What Are the Steps in the Formation of a Company in Dubai?
Steps in the Formation of a Company in Dubai
Dubai is one of the world’s leading business hubs and has a long history of welcoming foreign entrepreneurs. As such, there are a number of company formation agents in Dubai and the wider UAE who specialise in helping businesses get started. This means that setting up a business in Dubai can be relatively quick and easy, particularly if you are working with an experienced agent who can handle all the necessary paperwork on your behalf.
The first step in the process of establishing a company in Dubai is to decide what kind of business you want to start. This will help you determine the type of company formation in Dubai that you need to set up, as different business structures have varying requirements in terms of documentation and approval processes. It is advisable to consult an expert on this at the very beginning of your journey, as they will be able to advise you on the best route forward depending on your specific circumstances.
Once you have determined what kind of business you want to launch, the next step is to select a name. This is important because it must be in line with local naming conventions and cannot include offensive or blasphemous language, as well as any references to Islam. Again, this is something that your business setup consultant can assist you with, making suggestions and ensuring that the name you have chosen is available to be registered.
What Are the Steps in the Formation of a Company in Dubai?
If you are planning to establish a commercial or industrial business in the UAE, it is advisable to choose a Limited Liability Company (LLC). The company must have at least two shareholders, and each shareholder will be held responsible for the company’s debts only to the extent of their contribution to its capital. LLCs are allowed to trade within the UAE and are not subject to income tax.
It is also possible to set up a private joint-stock company in the UAE, although this is only recommended for very large companies and will require significant investment from the founders. These are not permitted to trade in the stock market, but do enjoy a range of benefits, including VAT exemption and audit dispensation.
Lastly, it is possible to open an offshore company in the UAE. This is not suitable for businesses that intend to sell products or services to customers inside the country, but offers a range of benefits including tax savings, ease of ownership transfer and no requirement for a local partner. The cost of establishing a company in the UAE varies between Mainland and Free Zone jurisdictions. The costs for a Mainland company will include the license fee, virtual office space and one residency visa. The fees for a Free Zone company will vary according to the selected activity and industry sector.