One of the United Arab Emirates' most cutting-edge and contemporary emirates is Dubai. It is radically changing in every way —and there is no doubt about it. Being aware of Dubai's potential and its promising future, who would not want to leverage on it?
The city is welcoming and always flourishing on the business front. The business landscape and its vast development justifies the huge rise in company formation in Dubai.
Mainland Company Formation in Dubai
In Dubai, all business entities that come under commercial, professional, and sole establishment registered under the Dubai Economic Department (DED) are known as Dubai Mainland License. There are three major types of mainland company licenses that you can choose from for your mainland company formation in Dubai and they are
- Professional License - The purpose of professional licensing is to establish that the person or business is qualified to provide services in a certain profession. Issuance of these licenses generally requires the applicant to show certain skills or training.
- Commercial License - A company dealing with buying and selling of goods and commodities, or any kind of trade activities, requires a commercial trade license to operate in the UAE. This license can be used to form a limited liability company (LLC) or set up a sole establishment, and it can be used for both specialized trading and general trading activities in the UAE.
- Industrial License - Businesses that want to conduct industrial or manufacturing-based activities in the UAE must acquire an industrial trade license, which will allow them to engage in activities related to converting natural materials or incorporating natural resources into their end products.
Free Zone Company Formation in Dubai
Free zone in Dubai is a special economic area where each area is designated for a specific set of businesses and companies are taxed at highly reduced rates or nothing at all in order to encourage investments and increased economic activity within the economy. Free Zone company formation in Dubai requires a license. There are three major types of licenses that are offered to Dubai free zone companies. They are
- Trading License - Trade license, if acquired, allows one to carry out trading activities like buying, import & export, and selling of a limited number of commodities.
- Service License - Companies that want to deal with activities like consulting, accountancy, etc. can acquire this license.
- Industrial License - A company can carry out manufacturing, packaging and processing activities after obtaining this license.
Offshore Company Formation in Dubai
Offshore company is a legal entity which is incorporated outside the home country of the investor. Since, the company does not operate inside the country in which it is incorporated it does not generate any revenue inside the country and therefore the corporate tax for offshore companies is majorly 0% in Dubai. Offshore company formation in Dubai is quite a easy process.
Steps for Company Formation in Dubai
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Choose an Activity
This is the first, foremost and most important step. You must decide on what business activity you would choose. Though the deciding factor should be based on your passion and interest, do a deep market analysis on what would work on the ground and what would not.
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Decide Your Business Name
Choosing a company name may seem straightforward, but that is not always the case. First of all, you must understand that your trade name acts as the company's public face, so conduct your research and look into the rivals before deciding on one. Second of all, when it comes to the UAE, there are certain rules and regulations that you need to abide by for naming your business. For example, the name should not involve God’s name, should not have obscene words, should not be offensive, so on and so forth.
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Business Structure
The choice of a corporate entity formation comes next, and it is majorly based on your capital and the number of shareholders. Make sure you do complete research before forming your structure. It also depends on the activity you choose.
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Select a Location
Choose an appropriate location that goes well with your business type. Choose wisely among mainland, freezone and offshore. Go through the guidelines of that particular location and understand how it will work for your business.
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Curate and Submit the Documents
This is one of the crucial steps of company formation in Dubai. The government of Dubai, how much welcoming and friendly they are with the incorporation procedure, that much stringent they are with the documents. Make sure you have all the right sets of documents ready and re-check them before submission.
The list of general necessary documents are
- Completed application form
- Identity and address proofs of the business shareholders & investors
- Business structure and plan
- Memorandum and articles of association
The incorporation procedure is then complete once the documentation process has been successfully completed.
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Bank Account Opening
After all that, start focusing on opening a bank account. This stands very important since to conduct all the commercial operations effectively. There are several procedures for opening a corporate bank account and that vary from bank to bank. So, choose more than one bank to be on the safer side.
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Visa Application
Now we have come to the final step, once you are done with all the other steps, start your procedure to obtain your own visa. Decide on how many visas you would need and for whom. The visa acceptance depends on the location you choose, and the guidelines change from place to place.
Company Formation in Dubai Made Easy With Commitbiz
The above-mentioned process is explained in just the most basic and simplest form. Imagine how tedious it would be for you to understand the nuances of it. That is where a most trusted and equipped business set up consultancy comes into the picture.
We at Commitbiz, provide a comprehensive company setup package that includes legal compliances, tax registration, and all documentation necessary —you name it, we have it— for company formation in Dubai.
We have been serving numerous clients for over 15 years, offering custom-made solutions for all of their administrative operations. Our specialists have been working hard to ensure that our clients receive only the best services available. For further information, please contact us.