Setting up your business in Dubai
Dubai is the most prominent city in the UAE, leading country in economic growth in the Arabian Peninsula. This has attracted so many entrepreneurs to Dubai. In general, company formation in Dubai is considered to be a simple and quick process. Before going to the processes in starting a business in Dubai, we need to understand the Dubai mainland and Dubai free zone.
Mainland registration offers 51% ownership to the UAE citizens, who will be the sponsor and 49% ownership to others. As per the latest law, professionals engaged in specialised services, like doctors or chartered accountants with non-UAE citizenship can have 100% ownership to the businesses related to their professions. Companies under Dubai mainland will have an LLC (Limited Liability Company) registration. Dubai mainland companies can do business with anybody from any location. Additionally, there are no restrictions to the type of business one can do under mainland registration.
Dubai Free Zone
Free zone registration provides 100% ownership to foreign citizens who want to start their business in Dubai, with certain restrictions. Companies in free zones are only allowed to do business with parties outside the UAE and those in free zones. Only certain types of businesses can get free zone registration. Free zone companies are eligible for incentives like complete exemption in a corporation, personal, as well as import and export taxes, 100% repatriation of profit and capital, etc. Compared to the mainland, the cost of registration is also less in free zones.
Steps to set up your own business in Dubai :
1. Finalising the business & company name
Deciding what type of business you are going to do. This has importance since some free zones do not allow certain business types. Anyway, clarty and planning is a basic necessity for the success of any business & is considered as a first step in starting a business. The UAE has put some restrictions in naming a company, like it should not include offensive language, should not refer to any religion, community, groups, political parties, government departments, should not include the name of a person who is not a business partner, should not include initials or abbreviations, etc.
2. Completing paperwork
Apply for your chosen company name and business activity through the existing procedures. Copies of the stake holder’s passport will be required to be submitted. Some free zones ask to submit a Non-Objection Certificate (NOC) from your sponsor and a business plan.
3. Getting licensed and setting up a bank account
The UAE government will issue the license after the standard processing of your application. After getting licensed, there is a need to set up a bank account. Dubai has many national as well as international banks, which can be approached to open a corporate bank account.
4. Visa processing
The general steps in visa application are,
Entry permit – Allows foreigners to legally enter and stay in the UAE for a time period.Status adjustment – To extend or change the status of the visa.
Medical fitness test – Done from a government medical facility in the UAE as per guidelines.
Emirates ID registration – To include your details in the database of the UAE residents.
Visa stamping – Indicates the eligibility to enter the UAE.
Getting assistance from a business set up partner can make these processes clear and hassle-free. Business Time LLC, established in the year 1987 is a company that has registered several successful companies in the UAE. As Dubai is emerging as an international business centre, team Business Time is completely committed to helping our clients through business consultancy, setting up fully furnished offices, providing office space with every amenities and infrastructure, company formation, active local sponsorship, and PRO services.