Are you looking to set up a business in Dubai? If so, you need to understand the requirements for company formation in the city. From documents to directors, there are several steps you must take to ensure your business is legally registered. The first step is to gather the necessary documents. These include an application form for the business plan, a Memorandum of Association (MOA) and Articles of Association (AOA) that have been notarized by the authority, a copy of the sponsor's passport to prove they are a citizen of the United Arab Emirates, a No Objection Certificate (NOC) from the sponsor, and a letter of bank reference for each shareholder.
Joint Stock Companiesmust have a minimum of two to fifteen directors elected for three years.
Most of the board members, including the president, must be citizens of the United Arab Emirates. A public limited company must have a minimum share capital of AED 10,000,000 and require at least ten founders for its incorporation. On the other hand, a private limited company requires a minimum share capital of AED 2,000,000 and three founders for its incorporation. When deciding on the type of legal entity your company should adopt, you must choose a business name. Currently, foreign entrepreneurs can have 100% ownership of local companies in Dubai, excluding companies established for economic activities with a strategic impact on seven sectors.
It's also possible to set up a branch if you want to expand into local markets in the United Arab Emirates. If you understand the dos and don'ts of registering a company in Dubai, you can benefit from setting up low-cost companies in Dubai. These companies are allowed to perform limited functions such as collecting information for projects completed by the company and acting as Dubai's administrative and marketing center.
No Local Sponsor Required. Contrary to popular belief, you don't need a local sponsor for company registration in Dubai. Free Zone companies are located in special zones with laws related to customs, taxes, property, etc. Finally, if your legal form is a civil company, limited liability company, public limited company or private limited company then you will need an MOA. Company formation in Dubai is an exciting opportunity for entrepreneurs looking to expand their business into new markets.
However, it's important to understand all the requirements and regulations before starting your venture. By gathering all the necessary documents and understanding the different types of legal entities available in Dubai, you can ensure your business is legally registered and ready to start trading.