Starting a business in a foreign country can be a daunting task, but with the right guidance and resources, it can be done. The process for forming companies in Dubai is similar to the procedures in most European countries. Our company formation agents in Dubai can provide more details on the main steps if you want to open a company in Dubai. There are various options for the type of business you can set up in the United Arab Emirates, on land or offshore, but free zones are particularly popular with foreign entrepreneurs due to their many incentives.
Free zones offer 0% corporate and personal taxes, 100% company ownership, 100% return of capital and profits, the absence of monetary restrictions, and 100% exemption from import and export taxes. The Dubai Chamber of Digital Economy has published a report on the strategy that leads to the objectives of the Dubai Economic Agenda (D3). Currently, a foreign entrepreneur can have 100% ownership of a local company in Dubai, excluding companies established for economic activities with a strategic impact on seven sectors. It is important to note that specific activities must be carried out in each of the free zones.
They can also provide detailed information on the rights and obligations of shareholders of Dubai companies. When it comes to setting up a company in Dubai's free zones, there is no minimum share capital for civil companies in Dubai, but the amount must appear in the statutes of the IT company. With experienced support, the process can be completed in just over a week. It is allowed to perform limited functions, such as collecting information for projects completed by the company and acting as Dubai's administrative and marketing center.
The next step is to prepare the documents for forming the company in the United Arab Emirates and initiate the incorporation procedure. If you're considering joining them, setting up a company in Dubai is relatively simple and quick with strong incentives, especially in the form of free zones in the United Arab Emirates. The process of setting up a business in Dubai is straightforward and efficient when you have all the necessary information and resources at your disposal. To begin with, you need to decide on which type of business entity you want to establish.
Depending on your business goals and objectives, you may choose from several options such as sole proprietorship, limited liability company (LLC), branch office or representative office. Once you have decided on your business entity type, you need to select an appropriate name for your company. This name should be unique and should not conflict with any existing trademarks or registered names. You will also need to obtain approval from relevant authorities before registering your business name.
The next step is to obtain all necessary licenses and permits from relevant government departments such as Department of Economic Development (DED), Department of Tourism & Commerce Marketing (DTCM) or Department of Naturalization & Residency (DNR). Depending on your business activity, you may need additional licenses from other government departments such as Ministry of Health or Ministry of Labour. After obtaining all necessary licenses and permits, you will need to open a corporate bank account for your business. This will enable you to receive payments from customers and make payments to suppliers or other third parties.
You will also need to register with relevant authorities for Value Added Tax (VAT) if applicable. Finally, you will need to register your employees with relevant authorities such as General Pension & Social Security Authority (GPSSA) or General Directorate of Residency & Foreigners Affairs (GDRFA). This will ensure that your employees are covered by social security benefits such as health insurance or pension plans.