Dubai Company Registration in 2023-24
Dubai is among the most sought-after locations to start companies due to its excellent tax structure. It is the most prestigious capital city to do business in and is among the most sought-after destinations by international investors.
Dubai is home to more than 25 Free Trade Zones (FTZ) which is one of the major reason for
international business owners to establish their businesses in Dubai.
Dubai Company registration is a great decision, doesn’t matter done through an offline process or an online portal. It is not hidden that Dubai is starting to become a modern business destination and be it budding start-ups or full-fledged MNCs, all are eventually finding their way to settle their business in the Middle East.
Dubai is ready to offer you a mix of innovation with worthy businesses as competitors. You will also get to work with several corporate sectors in a desirable and peaceful work environment. Dubai company registration will give you and your business solid exposure as well. There are various investment chances that you will get once you register a company in Dubai.
There recently have been some amendments in the business laws regarding the issue of ex-pats, and that’s why you should take advantage of this time and give it all to register a company in Dubai.
If you are new to this area of work, don’t worry, we at ODINT Consulting are here to provide you with an A1 company registration service. If you feel the need for some legal advice, you can easily rely on our experts, who are there to help you 24*7.
Steps To Follow To Register a Company in Dubai
Dubai Company registration may seem like a tough job, but it isn’t. Especially when you take the assistance of experts at ODINT Consulting. To educate you about the key steps of Dubai company registration, here is a well-defined procedure for the same:
1. Determine your firm’s legal form
The first and foremost step should always be to decide your firm’s form before kickstarting your journey of registering a company in Dubai. You have options of building an LLC; a limited liability company in the central region to take maximum benefits from UAE’s most-popular local bazaar.
Likewise, you also get the opportunity to go for an open organization where an autonomous jurisdiction would oversee your firm. Additionally, you will require a regional sponsor who will take approximately 51% of stockholding in your firm. Still, free zones provide 100% corporate ownership in Dubai for ex-pats as well.
2. Reservation of Trade name
The next step of the Dubai company registration is to reserve your company trade name. To successfully reserve your trade name, you will have to ensure that your company name is unique and indicates what your business strives to work for. You should also keep in mind to make use of some important keywords like PLC or LLC in your firm’s name when you think of registering a company in Dubai.
There are certain rules which come with reserving a trading name. Such as, you can’t incorporate the name of a religious entity in your company name. There is also a limitation on using any insulting, derogatory, or controversial words in your firm’s name.
So, you have to ensure that you are following all these guidelines and setting a name accordingly. You have to make sure that you include the full name of an individual when you make it a part of your organization’s official name.
3. Pick up a good company location
The 3rd step towards Dubai company registration is that you will have to form a good decision about where to set up your business. It is an important decision to make as it will decide your market exposure, and also your future growth.
It is safe to say that this judgment will either make you or break you. That’s why you should come and join our experts at ODINT Consulting who will assist you in deciding your business location, and also guide you through your whole Dubai company registration process.
You can select the UAE mainland to start your company or even some of the free zones such as DIFC or MC, etc. If not, you also have the option to go to an offshore region to find out more about the trading sector in Dubai.
4. Setup an office area
Buying a separate office area for your business can turn out to be pretty expensive, and sole proprietors can’t afford that much expense during their early days of business. So, we would suggest that you rent a good and in-budget workplace for the firm incorporation in UAE.
Dubai is globally known for having the best and the most modern infrastructural amenities and easy resource accessibility. Apart from that, you can even make use of pocket-friendly labor and quick access to basic resources like electricity and water.
5. Get the corporate license
Now, the 5th step for you is to apply for an official corporate license. A license is nothing but authorized paperwork that will permit you to take forward your business activities in Dubai. You will have to take extra permissions if some business activities are not included in your license. Different types of corporate licenses in Dubai are:
- Business License: Organizations related to any kind of trading work need to obtain a business license.
