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Expert Business Setup in UAE
Set up your business in a UAE with positive zone. Our comprehensive services cover every aspect of the process, from registration to ongoing support, ensuring your success in the UAE market.
Dubai Company Registration
Dubai is a prime location for establishing companies due to its favorable tax structure. It is the most prestigious city for doing business and is highly sought after by international investors. If you are an entrepreneur considering business registration in the UAE, then Dubai should be your top choice.
Dubai is home to over 30 Free Trade Zones (FTZ), which is a major reason why international business owners establish their companies here.
Registering a company in Dubai is a smart move, whether you do it through an offline process or an online portal. Dubai is becoming a modern business hub, attracting both start-ups and established multinational corporations to set up operations in the Middle East.
Dubai offers a mix of innovation and competitive businesses. You will also get to collaborate with various corporate sectors in a desirable and peaceful work environment. Company registration in Dubai will provide significant exposure for you and your business. There are numerous investment opportunities available once you register a company in Dubai.
Recent amendments in business laws concerning expatriates make this an opportune time to register a company in Dubai.
If you are new to this process, don't worry. At Positive Zone, we provide top-notch company registration services. Our experts are available 24/7 to offer advice and assistance.
How to Register a Company in Dubai?
Registering a company in Dubai may seem challenging, but it isn't, especially with the assistance of experts at Positive Zone. Here's a well-defined procedure to educate you about the key steps of Dubai company incorporation:
Step 1: Determine the Type of Company
The first step is to decide the type of company you want to establish in Dubai. Options include a Limited Liability Company (LLC), Free Zone Company, Branch Office, or Representative Office.Step 2: Choose a Business Activity
After determining the type of company, decide on the business activity you want to engage in. Selecting the right activity is essential, as certain activities may require special licenses or permits.Step 3: Choose a Company Name
Choose a unique name for your company that reflects your business activity. It must comply with the UAE’s naming conventions, and you can check the availability of the name on the Department of Economic Development (DED) website.Step 4: Obtain Initial Approval
After choosing a company name, obtain initial approval from the DED. You must produce your business plan, company name, and other pertinent paperwork.Step 5: Draft Memorandum of Association (MOA)
Draft the Memorandum of Association (MOA) for your company, outlining the company’s objectives, shareholders, capital, and other essential details.Step 6: Obtain Office Space
If you plan to establish a mainland company, you need a physical office space in Dubai. For Free Zone companies, the free zone authority will provide office space.Step 7: Obtain a Trade License
After obtaining initial approval, apply for a trade license from the DED. You must provide your company’s MOA, lease agreement, and other supporting documentation.
Different types of corporate licenses in Dubai are:- Business License: Required for organizations related to any trading work.
- Professional License: Needed for organizations providing services, technicians, or artisans.
- Industrial License: Required for organizations involved in manufacturing any kind of industrial venture.
Step 8: Enroll with the Chamber of Commerce
Enroll your corporation with the Dubai Chamber of Commerce to obtain a membership certificate.Step 9: Enroll with the Federal Tax Authority
Enroll your company with the Federal Tax Authority (FTA) to acquire a Tax Registration Number (TRN) and comply with tax regulations.Step 10: Register with the Ministry of Human Resources and Emiratisation
Register your company with the Ministry of Human Resources and Emiratisation (MOHRE) to obtain a Labor Card and comply with employment regulations.Step 11: Establish a Bank Account
Finally, establish a bank account in Dubai for your company’s transactions.
The process for registering a company in Dubai can take several weeks. Seek assistance from our professional service providers at Positive Zone to ensure a smooth registration process.
Documents Required for Company Formation in Dubai
The required documents for company registration in Dubai may vary depending on the type of company you want to establish.
Generally, for company formation in Dubai, you will need to submit the following documents:
- Passport copies and visa copies of all shareholders and directors.
- Address verification for all directors and stockholders.
- A copy of the trade name reservation certificate.
- A copy of the initial approval from the Department of Economic Development (DED).
- A copy of the Memorandum of Association (MOA) and Articles of Association (AOA).
- A copy of the leasing contract/tenancy contract for the company’s office space.
- A no-objection letter (NOC) from the landlord or property owner.
- Proof of payment for the initial approval, trade license, and other fees.
- Company stamp.
- A bank reference letter for all shareholders.
- Proof of share capital deposit in a UAE bank.
- Board resolution authorizing the shareholders to establish the company and appoint directors.
- Power of Attorney for the company’s legal representative.
- Statement of Good Standing (if the shareholder is an existing company).
It is recommended to seek professional assistance from our experts at Positive Zone to ensure all required documents are provided and in the correct format for company registration in Dubai.
Types of Legal Entities to Register a Company in Dubai
The most popular legal entities in Dubai are Limited Liability Companies (LLCs) and Branch Offices. You can also establish a liaison office, also known as a representative office, which serves as a marketing and administrative center for the main firm.
You also have the option to establish an entity in any of the free zones in Dubai. Legal entities issued in a free zone come under foreign ownership, with no involvement of the UAE. Free zone entities can exist as an FZ-LLC (Free Zone Limited Liability Company) or an FZ-Branch (Free Zone Branch).
Let’s gain a deeper understanding of these entities:
1. Limited Liability Company (LLC)
LLCs can have up to 50 stakeholders, each responsible only for their capital share in the firm. LLCs can engage in various consulting services but not professional services like auditing, practicing law, or accounting.
Dubai nationals must own 51% of LLCs, and there must be a Dubai-accredited auditor. If an LLC partner dies, their shares are transmitted to the names present in their will.
