Business Setup in Dubai
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Business Setup In Dubai
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Buziness Setup in Dubai Free Zone
In the United Arab Emirates (UAE), companies are allowed to set up business activities in Free Zones. Business set up in Dubai Freezone requires a license issued by the UAE Free Zone Authority (FZA). FZA issues licenses based on the particular business activity of the company. The number of licenses issued is based on certain information provided by the applicant, including the number of potential employees who will be employed by the company within a specified period and the total capital investment for establishing the free zone operation. Companies in Dubai Free Zones are not subject to the same commercial laws as companies on the UAE mainland. Foreign investors must obtain a free zone license by establishing a company in one of the Dubai free zones before they can benefit from 100% ownership and other monetary benefits such as tax exemptions, repatriation, and foreign exchange controls.
Setting up a company in the Free Zones of Dubai involves the following Steps:
Type of business
When starting a business setup in Dubai free zone, the investor must decide on the type of business to start, as well as what free zone will be suitable for their venture— since each zone has different requirements for permitting.
• Trade name
Once the investors have selected a type of business for the Dubai free zone, they will choose a name for their company and must follow the company-naming conventions set by the government.
• Apply for a license
Once the business name has been decided, the owner must register it with the local agency responsible for authorizing businesses in Free zones. Each Free zone is
authorized to issue different types of licenses.
• Rental Space
When obtaining your business license in Dubai’s free zone, you can begin looking for office space. You can either buy the space or rent it.
• Initial Approvals and license
Before issuing a license, all of the investors’ approvals must be taken. Once the approval process is complete, the investor can begin business operations. The approval process is not very time-consuming and should take no more than two to four weeks.
Required Documents for free zone company formation in Dubai
The Dubai free zone authority is responsible for issuing the license to operate a free zone company in Dubai. In order to receive the license, one will need to produce several documents, including the following:
• Application license form.
• Business card.
• Business plan outlay.
• MOA(Memorandum of Association) and AOA(Articles of Association)
• Passport copies.
• A bank reference and a certified copy of the licensing of your business are required.
A free zone company formation can be initiated in Dubai by following the procedure discussed above. The government has made it easy for investors to start a business in Dubai by simplifying the process, which takes about four weeks to complete.
List of Dubai Free zones:
- Dubai South Free Zone
- Jebel Ali Free Zone (Jafza)
- Dubai Silicon Oasis
- Dubai Healthcare City
- Dubai World Trade Center (Dwtc)
- Dubai World Central (Dwc)
- Dubai Creative Clusters Authority (Dcca)
- Dubai Multi Commodities Center (Dmcc)
- Dubai International Financial Center (Difc)
- Dubai Airport Free Zone Authority (Dafza)
- Dubai Media City
- Dubai Industrial City Dic
- Dubai Science Park
Business Setup in Dubai Mainland
Mainland company establishment in Dubai is an excellent investment opportunity for both businesses and investors. Mainland companies are business entities that operate within Emirati territory, providing the benefits of commercial law. Mainland companies in Dubai operate under the jurisdiction of the DED. The laws governing their activities can be found in Article No. 38 of Law No. (19) of 2004 on Licensing of Business Entities. The government of the United Arab Emirates will allow for 100% foreign ownership for businesses on the mainland of the country starting in June 2021. Earlier, ex-pat business owners were only allowed to own a maximum of 49% shares in their businesses, while Emirati sponsors owned the remaining 5 1 Legal House provides consultation for obtaining a Dubai mainland license and starting a business in the most popular locations of the UAE. We ensure your business license meets Dubai Economic Department requirements.
Process for Mainland company formation in Dubai, UAE:
- Memorandum of association (MOA): Prepare the MOA to specify the guidelines for your new company, including its purpose and capital structure.
- Obtain initial approval: from the Department of Economic Development [DED]. The department will notarize your memorandum of agreement [MOA] once it has been finalized and issue you an approval letter. Business consultants like us can help you get this step taken care of.
- Trade name registration: Make sure you have an appropriate trade name and register it with the DED. Choose something that is not already in use by another company or your application will be rejected.