- Professional License: Organizations involved in providing services, technicians, or artisans, need to attain a professional license.
- Industrial License: Organizations involved with the manufacturing of any kind of industrial venture, requires getting an industrial license.
6. Start a business bank account
You will require a separate business bank account to control all your cash debits done in the name of the company. That’s why always choose a bank that will give you trustworthy service and provide you with long-term advantages. You will also have to keep a check on your VISAS, and shareholders who have the option to issue family VISAS in UAE.
These were the easy steps using which you can easily register a company in Dubai.
Required Data for Dubai Company Registration
To register a new company in Dubai, you’ll need the following paperwork:
It’s vital to include all necessary documentation with your business application for registration to guarantee a quick and error-free process. The following is a list of paperwork you’ll have to register your company in Dubai:
Trademark (Provide minimum 3 name options)
- Events in the Business
- Copies of the stockholders’ passports
- Visa stamp or entrance mark
- Passport size photograph
Documents required for Dubai Company Registration
There should be a specific document for each company in Dubai due to the fact that there are a variety of kinds of companies there.
The following documents are necessary to register a company in Dubai:
- Application Form for the Business Plan.
- MOA as well as AOA are properly signed by an official.
- A copy of the passport of the sponsor to verify that he/she is a resident of the United Arab Emirates.
- NOC from the Sponsor.
- Bank Reference Letter for Each Shareholder
Legal Entities In Dubai
The most popular legal entity in Dubai is the Limited liability companies and a Branch Office. You can also put up a liaison office, a.k.a, representative office. A liaison office is a kind of legal structure similar to a Branch, but its operations are only to serve as a marketing center and as an administrative center for the main firm.
You also have the option to put up an entity in any one of the free zones in Dubai. The legal entities issued in a free zone come under foreign ownership, and there is no involvement of the UAE in it. The entity in a free zone can exist as an FZ-LLC; a free zone limited liability, or an FZ-Branch; a free zone branch.
Let’s gain a deeper knowledge about them all:
There can be up to 50 stakeholders in limited liability companies, and each one of them is responsible only for their capital share in the firm. LLCs have the permit to host any kind of consulting service. The consulting service can be industrial but not professional, like auditing, practicing law, or accounting.
The Dubai Nationals must own 51% of the LLCs, and there must be a Dubai-accredited auditor. If the partner on an LLC dies, the shares of that partner are transmitted to the names present in the will.
A branch isn’t counted as an individual entity, but seen as an addition to its parent firm. The branch gets its governmental operations and licensing done with the help of a national agent, at a fixed rate for fee. This fee is to be paid on the license issue date but this would not create any rights or claims on the entity’s operations.
Free zone limited liability company is an individual and different legal entity. There is no limitations on the stakeholder’s nationality. The operations which are
Separate and distinct legal entity with limited liability. No restriction on the nationality of shareholders. Operations limited to the free zone wherein the business is based and those for which the business has a licence.
A franchise is recognised as an expansion of its parent corporation rather than a separate organisation. There is no need to designate a national representative, as there is with a Branch.
Dual License Branch
It is the unit of a FZ-LLC based in Dubai’s mainland. It’s regarded as an expansion of its parent firm rather than as a different unit. Only in particular free zones is it feasible to open a dual license branch. It could be based in the same location as its parent corporation.
Corporate Tax Rates In Dubai
According to the Ministry of Finance, Dubai will introduce a nationwide corporate tax upon company profits from June 1st, 2023, for the first time.
This is a huge move for a nation that has long drawn firms from all over the world due to its reputation as a tax-free trade hub. Starting from June 1, 2023, companies will be liable for tax.
To help small enterprises and entrepreneurs, the nation’s legal tax rate would be 9% for tax liability over 375,000 UAE dirhams ($102,000), and nil for tax liability up to that level. The corporation tax policy in the United Arab Emirates will become one of the most powerful in the universe.
