Due to its favorable tax environment, Dubai is one of the most sought-after places to establish a business. It is one of the most popular locations for foreign investors to conduct business in. One of the main reasons foreign business owners choose to start their operations in Dubai is the abundance of Free Trade Zones (FTZ) in the city.
Whether you choose to register your company in Dubai online or through an offline method, establishing a company in Dubai is an excellent decision. It is no secret that Dubai is developing into a cutting-edge commercial hub, and both budding start-ups and established multinational corporations are choosing to locate their operations in the Middle East. Company registration in Dubai will help you expand your business and turn it into a profitable venture.
How to Open a Company in Dubai?
Although it may seem difficult, Dubai company registration is a very straightforward process. Particularly if you seek the help of professionals at UAE Expansion. Here is a clear process of how to register a company in Dubai:
1. Establish the Nature of the Business
Choosing the type of company, you want to establish is the first stage in the UAE company registration process. There are several different company alternatives available in the United Arab Emirates, including Limited Liability Companies (LLCs), Free Zone Companies, Branch Offices, Representative Offices, and more.
2. Selecting a Business Activity
You should choose the business activity you wish to get into after deciding on the kind of firm you want to start. Choosing the appropriate activity is crucial because some may require you to obtain certain licenses or permits.
3. Select a company name.
Selecting a name for your firm that accurately represents your operations is an extremely important step. Make sure the name you have chosen complies with the naming convention used in the UAE. The Department of Economic Development (DED) website makes it simple to confirm if the name you have selected is available.
4. Acquiring Initial approval.
If you have the required documentation, business plan, etc. on hand, getting initial clearance from the Department of Economic Development is a simple process.
5. Drafting the Memorandum of Association (MOA)
Create a draft of your company’s Memorandum of Association (MOA), which includes a summary of the goals, investors, funds, and other necessary information.
6. Acquire Space for your Office.
You must have a physical office in Dubai if you intend to start a mainland business. Office space will be provided by the free zone authorities to enterprises operating within it.
7. Obtain a Trade License
Once your initial permission has been granted, you can apply to the DED for a trading license. Your company’s lease agreement, MOA, and other supporting documents must be provided. The several corporate license categories offered in Dubai are as follows:
- Business License: A business license is required for every organization involved in commercial activities.
- Professional License: Companies that provide services, technicians, and artists, must get a professional license.
- Industrial License: Obtaining an industrial license is necessary for every organization engaged in the manufacturing of industrial products.
8. Register with the Chamber of Commerce
To get a membership certificate, you must register your company with the Dubai Chamber of Commerce.
9. Register with the Federal Tax Authority
For your business to obtain a Tax Registration Number (TRN) you must register it with the Federal Tax Authority (FTA).
10. Fulfil your registration with the Ministry of Emiratization and Human Resources:
It is necessary for you to register your business with the Ministry of Human Resources and Emiratization (MOHRE) to receive a Labor Card and adhere to employment laws.
11. Open a Bank Account
Lastly, for business activities, you should open a bank account in Dubai. To ensure an easy registration process, you can seek the help of our experts at UAE Expansion, as business registration in Dubai can take several weeks.
Documents required for Dubai Company Registration
Depending on the kind of company you intend to create, different documents may be needed for Dubai company registration. The following are a few of the most significant documents:
- Copies of directors’ and shareholders’ passports and visas.
- Verification of addresses for all directors and investors.
- A duplicate of the certificate of trade name reservation
- A copy of the Department of Economic Development’s (DED) original approval
- A duplicate of the Articles of Association (AOA) and Memorandum of Association (MOA)
- A copy of the office lease or tenancy agreement for the business.
- A letter of no objection (NOC) from the owner or landlord
- Evidence of payment for the trade license, initial approval, and additional costs.
To get a detailed guide on the required documents contact our experts at UAE Expansion.
Cost of company registration in Dubai
Depending on the selected business model and the particular operations to be carried out in the UAE, there are different costs associated with company registration in Dubai. In Dubai, the standard business activities for registering an LLC corporation cost approximately AED 12,500* in free zones, the cost is relatively less.
Furthermore, there are several other costs associated with registering a corporation in Dubai. These fees cover things like the cost of office space, business incorporation paperwork, licenses and permits, and more. For a thorough pricing estimate, get in touch with our consultants at UAE Expansion.
Advantages of company registration in Dubai
- Dubai is the ideal place to launch a business due to its growing economy, first-rate infrastructure, accommodating business laws, and advantageous location.
- With the added advantage of online company registration in Dubai and over 2,000 distinct company operations available for entrepreneurs, starting your company becomes easy.
- The tax laws in Dubai offer you total exemption from corporate and expert taxes, as well as protection from additional taxes, import tariffs, and other charges. Every court hearing is accessible to the public and there are no additional costs.
- Foreign investors in the United Arab Emirates are entitled to 100% ownership of their company. All the free trade zones are easily accessible to them, and setting up business in Dubai has become simpler for foreigners thanks to new laws about expats.
The way forward with UAE Expansion!
The largest business hub in the Middle East for investors is Dubai, particularly for those wishing to establish commerce. These days, investors eagerly await the chance to take advantage of what Dubai has to offer in terms of resources, tourism, infrastructure development, and import and export of goods.
If you are unfamiliar with the applicable laws and regulations, company registration in Dubai can seem like a difficult process. For those who want to start their own business, UAE Expansion provides a plethora of experience and knowledge. Our knowledgeable staff is well-versed in the local rules and regulations guaranteeing a straightforward yet effective business establishment.