Key Steps to follow while setting up a Business in Dubai
Starting a business in Dubai takes not more than a week, provided all the legal procedures are sorted. Listed below are some of the important points that you should keep in mind when setting up a company in Dubai:
· Know the basic difference between offshore and onshore company: The offshore company does not have any specific limitations for the shareholders and owners of the company. On the other hand, the onshore company requires a local sponsor as it does not allow full foreign ownership.
Apart from this, another difference between them is that offshore company pays zero percent corporate tax while onshore company has tax responsibilities. So, it is always better to go for an offshore company instead of an onshore one.
· Registering a company in Dubai: In order to register a company in Dubai, a foreign investor requires a local partner or sponsor who will have maximum share. However, there are Dubai free zones where the investors can incorporate total foreign owned companies. A foreign investor can set up the below mentioned types of companies in Dubai such as:
· subsidiaries
· free zone establishments
· limited liability companies
· free zone limited liability companies
· private and public joint stock companies
· branch offices
· partnerships
· Things that are required to open a company in Dubai: The shareholding structure, minimum share capital requirements and the business licensing requirements are the things required to open a company here. However, it is important to note that the limited liability companies here do not need to deposit a minimum share capital prior to registration. Besides this, certain other things are needed to open a company here such as:
ü Opening a bank account
ü Drafting and authenticating the company’s memorandum and articles of association
ü Registering local workers with the social security authorities and with the Ministry of Labor
· Once the forms and legal procedures are ready, you can shortlist offices with expenses and other particulars. In free zones, you can get help to find buildings appropriate to your business that come complete with internet, electricity, water and other facilities.
Steps to register company in Dubai:
For new company registration in Dubai, follow the below mentioned steps:
· Choose the local partner or sponsor and determine the services that you want from the sponsor.
· From the Department of Economic Development, get name and activity approved
· Find the business locations and get a tenancy contract
· Make a Memorandum of Association with the sponsor and present it to the Department of Economic Development
· Submit the Memorandum of Association, the License application, legal documents and the tenancy contract at Department of Economic Development
Once all these things are done, you will need to pay all the required charges and you can expect the license within a week. You can take help of the company formation representatives who can help you in setting up the company in Dubai as well as with all the legal matters so that you can focus on the important business matters at hand.
