority (DAFZA), and several others.
For a mainland business license in Dubai, it is important to identify the exact nature of the proposed business set up, and activities thereof.
The costs associated with new business set up in Dubai, UAE is based on variables such as the type of company to be incorporated, the type of license applied for, and the number of work visas required. A company set up in Dubai does not always require a minimum share capital to commence the business, but it considers the size and structure of the organisation.
The total cost of business setup in Dubai can be broadly divided into four components: documentation and attestations, licensing and share capital requirements, visa processing, and workspace.
Many options are extremely affordable. For solo entrepreneurs and start-ups, Dubai Economy’s Instant License starts at approximately AED 9,000 (US$ 2,450) and is typically issued on the same day. Likewise, some of Dubai’s free zones offer extremely affordable business set up packages. For instance, International Free Zone Authority (IFZA) in Dubai offers the IFZA Dubai Trading License which starts at AED 12,500 (US$ 3,400) and is issued within 5 working days.
For an entrepreneur to start a business, he/she have to gather & validate all the required documents. Getting the business license, initiating the visa process and opening a bank account in the UAE are the further process involved in the business set up. The time frame to set up a company in Dubai depends on your business activity and requirement. Normally for a trading license in the mainland company requires 8 working days to complete the process. In the free zone, it takes 5 working days.
