Starting a business and forming a company is not limited to one’s own country only. One can easily opt to establish and grow their business in other countries as well. UAE has allowed a multitude of opportunities for foreign business minds. Dubai acts as the hub and a bridge between major industries and businesses. Looking at its significant growth a Company Formation in Dubai can be considered an excellent business idea. Establishing a company in a foreign country does not have to be any different than doing it in one’s own country. The procedure of Company Formation in Dubai is mostly similar to that of company registration/formation in India.
Types of Company Formation in Dubai
Following are the types of Company Formation in Dubai-
- Limited liability companies,
- Joint stock companies,
- Branch offices,
- Subsidiary companies,
- Free zone companies.
Documentations required for setting up a business in Dubai depend on the area of setup. Dubai has a variety of places for one to establish its company. Depending on the place decided, the fees to be paid, the taxes to be levied and the documents to be submitted are finalized. The process followed for a Company Formation in Dubai is based on the UAE Commercial Laws, the Dubai Company Law and any other legislation as required depending on the company, it may be laws relating to the zone of company formation such as the Federal Law. Following are the requirements in the procedure of Company Formation in Dubai-
- Deciding the type of business determines the documents that will be required in the company incorporation.
- Proceeding with deciding on the type of company, the next step towards the formation of a company is deciding on the name of the company.
The company name decides the brand and attaches goodwill to the company. An approval letter of the trading name is also issued.
- Copies of the passport and visa of the owner and the partners for business setup in Dubai.
- The articles and memorandum of association of the business.
The aims and objectives of any company have to be finalized before its incorporation. This gives direction to the company. This also expresses the motives of the applicant to the company registrar. It is the registrar’s duty to provide clearance to any new emerging business and the memorandums and articles of association are the way to do so.
- The statutory documents of the business.
- The duly filled-out application form from the applicant.
- An official registered place of office is to be selected and a copy of the tenancy or rent agreement of the office space is required.
All necessary documents are required to be presented to the Dubai Economic Department followed by or simultaneously obtaining the relevant licenses for the company. The following types of licenses are available when registering a company in Dubai-
- Trading License;
- Industrial License;
- Commercial License;
- Professional License.
There also exist other special licenses depending on the distinctive nature of the business. Obtaining licenses required is the last step enabling the company to begin with its activities.
Procedure of Company Formation in Dubai
Clarifying the above-mentioned details, the procedure for Company Formation in Dubai is as follows-
Step 1: Determining the type of business is the first toward a company formation.
Step 2: Application for the name of the company. Securing the company’s name is the first and foremost requirement of an individual.
Step 3: Collecting and securing all required documents such as MOA and AOA, certifications, proofs, etc. is the next step forward.
Step 4: The submission and verification process is executed by the Department of Economic Development and Dubai Commercial.
Step 5: Grant of certificate of incorporation takes place after necessary enquiry.
Step 6: A process for obtaining a business license depending on the requirements is conducted simultaneously with the incorporation process. Next, the opening of a bank account takes place for the company so formed.
Advantages of Establishing a Company in Dubai
Some of the advantages of Company Formation in Dubai are:
- Negligible taxes
- Financial stability
- Expanded supplements
- Well planned layout
Briefing about the Company Formation in Dubai, the article talks about the procedure to establish how a company in Dubai. In the past years, Dubai has seen significant growth in its business sectors over the past years. There can be an offshore company, a mainland company, a free zone company or a branch office. All companies vary from one another depending on the area of the establishment. For a company establishment, free zone companies are considered most beneficial due to the additional benefits with respect to the taxation purposes and the strategically places resources and business layouts comprising of businesses of similar niches. With this, Dubai has become a hub for developing new businesses. For further information regarding company formation in Dubai, contact Bizadvisors.
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