Company registration/Formation steps in UAE
Starting a business in the UAE is relatively easy. Although there are certain jurisdictions with rigorous processes, most free zones are rather straightforward and get you running the company right off.
The challenge, however, is the budget. Your startup money or working capital is a vital component that fuels and sustains the business from company formation to business operation. Luckily in the UAE, there are a good number of licensing options to choose from that fit every budget.
For startups, the free zone often comes as the first choice because of its affordability and top-tier benefits. If you are on the verge of deciding which free zone to incorporate your business and your primary concern is the affordability of doing so, here are some of the top recommendations from the expert business setup consultants at Decisive Zone.
Dubai is by far one of the most appreciated business destinations in the Middle East. With years of tradition in welcoming foreign investors, the local government is currently working on a legislation which enhances the right of overseas businessmen seeking full ownership of onshore companies.
Those who are interested in Dubai company registration must follow a few steps in order to have their companies here.
Below, we invite you to read about the main steps related to company registration in Dubai. We can help foreign investors who want to incorporate businesses in the Emirate.
Both local and foreign investors must complete a series of steps in order to open a company in Dubai. For overseas entrepreneurs, the first step will be to obtain a business visa for the UAE, followed by starting the company registration procedure.
Here is what one must do in order to register a company in Dubai:
- choose an appropriate business form and prepare the incorporation documents;
- find and suitable name for the company and reserve it with the Dubai Trade Register;
- set up the corporate bank account for the company and deposit the share capital;
- file the Memorandum and Articles of Association with the Department of Economic Development;
- register for taxation purposes and obtain a VAT number with the Dubai tax authorities.
The same steps must be completed upon Dubai free zone company registration.
Our local specialists can prepare and file the incorporation documents on behalf of foreign businessmen setting up companies in Dubai.
Business forms suitable for foreign investors in Dubai
One of the main steps for Dubai company registration is to select a type of structure for the future company. For foreign investors, the private limited liability company and the free zone company represent good choices because they offer access to many industries and they benefit from simple company formation requirements in Dubai.
With a vast experience in registering companies in Dubai, our consultants can help you establish a business here in any field of your choosing.
Company name reservation in Dubai
The company name reservation procedure is very important as the Company Law requires every type of business to run its activities under a specific name by which it can be recognized. The company name reservation process is simple, and investors need to propose several names (usually 3) among which the one they prefer and wait for the approval of the Dubai Companies Register.
Incorporation documents for Dubai company registration
The Memorandum and Articles of Association are the most important documents when starting a business in Dubai. These must contain complete information on:
- the company’s shareholders and managers;
- the business’ registered address in Dubai;
- the share capital for starting and completing the activities;
- the business’ main object of activity (and secondary ones, if any).
The documents must be accompanied by an application form when filed with the Trade Register in Dubai.
Our Dubai company formation advisors can help with the drafting, notarization and filing of the paperwork related to starting a business here.
Licensing requirements for company registration in Dubai
Another important step in Dubai company registration is obtaining the license for conducting business activities. The general trading, the commercial and the industrial licenses are the most important permits under which companies in Dubai usually operate. There are also special licenses which can be obtained when setting up businesses in specific sectors such as food and beverages and oil and gas exploitation.
If you want to open a company in Dubai and need help in applying for the right type of license, our local agents can help you.
Final steps for opening a business in Dubai
Introduced not long ago, the value added tax has led to the creation of another step in the Dubai company registration procedure: that of registering for this tax. The procedure is simple and is completed with the Dubai tax authorities.
Our consultants can explain how the VAT is levied in Dubai.
Why register a business in Dubai?
Dubai is one of the most prolific business centers in the UAE and in the Middle East, and according to statistics:
- the newly passed Foreign Direct Investment (FDI) Law is expected to lead to a 20% increase in FDIs in 2019;
- the UAE’s Gross Domestic Product (GDP) is forecast to register a 3.7% increase in 2019, compared to the 2.9% registered last year;
- the non-oil GDP is also expected to grow from 2.6% in 2018 to 3.4% in 2019;
- the average FDI increase rate per year until now was 8%.