The UAE is the prime spot for new businesses in the Middle East. The UAE provides various opportunities for the growth of new businesses. On top of that, the country still has a lot of untapped markets with relatively low competition and a low barrier of entry. These two factors together make a new company setup in Dubai very attractive to entrepreneurs and investors from around the world.
There are three economic jurisdictions in the UAE. They are the mainland, free zones, and offshore companies. There are common benefits to be found in each of these economic zones. However, they also have specific benefits that are limited to that particular economic zone. There are many benefits of mainland business setup Dubai. While the registration process for free zones is relatively easier than the mainland. And existing businesses elsewhere in the world will benefit from the offshore company jurisdiction.
Benefits of Mainland Business Setup Dubai
Here are the specific benefits of setting up a mainland company in the UAE:
- More flexibility in terms of allowed business activities that you can perform.
- No restriction when it comes to office location in mainland Dubai.
- No limit to the number of visas, the bigger your office, the greater number of visas you can apply for.
- No restriction on the location where you can conduct your business activities, so you can take lucrative government and private contracts and customers.
- Minimal nationality and ownership restrictions compared to other economic jurisdictions.
Benefits of Free Zone Business Setup UAE
Different free zones provide different benefits that cater to the needs of specific businesses. For example, Dubai Healthcare City provides benefits specific to entities in the healthcare sector. However, there are some common benefits in all of the free zone in the UAE.
Here are the common benefits you can expect from all of the free zones you come across in the UAE:
- 100% ownership of businesses even for foreigners.
- 100% exemption from export and import duties.
- 100% exemption from tax on personal and corporate incomes.
- 100% repatriation of profits and financial assets.
- No currency regulations are imposed by the government.
Benefits of Offshore Company UAE
Here are the benefits of setting up an offshore company in the UAE:
- 100% exemption from corporate taxes.
- 100% of ownership for foreigners.
- Easy and quick company incorporation process.
- Protection from lawsuits for foreigners.
- Protection of assets from creditors.
- Complete privacy for offshore company owners.
The procedure of Business Setup in the UAE
Different economic zones have different company incorporation procedures. Here are some of the common steps that you can expect to complete when starting a new company in the UAE:
- Business activities selection
You need to clearly outline the business activities you mean to perform when registering for your trade license. The first step is to check whether the business activities you mean to perform are legal or not in the UAE.
- Economic zone selection
You need to select an economic zone where you want to incorporate your business. Ensure that the economic zone select is the best choice for your specific type of business. If you choose to set up your business in a free zone, then select the free zone that provides the best benefits for your specific type of business.
- Legal structure selection
You need to select the legal form of your business. This will depend on factors like the number of owners of your company, the starting capital of your company, the location of your company, etc. Different economic zones offer different options for the legal structure of your business.
- Trade license selection
You need to select the trade license that allows the business activities you mean to perform there. The type of business trade license you need to apply for will depend on the economic zone where you are setting up your business. Some of the common trade licenses in the UAE are the commercial trade license, professional trade license, industrial trade license, and tourism trade license.
- Trade name registration
You need to register a trading name for your business. As long as the name you are aiming for is not already trademarked by another business in the UAE, you can go for it. However, other businesses outside the UAE may use that name.
- Office space rent
You need to provide the tenancy contract to complete the registration process. To acquire the tenancy contract, you need to rent an office space. There are several types of office spaces in the UAE. In some economic zones, you do not need a traditional office space to complete this step. You can rent a virtual office and still register your company.
- Required documents submission
You need to submit the required documents to complete the registration process. The documents you will be required to produce will differ from one economic zone to another. However, there are a few common documents that you can expect to provide wherever you set up your business.
- Receiving trade license
After you have completed all the previous steps and paid the required fees for the company registration, the authorities will take a few business days to review your application. If everything is ok, they will provide the trade license you to and you can start performing your business activities.
Requirements of Business Setup in the UAE
Different economic zones have different requirements for new business setups. Here are some of the common documents you will be expected to provide when starting a new business in the UAE:
- Photocopy of your passport, as well as the passports of the other owners, should you choose to have any.
- Photocopy of the visa, as well as the visas of the other owners, should you choose to have any.
- Photocopy of the NOC (no objection certificate).
- Required approval certificates from respective authorities.
- Filled up trade license application form.
- Trade name reservation certificate.
- Certified/attested copy of the tenancy contract.
Depending on where you are starting your business, some of these documents may not be required or some more documents other than these may be required.
Company Setup Dubai consultants are experts when it comes to incorporating new businesses in any of the economic zones in the UAE. Contact us today and hit the ground running.