Company Registration in Dubai

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What is Company Registration in Dubai?

Dubai is one of the few states where starting a business is a tedious task. However, Dubai offers excellent options for trade and commerce for foreign investors and has emerged as the fastest growing emirate in the UAE. In Dubai, you can set up two types of companies– Free zone Company and Offshore Company. Each type of company has completely different legal procedures for registration in Dubai, and each offers different benefits.

Dubai has a large no of Free Zone. Dubai Free Zone has a special economic place for Business Setup, Free Zone Registration offers a wide range of services which includes Dubai Free Zone VISA, Company Registration, Company Formation, Free Zone License, Business Registration, On & Offs hoer Company Registration, LLC Company Formation.

There are three types of companies which you can incorporate in Dubai:

1. Free Zone Company

Free Zone Company is the type of business that is wholly owned by the person who set it up. There is no need of any local partner(a sponsor) or an agent to act as liaison to manage the proposed venture in Dubai. To start your company as Free Zone Company, there is no restriction tying you down. The companies are governed by an independent Free Zone Authority (FZA) that is responsible for regulating the activities of companies and issuing operating licenses within the Free Zone.

The benefits of a Free Zone include

  • Enables shareholders, directors, and employees to obtain residency visas in the UAE
  • No requirement for a local partner or sponsor
  • 100% repatriation of capital and profits
  • 100% exemption on corporate and personal income tax

A Free Zone Company is expensive in comparison to an Offshore Company. However, it is like an onshore company with some of its characteristics like offshore company. A Free Zone company is ideal for market entry in Dubai because it will give you the physical presence in the UAE through office space and visas without the need for a local sponsor.

2. OFF-shore Company registration in Dubai

An offshore company is the most profitable entity to run your business or asset ownership in the Middle East. An offshore company does not have to comply with any special requirements or limitations regarding the owners/shareholders of the company.

There is no specified capital requirement in an offshore company. The capital can be any amount divided into any denomination. All shares allocated, of the offshore company, must be fully paid and no bearer shares or differential classes of shares are allowed. However, it is not required to deposit the capital of the company in the bank.

3. Onshore Company registration in Dubai

The onshore company in U.A.E is a very beneficial entity. There are multiple benefits of onshore company registration with free zone registration. The onshore company in Dubai, U.A.E you will be entertained with the tax relaxation which is such a relief. For Onshore company registration in Dubai, there is an applied tax for individual stages. But the Onshore company registration in Dubai saves you to pay unnecessary taxes for your company.

Another major advantage of onshore company registration in Dubai is that you can have a full time working office there. Generally, foreign investors establish their business in Dubai and operate it by sitting at their native place. But with Onshore company registration in Dubai, you can have a working office, from which you will be able to manage your work in Dubai. The Onshore company registration in Dubai ensures company’s resident status in Dubai, and converts the company into a local onshore company of Dubai and, that is, without any sort of tax consequences or legal implications.

Company Registration Procedure in Dubai?

The very first step to incorporate a company in Dubai is to decide who will be your local partner or “Sponsor” and to decide, would your sponsor be assisting you in resolving your problem with the government procedures would he be just a name partner on the license and nothing else and compensation amount are you ready to pay per year.

You are required to make a careful consideration while making the decision for the sponsor of your proposed company. If you have a good rapport with your sponsor, it is of great help and prevents many potential problems.

The next step is to decide a name for your company and the activity that your company will be carrying on. And get it approved from the Department of Economic Development (DED).

To get the approval from the Department of Economic Development (DED) you need to submit an application to the Department of Economic Development (DED) in a standard form.

Now you need to look for business premises and make a tenancy contract with the owners.

All business in Dubai is required to have local business premises in Dubai evidenced by a tenancy contract in order to get registered.

After you have a local business premise, next thing that you have to do is to Make a Memorandum of Association (MOA) with the sponsor of your proposed company and submit it to the Department of Economic Development (DED).

Any legal firm can draft the said memorandum which must specify in special arrangements and ownership percentage among all partners.

The final step for incorporating a company in Dubai is to submit the MOA and the License application at the Department of Economic Development (DED) along with the required legal documents and the tenancy contract.

All fees and charges are required to be paid at this stage. Once all fees and charges have been paid you should get a license after about a week of submission of all documents and making of the payment.

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