Renowned for its ultra-modern infrastructure, strategic position, and pro-business policies, the city of Dubai in UAE offers an inviting environment for traditional companies and digital businesses alike. However, the process of online company registration in Dubai can be a bit complex and time-consuming especially if you are a newbie and are completely unfamiliar with the local regulations. So, here is an all-inclusive guide that will walk you through the step-by-step procedure of registering a company in Dubai.
Steps for Online Company Registration in Dubai
Entrepreneurs looking for a business setup in Dubai have to follow the below steps to undertake a successful company registration in UAE –
1. Identify the Nature of Your Business Activity
The business licenses in Dubai are offered on the basis of the nature of the business, in short, the type of business activity that is intended to be carried out in the company. For example, commercial trade, consultancy services, freelancing, e-commerce, or any other corporate activities.
2. Determine Your Company’s Legal Structure
Before initiating online business registration in Dubai, it is crucial to determine the suitable legal structure of the company. If the investor wants to establish their company in the Mainland region, they can set up an LLC (Limited Liability Company) and access the benefits of local markets while enjoying 100% ownership of the business.
On the other hand, if they choose to UAE company register in any of the free zones, they can avail all the free zone perks and advantages such as foreign ownership, tax and customs exemption, capital repatriation, and more.
Before making any decision regarding the legal form of business, it is important to evaluate the business objectives, target market, regulatory needs, as well as the pros and downsides of your choice. Hence, it is always better to seek expert advice before coming to a conclusion. Speak with the professional business consultants at UAE Expansion for correct guidance.
3. Register the Trade Name
Just like the legal structure, it is also important to decide a suitable trade name for the company that is appropriate for the selected form and business activity. However, make sure it adheres to the naming conventions issued by the government so as to avoid delays in the registration process. To ensure adherence to the naming standards and availability of your selected company name, reach out to the business setup consultants of UAE Expansion and confirm your company name registration in Dubai.
4. Apply for Initial Approval
Obtaining preliminary approval from the necessary authorities is vital in order to move forward with the registration process. All you need to do is send your company name, business activity, and legal structure choices for approval to the appropriate authority. The authority will examine and ensure that the company is complying with the local laws.
Alternatively, you can work with the professional business experts at UAE Expansion who will assist you in obtaining the required licenses and approvals.
5. Create LSA or MOA
Investors or entrepreneurs who are planning to Dubai company register in the Mainland region have to hire a Local service agent (LSA) who will undertake all the necessary legal formalities on behalf of the company without meddling in business activities or decisions. Additionally, this association will be based on a mutual agreement, also known as a Local Service Agreement that has to be duly signed and submitted to the respective authority.
On the other hand, the Memorandum of Association (MOA) is a corporate document that outlines the details of the company including business objectives, number of shareholders, share capital, financial projections, and other mandatory information.
6. Choose Your Business Location
The tax regulations, infrastructure, availability of resources, and exposure to diverse economies will depend on the location you choose for your online company registration in Dubai. Once you succeed in leasing a suitable location or space for your business, obtain a tenancy contract from the landlord.
7. Apply for Additional Government Approvals
Certain business activities may require you to seek additional approvals from specific agencies and government officials. You can acquire a list of such activities and relevant authorities from the business counselors at UAE Expansion. In addition, they will also support you in attaining their permissions so that you can legally conduct your business in Dubai, UAE.
8. Submit Required Documents
Proper documentation validates the authenticity of the company and its associated members. Hence, you must submit all the required documents to ensure the smooth processing of the company registration application. Here’s the list of documents that the authority would require for your company registration in UAE –
- Passport-size photograph of the business owner
- Passport and visa copies of all the legal participants
- Notarised and attested LSA and MOA.
- Ejari Number (verification of tenancy contract)
9. Pay Fees and Collect License
Now that you completed all the above steps meticulously, the last and final stage is to pay the license fee as specified by the authorities. The authorities will then methodically scrutinize your submissions and issue your license accordingly.
To ascertain the precise cost of a business license and online company registration in Dubai, speak with the relevant executive at UAE Expansion.
Benefits of Online Company Registration in Dubai
Dubai offers ample benefits to foreign investors registering their businesses in the city, which includes –
- Tax advantages
- Foreign ownership
- Liberal laws
- Exceptional infrastructure
- Strategic location
- Easy to set up
- Cost-effective
- Multiple visa options
- Office space choices
Types of Online Businesses in Dubai
1.Online portal/E-Marketplace – Amazon and Flipkart are a few examples of online marketplace. This type of business allows companies to advertise their goods for sale. Hence, to undertake this, you will require an internet portal to register your online business.
2. E-commerce – A website-based e-commerce is a fantastic alternative to offer goods and services to customers locally as well as globally. It enables a clear line of communication between buyers and sellers.
3. Commercial/Service License – This allows a traditional business that is unrelated to e-commerce to sell its products online, regardless of the method of sale.
Jurisdictions to register business in Dubai
In Dubai, one can register their online business in any of these jurisdictions –
Mainland
Mainland company registration allows you to operate anywhere in Dubai and throughout the UAE, which means you can access the local market for trade. Moreover, foreign investors can fully own their mainland companies, but with a few exceptions.
Free Zone
There are numerous free zones in Dubai, each catering to specific business activities. Nevertheless, all of them offer similar benefits which include 100% foreign ownership, repatriation of profits, exemption from taxes, and many more. However, free zone companies are restricted from conducting business in the local UAE market, which means they can solely trade within the free zone or internationally.
Offshore
For businesses that are seeking privacy, asset protection, and tax optimization, offshore company registration is the best option. Though it does not allow performing trade within the UAE, it offers 100% foreign ownership and eliminates the requirement for a physical presence in Dubai. Overall, they provide a flexible and secure environment to firms that operate outside the UAE.
Register your firm with UAE Expansion!
Looking for assistance with your online company registration in Dubai?
At UAE Expansion, you will find a comprehensive range of services, including UAE company registration, documentation, translation services, sponsorship support, licensing, PRO services, and more. Moreover, you can be assured of all the expertise and support to kick start your entrepreneurial journey in Dubai on time with reliable solutions. UAE Expansion
