Dubai is a popular city among Indian entrepreneurs and investors. It even ranks 15th in the world amongst the top global commercial centers. There are countless benefits of company formation in Dubai. The government has opened the gates for investors worldwide and is extremely supportive of new businesses. Not to forget Dubai’s cutting-edge infrastructure and seamless connectivity that fulfills a company’s needs. No wonder why establishing a company in Dubai can be highly profitable.
So, if you are looking for company formation in Dubai, now is the time. But before you get into it, it’s best to know about the benefits, essential documents, process, and the cost involved.
This blog will guide you through the things to be kept in mind during company formation.
Benefits of Company Formation in Dubai
Here are some convincing benefits of forming a company in Dubai’s booming economy that will aid your decision to launch your dream venture in this region:
- Forming a company in Dubai is easier with the rapidly evolving tech facilities and cooperative government. Thus, the need for paperwork is negligible.
- The most prominent benefit of company formation is that you don’t have to pay any taxes. Though, a 5% VAT has to be given by a few companies for certain business activities.
- Dubai is one of the Emirates with the most advanced technological facilities. The city has initiated efforts to reduce traffic and provide world-class internet services, e-commerce, healthcare services, and more.
- You can easily get a residential visa if you are forming a company. After getting your visa, you can rent or lease a property and travel from one country to another.
- The diverse population in Dubai offers a massive pool of quality workforce to the new investors. Their experience ensures they can fulfill their responsibilities and help your company flourish in Dubai.
- Dubai is situated at the junctions of East, West, North, and South. It serves as a connection between manufacturers, producers, and suppliers from across the globe. Dubai is an airport and seaport hub that facilitates a wide range of commercial and tourism operations, hence boosting the growth of the import-export, re-export, and tourism sectors.
- With so many expats, Dubai is a multicultural society. Thus, its residents are aware of different cultures. This helps maintain harmony and develop good relationships.
Here are the key steps to Company Formation in Dubai
The process of company formation in Dubai is easy to follow. Here’s a general overview of the same:
1. Select a Business Activity
The UAE government offers over 2000 business activities. Every business activity is different in terms of opportunities, permissions, and licenses. Choose a business activity based on your interests and skills.
2. Choose a Trade Name
Next, you have to choose a legal trade name for your company. Before registering the trade name, you must check whether the name is available. Moreover, decide on a short and memorable name. This would make it easy for potential clients to recognize and remember your company. Then, register the name and secure your trade name reservation certification.
Note: The UAE government has compiled company naming guidelines. Our specialists can help you name your company following the norms.
3. Choose a Company Structure
Your business will operate smoothly if it has a proper legal structure. So, decide your company structure according to your needs and business activity. The company structure could be a sole proprietorship, a Limited Liability Company (LLC), a Subsidiary or a branch office.
4. Choose a Business Location
You can set up your company either on the mainland or in one of the free zones in Dubai. Although both are profitable, each provides distinct benefits. So, consider factors like your business activity, accessibility, available facilities, reputation, and your budget before choosing a location.
5. Choose Office Space
You can either rent or buy office spaces in Dubai. If your business needs a physical office, consider your workforce size, the technologies required, and your budget. Note that you will also have to decide whether to rent or lease. Accordingly, you will have to enter into a tenancy contract.
6. Apply for a License
Your business must have a valid license in Dubai. A business license makes it easier for you to carry out the intended activity and open a corporate bank account. So, choose an appropriate license, submit all the necessary documents to their respective departments, and pay the fees.
7. Get Your License
Once all the steps mentioned above are completed, you can get your business license.
Company Formation Cost in Dubai
The company formation cost in Dubai can vary with your chosen company structure, business location, business activity, etc. So, it can be difficult to come up with a fixed cost. However, a free zone company formation costs somewhere around AED 20,000 – 30,000.
Whereas the cost typically starts from AED 12,500 to AED 28,500 for the mainland region. Our company formation consultants in Dubai can provide you with an exact breakdown of all the costs.
Documents Required for Company formation in Dubai
You must have all the mandatory documents in company formation in Dubai. The following are some of the important documents you must have:
- Passport-size photographs of the company registration applicant.
- Application form.
- A copy of LSA’s Emirati ID.
- LSA and MoA documents (notarized and attested)
- Passport copies of all the legal participants.
- External approvals (if applicable)
You will need more documents depending on your company’s chosen activity, structure, and location. Our company setup experts can provide you with a detailed document list.
Start Your Company in Dubai With UAE Expansion
You may want to look for the cheapest company formation in Dubai. However, it’s best to get in touch with a top business consultant who can help clear all your doubts about company formation in the UAE. They can make the application process seamless.
UAE Expansion professionals can provide all the information you need about a company setup in Dubai. We will guide you at each step and help you make the right choices.
Moreover, our company formation services in Dubai will take care of everything, from gathering necessary documents to submissions and acquiring approvals to getting your company license. And, our services don’t end here. We ensure to fast-track the setup process and obtain your company license and approvals on time. All you need to do is give us a call!