Company Registration in Dubai
No limit for registered capital
No requirement for local partnership
Complete foreign ownership allowed
Joint venture registration is allowed
Dubai market entry strategy
Every businessman has the dream of starting his own company but company registration in Dubai is not easy. Stringent rules by the government and tedious process make company registration in Dubai a complicated and troublesome task.
Before starting a business in Dubai one has to do thorough research on every aspect and must go through all the information about the business activity planning to undertake and should comply with all the business licensing requirements.
Trade licence is mandatory for any business activity. In Dubai, it is based on the nature of the business entity. The concerned authority which is responsible for issuing local Dubai company licenses is the Economic Development Department, functioning in different locations.
Mentioned below are types of Trade Licenses.
- Commercial License issued to the company that will engage in any kind of trading activity.
- Industrial License issued to the company that will engage in manufacturing or any industrial activity.
- Professional License issued to the company that will engage in service providers, professionals, artisans, and craftsmen.
According to the Dubai Company Act, it is mandatory that local partner will have the majority interest in the company. Non- Residents are allowed to have companies only in the free zones in Dubai. Depending on the type of company, one wants to register accordingly company registration requirements will fluctuate.
Types of Company Entities in Dubai are:
- limited liability companies,
- private and public joint stock companies,
- branch offices,
- free zone limited liability companies,
- free zone establishments.
However Sole proprietorship is the simpler form of doing business in Dubai.
Depending on the company type and licensing requirements, the registration procedure will vary accordingly.
Limited Liability Company(LLC)
In the Limited Liability Company, the liability of shareholders is limited to their capital. The maximum number of shareholders in the LLC is 50 and minimum is 2. Except for insurance, banking, or money investment, the company can carry any business activity.
Steps to be taken before opening the Limited Liability Company in Dubai
- Select the company name
- Define the company activities type
- Check the licensing requirements
- Find local Partner / Sponsor
- In the case of regular requirement begin the companies registration and pay the necessary amount.
- If the case of special requirement on licensing – do all necessary steps to get all the approvals and then proceed with the registration
- Rent office space
- Open Bank account
- Finalize company registration
- Set up all necessary utilities and connections
- Get your residency visa and, if necessary, visa for your employees
An onshore company is a business configuration that is formed and managed within the jurisdiction of the company. There are many perks of having the onshore company which include favourable regulation, taxation policies for companies operating outside of the jurisdiction, broad networks of tax treaties, developed business, banking and supporting sectors, etc. Registration of the onshore company in U.A.E. is crucial and beneficial. Generally, owners manage their business by sitting at their native place, but with the Onshore company, one can easily have the working office and can manage them efficiently.
Steps to be taken before opening the Onshore Company in U.A.E.
- Select the company name
- Define the activity of the company
- Select the optimal free trade zone according to the requirements
- Check with the free zone authority, to verify the licensing prerequisites
- In the case of regular collect all the forms and documents and starts with the company registration
- Check the other requirements such as office space and sign the respective rent contract
- Open PO Box
- Review the requirements of share capital, open bank account, pay share capital, and get share capital payment confirmation
- Get to the final stage of the company registration
- Apply and get the company establishment card, immigration card and other documents
- Proceed with your residency visa along with the visa for your family and, if required, for employees.
An Offshore Company is a legal business configuration that is formed and managed outside the jurisdiction of the company.
Steps to be taken before opening the Offshore Companies in Dubai and Ras Al Khaimah, UAE:
- Choose the registered agent
- Select the company name
- Give the company name to the agent along with other documents;
- After the name is approved – the agent will hand-over all the incorporation documents which are to be signed by the owner and then forwarded back to the agent;
- Pay the agent for the incorporation procedure;
- Receive back from the agent all the incorporation documents;
- Open bank account- may be with the help of an agent or themselves.
|Summary||Trading LLC||Professional Service LLC||Fast solution LLC||Offshore LLC||Free Zone LLC||LLP||Representative office||Branch office|
|Best use of company||Trading||Professional services||Close a customer deal||International trading||Global trading||Professional trading||Marketing & Research||Specific Record|
|Can be wholly foreign owned||No||Yes||Yes||Yes||Yes||No||Yes||No|
|Minimum paid up share capital||US$50,000||US$1||US$50,000||US$1||US$15,000||US$1||US$1||US$1|
|Limited Liability entity||Yes||Yes||Yes||Yes||Yes||Yes||No||No|
|Resident director/partner/manager/agent required||Yes||Yes||Yes||No||No||Yes||Yes||Yes|
|How soon hire of staff is possible||0 month||1 month||1 month||Cannot||1 month||1 month||1 month||2 month|
|Can bid for government contracts||Yes||Yes||Yes||No||No||Yes||No||Yes|