Setting Up a Company in the UAE: The Complete Guide
As an entrepreneur, you will be aware of how Dubai, UAE is becoming a business hub for all types of businesses, whether start-ups, growing, or multinational corporations. With ideal locations and as the main GCC country, UAE offers unlimited benefits, and opportunities, and welcomes all entrepreneurs and shareholders for business setup. However, company formation in Dubai, UAE is not one of the easy roads especially if you are planning to do it all on your own. Acquiring a business license under the guidance of Dubai business setup will definitely make the process effortless and more efficient.
Your business entity can succeed and thrive in all the emirates of the UAE. However, the company setup has to align with the rules of the mainland, free zone company, or offshore business setup services to get approval. If you want to explore more about setting up the company in Dubai, UAE read the post till the end to get an idea of all kinds of companies and business activity. Dubai Business Setup experts can help you navigate through the process with ease.
Why set up a business in the UAE?
There are no questions about how the UAE is the best and fastest-growing economy in the world. It is not only a well-developed place and statistically planned, but also the infrastructure and experience this country provides to its people are phenomenal. Due to the trading and tourism development, foreigners love to come with their families. Every day government issues hundreds of business licenses to business owners. Most importantly, not one emirate of the UAE has taxation rules for any type of business activities or services. If you open your business in Dubai free zone, you will get a 100% exemption on your taxes. Our business setup consultants have been helping clients and investors with the issuance and approvals of business license for all trade and branches of any agency.
Benefits of setting up a company in Dubai
There are countless benefits of setting up an agency or personal business in Dubai, UAE. All emirates authorities of the UAE issue visa and provides easy-to-follow steps and tons of options so anyone can launch their business without any inconvenience. Here are a few of the most prominent benefits the UAE business structure provides:
Ideal Geographical Business Location
The UAE's seaports and airports act like a bridge that connects the world of the west to the world of east, north, and south. The ports make the logistics easy for transportation, import, and export of goods and tourism purposes.
Hassle-Free Business Setup
With each passing day, business activities are increasing and all is possible due to the ease of starting a company here. The government has set out the regulations and policies that you have to follow for business setup. And with the help of consultancy, company setup in UAE is just a matter of a few days.
Taxation-Free
This benefit is the most advantageous for all businesses as there is no taxation for opening any business in Dubai, Ajman, Sharjah, or anywhere else. Whether the tax is capital, on income, or personal. Only a few companies have to pay VAT for specific business activities.
High-Quality Lifestyle
People of different natures, cultures, religions, and colors come live together in Dubai. The UAE authority lives to cross all the existing standards of lifestyles and provides the best solutions to their residents. This promotes harmony and links between different communities.
Zone Option
The UAE has the choice of more than 20 free zones and more than 20 are in Dubai. DMCC and Jabel Ali are Dubai’s fee zone where a huge number of businesses and employees work. The rest of the free zones are in Abu Dhabi and other emirates. Opening a business in a free zone gives the investor 100% complete ownership and rights of the company. Other than that, you get complete repatriation of profits and share capital investment. If you have a company in the free zone, the laws allow you to collaborate and partner with others’ companies regardless of their size as well.
Visas procedures
UAE is one of the easiest visa-permits countries. You can easily get an employment or residency visa by contacting the concerned portal page. And for business establishments, you can get office space on lease, and hire staff in any free zone or other land areas.
Government Assistance
The UAE government has already set rules and procedures you need to follow in case of any registration or application. Moreover, UAE always plans to provide over-the-top services to all professionals to ensure more business opportunities. They conduct international summits and provide technology-related and digital-oriented solutions to bring more comfort to people's lives.
Employment Opportunities
The UAE has left its oil-generating country image far behind and now blooming in industries like hospitality, tourism, and logistics. These pro services generate more than 60% GDP of the country. As more people are setting up their companies, the need for team and office staff is also at its peak. People from all around the world are getting employed or working as freelancers to manage businesses' websites and generate content and offer consultation services.
The process of setting up a new business in the UAE
The process of setting up a company in Dubai, UAE demands more than just AED 50,000 or vision. Instead, you need to have a good amount of energy and strategic planning to set up a business.
Business Idea
The first step to start the process is to have a business idea. Polish it, set the goals, and then be clear about the problem you want to solve with your company. For example:
You must do your market research. Who are your ideal customers? What are their desires, likes, and aspirations?
The problem your products will solve
Have set achievable business goals
All these things will help you create a strategic business plan and marketing campaigns to win more clients and make more profit in the business. If you have a detailed business plan only then you can excite investors to invest in your program.
Business Form and Right Jurisdictions
In Dubai, or across the UAE, you can have two types of businesses for everything. One can operate on the mainland and the other is for free zone. If your business is about hospitality, consultancy, related to the local market, cleaning company, or commercial company then you can operate in mainland jurisdiction. Mainland jurisdiction has its own advantages and disadvantages like a free zone.
On the other hand, free zone businesses are more related to trading. You also get the opportunity to work overseas and expand your business. Free zone jurisdiction businesses also have the leverage of collaborating with other businesses in the designated areas. Our Dubai business setup consultant team can help you with your business idea and other necessary information to help you set up your company in your desired jurisdiction.
Business name and logo
One of the most creative but equally challenging tasks is to give your business a name. A name that is unique also indicates your business and is easy to call and remember. If your business names are similar to other brands, there is a high chance of losing many potential clients to such confusion.
