Have you ever dreamt about opening your own business in a foreign land?
But got stuck between thinking about the process and the question like how, when and why that kept popping into your mind.
Well, then, no worries. Dreamy Dubai is here, and you can quickly start setting up a business in Dubai.
The Emirates has paved the way for you to start now. But before taking any step, go through the article for a basic idea of business setup in Dubai.
Benefits of Setting Up a Business in Dubai
One can enjoy numerous advantages with a business setup in Dubai, UAE. Check out all these reasons why you should also consider the Emirates for the same:
- Tax Benefits: The UAE government aims to maintain a business-friendly ecosystem to attract business owners and entrepreneurs. Foreign investors can enjoy tax exemptions for business setup in Dubai. The VAT rate in Dubai is 5%, which is way lower than that of other major commercial capitals worldwide. You don’t have to pay any corporate and personal taxes on your earnings.
- Business Opportunities: Dubai follows a liberal regulatory framework, which enhances the scope for business formation in Dubai. In recent times, the Dubai government has implemented numerous strategies to spike the process of business development and attract more foreign investors; three economic zones (Mainland, Free Zone, and Offshore) are available in the emirate. It’s considered one of the top-notch commercial business zones in the world, with so many industries growing.
- Robust Connectivity: Dubai is one such emirate with solid connectivity. The modern infrastructure amalgamated with accessibility helps the place connect easily to the world through the ports. Therefore, business executives or investors don’t have to worry aboutravelingng to Dubai. You have lots of seamless flights to connect with the city.
- Strategic Location: Dubai is strategically situated between the East and the West. Therefore you will get easy access to all the international markets of Asia, Europe and Africa. This geographical positioning of Dubai enhances the scope for business expansion and is suitable for business communication.
Legal Entities for Company Formation in Dubai
There are numerous legal entities available in Dubai for company formation. Choose one suitable for your business. Check some of the most general and used company structures in Dubai:
- Sole Proprietorship: A legal entity where only one person is the single owner of the company.
- Limited Liability Company: A legal entity where the liability of the partners is restricted to the form of their investment in the company. This is one of the most preferred business structures in Dubai.
- Partnership Company: Two or more partners share ownership of the company. General and limited partnerships are the two types of partnerships for this type of company.
- Public Shareholding Company: This type of company is also known as a Public Joint Stock Company in Dubai and can be of many partners.
- Private Shareholding Company: This legal entity can be opened with at least 3 investors and is compatible with commercial and industrial activities.
- International Business Company: This type of company is formed under international laws. It is considered as a tax-neutral company.
Types of License for Business Setup in Dubai
A business license is the primary thing you need to start your business in Dubai. You can’t perform any business activities without a business license. Check the different business licenses in Dubai:
- Commercial license – Provided for general trading businesses
- Tourism license- provided for the travel and tour industry
- Professional license- provided for service-related businesses
- Industrial license- provided for manufacturing goods
The Process of Business Formation in Dubai
Check out the detailed process of company formation in Dubai:
- Finalize the Business Activity:
The first step includes deciding the business activity. Dubai has a lot of options for business formation, such as logistics, import and export, healthcare, travel and tourism, real estate, IT and many more. Choose any business activity under these industries.
- Decide the Location:
The next step is to determine the location for business formation in Dubai. Dubai has three economic zones for business setup: the mainland, free zones, and offshore areas. Each economic zone has benefits and drawbacks. Talk to your business consultant to get a proper understanding. If you consider forming a mainland company in Dubai, the requirements and procedures will differ from those of an offshore company in Dubai.
- Choose a Trade Name:
In the next step, develop a unique name for your business. Dubai has a set of rules and regulations for a trade name. The name you would choose should follow these compliances without heartening any religion.
- Apply for a License:
You will need a business license for your company in Dubai. You can’t start business activities without having a business license. You must submit all the following documents for a business license:
- Application form duly signed by any authority,
- Address proof,
- Personal data sheet of shareholder(s),
- Business plan Passport copy and specimen signature of manager, shareholder, and director
- Certificate of incorporation Details of an existing company (for setting up of branch).
- Open a Bank Account:
The next step includes registering a bank account in Dubai. The Emirates has numerous banks to choose from, whether they are local or international banks. Ensure the bank you choose for your business has excellent financial services and facilities.
- Obtain a Visa:
The last step includes applying for a visa in Dubai. You can also sponsor your family, workers or other dependents. You can ensure their stay in Dubai with the help of a visa.
With all being said, the process may differ depending on the economic zones in Dubai. Therefore, it is essential to consult with professionals. Check out the next section to find out who can help you in the process of setting up a business in Dubai.
Our Business Setup Services in Dubai
Business Setup Worldwide can be your assisting partner in the journey of company formation in Dubai. We have a team of experienced professionals who are well-versed in the aspects of business. Our services can include incorporating your company to obtain document submissions with bank account opening. We also provide company secretarial services with VAT registration. Contact us to get started today.
