Every businessperson envisions an idea of establishing a business in Dubai. Due to the excellent economic climate, investors from all over the world rush to the region. Furthermore, the prosperous city provides a slew of incentives for starting a new business. Zero taxation, full ownership, a strategic global location, cutting-edge infrastructure, a diverse economy, and long-term visas are just a few of them. As a result, the number of business owners flocking to the emirate each year increases significantly.
Establishing a start-up or firm, on the other hand, is a challenging process that requires much planning. Furthermore, studying a foreign country’s norms and legislation, as well as comprehending every element that is necessary for business setup, takes time.
If you are looking for a service provider that can help with your business setup in Dubai but are having difficulties, Freezoner provides the perfect option for you. Continue reading the step-by-step guide for more details.
Step-wise Process for Company Setup as an Expatriate
The key steps for setting up business are as follows:
Step 1: Filling out the application form and sending the required documents to apply for a visa.
Step 2: Choosing the type of business you wish to start
Step 3: Choosing the right location depending on commercial activity, whether setting up an offshore company, free zone company, or mainland company.
Step 4: Naming your company, keeping in mind it should adhere to all regulatory regulations which include:
- It must not infringe on the country’s order or public morals.
- A religious name, a logo of an external body, or a governing entity should not be included in the name.
- It must not have been registered previously.
- It should be compatible with business activity and legal status.
- It should be compatible with the nature of the business and the legal position of the company.
Step 5: Finding a local sponsor for foreign investors in order to establish a mainland business setup in Dubai.
Step 6: Getting approval from the Department of Economic Development (DED) by submitting an application and supporting documents
Step 7: Drafting a Memorandum of Association (MoA) that represents the company’s charter and governs external business activities.
Step 8: After successful submission of the application and documents, an individual will receive a payment voucher, valid for 30 days. During these 30 days, pay the license fees to obtain it.
Step 9: Opening of corporate bank account in UAE.
Step 10: Registering for TRN number and business by visiting Dubai Chance of Commerce and Industry.
Required Documents
The following documents are required for a company formation in Dubai:
- Completely filled application form.
- Business Plan.
- NOC from sponsor.
- Hardcopy of Existing trade registration certificate/license.
- Colored passport copies of shareholder, director, and manager of the new company.
- Signature of the freshly appointed firm director and manager.
- 2 years of audited financial reports for a corporate organization or a reference certificate from a bank of shareholders.
UAE Varied Trade Licenses for Foreigners
There are four different types of trade licenses accessible to foreigners for company setup in the UAE, as listed below:
Commercial
DED issues a commercial license to those who own businesses or firms that trade and engage in more than ten business activities. This license allows foreign business owners to possess only 40% of their company on the mainland and carries the suffix LLC. The license offers many advantages such as 0% corporate and income tax, cheap VAT, UAE visas for the employer, employee, and dependents, and local and worldwide trading.
Industrial
This license is required for business that produce or manufacture goods in an industrial setting. A physical premise or a warehouse in UAE is necessary to obtaining industrial license.
Professional
DED grant professional licenses to those who have a certain area of expertise and educational background. Ex-pats have 100 percent ownership of the license, which is based on the professional’s ability.
Tourism
The license is given by the Department of Tourism and Commercial Marketing (DTCM) to international investors who want to start a tour and travel business. Further, it is categorized in the following 3 categories:
- Inbound
- Outbound
- Travel Agency
Why Choose Freezoner for Setting up a Business in Dubai
Freezoner helps businesses succeed in a city, considered aa a commercial hub by providing detailed information and guidance. We strive to offer full support throughout the business setup process, solving every concern and ensuring simple, painless, and transparent process. All you have to do is send us the required documents and information about the type of business you want to start. The rest will be taken care of by our certified personnel, who will handle everything from your license and visa applications to contacting all relevant authorities and departments. Get in touch with us today and be ready to own and operate a business in the mighty city.