Business Setup in Dubai & UAE Company Formation Experts.

Starting a business in Dubai can be a lucrative opportunity given its business-friendly environment. Here are the key steps to get you started:

• Choose a Business Activity: Determine the type of business activity or industry your company will engage in, as this will influence the type of license you need.
• Select a Legal Form: Decide on the legal form of your business, whether it’s a sole proprietorship, a partnership, or a corporation, among others.
• Choose a Trade Name: Your trade name should be unique and indicative of your business activity.
• Apply for a Business License: Depending on your business activity, apply for the appropriate license—commercial, professional, or industrial.
• Find a Local Sponsor: For certain types of businesses and legal forms, you may need a local sponsor who is a UAE national.
• Choose a Location: Select a suitable location for your business, keeping in mind the accessibility and the type of business zone that aligns with your activity.
• Get Pre-Approvals, Register Your Business, and Get Your License: Complete any pre-approval procedures, register your business with the Dubai Economic Department, and then obtain your trade license.

Dubai is renowned for its strategic location, serving as a business gateway between the East and West. Here are some bullet points outlining the benefits:

• Tax Advantages: Dubai’s tax-free environment, with no personal or corporate income taxes, provides a highly lucrative framework for businesses.
• World-Class Infrastructure: The Emirate boasts advanced logistics, including state-of-the-art ports and airports, facilitating easy movement of goods and people.
• Ease of Doing Business: With its transparent and flexible legal framework, Dubai ensures a simplified setup process for businesses and investors.
• Access to Talent: The city’s cosmopolitan makeup ensures access to a skilled, multilingual workforce from all over the world.
• Economic Diversification: Operating in a rapidly diversifying economy reduces reliance on any one sector and offers stability even during global economic fluctuations.
• Investor-Friendly Climate: The government offers a range of incentives such as long-term visas, 100% foreign ownership in mainland companies and free zones, which are all designed to attract investors.

These factors, combined with Dubai’s vibrant lifestyle and safety, make it a premier destination for entrepreneurs and established businesses looking to expand.

Yes, foreigners can have complete foreign ownership in many business setups in Dubai, thanks to the UAE’s recent amendment in its Commercial Companies Law that allows 100% foreign ownership of onshore companies. This is a significant shift from the earlier requirement that mandated a UAE national or a company entirely owned by UAE nationals to be a 51% shareholder in the company. Here are key points to consider:

• Location Flexibility: Foreign investors can own their businesses anywhere in Dubai, not just in free zones.
• Business Activities: Complete foreign ownership is allowed across various sectors and industries with some exceptions in areas of strategic importance.
• Legal Structures: Various legal entities are available, including Limited Liability Company (LLC), Sole Proprietorships, and Shareholding companies.
• No Sponsor Requirement: With 100% ownership, foreign investors no longer need a UAE national as a sponsor.
• Ease of Business Setup: Streamlined processes and supportive government policies have simplified the business setup for foreign owners.

Investors are advised to consult with a local business setup consultancy to navigate the legal requirements and maximize the benefits of their investment.

At Pro24, we understand that establishing a new business can be an overwhelming process, especially in a bustling economic hub like Dubai. That’s why we offer comprehensive company formation and business setup services tailored to individual needs of business owners abiding local regulations and commercial laws. Our team of specialists is committed to providing a smooth, hassle-free experience, ensuring you can focus on what matters most – growing your business.

From handling legal paperwork to offering insightful consultations on the ideal business structure, Pro24 is your dedicated partner in turning your entrepreneurial vision into a successful reality.

Choosing the right legal structure is crucial for any business, as it can impact taxation, liability, and operational flexibility to conduct business. Our team will guide you through the various business and company setup services and options available in Dubai, including mainland companies, free zone entities, and offshore companies. We will also assist with obtaining the necessary business licenses, such as professional, commercial, and industrial business licenses, based on your company’s activities.

In general, there are no specific share capital requirements for business setups in Dubai. The amount of share capital needed would depend on the type of business being setup in dubai

For example, the business idea for a civil company is to set up a limited liability company (LLC) in Dubai, the minimum required share capital is AED 100,000. This can be paid in full or divided into shares with a minimum value of AED 1 each.

On the other hand, for a free zone company in Dubai, the required share capital may vary depending on the specific free zone setup market research or zone authority. Some uae free zones may have no minimum requirement while others may have a set amount that needs to be paid upon a public joint stock company formation or registration such as a new or company registration or on an offshore company formation or registration of mainland company only.

