Company Incorporation & Business Setup In Dubai UAE
Bader Saleh Auditing of Accounts specialize in the incorporation and structuring of companies, formation of business setup in dubai, financial and non-financial institutions with cost efficient solutions. It regularly advises and assists clients in attaining various licenses.
Before you start your legal formalities to start a business in UAE, you need to consider some elements required in the process:
Type of business to set up in Dubai UAE
Your type of business will determine the kind of license you require. Whether it’s commercial, professional, or industrial licenses, these will define the basis of your operations. However, while selecting, remember that certain activities such as food trading, jewelry trade, veterinary activities, and legal consultancy require further approvals from other governmental departments.
As a foreign national, if you’d like 100 percent ownership of your company, you need to opt for a license and location in one of the many free zones of the UAE. There are specific kinds of activities that each free zone caters to and clarity in the first step will help you find your best option. There are over 45 free zones in the UAE with various categories of operations, so you don’t lack choice.
If you need a local license or need to operate locally, you must get a license from the Department of Economic Development (DED). The DED license comes with certain restrictions on the share of ownership for foreigners, based on different legal structures under DED.
Depending on your location and type of business, there are rules regarding the make-up of your firm. For example, if you plan on a legal consultancy firm, this can be done only as a branch of the company or as a stand-alone company. A sole proprietor is not allowed to take up this activity. Each free zone has its own restrictions regarding company structure.
Your trade name is a very important part of the legal procedure. The company name should ideally indicate the nature of the business unless it is a branch of another company.
Minimum share capital is usually set out in the Memorandum of Association of your proposed company. In most cases, you do not need to pay minimum capital at the time of setting up.
Once you have your legal procedures and forms ready to go, it would be best to shortlist some offices with costs and other details. This would mean a clear path forward once you get your legal formalities out of the way. In free zones, you will get assistance to find premises suitable to your requirement along with help to set up electricity, internet, water, and other amenities.
In most legal forms of the DED, you need to hire a manager to oversee operations and have him ready to be on board before your registration is approved. But in other cases, you may not be allowed to hire at all. For example, Intelaq license holders (license for home-based Emirati business owners) are not allowed to hire staff but can engage contractors. For free zones, each zone has its own specific regulations regarding the structure of the business.
For DED licenses, it is mandatory to have a local agent, partner, or sponsor and this is great support for foreign nationals. For free zones, having a local contact can help take the business forward effectively. However, this is not mandatory and Dubai as a business destination boasts an easy set-up for all businessmen regardless of nationality.
To incorporate a Company in UAE, you have the option to choose one of the categories i.e. Mainland, Free Zone and Offshore.
In the UAE, the pertinent regulations and procedures relevant to the control of the business and commercial activities are outlined in the Trade Agencies Law and the Commercial Companies Law. These laws define several categories of legal entities which can be established in the country, together with requirements in terms of shareholders, directors, capital levels, and Company incorporation procedures.
Some of the important legal entities permitted to be registered are:
- General partnerships
- Joint Venture Companies
- Public and Private Joint Stock Companies
- Limited Liability Companies (LLC)
- Branches and Representative Offices of Foreign Companies
- Civil/Professional Companies
Benefits of Company Formation on the mainland in Dubai UAE
There are many benefits of setting up a business on the mainland. Some of them are:
- Flexibility to do business in any part of the UAE
- No limit on the number of visas
- More business activities are available for licensing
- No business or personal taxes.
Business Setup In The Free Zones
The ushering in of Free Zones has been symbolic of the UAE’s commitment to provide investors with complete freedom in doing business, with benefits like 100% foreign ownership, No personal or corporate taxes, 100% repatriation of capital and profits, and no currency restrictions, etc.
A Company in the Free Zones can be established either as:
- Branch of a Foreign Company
- Free Zone Establishment (FZE)
- Free Zone Company (FZC)
All the above entities are required to comply with the prevailing regulations of the respective Free Zones covering registration formalities, capital requirements, management, and other related matters.
The four categories of licenses, categorized by the nature of the permitted activities are:
- Industrial
- Commercial Trading
- General Trading
- Consulting/Services/Professional
Benefits of setting up a company in a free zone
Some of the other benefits of setting up a business in the free zone include:
- 100 percent import and export tax exemptions
- 100 percent repatriation of capital and profits
- No corporate tax
- No personal income tax
- No import/export tax
- Easy start-up and licensing procedures
The prominent Free Zones in the UAE include JAFZA, DAFZA, SAIF Zone Company, Hamriyah, RAKFTZ, RAKIA, TECOM, and DMCC, etc.
Bader Saleh Auditing of Accounts assists in company formation services in several Free Zones, which include Dubai Silicon Oasis, Dubai Healthcare City, Dubai International Academic City, Dubai Knowledge Village, Dubai Studio City, Internet City, Media City, IMPZ, Dubai Industrial City, and Dubai Outsource Zone, etc.
Offshore Companies in UAE
Offshore companies in the UAE are registered under the following jurisdictions:
- Jebel Ali Free Zone Offshore Companies
- Ras Al Khaimah Free Trade Zone (RAKFTZ) International Companies
- Ras Al Khaimah Investment Authority (RAKIA) Offshore Companies
How Bader Saleh Auditing of Accounts can help setting up a business in Dubai UAE:
- Review all the essential requirements of your business activities to suggest the best license where you can open your Company in the UAE.
- Support you in strategizing your business plan.
- Assist in preparing the application form which must be submitted to the DED.
- Get trade name approval, initial and security approval.
- Get attestation of the legal documents from the concerned department of the authorities for corporate clients.
- Draft MOA of the company.
- Assistance for opening your company bank account/s and personal bank account.
- Visa assistance for employees as well as investors.
- Selection of suitable employees for your new formed company.
- Proper guidance while appointing an auditor, as having an auditor is a compliance requirement for free zone companies.
- VAT Compliance and Advisory support for VAT registration, VAT implementation and VAT Return Filing.
- Provisions for Accounting & Bookkeeping services.
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Incorporation of a company isn’t a simple task. It requires several documents, such as a Memorandum and Article of Association. BSA consultants are always updated with the regulations, thus making sure to get the company registered on the first attempt without having any issues and in a short period so that your dream becomes a success.
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