Company Formation in Dubai
UAE is a great business destination for foreign investors who want to open a company in Dubai, a city that offers a lot of important opportunities, such as low taxation and many free zones with different facilities. Company formation in Dubai is an easy process if you contact our local agents specialized in incorporating any type of company. They can help you choose the proper type of entity that suits your business needs and offer you other additional services, such as virtual office, shelf companies, accounting etc.
Offshore or on-shore company in Dubai?
The process for starting an offshore company in Dubai differs very much from the one necessary for incorporating an on-shore company. If you’re not certain at this stage which one you need, please consider the following:
1) a) an offshore company (RAK Offshore for instance) does not have any special requirements or restrictions regarding the owners/shareholders of the company while
- b) an onshore firm does not allow full foreign ownership (the company requires a local “sponsor”). For more info on requirements please see Incorporation of a UAE Onshore Company.
2) a) a UAE offshore company pays 0% corporate tax while
- b) an onshore company has tax obligations and filing requirements per the legislation of the UAE.
3) a) an offshore company cannot act within the UAE;
- b) an onshore company is intended to do business in the Emirates.
To summarize: if you are not interested in the Dubai market (your clients are not located within Dubai) and your solely starting your company to take advantage of the tax administration, privacy and/or offshore banking, then it is advisable to start an offshore company rather than an onshore one.
Starting a company in another country requires thorough research and most of the times appealing to the services of professionals. The business establishment process in Dubai matches the procedures in most of the European countries provided that the foreign investors have acquired all the information about the business activity they will undertake and know all the business licensing requirements. Our company formation consultants in Dubai can help you with more details about the main steps if you want to open a company in Dubai.
How simple is to open a company in Dubai?
In most of the cases, the Dubai Company Act needs a foreign investor to have a local partner who will own the majority interest. The only places investors may consolidate fully foreign-owned companies are the Dubai free zones. The company registration conditions will be different from case to case because of the type of company one chooses to open in Dubai. As per the Company Law, investors may set up the following types of companies in Dubai:
– limited liability companies, (LLC)
– private and public joint stock companies,
– branch offices,
– free zone limited liability companies,
– free zone establishments.
For those inquiring a simpler form of doing business in Dubai, the sole proprietorship could be a suitable choice. Depending on the chosen type of company and licensing requirements, the company formation in Dubai procedure with the Companies Registration Office will take several days.
Are there additional requirements for company formation in Dubai?
Additional requirements for company formation in Dubai are:
– planning and notarizing the company’s memorandum and articles of association,
– starting a corporate bank account,
– registering native craftsmen with the Ministry of Labor,
– registering native workers with social security authorities.
Whenever you need to open a company in Dubai, you may contact our company formation representatives