Company Formation in Dubai
Dubai is probably one of the largest cities in the Middle East having vast number of opportunities to permit foreign investors to establish various types of companies. This city has extended its opportunities to make sure that there exists the persistent growth and development. Aside from this, the Middle East is also among the largest oil exporters present in the world. There is no indirect or direct tax levied on the citizens and individuals residing in Dubai. Henceforth these opportunities draw in more people to go for the procedure of getting company registered in Dubai.
In Dubai there is an assigned area i.e., Dubai International Financial Centre (DIFC) to commence different type of registration exercises which are compulsorily required to be complied with. In Dubai, however in all over Middle East there are various types of financial centres which permit simplicity of doing various business exercises in Dubai.
In the DIFC there is no sort of limitation with regards to foreign ownership in the company. Subsequently, the directors and shareholders of a company which is registered in the Dubai can have full ownership of a company. The Federal Commercial Companies Law No. 2 of 2015 (Companies Law) expresses that company which is outside the purview of the DIFC needs to meet all the set requirements of foreign investment. This implies 51% of ownership should be held by the resident of UAE.
The ownership perspective concerning the company would be classified in light of the citizenship. 51% of it must be owned by the UAE resident. This would likewise incorporate any type of entities which are governed by a UAE resident. These limitations on a foreign investment have been taken out from different areas in 2018.
With regards to the taxation perspective, then, at that point, indirect taxes, for example, VAT is levied in Dubai. This tax is a value added tax that would be levied at the rate of 5% on the amount of products and services which are being offered in Dubai. There is no type of individual annual expense which is charged on representatives working in Dubai. Consequently, these large number of benefits would be of a great opportunity for an investor in order to get the company registered in Dubai.
Fundamental Regulatory Authority for Company Registration in Dubai
Registrar of Companies is the main authority which regulates and governs company establishment in Dubai. This registrar goes about as a unified authority for meeting various types of compliances and registrations connected with companies. Normally, company registration application in Dubai is submitted to the registrar of companies.
Areas connected with Company Registration in Dubai
The accompanying regions can be picked up for company registration in Dubai-
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Within DIFC- DIFC is a reasonable choice to be considered by an investor for company establishment. There are various advantages of picking this area which isn't only about ease of compliance or company registration procedure but many more. In the DIFC there is no type of limitation with regards to foreign ownership in the company. Henceforth, the shareholders and directors can be fully foreign owned if the company is registered in Dubai.
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Outside DIFC- This is the area which is separate and outside the DIFC. A company can likewise be formed outside the DIFC. The Federal Commercial Companies Law No. 2 of 2015 (Companies Law) expresses that company which is being formed outside the DIFC’s jurisdiction needs to fulfil all the requisites of foreign investment.
The ownership perspective regarding the company would be classified in light of the citizenship. 51% must be owned by the UAE resident. This would likewise incorporate any sort of entities which are governed and regulated by a UAE resident. These foreign investment limitations imposed have been pulled out from different areas in 2018.
Advantages of Company Registration in Dubai
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Administrative Environment provided-The Dubai courts practice common law system. Precedents derived from cases are dealt with by advocates in Dubai who are qualified on the US and UK legal basis. Dubai has its own way of laws and regulations.
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100 percent Foreign Ownership Permitted- Foreign ownership is wholly permitted for a company which is registered in Dubai. Thus, a foreign investor or a shareholder can wholly possess company’s equity ownership.
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Ease of Compliance- Dubai requires comparatively less compliance than other sort of jurisdictions.
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Lesser Tax Imposed- Direct tax imposed on an individual would be comparatively much less than the indirect tax. VAT, an indirect tax is imposed in Dubai. This is observed as a value added tax which is charged at the pace of 5% on the amount of product and services offered in Dubai. There exists no individual income tax to be levied on employees in Dubai.
Administrative Environment provided-The Dubai courts practice common law system. Precedents derived from cases are dealt with by advocates in Dubai who are qualified on the US and UK legal basis. Dubai has its own way of laws and regulations.
100 percent Foreign Ownership Permitted- Foreign ownership is wholly permitted for a company which is registered in Dubai. Thus, a foreign investor or a shareholder can wholly possess company’s equity ownership.
