How to Register a Company in UAE?

Dubai offers a highly profitable environment for businesses to grow and flourish. And as a budding entrepreneur or business owner, you might have considered investing in a new venture or expanding the established one in the ever-growing economy of Dubai. the world-class infrastructure, strategic location, brilliant tax setup, diversified market, low operational costs, and many other amenities make it a popular choice for international as well as local organizations. A smart decision nonetheless, people might have stressed over how to register a company in Dubai. Therefore, this guide will provide you with all the information you need for your company registration in Dubai and also suggest some of the best advisors offering cost-effective company setup services in UAE.

Benefits of registering a company in Dubai

Ease of doing business

Dubai offers a simple and straightforward incorporation procedure. And that is why it tends to stay in the top position on the ease of doing business. Once the owner submits all the documents well approved and attested, then it wouldn’t take long to officially set up the business. On the other hand, free zones in Dubai offer 100% foreign ownership, which again facilitates doing business freely and conveniently.

Low taxes

The UAE government has less or no interference in the private sector. Therefore, the companies are exempted from all kinds of taxes, including personal tax for the business owner. However, few companies might be required to pay 5% VAT for certain business activities. 

Additionally, Dubai also has a free-trade economy with liberal trade policies. Therefore, the trade taxes are also minimal or nil.

Accessible location

Dubai is positioned on the crossroads connecting north, south, east, and west, which makes it an advantageous location as well as a highly accessible site. Besides, having one of the most active and busiest logistical ports in the world, trade becomes more convenient.

Exceptional infrastructure

Dubai is indeed worldwide popular for its highly advanced infrastructure. It is listed at the top of most developed cities. In addition, the ever-evolving facilities such as public transportation, telecommunication, terminals, etc. allure entrepreneurs from all across the globe to establish their businesses in Dubai.

Business-friendly regulations

Apart from advanced technology, the business friendly environment and easy-going regulations are enough to compel any investor to invest in Dubai. In fact, the company registration process is also simple, involves less paperwork, and gives results within a few days.

Foreign ownership

The recent amendments in the Commercial Companies Law of UAE allow investors, including foreign ones, to have 100% ownership of their businesses in UAE. This amendment has thus brought positive impacts on the foreign investments and the UAE economy.

Availability of attractive free zones

Investors have the option to choose from Dubai Mainland or Dubai Free Zones to set up their companies. The Free zones in Dubai allow foreign investors to enjoy 100% ownership of the company. Moreover, they also have the freedom to repatriate the profits earned and the capital invested. Operating in a free zone also provides them an opportunity to work in partnership with other players in the same industry.

Other perks of company formation in Dubai and UAE:-

• Quicker incorporation process compared to other cities and emirates 
• Inexpensive human resources 
• Easy recruitment 
• Profit and capital repatriation 
• Easy transfer of funds 
• Exemption from customs charges 
• Varied lease options for office space 
• Availability of areas for production, warehouse facilities, etc. 
• A growth-centric international business core 
• Supreme global connectivity 
• No currency restrictions 
• Low shipping charges 
• Efficient single-window administration 
• Effective communication system 
• Liberal policies and legal system 
• Access to abundant and affordable energy resources

Also visit this page: Why Dubai's Real Estate Market Is Booming This Year?

Business structures available for company formation in Dubai

Investors and entrepreneurs going through the process of company registration in Dubai need to choose a preferred business structure. Dubai offers varied options of legal structures available for company formation –

Limited Liability Company(LLC)

An LLC requires a minimum of two to a maximum of fifty shareholders to form. As the name itself suggests, shareholders have limited liability towards the company in this structure. In short, their liability is up to their contribution to the share capital.   

To establish an LLC, the applicant must find a sponsor who could either be a UAE national agent or a UAE-owned company. and since the number of shareholders can be more, there is no minimum limit on the capital requirement. Besides, the company also does not have to pay any taxes unless it is involved in high economic activities such as oil, gas, etc.

Joint Stock Company

A firm with its capital divided into negotiable shares of equal value is known as a Joint Stock Company. This structure also allows shareholders to share liability up to the extent of their contribution in share capital.   

Basically, there are two types of Joint Stock Ventures – 

A Private Joint Stock Company requires a minimum of 3 founders and a share capital of AED 2,000,000, whereas a Public Joint Stock Firm requires a minimum of 10 founders and a share capital of AED 10,000,000.

Branch office

A branch office is a sub-division or extent of an established company. Any foreign company or a local company can set up a branch office in either of the prominent jurisdictions in Dubai. It is an ideal option for those who want to expand their business in the UAE local market.

Free Zone Company/Establishment

Free Zone Companies/Establishments are structures available for formation in Free trade zones. These are two separate entities that follow special laws related to taxation, ownership, customs, etc., unlike Mainland Dubai.   

A Free Zone Establishment(FZE) involves a single shareholder whereas a Free Zone Company(FZC) can have up to five shareholders. The legal requirements for the formation of these entities are framed by the free zone authorities.

Representative office

Similar to a branch, a representative office is also an extension of an established venture. However, it is established to perform activities limited to research, marketing, administration, etc. Additionally, the registration of a representative office requires the appointment of a UAE national agent or a wholly-owned company of UAE nationals. In addition, there are several other limitations to establishing this particular structure. For example, the owner of the parent company must deposit a non-refundable amount of AED 50,000 for setting up a representative office, which they cannot use as working capital. Also, they are not allowed to buy any property in the UAE under its name.

Offshore company

An offshore company is a structure usually formed and operated outside the registered jurisdiction. The owner of the offshore business can register their company in Dubai but set up their base in some other country.

How to register a company in Dubai - Procedure

Wondering how to register a company in Dubai? Just follow the below steps –

• Select a business activity 
• Pick a location 
• Choose a corporate structure 
• Select a company name 
• Get the initial approval for company incorporation 
• Apply for the license, submit the documents and get the license

Dubai company setup packages

The Dubai company setup packages include the following services –

• Market information and research on products 
• Employment visas and required office spaces 
• Finance 
• Investment and capital 
• Competitors and suppliers in the market 
• Factors favoring business success

Still in doubt about how to register a company in Dubai? Speak to the legal corporate advisors at Shuraa for free and get answers to all your queries. Contact +97144081900 or [email protected].