Your brand name and logos should not be copied or hurt by copyright laws. Your brand's name should not be based on any divinity or holy personality as well.
Consultancy Guide
Once the name, business plan, and other things are clear, you can message Dubai business setup on WhatsApp or search on google and we will be responsible for taking care of all the paperwork details, registrations, license, lead generation, and sales executions. We have been helping business owners like you from the start. Whether you want to open a business in a free zone or the mainland, our team of experts will be here to help you at each step.
Tenancy Contract
After selecting the business type and jurisdiction based on your business type you might have to have a physical office location as it is compulsory for some businesses to have a local address. However, now many companies are operating virtually and making tons of money. If your company type requires you to have the address, you might have to rent a place and get EJARI. EJARI is an agreement between the tenant and the owner that also includes many other services like registration, and transfer including contract cancelation.
Legal Form and Company structure
Another significant factor during the process of setting up a company in UAE is choosing the legal form and structure for your company. The legal form and structure will determine the further steps of the process and issuance of the license. You will also get the idea of how to manage the profit, and loss, and control or expand resources. A few of the most common legal forms are LLC (limited liability company), civil company, local commercial business, foreign commercial branch, and a few more.
Register Your Company
Reaching the registration point after making the more suitable choices to make your business profitable is not an easy task. But teams like Dubai Business Setup can help you reach there smoothly. Once your company is registered, you will get your trade license within a few days and can inaugurate your business.
Here are some of the main requirements you need to double-check before you go to register your company
Business activity
Business activity stands for the services your business provides. After choosing the business entity activities and services to target the right kind of customers, now you have to look for your business profitability margin and competition to ensure success. For this, you have to contact a company set up business service agent like us to make sure all things are aligned and in compliance with the laws of the state.
For some businesses, you require a local sponsor
Not all, but a few mainland businesses require you to have a local business partner. What that local business partner will do is insignificant as his only role is to offer his name and agreement on your start-up. Finding a trustworthy UAE national can be a difficult task as most foreign investors or businessmen don't have enough connections and exposure to the UAE business ambiance. For that, Dubai business setup expertise can help as we have been in business build-up business and generated sponsor leads to help businesses like yours.
Company Structure
As mentioned earlier, companies in the mainland or free zone offer different company formalities and legal structures such as LLC or sole partner, local commercial company, private company, branches of any foreign company, and a few more. Choosing the company structure vastly depends on the services your brand offers and what are your expectations from the business.
Trade Name
Your trade name of the business has to be according to the given instructions of DED (Department of Economic Department). You can look for suggestions and aspirations but remember, your trade name has to be different from your middle east competitors and also stands for your business entity.
Approvals
After documents and fulfilling all the range of requirements like memorandum of association (MOA) and articles of association, now you have to get permits from a few municipalities based on your business type. You might have to contact RTA, the UAE police, and the Dubai education ministry for document approval. Or you can take help from a Dubai business setup company to get it all done for you on your behalf.
Office Spaces
The official address is one of the most important aspects of starting a business in Dubai. The office space has to be good to manage a number of team members without hurdling other office activities. All professional businessmen have to sign an EJARI contract to get the space on lease or monthly or yearly rent.
License Issuance
After completing the all-business documentation like the power of attorney paper, you will get your trade license in a couple of days. Before that, you will get an approval certificate copy. And with that, you can recruit your team and hire people.
Steps to follow after setting up new UAE company
Visa Services
The hard part of business formation in the UAE is done. Now, you can relax and while relaxing apply for a visa after company registration. You need a visa for yourself, your family if you call them here, and also for your employees. Your company should be registered with the UAE labor department and immigration department before you apply for labor or residency visas.
Bank Account
To make the fees transactions and for cost management with the help of one phone click, you have to request banks to open an account for you. The UAE follows a strict approach to avoid any fraud and halt money laundering cases. Make sure you are following all the formalities to avoid rejection.
Accounting Services
No business person can take care of all the matters. You need competent individuals from different fields to work as a team. All business people require someone who can look after financial matters. Someone who keeps a record of taxation matters and income transactions. Having someone with accounting and bookkeeping experience would be an ideal candidate. You can also take advice from the consultants you have been working with for company setup.
VAT Management
Dubai has a value-added tax on commodities and goods businesses. According to the law, the vat range is between 0-5 % for all Dubai-based businesses. However, if you don't want to pay vat tax, the UAE also offers options like offshore company formation and fz co (free zone company).
Website Creation
After perfectly handling financial and legal aspects, bring focus to the marketing of your business. The website is like an online address for your business. If your business has products or services that you can sell online, then don't hesitate to make a website. As times are changing, people prefer digital experiences. Be it shopping, or working. So, if your website can increase your sales, there is no harm in creating one. You can hire developers for website creation.
Business Promotion
Company promotion is as important as company formation. You have to stand out from your competitors and it is only possible when you will create a strong online and offline brand voice. Social media is a great platform to increase brand awareness and generate leads. You can use the internet to share information regarding your business's services and costs. If you feel like you don’t have time for this, you can take assistance from a digital marketing agency.
How Dubai Business Setup can help you in setting up your UAE company
Dubai business setup company is one of the veteran companies in the UAE that have been helping many novices and experienced business people start their businesses in different locations in the UAE. If you are also confused with questions like “how to set up a company in the UAE” or "what type of company to set up in the UAE", you can contact us today and benefit from our services at an affordable price.
"This article appeared in Business Setup in Dubai, UAE: Complete Guide 2022
and has been published here with permission"
Komentarze