Ease of Compliance- Dubai requires comparatively less compliance than other sort of jurisdictions.
Lesser Tax Imposed- Direct tax imposed on an individual would be comparatively much less than the indirect tax. VAT, an indirect tax is imposed in Dubai. This is observed as a value added tax which is charged at the pace of 5% on the amount of product and services offered in Dubai. There exists no individual income tax to be levied on employees in Dubai.
Kinds of company structures utilized in Dubai
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Company limited by shares- Such company is observed as a private limited company because it is limited by particular number of shares.
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Limited Liability Company- Such companies are generally liable to the extent of their shares.
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Branch Office- Normally this sort of company is framed outside Dubai. In any case, the office is within Dubai to commence related activities.
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DIFC transferred Company-Companies which are transferred to free zone from a non- free zone are clubbed under this. An example could be the transfer to a DIFC centre from a non DIFC centre.
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Limited Liability Partnership- This is mostly known as an LLP and is a partnership which is regulated by its partners, who all are liable in the ratio decided mutually thus. Do not have unlimited liability.
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Foreign Limited Liability Partnership- Such partnership is normally a wholly foreign owned company which is managed by the shareholders who are mainly the foreign residents.
Company limited by shares- Such company is observed as a private limited company because it is limited by particular number of shares.
Limited Liability Company- Such companies are generally liable to the extent of their shares.
Branch Office- Normally this sort of company is framed outside Dubai. In any case, the office is within Dubai to commence related activities.
DIFC transferred Company-Companies which are transferred to free zone from a non- free zone are clubbed under this. An example could be the transfer to a DIFC centre from a non DIFC centre.
Limited Liability Partnership- This is mostly known as an LLP and is a partnership which is regulated by its partners, who all are liable in the ratio decided mutually thus. Do not have unlimited liability.
Foreign Limited Liability Partnership- Such partnership is normally a wholly foreign owned company which is managed by the shareholders who are mainly the foreign residents.
Qualification Criteria for Company Registration in Dubai
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License Required- A company is framed with the fundamental aim to commence some activity. There are three types of licenses which are given to a company which is being registered in Dubai. The licenses are as per the following-
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Commercial licenses covering a wide range of activities connected with the trade;
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Professional licenses covering services, specialists, professions and artisans;
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Industrial licenses for laying out industrial or manufacturing unit.
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Free Zone Business should be taken forward- Typically, a local sponsor would be expected for getting company registered in Dubai. This is an obligatory requirement for a person to track down a local sponsor. As the local sponsor must be a UAE resident who has over 51% ownership over the company. Generally, an individual would go into some type of profit-sharing plan with the local benefits and mutually settle on some sharing ratio which has to be thought about by the parties involved.
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Pick the Form of Business Structure- When the candidate goes for company registration in Dubai the type of business structure which the company is planning to opt for should be used by the candidate. There are number of benefits and drawbacks of picking the type of business structure.
License Required- A company is framed with the fundamental aim to commence some activity. There are three types of licenses which are given to a company which is being registered in Dubai. The licenses are as per the following-
Commercial licenses covering a wide range of activities connected with the trade;
Professional licenses covering services, specialists, professions and artisans;
Industrial licenses for laying out industrial or manufacturing unit.
Free Zone Business should be taken forward- Typically, a local sponsor would be expected for getting company registered in Dubai. This is an obligatory requirement for a person to track down a local sponsor. As the local sponsor must be a UAE resident who has over 51% ownership over the company. Generally, an individual would go into some type of profit-sharing plan with the local benefits and mutually settle on some sharing ratio which has to be thought about by the parties involved.
Pick the Form of Business Structure- When the candidate goes for company registration in Dubai the type of business structure which the company is planning to opt for should be used by the candidate. There are number of benefits and drawbacks of picking the type of business structure.
Process for Company Registration in Dubai
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Most importantly the candidate needs to choose a sponsor who is a UAE resident. Having a sponsor is a compulsory requirement to fulfil the needs associated with the Federal Commercial Companies Law No. 2 of 2015 (Companies Law). If the candidate wants to establish a company outside the DIFC then, at least 51% ownership should be held by the UAE citizen. Nonetheless, to establish an office in the DIFC itself, then, at that point, the prerequisite of a sponsor would not be needed. Nonetheless, it would be helpful to track down a sponsor. Later, the candidate can also transfer the company.
