What would be the one perfect business destination you would pick? If you ask us, it is definitely going to be Dubai. We choose Dubai not just because of its unmatched popularity but because the city offers entrepreneurs benefits that other nations still cannot match.
Company registration in Dubai brings a pack full of benefits like tax savings, a faster and simpler process, access to modern infrastructure and a prime location in the heart of the world trade hub, advantages you will not find in other nations.
Thus, this article is dedicated to the initiative of getting a company registered in the city, including its procedure, types, and every little detail you need to know.
What is company registration in Dubai
In literal terms, company registration can be described as a process through which a business gets legally established in a nation and gains status of legal entity in eyes of law of land. Similarly, Dubai company registration means getting your business legally formed and incorporated as per the laws of UAE.
Once your company gets registered with the government authority, you get the right to operate your business legally in the city.
Types of company registration in Dubai
In Dubai, based on the economic zone you choose for your operations, you can choose from three types of company registration:
Mainland company registration
One of the most sought-after investments in Dubai is mainland company registration. Mainland, which refers to all area excluding freezones, is an economic zone that is home to numerous large multinational companies, small and medium companies.
As per the recent changes in law, mainland companies now allow 100% expatriate ownership across selected business activities. However, some strategic sectors may still need partnering up with local sponsors/local service agents. Besides that, they get to enjoy full UAE market access and more visa quotas.
All mainland companies may get registered and licensed from the Department of Economic Development (DED), who stands as the primary governing body of mainland Dubai.
Freezone company registration
For startups, industry-specialized businesses, and budding entrepreneurs, freezone company registration stands as an ideal choice in Dubai. Freezones are dedicated economic areas where businesses can operate, and they do not form part of mainland Dubai.
Evident from the name itself, freezones let businesses enjoy freedom, be it 100% ownership, 100% repatriation of capital and profits, and advantageous tax rates.
Each freezone has its own regulatory body, and the companies must approach them to get registered and licensed. Dubai is home to more than 30 renowned freezones that specialize in wide sectors ranging from commerce, healthcare, science, IT, media, and more.
Offshore company registration
There are many businesses who may want to register in Dubai to take advantage of its strategic geographic location and tax benefits. For those, offshore company registration in Dubai can be an exciting choice.
Offshore companies are those that get registered in Dubai but conduct their business operations outside the UAE’s boundaries. In fact, you must know that they are prohibited from having any physical operations within the nation.
Offshore companies can reach wide markets across the MENA region, and they can open their business bank accounts in the UAE and manage multiple currencies.
Process to get company registered in Dubai
Here is the step-by-step process that you can follow for getting company registration in Dubai:
Determine business activity
First of all, the important question is what business operations you plan to conduct. Your chosen activity must be permitted by the government of UAE. What you choose would also decide the rules, regulations, and business license type that you will be subject to. Generally, there are three broad categories of business licenses in Dubai, including commercial, industrial, and professional licenses.
Choose the legal structure
This is an important decision that impacts on the taxation, operational flexibility and ownership pattern of your business. The legal form of your business must be chosen wisely. In Dubai, you can establish the following legal structures:
- Sole Establishment
- A Limited Liability Company
- Joint Stock Company
- Partnership Firm
- Civil Company
- Branch/Representative Office of GCC/Foreign Company
Finalize company name
Your business must have a unique and business-reflective name. Also, there are naming rules established in Dubai that you must respect. Otherwise, your name will be rejected. You can propose three alternatives for the name, and one of them can get registered.
Get the initial and other approvals
Before you get ahead with the licensing and registration process, you must secure initial approval from the DED or your relevant freezone’s authority. Also, for some business activities, special permits are required from additional governing bodies. For example, for a healthcare business, the Dubai Healthcare Authority (DHA) issues the permit.
Submit documentation with authority
Once you have secured all your approvals, you can start gathering all the essential documents that you would need to submit for registration. Once the documents are prepared, submit them along with the application form to the relevant authority. The authority will review your application, and once approved, your license will be issued, and your business will get registered.
Apply for the visa
To legally enter and stay in the Emirate for business purposes, you must secure a proper business visa in Dubai. It includes making the application, submitting the papers and passing a medical test as part of the procedure.
Get the visa and Emirates ID
Once your visa application gets approved, it will be stamped on your passport. Also, you will get the Emirates ID, which serves as an identification card in the Emirate.
What documents you will need for company registration Dubai
Here is what you will need:
- Application form filled
- Copies of directors/shareholders passport and visas
- Business plan
- Articles of company
- NOC from local sponsor, if needed
- Trade name registration certificate
There can be more requirements depending on your business situation. It is better to seek help from professional business setup consultants.
How much cost to expect for company registration Dubai
The cost of company registration in Dubai depends on chosen jurisdiction and specific business needs.
- For mainland: From AED 17,900*
- For freezone: From AED 11,050*
- For offshore: From AED 14,900*
For exact cost estimation, seek help from field experts like Dubiz Business Setup.
Advantages of company registration in Dubai
You might still be wondering: “why should I consider getting my company registered in Dubai?” Here are the insights that will give you confidence in moving ahead:
Fast and simple process: You can get your company registered very quickly in Dubai, as there are minimal administrative hurdles. E-channel facilities make the license and visa application process easier.
Tax benefits: There is absolutely no tax on personal income. Corporate tax is also very reasonable and even zero for those earning below the threshold.
Geographical reach: From East to West, Dubai’s ideal location opens up vast international markets for businesses.
Rich and stable economy: The UAE’s economy is one of the strongest in the world, and Dubai is the wealthiest city in the Middle East.
Modern facilities: Dubai is always one step ahead in launching modern and high-tech infrastructure that makes business operations efficient.
Summing up!
Company registration in Dubai stands as a promising opportunity for those looking to expand their business overseas. There can be no better place than Dubai for business given the plethora of benefits you get to enjoy as an entrepreneur. Foreign entrepreneurs are treated as a special part of UAE’s economy and welcomed with open arms. If you too desire to begin your company formation journey in Dubai, we recommend you get in touch with Dubiz Business Setup. They can make your dream come true in the most cost effective, hassle free and transparent manner. Book a free consultation with their expert today and get your Dubai business license, business bank account, documents and approvals, all sorted out!
