Thanks to the various efforts of the Dubai government, it has become one of the most lucrative places to set up a business. The government has opened up many free zones which not only help in the quick setting up of a business but also attracts companies from all over the world. This, in turn, helps the economy of the country and increases the business opportunities for budding entrepreneurs and people in the business.
There are many benefits of setting up a business in the free zones such as:
- 100% company ownership
- Complete repatriation of profits and capital of the company
- Exemption of the import and export duties
- No corporate or personal tax
There are many other benefits also which a company can avail by setting up a company in the free zones. All these advantages enhance the features of the company and make it more productive and profitable.
Factors to Consider before Company Setup
Before setting up a company, there are certain factors which should be kept in mind. The below-mentioned factors should be worked out before the incorporation process:
1.Choosing a Business Activity
Selecting the business activity is one of the primary requirement that you need to fulfil. This decision will impact the future of the company. This decision will also be required to figure out the type of business licence required by the company.
2.Locating the Perfect Free Zone
The free zone in which the company is incorporated plays a huge role. There are free zones which are dedicated to a specific type of industry and provide benefits which will help enhance the company. In case you do not want to set up a company in the dedicated free zones, there are still many options left for you such as Dubai Science Park (DSP) Dubai Outsource City (DOC), Dubai Maritime City Authority (DMCA) and many others.
3.Choosing the Business Structure
It is indispensable for the management to select the legal structure of the company as it will help to increase the chances of success of the company. Each of the business structure has specific pros and cons. The management must understand which business structure will be useful for the company.
4.Deciding the Name of the Company
In the UAE, there are many factors which you need to consider before giving a name to the company. First, you will need to check if the decided name is available for use and no else company is using it to conduct business. You also need to take care that you do not use words which are blasphemous or have any political or religious impact. One more thing that you should take care of is that while naming the company in Dubai that if calling the company on the name of the owner, full personal names should be used instead of abbreviations or initials.
5.Preparing all the Documents
Half of your battle has been won, and now you need to gather all the required documents and submit them the relevant authority. Certain documents should be kept ready such as:
- A Copy of shareholder’s passport and visa
- Application form for the company incorporation
- A detailed Business plan
- Board resolution
- Memorandum and Articles of association
Some other documents may be asked while setting up a company in the free zone.
6.Opening a Bank Account
Opening a bank account is very important as this will allow the company to have a separate identity other than the owner. To open a bank account, you will be required to produce the correct documentation. These documents include the following:
- Account opening form
- A signed copy of the board of Directors sanctioning the opening of the bank account.
- Copy of the share certificates
- Copies of the passport
- Copy of the Memorandum of Association and the Article of Association
These are some of the factors which should be considered by the management before setting up a company in the free zones. Keeping these factors in the back of the mind will allow the natural formation of the company and will also ensure that the company is on the path to success.
If you are looking to set up a business in the free zones in Dubai, you should look into the services of Commitbiz. Commitbiz provides various services such as company incorporation service, PRO services, Intellectual Property services and many other services which will assist the company to grow further. For more details, contact us – we will be glad to help.