Business setup in Dubai
Business Setup in Dubai :
The UAE is known world wide as not just a tax free haven but also for the ease of doing business. The process of establishing a company in the UAE involves only a few simple steps, in all seven emirates.
The time taken to set up a business in the UAE can vary from 15 minutes (yeah, we are not joking or exaggerating!) to 4 working days depending on various factors like the nature of the business, location where you plan to set up like Freezone or Mainland etc.
1. Choosing a business activity:
The first step for Business Setup in Dubai is to identify the nature of the business. The 6 main types of economic licenses in the UAE are Occupational, Tourism, industrial, Commercial, Agricultural, Industrial and Professional. Economic licenses can include several economic activities. The nature of the company’s activity determines the type of license that will be issued. There are more than 2,000 economic activities in the UAE.
2. Selecting a business structure:
The Business structure you select for yourself has a huge bearing on the way it shall be run in the UAE. If you choose a mainland company, you can operate anywhere in the UAE and bid for government contracts. You’ll need a local sponsor or partner with at least 51% ownership unless you’re in a free zone. If you choose a freezone company, there are benefits like 100% foreign ownership, tax exemptions, and full repatriation of profits. However, there are restrictions on trading directly with the UAE market without a local distributor. Then there are also Offshore companies – they provide privacy and tax benefits, but you cannot conduct business directly in the UAE. They are suitable for asset protection and international trade.
3. Business Licensing and Registration:
Choose a name that adheres to UAE regulations and register it with the Department of Economic Development (DED) or the relevant authority in a free zone. You will also need to pay fees and submit the required documentation for a commercial, industrial, or professional license. Legal documentation and compliance procedures typically involve a business plan, passport copies of shareholders, a no-objection certificate from your sponsor (if applicable), and proof of residence and a Memorandum of Association (MOA).
4. Office Space, Bank Accounts:
Next comes leasing or buying an an office space as per your requirements, opening bank accounts, hiring employees etc. You will also need to apply for work permits and visas for your employees. The UAE has specific requirements for expatriate workers, including health insurance.
5. Ongoing requirements and Compliances:
If all goes well and you start flourishing and your business turnover exceeds a certain threshold, you’ll need to register for Value Added Tax (VAT). There are also other things like Business licenses typically that need to be renewed annually. Mainland companies often also require an annual audit to comply with regulations.
All in all, sounds extremely overwhelming right?? Worry not, the experts at 6TH Move can make it a breeze for you. No matter what the nature of your business, we can make it easy for you with our professional, tailor-made services coupled with our ground level expertise and efficiency, whether it is the initial setting up of the business or ongoing processes like Visa/Immigration for your employees, we can take that burden off you, allowing you to focus your energies on growing the business. Get in touch with us today and lets together make your business soar new heights!