Presently, UAE is a well-developed country and its economic growth is also satisfactory. It will be beneficial for those who want to start a business in UAE (particularly in Dubai). As per the latest World Economic Outlook report, the International Monetary Fund (IMF) increased the UAE’S economic growth forecast for 2021 to 3.1 percent. The formation of a company is a relatively simple and fast process with strong incentives, notably in the form of the UAE’S free zones.
There are other options as to the types of business set up in the UAE, but the most popular one is free zones for foreign entrepreneurs, and with good reasons. It facilitates the following benefits:
- 0% corporation and personal tax
- 100% company ownership
- 100% repatriation of capital and profits
- No currency restrictions
- 100% import and export tax exemption
Procedure for formation of a company in Dubai
Selecting your business activities
The first thing to do when starting a company in Dubai is to decide on your business activities. The nature of your business can have a bearing on which free zones you can or should set up in. For example, if your business is highly related to import and export, then you can choose one of the free zones located near an airport or port.
Choose your company name – formation of a company in Dubai
while selecting your company name, you should keep in mind the following things:
- The name should be unique means it should not be identical or similar to any existing company name.
- Do not use any offensive language that refer to any religion or political party.
- If you choose the name of your company after a person, that person must be a partner or owner of the company and their full name must be used – no initials or abbreviations.
- Must check that the name you choose whether it is available or not.
Finalize all incorporation paperwork
After completion of above requirements, you will need to file an application for your selected company name and activity to the relevant government authorities. For this, following documents are required:
- Copies of shareholder’s passport
- A business plan or Non-Objection Certificate (NOC)- a letter from a current sponsor confirming that you are allowed to set up another business in the UAE
Receive your license notification
After processing of your application, government will issue a company license to you.
Open a bank account – formation of a company in Dubai
After receiving your trade license, you will need to open a bank account in the name of your company.
Making your Visa application
The final step of the formation of your company in Dubai is to apply for your own visa. As the holder of a UAE business license, you can also sponsor others for their visas too. This could be a spouse, parent or child, or a domestic worker such as a housekeeper. The maximum number of visas you can apply for will depend on the size of your company, the free zone you choose to set up and, for dependant visas, your personal earnings.
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