Considered one of the most dynamic business markets in the world, Dubai attracts entrepreneurs from all countries. If you are a foreign investor and are considering your next investment destination, you should choose Dubai for several reasons, and one of the strongest is the simplified business registration process available for several years now.
What exactly does it entail to register a company in the Emirate? The procedure does not stray too much from those in other countries and is presented below.
Choose your business form
The registration procedure for any business usually starts with choosing a suitable legal form. For a foreigner, the private limited liability offers most of the advantages, as it can be used both in Mainland Dubai and its free zones.
If you want to use another business form to establish your company in Dubai, the skilled team at BridgeWest Dubai is ready to offer alternatives and support with registration.
Document drafting and filing for initial approval
No matter the entity you chose, the next stage implies reserving, drafting, and filing the following documents:
- the trading name reservation form;
- the Articles of Association;
- your personal details in the form of a passport (you may also need an entry visa, depending on the country you come from, so pay attention to this detail);
- proof of payment of the registration fee;
- the service contract license (if it is necessary, based on the activities of your business).
Based on them, you will obtain an Initial Approval from the Department of Economic Development.
Licensing
The documents presented above will also serve to obtain the business license for your company, which is mandatory. There are three types of permits you can apply for:
- trading;
- industrial;
- professional.
When filing for the license, you will be presented with the main activities each of them is suited for, so you can make the right choice.
Registration
In the following registration phase, you will need to prepare additional documents, among which are proof of a local address and details of the director. The person appointed does not need to be an Emirati citizen or resident; however, for simpler compliance purposes, you can use specialized service providers.
If you came to Dubai based on an employment visa, you will also need a No Objection Certificate to register a company, so you should also take that into consideration.
Bank account opening
A Dubai company needs a local bank account for the deposit of the share capital and for daily transactions. You can choose between Emirati banks or you can opt for a branch of a foreign bank, depending on the services you need.
Tax enrolment
In 2023, the UAE enabled the corporate tax for companies making profits above AED 375,000, which is a little over USD 100,000. This means that you also need to register with the Federal Tax Authority, which will issue a 15-digit Tax Registration Number.
Dubai Mainland or Free Zone?
This is a question that makes investors, especially foreign ones, wonder where to register their companies. The good news is that just as in free zones, Dubai Mainland now allows for full foreign ownership for most operations, so you will no longer need a local sponsor to start your business. Also, this way, your company can trade not only in Dubai, but in all other Emirates and internationally, which is not the case with a free zone enterprise.
When should you choose a free zone? If you want to operate locally and focus on a specific activity only.
These are the main aspects to consider if you are a foreigner and want to set up a company in Dubai. The simplified regulations also make it easier now to register a business; however, when it comes to the little things, there are specialized providers that help you get them going.