- Mainland commercial office space: is required to start a business in Dubai or the UAE. A registered office address is required for issuing a trade license. Ownership agreement or tenancy can be used as evidence of a registered office address.
- To apply for a trade license in Dubai from the Department of Economic Development, you must first satisfy the above eligibility criteria:
- Companies must pay a license fee and submit all required documents to the Commercial Registration Department of the Ministry of Commerce (MoC) and the Department of Economic Development (DED).
- Once you have registered with the Department of Economic Development, company registration procedures take a week to issue your trade license.
The Benefits of Mainland company formation in Dubai
Establishing a mainland company offers many benefits, including a broad scope of trade, 100% ownership, location flexibility, and zero trade restrictions.
l. UAE mainland companies are not limited to local trade and they can offer services to the government or trade directly with consumers across the country.
2. Having a UAE-based company enables businesses to open more branches throughout the Emirates.
3. The company has a broad range of interests.
4. Registering for a business license on the mainland gives you the opportunity to expand your service offering. Businesses looking to diversify should re-register their business activity with the DED, which will allow them to trade freely.
Dubai Mainland business licenses:
Businesses operating in the UAE mainland generally receive four types of licenses. The licenses are issued based on the nature of the business and include:
A professional license is required for professionals who take part in any professional activity like consulting. Compared to other licenses, the cost involved in the issuance of a professional license is less.
In the UAE, a commercial license is required for businesses that buy and sell goods or provide services to customers. An individual may apply for a general trading license so that he can conduct several business endeavors under one license. Commercial licenses are very common in Dubai and the UAE mainland.
To manufacture goods, businesses may need to obtain an Industrial License. These licenses may be issued by state and national governments, depending upon the type of industrial activity.
All tourism-related activities require a valid tourism license. The Department of Tourism and Commerce Marketing (DTCM) is responsible for issuing these licenses. A valid tourism license is mandatory to conduct inbound or outbound tour-related activities.
Mainland Business established legal entities in Dubai:
The most popular business setup in Dubai mainland locations is listed below.
- Business Bay
- Al Quoz
- Al Qusais
As per the latest policy, a foreign investor or an ex-pat owner may hold 100% ownership in a Mainland company in UAE. The greatest benefit is that a Mainland company can operate the business across the length and breadth of the UAE. Legal House Business Set Up Services helps streamline the process of business formation in Dubai and UAE. Our experienced consultants will guide you through each step for a smooth corporate setup.
Offshore Company Formation in Dubai:
A UAE offshore company is a business entity registered in Dubai but allowed to set base in offshore locations outside the city of Dubai. A UAE offshore company can take the form of limited liability companies, limited companies, or limited partnerships.
Some reasons to form an offshore company in the UAE include:
Individual citizens can benefit from a country’s tax exemptions, but the primary motivation for establishing companies in an offshore jurisdiction is to access investor-friendly laws and regulations and international business opportunities.
There are two different jurisdictions for setting up an Offshore business in the UAE. These are:
- JebelA1i Free Zone (JAFZA)
- Ras A1 Khaimah (RAK)
Documents Required for Offshore Company Formation in UAE:
- Address proof
- Copies of passports of owner and shareholders
- Notarized Memorandum of Association (MOA)
- Business plan
Legal House Business Set Up Services helps streamline the process of business formation in Dubai and UAE. Our experienced consultants will guide you through each step for a smooth corporate setup.
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Frequently Asked Questions
- Ability to trade freely across the UAE market
- Access to a wider range of business activities
- Eligibility for certain government tenders and contracts
- Ability to obtain visas for employees and dependents
- A minimum share capital, which varies depending on the specific free zone
- A physical office space in the free zone
- A business plan and feasibility study, if applicable
- Compliance with the regulations of the specific free zone authority
- A parent company that is established outside of the UAE
- A local service agent who is a UAE national and acts as a liaison between the branch office and government authorities
- Approval from the Department of Economic Development (DED)
- An individual owner UAE national or foreigner
- DED approval
- A physical office space in Dubai
For most business activities, foreign ownership is restricted to a maximum of 49%, with the remaining owned by a local Emirati sponsor or a UAE national partner. However, certain free zones and some mainland areas allow for 100% foreign ownership.