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In the following stage, the candidate would need to opt for the most common way of reserving the company name with the Department of Economic Development. In order to do so the application alongside fee should be paid.
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Further, the candidate needs to draft the company’s articles of association and memorandum of association. The candidate can download the documents from the Companies Registry related with the MOA and AOA.
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While the drafting of the application is finished, the documents alongside the application should be sent to the Department of Economic Development and the Companies Registry. The Companies Registry would handle the documents connected with this.
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The company would get the incorporation certificate from the companies’ registry to commence the mentioned activities in Dubai. After this procedure is accomplished, the candidate would need to choose the type of license which is expected to commence the business. The accompanying licenses are available in Dubai-
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Commercial licenses covering a wide range of activities connected with the trade;
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Professional licenses covering services, specialists, professions and artisans;
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Industrial licenses for laying out industrial or manufacturing unit.
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Consequently, to do any type of trading activities, a company needs to submit an application to seek a commercial license. Notwithstanding, to begin the business connected with professional lawyers, a company then needs to apply for the professional license.
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The candidate in order to get company registered in Dubai would need to recruit the board members, shareholders and directors to deal with the activities according to the prerequisites of the Companies Act. When these steps are accomplished, the candidate can go on to start a business bank account in Dubai.
Most importantly the candidate needs to choose a sponsor who is a UAE resident. Having a sponsor is a compulsory requirement to fulfil the needs associated with the Federal Commercial Companies Law No. 2 of 2015 (Companies Law). If the candidate wants to establish a company outside the DIFC then, at least 51% ownership should be held by the UAE citizen. Nonetheless, to establish an office in the DIFC itself, then, at that point, the prerequisite of a sponsor would not be needed. Nonetheless, it would be helpful to track down a sponsor. Later, the candidate can also transfer the company.
In the following stage, the candidate would need to opt for the most common way of reserving the company name with the Department of Economic Development. In order to do so the application alongside fee should be paid.
Further, the candidate needs to draft the company’s articles of association and memorandum of association. The candidate can download the documents from the Companies Registry related with the MOA and AOA.
While the drafting of the application is finished, the documents alongside the application should be sent to the Department of Economic Development and the Companies Registry. The Companies Registry would handle the documents connected with this.
The company would get the incorporation certificate from the companies’ registry to commence the mentioned activities in Dubai. After this procedure is accomplished, the candidate would need to choose the type of license which is expected to commence the business. The accompanying licenses are available in Dubai-
Commercial licenses covering a wide range of activities connected with the trade;
Professional licenses covering services, specialists, professions and artisans;
Industrial licenses for laying out industrial or manufacturing unit.
Consequently, to do any type of trading activities, a company needs to submit an application to seek a commercial license. Notwithstanding, to begin the business connected with professional lawyers, a company then needs to apply for the professional license.
The candidate in order to get company registered in Dubai would need to recruit the board members, shareholders and directors to deal with the activities according to the prerequisites of the Companies Act. When these steps are accomplished, the candidate can go on to start a business bank account in Dubai.
Documents expected for Company Registration in Dubai
As there are various types of businesses in Dubai, there would be different arrangement of documents needed for every business. The accompanying documents would be expected for company registration in Dubai:
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Application form
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Business strategy
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MOA and AOA which is appropriately notarised by the authority
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Managers’ passport
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Sponsors, passport to confirm its UAE nationality
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NOC from the Sponsor
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Bank Reference Letter for every shareholder individually
For an industry license following documents will be also needed along with the above documents-
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Duplicate of the Feasibility Study
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Existing Company Profile
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Data connected with the Investor
For opening up a Branch Offices-
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Duplicate which is authenticated connected with the incorporation certificate, MOA and AOA
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Company’s board resolution
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90 days bank statement connected with the parent company
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Passport copy and original copy of the power of attorney
How to contact Estabizz for Company Registration in Dubai
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Fill the form.
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Get a call back.
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Submit the required documents.
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Track the progress of your application.
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Get the expected results.
Fill the form.
Get a call back.
Submit the required documents.
Track the progress of your application.
Get the expected results.
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