Entrepreneurs from all around the world call Dubai home. Year after year, more foreign investors and businesses travel to the emirate to take advantage of its favorable economic climate.
Dubai now allows foreigners to own 100% of their assets in most situations, in addition to a 0% tax rate, a key worldwide location, and a straightforward incorporation procedure. A transformation that only took place in the last few years. Read more about 7 wonders city.
This, combined with the introduction of long-term visas, has established Dubai’s status as the ideal place for international businesspeople.
While it doesn’t have to be difficult, company registration in Dubai as a foreigner does necessitate some local expertise. Continue reading to learn how to start a business in Dubai as a foreigner.
Is it possible for a foreigner to start a business in Dubai?
Let’s begin with the fundamentals. Yes, and many do, a foreigner can start a business in Dubai. Over 80% of the local population is made up of expatriates, with many of them running their own enterprises.
Dubai is actively seeking foreign investors and entrepreneurs. Many company formation professionals and setup agents have set up shop in the emirate to assist international entrepreneurs with the licensing, visa, and business incorporation formalities.
How you will start a business as a foreign citizen?
As a new foreign entrepreneur in the UAE, your first priority should be to learn about local business conventions and practices. Many people will be unfamiliar with many aspects of the business creation process.Gaining an early awareness of these processes will make the process go more smoothly.
That’s why your first step should be to choose a business setup agent who can walk you through every step while providing advice and assistance.
One of Dubai’s business creation quirks, for example, is the company naming method. When naming your company in the UAE, keep the following in mind:
- It is forbidden to violate the country’s public morality or public order.
- The legal form of the corporation, for example, must be followed (LLC, FZE, etc.)
- It can’t have been registered before.
- Must be appropriate for the sort of activity and legal status.
- Should not include the names of any religions or governing authorities, as well as the names or logos of any foreign organizations.
If you want your name to appear in your company name, you must spell it out completely rather than just using your surname or initials.
Each phase, as well as matching your company with one of the 2,000+ approved business activities, can be assisted by your chosen setup agency.
Now that you’ve taken care of the preliminary paperwork, you may continue on to the licensing procedure.
Dubai’s several types of business licenses
In Dubai, there are numerous sorts of trade licenses, the most prevalent of which are commercial, industrial, and professional.
The types of enterprises that fall under each licensing category are self-explanatory, and your company activity will define which license category you fall under. In most circumstances, if you’re engaging in commercial activity – such as buying and selling products or services – you’ll require a commercial license.
You can submit your request after determining the type of license you need. While 100% foreign ownership of mainland enterprises is now authorized in many circumstances, it is normally wiser for foreign entrepreneurs to form a free zone business, where 100% ownership is guaranteed.
Companies in the free zone benefit from exemption from customs duties, the total absence of monetary restrictions, and the possibility to repatriate all capital and earnings, in addition to taking advantage of Dubai’s 0% tax regime.
Simply send some basic documentation and a few data about your firm to your company setup representative, and they will take care of the rest.
Required documents to start a business in Dubai
Companies based in free zones are subject to the rules of the free zones in which they operate. As a result, the documentation needed will vary depending on which free zone you apply to. The following items may be required documentation:
- The application form filled out completely
- a business strategy
- a copy of your current business license/registration certificate (if you are an existing company, applicable for a local company only)
- Color copies of the passports of the shareholders of the company and of the Manager/Director chosen by the new company
- Specimen signatures of the company’s shareholder(s) and the new company’s designated Manager/Director
- Two years’ worth of audited financial reports for the business entity or a certificate of reference from an individual shareholder’s personal bank NOC from the current sponsor (for individuals)
What are the costs of forming a corporation in Dubai?
The relatively inexpensive cost of conducting business is another factor for Dubai’s popularity among businesses all over the world.
While there are numerous elements to consider, a trade license should cost between AED 15,000 and AED 25,000.
However, this is only a rough estimate. The cost of forming a company in Dubai varies based on where you want to start, whether you want to rent space, how many employees you have, and other factors.
The costs of forming a company in the Dubai free zone, for example, are frequently significantly lower than those of forming a company on the mainland. Similarly, if you choose a coworking space rather a permanent office, your startup fees will almost certainly be lower.
The simple method for starting a business in Dubai
The company registration process in the United Arab Emirates has been built with ease in mind — and is open to anyone. However, it does necessitate a thorough understanding of the region’s myriad customs and norms.
That’s why it’s always a good idea to hire a business setup provider who can not only guide you through the process but also find the best license and setup type for your company based on your goals and budget.
When you hire a business setup service in Dubai, you can rest assured that your license and visa applications will be free of errors and omissions, which can cause delays and rejection.
All you need to give when working with a UAE company formation specialist is some basic documentation and some information about the nature of your firm. Then relax and let the professionals do the rest, including maintaining your license and visa applications, liaising with the appropriate departments and authorities, and reporting back when you’re ready to begin trading. That’s all there is to it.