Dubai is a global business hub that boasts an excellent tax setup and world-class infrastructure. These factors along with others make it one of the most desired destinations for global investors and business tycoons. Although there are several other vibrant emirates, Dubai shines as the foremost choice for starting a new business. Dubai company registration is a great decision, especially considering the mix of innovation and the peaceful work environment it offers.
So, if you are a budding entrepreneur or an established firm, willing to establish your presence in Dubai, we’ve got your back. This article will discuss everything you need to know about the business registration process, including the license requirements, costs involved, benefits, and more.
Benefits of Dubai company registration
Business registration in Dubai, UAE comes with a host of advantages:
- Geographical positioning – The Emirate of Dubai is situated at the crossroads of Europe, Asia, and Africa, providing unparalleled access to global markets. This, thus, makes it a perfect destination for businesses looking to expand internationally.
- Business-centric atmosphere – The UAE is widely renowned for its favorable tax environment. In addition to that, the streamlined procedures and the pool of talented professionals create an ideal atmosphere for business activities.
- Advantageous tax environment – The favorable tax conditions of Dubai eliminate the burden of corporate, personal income, and capital gains taxes, thereby offering ample financial benefits.
- State-of-the-Art Infrastructure – The city boasts cutting-edge facilities such as advanced airports, ports, and transport networks which ensure smooth and efficient operations.
- Dynamic Economy – Dubai has fast-paced economic growth which opens up plentiful opportunities for business development and success.
- Special Economic Zones – Dubai has special economic zones known as Free Zones that offer attractive perks like foreign ownership and tax exemption. This makes Dubai an appealing choice for company setup.
- Support for Entrepreneurs – Dubai fosters entrepreneurship through various incentives, training, and support services that facilitate business innovation and expansion.
- Population growth –The population in Dubai is rapidly growing, making the citya hotspot for new businesses and entrepreneurs. With this growing economy, businesses do not have to worry about running out of clients.
- Investment security – The laws of RERA, DED, and DLD are supportive and indiscriminate towards new companies and investors. Therefore, no hidden costs or charges are levied from the business owners during the incorporation.
Types of Business Registration in Dubai
Entrepreneurs and investors can set up the following businesses in Dubai:
- Mainland Company Registration
- Free Zone Company Registration
- Offshore Company Registration
Business licenses available for Dubai company registration
You can choose from different types of business licenses available in Dubai for company formation. Your selection will majorly depend on your specific business activity and the industry you are engaged with.
- Commercial license – As the name itself suggests, this license covers activities related to retail, wholesale, general trading, and e-commerce. Hence, businesses engaged in trading activities, including buying and selling goods can get hold of a commercial license in Dubai.
- Professional license – Professionals or individuals with specialized knowledge and expertise in a particular field would require a professional license to operate in Dubai. For example, doctors, lawyers, engineers, consultants, and artisans.
- Industrial license – Companies engaged in manufacturing, assembling, or processing of goods can obtain an industrial license. This license mainly covers manufacturing and other industrial activities.
- Freelance permit – Independent professionals and freelancers need to obtain a freelance permit in order to legally operate and provide their services in Dubai. This particular license allows them to work on a contractual basis without the need for physical office space.
Dubai company registration procedure
Every entrepreneur and investor must follow the below procedure to register their company in Dubai:
Finalize the business activities
The business model of your company is determined by your day-to-day activities. Hence, it is crucial to determine the business activities and operations that you wish to undertake within your company. Most importantly, list down all the activities that you need approval for while applying for your business license.
Determine the business structure
The business owner needs to decide on the business structure they to form in Dubai. there are various options available to choose from – FTZ, LLC, onshore company, offshore company, or a branch office. Your selection must be based on the number of shareholders, capital requirements, and the commercial activities of the business.
Register a unique trading name
Registering a trading name for the company is yet another important step in the Dubai company registration process. Your selected name must indicate your company’s nature and align with your business activities. Additionally, you also need to adhere to the strict naming conventions followed in the United Arab Emirates. The legal advisors at Shuraa will guide you about these naming guidelines and ensure that your company complies with the stipulated rules of the authorities.
Choose a business jurisdiction
Your business location determines a lot about your company. Apparently, it also contributes to the success of your business. While choosing a location, make sure to consider factors like infrastructure, resource availability, tax regulations, and exposure to diverse economies. Further, find an appropriate office space and obtain the Ejari or tenancy contract.
Draft the LSA/MOA
For registering a company in the Mainland, you need to work with an LSA (Local Service Agent) who would offer assistance in applying for licenses and securing mandatory approvals. However, they would have no authority in any of the business decisions. Next, sign and establish the Memorandum of Association (MoA) outlining your company’s model and structure.
Apply for a business license
Businesses operating in Dubai Mainland must apply for a license from the DED (Department of Economic Development), whereas free zone entities are managed by separate authorities. In addition, you might also require external approvals from other governing bodies depending on the business activities you choose.
Apply for a corporate account
After completing all the business registration paperwork, apply for a business bank account in any trusted UAE bank. Before placing your application, make sure to evaluate whether the chosen bank meets all the demands of your company and provides significant benefits for cost optimization.
Documents required for Dubai business registration
According to the law, the following documents are needed for Dubai business registration: –
- Initial Approval Certificate
- Attested Lease Contract
- Memorandum of Association (MOA)
- Government Approvals
- Completed Application Form
- Business Plan
- Passports of Shareholder & Manager
- Registry Identification Code (RIC) Form (Original & Notarized)
- Specimen Signatures of shareholders and appointed manager
- Letter of Intent
- Financial Documents (as required)
Dubai Company Registration Cost
The cost of registering a company in Dubai is determined by various factors such as the company location, license type, visa requirements, size of the office, and many more. For precise numbers, seek consultation from the company formation specialists at Shuraa.
Conclusion
The business landscape of Dubai is developing day by day. Henceforth, your decision for Dubai company registration could be the right choice! At Shuraa Business Setup, you will get proper guidance in finding a suitable location to execute your business idea and comprehensive assistance in handling the mandatory paperwork. On the whole, you will receive all-around knowledge on how to register and incorporate your business in the commercial capital city of the United Arab Emirates.
Establish your dream venture in Dubai seamlessly with the expertise of Shuraa consultants.
