The business market in the United Arab Emirates, specifically in Dubai, is increasing daily. Its intense quick-growing horizons and magnificent infrastructure make it one of the utmost business hubs in the whole world. Therefore, company formation in Dubai the region can seem like a great idea for locals and foreigners alike.
Dubai provides investors with different alternatives to business setup. So, all interested parties can select a type of company formation that caters to their requirements. The different types of company formations in Dubai are UAE Mainland, Free Zone, and Off Shore.
The local government is constantly fomenting investment and startups in the United Arab Emirates. Subsequently, now is a good time to make the decision and start your new business in the area. Additionally, the local market is very easy to manage. And, if you are a foreigner, you can easily obtain a visa to invest in the UAE economy.
Depending on your knowledge and experience, creating a company can be overwhelming. As a result, most entrepreneurs hire a company formation service in Dubai to have the necessary support through their business endeavors. With their support, you will not need to worry about the language barrier or any other legal challenge.
These agencies make sure that your company formation process goes as smoothly as possible. The only thing that you will have to worry about is following the steps to achieve your business setup in Dubai.
Steps to Business Setup in the UAE
Select Your Business Activity
Firstly, you must choose your business activity from the numerous fields that are thriving in the United Arab Emirates. Currently, the local government is looking to diversify the oil-driven business market, so any company that contributes to that objective will be accepted quickly.
Depending on your type of business you must decide on what landscape you want to set your headquarters into. For example, if you are in the healthcare or media field, you can set your business on any of the Free Zones.
Understanding the differences between operating a business in the Free Zones or Mainland is crucial. Subsequently, this is where a company formation service in the UAE comes in handy. In this way, they can help you obtain the necessary knowledge so you do not make any mistakes. Also, they will give you the advice that your business needs to thrive.
Register Your Business Name
Secondly, you must choose a name for your company. Entrepreneurs and investors should keep in mind that the United Arab Emirates has strict rules when it comes to naming a business. Therefore, you have to make sure that your business abides by these regulations.
For a business setup in Dubai, your organization’s name should not be offensive in any way. You should abstain from choosing a name that could be alluding to any religious, political, or sectarian group. In the same way, if you name your business after a person, that individual must be the owner or a partner of the company.
Investors can save time by working alongside a UAE company formation agency. As they will be able to tell you if it abides by the guidelines before you register it with the pertinent local authorities.
Finish Your Paperwork
Thirdly, to register your company, you must submit certain paperwork. Some of these documents are an application form, your name registration documentation, and copies of the passports of the owners and shareholders.
On the other hand, mainland companies have to meet certain requirements different than the free zone ones. For instance, free zone companies must have a business plan in place and a Non-Objection Certificate.
When you are working side-by-side with the best company formation service in the region, they will make sure to give you a list of the necessary paperwork to start your business. Additionally, these agents will be in charge of submitting all of your documents to the Department of Economic Development. Finally, after your application is processed, the DED will grant you a company license.
Open a Business Bank Account
With the support of a legal company formation service, you will be able to open a business bank account in a local entity. Subsequently, you can start trading and saving your business income in this particular account.
Hiring a company formation service in 2022 for your business setup in the UAE will allow you to go through this process quickly. To open a bank account, the local bank entity will ask you about the following:
- Your primary business areas.
- The anticipated volume of your income and total deposits.
- Main customers and suppliers, and revenue levels.
After you obtain your business commercial license and have all of your paperwork, you can talk to your Dubai company formation service about approaching a bank entity to open a business account. Therefore, they will take care of selecting a bank entity that can suit your requirements, submit your documents, and arrange the meetings.
Arrange Your Visas
Finally, to finish your business setup operation, you need to arrange the visas for you, your staff members, and other dependents. With the help of a company formation service in Dubai, you will be able to apply for any type of visa in the United Arab Emirates.
These agencies will be responsible to guide you through every single stage of the process. They will help you obtain the entry permit, support you to achieve your status adjustment, aid you with your medical fitness test, and lastly, your visa stamping and Emirates ID registration.
Find Office Space
Having headquarters is a requirement if you want to open a business in the UAE. So, finding the perfect space for your business with the support of your company formation service is not hard. They can show you different alternatives according to your budget and requirements.
In the end, you can have a small office, a flexible desk, a private office, or a co-working space. It will all come down to the size of your business and how much you will be able to spend on the perfect spot to start your company.
Start Doing Business
Now that you have completed all of the steps of business setup in the UAE, you will be able to start trading. Anyone can start a business Center in Dubai, as long as they go through the legal process of company formation.
The main thing you need to know is that most types of companies, besides sole proprietorship, is that you need a local partner. This Emirati shareholder will own 51% of your business, while you are in charge of the other 49%. However, if you start your business in the Free Zones you will be able to retain 100% ownership of it.
Legal Structures in the UAE
The most common legal structures for companies in the UAE are:
- Sole Proprietorship: with this type of structure, owners can have full ownership of the business. As a result, they have full control of profits and operations.
- Civil Company: this type of business is usually owned by lawyers, accountants, and doctors.
- Limited Liability Company (LLC): This type of structure requires from two to 50 shareholders. Consequently, each one is responsible for their percentage of shares. Moreover, all losses and profits are divided between partners according to their holdings.
- Foreign Company Branch: international companies can open branches in the United Arab Emirates. Parent companies own 100% of the shares of the business.
- Free Zone Company: setting up this kind of legal structure needs two or five stakeholders. This type of business is very beneficial; however, they cannot trade with the UAE market.
- Freelancers: freelance workers can register their freelancing business in the UAE. They will just need their CV, an application form, a bank reference, and a Registry Identification Code Form.
Ultimately, after going through the company formation process in Dubai, you can take advantage of all the benefits the United Arab Emirates market can offer you.