People will continue to be exempt from taxation on earnings from work, real estate, stock funds, and other sources of earned income not tied to a UAE trade.
Advantages Of Dubai Company Registration
- Dubai is your go-to spot to start a business because of its developing economy, superior facilities, business-friendly legislation, and strategic position.
- The licensing process is simple, and Dubai allows for even more than 2,000 different company operations.
- Investors can form businesses in specialized free working zones that have their legal authority and are tailored to certain commercial activities. The DIFC (Dubai International Financial Centre) is an amazing illustration of a financial planning and analysis free trade zone, and Dubai has over 45 of them.
- Dubai’s tax rules protect you from extra taxation, import duties, and other fees, as well as provide complete immunity from the corporation and expert taxes. There is no hidden fee, and all court proceedings are open to the public.
- In the United Arab Emirates, international investors get to own 100% of their company. They have easy accessibility to all of the free trade zones, and new ex-pat legislation has made it easier for expatriates to set up businesses in Dubai.
Popular free zones in the Emirates, also called as free trade zones, comprises economic areas in which you can trade services and goods at advantageous customs and tax charges. They were established to provide benefits such as 100 percent foreign corporate ownership and, as a result, to increase international trade in the area.
In Dubai, forming a business in a free zone is simpler than establishing a company on the mainland. Stakeholders want Dubai’s Free Zones because of the simplicity with which they can start a firm, as well as the great business and service environment.
Among the most significant benefits of forming a company in a certified free environment is the VAT relief (Value-Added-Tax). A Free Zone Firm’s operating costs are also low because all expenditures for office buildings, services, and amenities are made in advance on a yearly basis.
The Free Zone firm forming in UAE comes with a slew of advantages for businesses, including VAT exemption, audit dispensation, 100 percent profit return, fast ownership transference, and access to foreign warehouses, among others.
List of Free Zones in Dubai
- Dubai Biotechnology & Research Park
- Dubai Airport Free Zone
- Dubai Auto ZZone
- Dubai Car and Automotive City Free Zone
- Dubai Gold and Diamond Park
- Dubai Design District
- Dubai Flower Center
- Dubai Industrial City
- Dubai Healthcare City
- Dubai International Financial Centre
- Dubai International Academic City
- Dubai Knowledge Village
- Dubai Internet City
- Dubai Media City
- Dubai Logistics City
- Dubai Outsource Zone
- Dubai Multi Commodities Centre
- Dubai Science Park
- Dubai Silicon Oasis
- Dubai Techno Park
- Dubai Studio City
- Dubai Technology and Media Free Zone
- Dubai Textile Village
- International Humanitarian City
- International Media Production Zone
- Jumeirah Lakes Towers Free Zone
- Jebel Ali Free Zone
- Dubai Production City
- Dubai South or DWC
Dubai is the biggest business hub for investors, especially for people looking to form a trade in the Middle East. Investors these days look forward to making use of the opportunities Dubai has to offer in terms of resources, visitor traffic in the country, infrastructure field, and import and export of possessions.
So, if you want to set up a business, you should consider registering a company in Dubai. To get a better idea of the perks of registering a company in Dubai, you should consider contacting ODINT Consulting. Our expert team will get in touch with you and provide you with good solutions and guidance.
There are 2 types of business registrations, A free zone corporation and an offshore company. A free zone corporation is something that is entirely owned by the individual who founded it.
There are two types of businesses that can be established in Dubai Free Zones: It is the type of company that is entirely owned by the individual who founded it. To administer the business, you don’t need a partner or an administrator to function as a middleman.
This is largely due to the state bureaucracy’s severe requirements for obtaining a company license in the region.
Each firm must hold yearly general meetings (perhaps by proxy) &, in essence, function and operate as a normal business. The firm’s rules have been written in strict accordance with current anti-money laundering standards. (a) Legal advisors, accountants, and management firms doing business in Dubai.