Starting a business in Dubai
STARTING A BUSINESS IN DUBAI
There are many different business opportunities and methods that you can implement to start a business in the UAE. They currently offer 20 free trade zones, each containing different packages and licensing as well as the opportunity to incorporate international or offshore companies.
We will be able to assist you in choosing the best option and package for you company and eliminate the overwhelming feeling you might feel as a foreign investor. In one simple phone call, you will be able to speak to one of our professional company formation agents and they will provide you with all the information you would need.
There are 3 different types of companies that you can start in the UAE. You will find basic information about them below.
Offshore company Dubai
If you do not intend to offer any types of local services, then an offshore company is a better solution. We see the Ras Al Khaimah (RAK) trade zone as an option worth discussing for this venture. This is often the simplest and easiest method when comparing it to other business types and it is also very flexible. To find out if it will be suitable for your business, contact us.
The benefits of an offshore company in the RAK zone are great. It requires no capital deposits, there is no need for the investor to come to Dubai to incorporate the company, companies are tax free, notarized signatures and account filing is not required and corporate changes can be completed at a very low fee. However, the limitations include no visa application, no local activities, and no applicable tax treaties are allowed.
Dubai Freezone company
The Dubai freezone company offers you the best of offshore and LLC companies without any of the restrictions of the two. A free zone company will allow you to obtain a visa to stay in the UAE and there are no requirements for shareholders to be local citizens. It operates under the same 20 free zones as mentioned earlier, but the one we recommend is the Fujairah free zone.
The Fujairah free zone is incredibly flexible and affordable to operate under. It allows you to set up as a legal entity after which you can choose to upgrade to a fully functional office of your choice. It requires no capital deposit, no visitations from the shareholder to visit Dubai to set it up, and the process can be completed in just 10 days. freelancers. Known as the Creative City, it is home to many media, consulting, and design companies. It is situated near the Indian Ocean which makes for a location for import-export companies.
Other free zones that you can choose to operate under are the following:
- Ajman Free zone and offshore – Ajman is a fairly new trade zone and it does not have the recognition that RAK has. However, the benefits are similar and the license fees are amongst the cheapest in the UAE.
- DMCC – the Dubai Multi Commodities Centre) is also known as the Jumeirah Lakes Towers Free zone and is located in one of the most prestigious areas in Dubai. It is the largest free zone in the UAE and it has fewer nationality restrictions due to its international hub.
Local LLC Dubai
A local limited liability company (LLC) is the perfect choice if you would like to branch out to Dubai and start a company that offers products to its citizens. This type of business requires at least 2 shareholders who will have limited liability when it comes to their shares. One of the shareholders must be a local citizen and has to have 51% of the stake in the company. Profit and loss can be recalculated different to the above-mentioned ratio. You can even choose to keep 100% of the profits and we will arrange a Dubaian citizen to act as partner.
The setup of a local LLC may take up to 15 days and the required fees will depend on the type of company that you choose to start and the package that you opt for. The average fee, however, is usually about 20,000 USD.
Everything you need to know to start a business in Dubai
Everything you need to know to start a business in Dubai
Dubai is a popular place in the Middle East that attracts many people, especially business people and those who are wealthy from all over the world. One of the reasons Dubai is popular is that it’s famous for its free trade zones which enables foreigners to own their own company in the free zone for the full 100% and do not require a local Emirati partner. There are approximately 30 free zones that are available in Dubai, one of them being in Dubai Multi Commodities Center (DMCC) which is currently the largest and fastest growing free zone.
The Dubai Multi Commodities Center (DMCC) is located in the center of New Dubai which is near to the international airport and is the biggest airport currently in Dubai. The center attracts many people every year and continues to invite international business to their center.
Features of the Free Zone Dubai
There are no taxes applied to businesses through the tax system in Dubai. This includes personal income tax which is 0%, corporate income tax 0%, Withholding tax 0% and no currency restrictions with 100% full capital repatriation.
The other features of the free zone are that 100% foreign business ownership is possible. A free zone company can have one or more shareholders.
In order to do business in the DMCC free zone the companies need to have their office completely in the center with all of their assets. Renting an office would have to be done and working from home is not really possible without having an office based in the center. At least a flex desk is required and reduces rent expense more than other products. An official company license is only issues after the authorities inspect the premises in the free zone.
When you set up a business in Dubai in the free zone it is equal to obtaining UAE residence and the DMCC is considered to be an ideal location to obtain the UAE residence as a shareholder of a DMCC company . UAE residence is only issued after the application process is complete and is valid for a period of three years. When becoming a UAE resident, you’re not allowed to move outside to another area for more than 6 months and have to remain within the UAE at least twice a year, if not the application process will be restarted.
Doing business through the usage of Dubai offshore companies free zone companies is the best and most populist solution. There are differences between the Ajman free trading zone companies and the Ajman international companies.