2. Branch Office
A branch is not considered a separate legal entity but an extension of its parent firm. The branch gets its governmental operations and licensing done through a national agent for a fixed fee paid on the license issue date. This fee does not create any rights or claims on the entity’s operations.
A branch is not considered a separate legal entity but an extension of its parent firm. The branch gets its governmental operations and licensing done through a national agent for a fixed fee paid on the license issue date. This fee does not create any rights or claims on the entity’s operations.
3. Subsidiary Company
A subsidiary company is an associate of a parent corporation with its own legal entity. The subsidiary is overseen by its board of directors and may have operations similar or distinct from its parent firm. It must include at least one local representative.
A subsidiary company is an associate of a parent corporation with its own legal entity. The subsidiary is overseen by its board of directors and may have operations similar or distinct from its parent firm. It must include at least one local representative.
4. FZ-LLC (Free Zone Limited Liability Company)
An FZ-LLC is a distinct legal entity with no restrictions on the shareholders’ nationality. Operations are limited to the free zone where the business is based and those for which the business has a license.
An FZ-LLC is a distinct legal entity with no restrictions on the shareholders’ nationality. Operations are limited to the free zone where the business is based and those for which the business has a license.
5. FZ-Branch
An FZ-Branch is recognized as an extension of its parent corporation rather than a separate organization. Unlike a branch, there is no need to designate a national representative.
An FZ-Branch is recognized as an extension of its parent corporation rather than a separate organization. Unlike a branch, there is no need to designate a national representative.
6. Dual License Branch
A Dual License Branch is a unit of an FZ-LLC based in Dubai’s mainland, regarded as an extension of its parent firm rather than a separate unit. Dual license branches are only feasible in particular free zones and could be based in the same location as the parent corporation.
A Dual License Branch is a unit of an FZ-LLC based in Dubai’s mainland, regarded as an extension of its parent firm rather than a separate unit. Dual license branches are only feasible in particular free zones and could be based in the same location as the parent corporation.
7. Offshore Company
Offshore companies in Dubai are established and managed outside the nation’s territory. Despite having a base in another nation, the company is fully foreign-owned and incorporated in Dubai.
Offshore companies in Dubai are established and managed outside the nation’s territory. Despite having a base in another nation, the company is fully foreign-owned and incorporated in Dubai.
Corporate Tax Rates in Dubai
Starting from June 1, 2023, Dubai will introduce a nationwide corporate tax on company profits for the first time.
This significant move for a nation known as a tax-free trade hub will impose a corporate tax rate of 9% on profits exceeding 375,000 UAE dirhams ($102,000), while profits up to that level will not be taxed. This corporate tax policy will be one of the most competitive globally.
Individuals will continue to be exempt from taxation on earnings from work, real estate, stock funds, and other income sources not tied to a UAE trade.
This significant move for a nation known as a tax-free trade hub will impose a corporate tax rate of 9% on profits exceeding 375,000 UAE dirhams ($102,000), while profits up to that level will not be taxed. This corporate tax policy will be one of the most competitive globally.
Individuals will continue to be exempt from taxation on earnings from work, real estate, stock funds, and other income sources not tied to a UAE trade.
Advantages of Company Registration in Dubai
- Dubai is ideal for starting a business due to its developing economy, superior facilities, business-friendly legislation, and strategic location.
- The licensing process is straightforward, and Dubai allows for over 2,000 different business activities.
- Investors can form businesses in specialized free zones with their legal authority tailored to specific commercial activities. Dubai has over 45 free zones, including the DIFC (Dubai International Financial Centre).
- International investors can own 100% of their company in the UAE, with easy access to all free trade zones. New expatriate legislation has also made it easier for expatriates to set up businesses in Dubai.
Cost of Company Registration in Dubai
The cost of registering a company in Dubai varies depending on the chosen business model and specific activities. It is challenging to provide a fixed price for registration costs.
At Positive Zone, we provide a clear idea of the necessary expenses for registering a company in Dubai.
Dubai Free Zones
Popular free zones in Dubai, also known as free trade zones, are economic areas where you can trade services and goods at advantageous customs and tax charges. They offer benefits such as 100% foreign corporate ownership and are designed to boost international trade.
Forming a business in a free zone is simpler than establishing a company on the mainland. Stakeholders prefer Dubai’s Free Zones due to the ease of starting a firm and the excellent business and service environment.
One of the most significant benefits of forming a company in a free zone is the VAT exemption (Value-Added Tax). Free Zone companies benefit from low operating costs as all expenses for office buildings, services, and amenities are paid annually in advance. Other advantages include VAT exemption, audit exemption, 100% profit repatriation, fast ownership transfer, and access to foreign warehouses.
List of Free Zones for Company Registration in UAE
- Government of Dubai
- UAE Ministry of finance
- Dubai Economy
- Sharjah Media City
- Meydan Free Zone Dubai
- Ras Al Khaimah economic Zone(RAKEZ)
- Ajman Free Zone
How Positive Zone Will Simplify This for You!
With a robust workforce and favorable corporate tax rates, Dubai is one of the most attractive regions for business setup for individuals from the subcontinent.
The country’s largest port facility makes it a valuable hub for exporters.
Positive Zone's experts are here to provide you with a comprehensive blueprint, incorporation laws, and ideas for setting up your business in this thriving region. Contact our business professionals to register your business in Dubai today.
Expert Business Setup in UAE
Set up your business in a UAE with positive zone. Our comprehensive services cover every aspect of the process, from registration to ongoing support, ensuring your success in the UAE market.
