Business Setup in Dubai
- June 8, 2020
- Posted by: kgrnaudit
- Category: company formation
The UAE has been the most business-friendly zone around the globe for decades together. In fact, the investments pouring in the country’s business realm are flourishing at a phenomenal rate. Therefore, Dubai is transforming into a ‘business capital’ that serves as the investors’ gold mine. Business setup process in Dubai, has, therefore, become of integral importance to investors and businesses from around the world.
Dubai has been the core attraction for the investors with variable advantages. In the first place, Dubai allows advantages like free zones, tax exemptions, and technological advancements that any industry would require. Also, the city is known for its neutrality and grandeur. Therefore, within it, there is an ecosystem established on business co-existence and investing mutualism.
The import and export duties are least of the proprietors’ concern. Furthermore, enterprises get a 100% ownership of their business. Additionally, due to no currency restrictions in the state, the business fluidity is extremely heightened.
Business Setup in Dubai:
Setting up a business in Dubai is relatively easier than any other prevalent options and the basic requisites that involve the play is:
- Identifying the type of business to be established and know the legislative entity that governs it.
- Create a unique and specific trade name.
- Obtaining the license for the business including a Non-Objection Certification.
- A relevant bank account must be created and investment proof must be produced.
The location for the set-up must be chosen considering a possibility in the Free Zones.
- The business must be officially registered and all approvals must be put in line before the commencement of the trade. The trade license is key for launch.
Though Dubai has a lot to offer, not all establishments are welcomed or permitted to function, therefore the investor must be familiar with the jurisdictions requisites and check whether the intended business matches the profile.
The various zonal distinction with its jurisdictional guidelines, it offers various advantages to suitable investors. Hence, the investor must be aware of mainland operations, free zone set-up, offshore enterprising, etc.
For a foreign investor, it is important to get hold of a UAE national to set-up the enterprise as the jurisdiction instructs 51% ownership by the UAE national.
In the case of the free zone, a locally functioning agent is sufficient. Mainland operations are under more strict scrutiny but are relative to minor significance when one considers any other location for their establishment.
Any new venture in the jurisdiction must register their trade name with the DED. The emphasis on trade name guidelines is one of the key agendas of the DED. As a result, companies must use their registered trade name for all their associations in the business realm.
i.The name will be registered within 3 days of the request submission and is valid up to 6 months from the date of issue.
ii.The DED holds the power to register or permit the business that the department sanctions under the provided guidelines and has the authority to reject an applicant that does not match the required norms.
iii.Their basic role complies with the permissible business endeavors.
iv.The authoritative power of the DED is prevalent in mainland operations and is not significant in free-zones.
Memorandum of Association (MOA) /Local Service Agent (LSA):
The MOA specifies alleged stakeholders in the endeavor and the amount of authority each one holds. Furthermore, the LSA ensures the local agents’ compliance as per the norms. After submitting the attested copies, a legal advisor should collect and submit the rest of the documents.
Documents required for the license:
- License Application
- Attested LLC agreement
The agreement specifies the name issued by the Limited Liability Company and their business objective and management doctrines. Next, the establishment must furnish the following certificates from the DED.
- Name reservation certificate as provided by the DED
- Initial approval certificate as provided by the DED
- Tenancy contract
- Certificate of registration to EJARI
It is a tenancy contract and governs the leases and ownership of a real estate by the establishment. Lastly, the legal advisor must also submit the following documents.
- Passport copies of all the stakeholders
- Non-Objection Certificates from all the partners.
- The proof of registration to the Dubai Chamber of Commerce and Industry
List of Few Business Setup Services:
Starting a completely new endeavor is possibly a difficult scenario in unknown territories. Therefore, to make this transition easier for people, there are service firms in Dubai. As an example, let us look at few such service firms that help investors to launch their businesses.
- Ideal Legal Translation and Businessmen Services
- Al Rushdi Commercial Broker LLC
- Standard Accountants and Consultants
- Saudi Gulf Intertrade LLC
- Speed Business Services
- A 1 Business Services LLC
- A&M Alansari Auditing
- A2Z Professional Business Services
- Al Fatah Businessmen Services
- Absher Businessmen Services
- ACT PRO and Business Services LLC
- Al Gazal Businessmen Services LLC
- Advance Businessmen Services
- Affiniax Partners
- Al Ikhtyiar Al Amthal
- AFS Auditing
- AGN plus Consulting
- Ajmal Group
- Al Baraka Commercial Brokerage
To begin with, there are about 30 free zones in and around Dubai with specificity to different industries in the region. The establishment of the company in the free zone will authorize a 100% ownership of the endeavor.
In this case, with regards to free zones, the incorporation processes are relatively easier. As a result, the restrictions on staff recruitment are also fewer. There is the availability of high-quality infrastructure and utilities at a reasonably lower cost. Also, companies with just one stakeholder can register itself as an FZE (Free Zone Establishment). In addition to this, companies with two to five shareholders can roll as a Free Zone Company (FZC). As a rule, the type of free zone and enterprise determines the amount of paid-up capital. Generally, the paid-up capital amount varies between 14 USD and 300,000 USD.
In conclusion, the business setup procedure in the UAE is a profitable and relatively convenient endeavor which may fuel a good amount of income generation and cuts slack to the investors. UAE is, therefore, a business pivot. Therefore, make the best use of these opportunities to day. In this case, partner with us, at KGRN, and turn all your business setup dreams into a reality.
For more info please contact :
Contact Person: Gopu Rama Naidu CPA FCA
Email: firstname.lastname@example.org Mobile : +971 50 452 0648 Phone: +971 455 70 204