Dubai is the largest city in the Middle East having great opportunities to permit overseas investors to establish various forms of businesses. This city has extended its possibilities to make sure that there is constant development. If you are looking for company formation in Dubai then consult with the best business setup consultants at Start Any Business who will surely help you and guide you during the process of establishment in a successful manner. Here we mentioned a little guide for your that will help you to understand the crucial factors about the business or Company Formation.
There is a designated location to carry various forms of formation activities related to adherence. This location is recognized as the Dubai International Financial Center. Not just in Dubai, but also all over the Middle East there are many kinds of financial centers that permit ease of carrying various business activities in Dubai.
The Process of Company Formation in Dubai
- First of all, you have to choose a UAE local sponsor. This need has to be carried mandatorily to satisfy the requirements related to Federal Commercial Companies Law No. 2 of 2015. 51% shares hold by UAE citizens if you wish to establish a company outside the DIFC.
- Next, you will need to go for the procedure of reserving the company name with the Department of Economic Development. To reserve the company name you need to make a payment of a required fee.
- Now, you need to register your company at the DED. You will have to prepare all the essential documents and submit them to the DED. The company registration procedure will complete after the verification of the documents.
- Under your company registration, the company will arrange the incorporation certificate to carry the prescribed activities in Dubai. After this procedure is carried, you will need to choose the kind of business license which is needed to carry the business.
- Therefore, in case the company wishes to carry any kind of business activities, then you need to make an application for a commercial license. Although, if you wish to start a business related to professional services then you need to apply for a professional license.
- To a company established in Dubai, you will need to hire a manager, stakeholders, and directors to handle the act9ivities according to the needs of the companies act. Once you complete this phase then you can go forward to open a corporate bank account in Dubai.
Types of Company Formation in Dubai
There are three kinds of jurisdiction for company establishment in Dubai. All these have their rules and regulation and they prove profitable for various kinds of businesses.
- Mainland Company
The mainland company in Dubai is also recognized as an onshore company that is licensed by the Dubai Department of Economic Development. Mainland company is permitted to operate a business in the local market of the UAE and also outside of the UAE without any kind of restrictions.
- Free zone Company
Dubai free zone is designed to operate an international business or local business between the free zones. The formation of the free zone company in Dubai is favorable in the corporates or in investors as of incentives such as – 100% overseas ownership, tax exemption, custom privileges, affordable and cost-effective, and well set up transport connectivity and road network.
- Offshore company
Many of the businesses like to offshore company formation in Dubai, also recognized as a non-resident company. Although, it is the most suitable choice to operate the international business only and you can’t run business in the United Arab Emirates under an offshore company. Businessmen also like to establish an offshore company in Dubai as a holding company.
Document Required for Company Formation in Dubai
The necessary documents required for company formation in Dubai are:
- A business application form
- Business plan
- Memorandum of Association and Article of Association
- Copies of valid passports of the company managers
- No Objection Certificate of the UAE local sponsor
- Bank reference letter for every stakeholder
- Trade license