Establishing A Company In Dubai
While it is generally easy for large businesses and global brands to set up shop in new areas and territories, small and medium sized businesses, and perhaps individuals may find this area challenging, owing to the entirely new and unknown set of rules of regulations within the region.
In order for such entities to be able to gain a smooth entry into the new business niche, it is almost essential for someone or an organization to be helping them out every step of the way.
Forming a branch or an outlet is one thing, but setting up a business in a new country is quite another.
As such parties that are interested in gaining a footprint in the UAE, often make use of and hand their work to company formation consultants in Dubai.
These organizations aim to deliver to their clients, an accurate representation on how to establish and run a business in the city, which can take the form of shore companies, or be situated in the several free zones.
It goes without saying that as a business entity or commercial enterprise, such a company would also need to establish a mode of financing in the region, and therefore open company bank accounts. Formation consultants also provide guidance on this front.
The Registration Process
An investor who is not a UAE national will require a citizen as a partner to own the majority interest in the entity, and only companies situated in the free zones can be entirely foreign owned.
There are number of possible company types that can be registered, and technical requirements for each of them are different.
What You Need
Apart from limited liability companies, most foreign entities will require for there to be a minimum amount of capital to run, ranging from 10 to 40 million AED.
Similarly, there are regulations for a shareholding mechanism to be in place, dependent on which type of company is being set up.
Business elements will also required to acquire business licenses, which includes those for trade, industry, and profession.
The articles of association will have to be notarized by the relevant authorities, and a bank account be established for the purpose of doing business.
All of the foreign citizens who will work for the company also have to be documented and registered with the Labor Ministry and other relevant authorities.
On Shore And Off Shore Structures
Generally, offshore companies in Dubai are formed to take advantage of the tax regime and other lax regulations, and when the entity is not looking to target the UAE market as its audience.
Onshore companies on the other hand are those that seek to market their products and services to the people of the UAE, and will be obliged to pay the necessary corporate taxes and will be partly owned by a UAE national.