Advantages of opening a company in Dubai. What types of companies can be opened in Dubai?
by Kate Summel Sport
In the article, we analyze how a company is opened in Dubai, what types of companies are available to an investor and their main advantages.
The UAE is the fastest growing country in the world and choosing to open a company in Dubai is truly a profitable decision. A successful lifestyle in the Emirates, a well-thought-out rapidly developing corporate legislation and a management infrastructure make the UAE one of the best business hubs in the world. Companies in Dubai are in high demand as young fresh minds promote their business using these modern corporate units.
Many businessmen have shown high interest in setting up a company in Dubai, as Dubai offers great opportunities for all types of businesses, which will allow significant growth in their respective industries. The Government of Dubai shows absolute openness to all businessmen from any part of the world who want to open a company in Dubai. Learn more at yourtaxadvice.com
What is important to consider when opening a company in Dubai?
First of all, it is important to constantly monitor the rules as well as regulations regarding the registration of companies. Of course, our specialists constantly monitor all aspects of the legislation and procedures for opening companies in the country. You can apply for advice and assistance in registering a company right now. We will help you open a local company in Dubai or the UAE, as well as a branch of an existing foreign company , or we will register a company in any free economic zone, an offshore company in the UAE. We are also ready to help with the opening of bank accounts.
What are the main types of companies available to open a company in Dubai?
The UAE offers three different types of companies for doing business.
Opening a local company in Dubai
This type of company is usually used to conduct trading activities within the UAE, and, of course, around the world. Among local companies, there are also several different options for companies that are available for registration.
But here it is important to consider that a UAE citizen or a company that is wholly owned by UAE citizens is required to register a local company. Such person from the UAE will act as a local sponsor or as a local service agent, depending on the type of company. In the case of a local sponsor, it must hold at least 51% of the company's shares.
When contacting our specialists to open a local company in Dubai, we will help you find a reliable local sponsor.
Option to open a company in Dubai in the SEZ
Free zone companies can be 100% owned by an expat and no local partner is required.
Free zone companies are suitable for conducting international business, however, business can be conducted in the interior of the free zone (with some restrictions on types of business). For example, on the territory of the free zone, you can open production workshops, or engage in international logistics.
Opening an offshore company in Dubai
Offshore companies can be wholly owned by a foreigner. No local sponsor required. Such companies are often used to hold assets, for international trade, to own real estate, or as a holding company to own other businesses abroad or within the UAE. An offshore company is suitable for international business, however, such a company cannot do business inside the UAE.
What do you need to do to open a company in Dubai?
Choosing a company type
If you have decided to open a company in Dubai, then the first thing to do, of course, is to decide what type of company you need.
Finding a local sponsor
In order to register a company in the UAE, a local person (sponsor) is required, who will have 51% of the shares of the company.
However, there are a few exceptions here:
To open a company in the SEZ, such a local person is not required.
In some cases, the law requires 100% local ownership. In this case, you will not be able to participate in such a company at all.
In some cases, these 100% may include GCC citizens, and in some not.
In the case of registering a professional company, a foreigner can have a 100% share in it.
If a foreign company opens a branch in Dubai, then such a company can have 100% of the branch.
Local company - the process of opening a company in Dubai
Choosing a company name
The next step is to choose the name of the company you plan to open in Dubai. The trade name of the company must be approved by the Department of Economic Development of Dubai. To obtain such approval, you must apply and wait for their decision.
Choosing a physical location for the company
After choosing a name, the next step is to find a suitable location for your company and conclude an office lease agreement. To open a company in Dubai, it is necessary to submit a lease agreement for business premises to the Department at the time of submission of the final documents.
Drafting of the Memorandum of Association
When registering a local company in Dubai, it is necessary to draw up a Memorandum of Association with your local sponsor and submit it to the Dubai Economic Development Department. This agreement will spell out various agreements between shareholders and the percentage of the company's share in the ownership of each shareholder.
Submission of final documents and obtaining a license
Upon completion of the procedure for opening a company in Dubai , the Department is required to provide a full package of documents, including an application for a license, a Memorandum of Association, an office lease agreement.
After that, the Department issues a trade license and the process of opening a company in Dubai is considered completed.
Simplicity of the process of opening a company in Dubai
The United Arab Emirates has created a unique business environment for meeting new international companies. In servicing the business, the highest efficiency and quality of services has been achieved.
By establishing a company in Dubai, businessmen find themselves in an excellent atmosphere, with excellent telecommunication systems, with excellent transport infrastructure. Dubai constantly hosts major international exhibitions and conferences.
In addition, it should be noted that Dubai has a relatively cheap labor force and relatively simple recruitment requirements.
Entrepreneurs will be able to rent high-class housing for themselves and their staff.
Especially in Dubai, the financial and service sectors are developed, which can satisfy any needs of entrepreneurs.
Created on Sep 24th 2022 18:24. Viewed 92 times.