The laws and regulations governing business setup in Dubai include the UAE Federal Law, the Dubai Commercial Companies Law, the Dubai Economic Department (DED) regulations, and other relevant laws and regulations.
Intellectual property protection in Dubai is governed by the UAE Federal Law and other relevant laws and regulations. Companies can register their trademarks, patents, and copyrights with the relevant authorities to obtain legal protection and prevent infringement.
Dubai offshore formation refers to the process of setting up a company in one of the offshore jurisdictions in Dubai, such as the Jebel Ali Free Zone (JAFZA) or the Ras Al Khaimah International Corporate Centre (RAKICC).
• Offshore companies in Dubai are not allowed to conduct business within the UAE, but can engage in international business activities.
Dubai offers a wide range of business opportunities for investors and entrepreneurs, including trading, manufacturing, service-based, and knowledge-based businesses. The specific type of business that can be started depends on the location, legal structure, and business activity.
Dubai has a favorable tax regime with no corporate income tax or personal income tax.However, certain business activities may be subject to taxes, such as VAT or customs duties. Companies may also be required to file annual tax returns and comply with other tax-related requirements.
The time it takes to set up a business in Dubai varies depending on the legal structure and business activity. Generally, the process can take anywhere from a 8 to IO working days, but may take longer depending on the complexity of the business.
Yes, it is possible to operate a home-based business in Dubai, but there are regulations and requirements that must be followed. The Dubai Municipality sets out regulations for home-based businesses, such as obtaining a permit and complying with zoning and health and safety requirements.
The different types of legal stmctures for companies in Dubai, UAE include sole proprietorship, partnership, limited liability company (LLC), free zone company, and offshore company.
One can get trade license in 2-4 working days after document submission.
DED stands for the Department of Economic Development. It is the government body in the United Arab Emirates (UAE) responsible for regulating and promoting economic activity in Dubai.
DED approves a wide range of business activities across various industries. Some examples include advertising, agriculture, construction, education, healthcare, hospitality, IT, real estate, retail, and transportation.
You can apply for approval for your business activity by submitting an application through DED’s e-services portal or in person with the help of local service agent or business setup providers.
Yes, it is possible to change your approved business activity later on, but you will need to obtain approval from DED for the new activity before making the change.
Operating a business activity without approval from DED can result in penalties, fines, and legal action. It is important to obtain approval for your business activity before starting operations in Dubai.
The requirement for Land Department approval will depend on the nature of your business and the type of property you will be using. If you are leasing or renting a commercial property, you will need to obtain approval from the Land Department to use the property for business purposes.
Yes, depending on the nature of your business, you may need to obtain additional approvals or permits from other government bodies such as the Department of Economic Development (DED), Dubai Municipality, Dubai Health Authority (DHA), or Dubai Electricity and Water Authority (DE WA). It is important to research and comply with all relevant regulations and requirements.
The following types of businesses may require DHA approvals in Dubai:
- Hospitals and clinics
- Medical centers and laboratories
- Pharmacies and drug stores
- Health and wellness centers
- Medical equipment and supply companies
- Home healthcare providers
- Health insurance companies
The types of DHA approvals required for these businesses can vary depending on the nature of the business and the services provided. Some common types of approvals
- Healthcare facility permits
- Professional licenses for healthcare practitioners
- Product registration for medical equipment and supplies
- Dmg registration for pharmacies and drug stores
- Health insurance permits
In Dubai, food license approvals are issued by the Dubai Municipality through its Food Safety Department. Any business that sells or serves food to the public is required to obtain a food license approval. This includes restaurants, cafes, food trucks, catering companies, and grocery stores.
A virtual office is a service that allows businesses to have a physical mailing address, phone number, and other business services without actually occupying a physical office space. Legal House Consulting firm can help you in providing virtual assistance.
The benefits of using a virtual office include cost savings compared to renting a physical office space, flexibility to work from anywhere, a professional image for the business, and access to support services without the need for additional staff. And the important thing is with out virtual office you cannot open a business bank account in Dubai UAE.