UAE is known as the hub for innovation and business. The journey to company registration is exciting if you are an ambitious businessman. However, it also has some technicalities. Specifically for Asians, they offer a wealth of chances to grow and establish their business.
Around 30% of UAE startups have Asian roots, and there are more than 90,000 Asian companies registered with the Dubai Chamber of Commerce alone. This statistic shows the success and strong presence of Asian businesses in the emirate.
The company registration in UAE is efficient and smooth, which lets you boost your business and keep it running smoothly. Business people can decide on different types of licenses that depend on the nature of their company, whether it be a professional, commercial, or industrial license. The costs required to register a company are also very competitive, with options accessible to suit various budgets.
If you’re also thinking of establishing your business presence in UAE, then relax because we got you covered. In this blog, we will explain every detail you need to know about company registration. Also, the business setup procedure, costs involved, license requirements, advantages, and much more.
Types Of Company Registration In UAE
UAE provides different company registration options, and each of these options comes with its limitations and advantages. An ideal choice relies on your business requirements and goals. Before we jump to the types of company registration, it is important to know that company profile plays an important role in the success of your business. For this reason, you must hire any company profile maker in UAE to get a professional profile for your brand.
Mainland Company
This is also known as an onshore company. It is registered with the Department of Economic Development (DED) of the respective emirate in which it works. It lets a company operate business anywhere within the region of UAE and beyond.
Free Zone Company
This company is established within one of the several free trade zones in the UAE. These zones give advantages to foreign investors and special incentives, incorporating tax exemptions, 100% foreign ownership, and efficient business setup procedures.
A few of the famous Dubai Free Zone options are the:
- International Free Zone Authority (IFZA)
- Jebel Ali Free zone (JAFZA)
- Dubai Multi Commodities Centre (DMCC), etc.
3. Offshore Company
It is a legal entity. The company is registered in a jurisdiction outside the country. A place where its utmost beneficiaries reside. In the UAE, offshore companies are set in designated free zones, also known as offshore jurisdictions.
How To Pick The Right Company Structure?
Consider the following factors when picking the right company structure whenever you start a business in Dubai or anywhere in the UAE:
- Target Market
Do you desire to essentially serve the UAE market or work internationally?
- Business Activity
Does your desired Free Zone serve your industry?
- Ownership Preferences
Do you need complete ownership control?
- Tax Efficiency
Are tax advantages a vital priority?
We would suggest getting a consultation from a well-known Business Setup Consultant in UAE which will assist you pick the right structure according to your business needs.
Steps To Register A Company In UAE
Step 1: Identify Your Business Activity
Recognize the particular business activities you decide to undertake in the UAE. This will assist you to know the type of business license you require.
Step 2: Choose Your Business Structure
Choose between a Free Zone Company, Mainland Company, or Offshore Company according to your target market, business activities, and ownership preferences.
Step 3: Choose A Company Name
Select a distinctive and appropriate name for your company that fits the naming guidelines set by the Department of Economic Development (DED) in UAE. Make sure that any other registered company does not already take the chosen name and does not disobey any copyrights or trademarks.
Step 4: Prepare Essential Documents
Prepare the essential documents, which include a business plan, passport, Ejari registration, MOM, etc. Get expert help to know the complete requirements.
Step 5: Company Registration
Finally, submit an application for UAE company registration to the relevant authority according to the decided business location (free zone, mainland, or offshore) or the Department of Economic Development (DED). You can also Pay the registration fees and get the important approvals from the authorities.
Step 6: Get A Trade License
Once you get the approval, apply for a trade license from the relevant free zone authority. Define the type of license according to your business activities (professional, commercial, industrial, etc.).
Step 7: Corporate Bank Account
Open a corporate bank account in the UAE with an international or local bank. Give the required documents, incorporating trade license, company registration certificate, proof of address, and passport copies of shareholders.
Step 8: Rent Office Space
If you have opted for Mainland companies, then a physical office space in the UAE is typically required.
Step 9: Permits And Employment Visas
Apply for permits and employment visas for foreign employees, if needed. Follow the immigration process and give all the necessary documents, including passport copies, employment contracts, and other medical fitness certificates.
Once all formalities are done and licenses are obtained, start your business operations. Also, if your business’s annual turnover exceeds the required threshold, then register for VAT with the Federal Tax Authority (FTA).
Furthermore, to portray a strong brand image, you need a professional profile. Look for agencies for company profile designing Get a reliable service provider and design a professional profile for your brand.
Frequently Asked Questions
What is the total cost of registering a company in the UAE?
The business registration cost in the UAE can be between 20,000 and 24,000 AED. Also, the business registration cost in the free zones firms starts from 15,000 AED.
Is it difficult to register a company in the UAE?
Business registration in the UAE is not hard. Government authorities offer detailed guidance on how to register a company in the UAE.
Is it possible for a non-resident to start a business in the UAE?
Of course, non-residents can start their own businesses. Foreign entrepreneurs are allowed to retain complete ownership of their businesses. Also, enjoying benefits such as the absence of personal income tax and corporate taxes.
The Conclusive Statement
Company registration in the UAE can be a difficult and time-consuming procedure. However, with the guidance and the right information, you can go through the procedure smoothly and create a successful business in this flourishing part of the world.
By learning about different types of companies, the steps necessary for company registration, and the important documents, you can ensure an efficient and hassle-free registration procedure. So, if you are thinking of starting a business in the UAE, now is the right time to take the first step towards your business journey.