• Strategic Geographical Location: Dubai’s position as a gateway between the East and West gives businesses access to a variety of markets, including Africa, Asia, and Europe.

• Robust Infrastructure: The city boasts state-of-the-art facilities, extensive road networks, world-class airports, and advanced telecommunication systems conducive to business operations.

• No Income Tax: Dubai offers the benefit of zero personal and corporate income taxes, which is highly attractive for entrepreneurs and investors.

• Free Zones: Multiple free zones in Dubai provide a tax-free environment, full foreign ownership, and no restrictions on repatriating profits.

• Government Support: The government of Dubai is proactive in fostering a business-friendly environment with initiatives to streamline business process and operations.

• Global Events and Expositions: Hosting events like Expo 2020 elevates Dubai’s profile as a hub for innovation and business networking.

• Diverse Workforce: The city’s expatriate-friendly policies have created a diverse pool of talents, offering businesses a wide range of skilled professionals.

• Growing Economy: A continuously expanding economy, driven by sectors like tourism, trade, Ecommerce & Artifical Intelligence.

• Business Plan: A comprehensive plan detailing the business objectives, strategies, market analysis, and financial forecasts.

• Passport Copies: Clear scanned copies of the passports of the business owner(s) and all the stakeholders.

• Visa: Copies of the UAE residence visa and Emirates ID if available for non-GCC nationals.

• NOC: A No Objection Certificate from the current sponsor if the business owner is a UAE resident.

• Trade Name Reservation: Proof of trade name reservation with the Dubai Department of Economic Development.

• Initial Approval Certificate: From concerned Economic Department to show approval of the business activity and trade name.

• Memorandum of Association (MOA): Legal document between shareholders, or a Local Service Agent (LSA) agreement for foreign owners.

• Office/Site Tenancy Contract: Copy of signed tenancy agreement or Ejari registration certificate showing the location of the business.

• Licensing Approvals: Specific approvals from relevant authorities depending on the type of business (e.g., Dubai Health Authority for medical services).

• Bank Reference Letter: For foreign investors, some banks might request a letter from the investor’s bank to prove credit worthiness.

There are several legal structures available for doing business licenses to setup services in Dubai, each with its own benefits and limitations. Some of the most common options include:

• Limited Liability Company (LLC): This is one of the most popular forms of business structure in Dubai as it allows for 100% foreign ownership and has no minimum capital requirement. LLCs also offer limited liability protection to shareholders, meaning their personal assets are not at risk in case the business faces financial difficulties.

• Sole Proprietorship: This is a simple and cost-effective option for those looking to start a small business. However, it does not offer limited liability protection as the owner and the business are considered one entity.

• Joint Stock Company (JSC): JSCs can be public or private and require a minimum of 10 shareholders. It is often used for large businesses that plan to go public in the future.

• Branch Office: A branch office is a representative office of a foreign company and does not have its own legal identity. It is required to have a local sponsor who holds at least 51% ownership, but the foreign company retains full control over the branch.

• Free Zone Company: Businesses operating in designated free zones in Dubai can enjoy 100% foreign ownership, tax exemptions, and other incentives. However, they are limited to conducting business only within the specific free zone.

The mainland business setup journey has its own advantages and disadvantages, so it’s important to carefully consider your new company: consultants own business goals and needs before deciding which one is right

Dubai’s dynamic business environment has seen significant changes in regulatory requirements, allowing for more business setup, more office space and greater flexibility for entrepreneurs and investors to dream business here. Here are some considerations regarding business setup and the necessity of a physical office space, when starting a business in Dubai:

• Flexibility for Startups: New regulations allow certain types of businesses to operate without a physical office. Startups, in particular, can benefit from this flexibility.

• Virtual Office Options: Dubai offers virtual office solutions that provide businesses with a prestigious address and communication services without the need for a physical space.

• Free Zone Alternatives: Many free zones in Dubai do not require a physical office for setting up a business, offering desk space or shared facilities instead.

• Legal Requirements: While some businesses can operate without a physical space, others may be subject to industry-specific regulations that mandate a physical presence.

• Business Image: A physical office can enhance the credibility and professional image of a business, important for client trust and business growth.

There are several differences between setting up a mainland business license and a free zone business license in Dubai. Some of the key differences include:

• Legal structure: Mainland businesses operate under the jurisdiction of the UAE government, while free zone businesses have their own separate legal framework.

• Ownership restrictions: Mainland businesses require a local sponsor or partner who holds at least 51% ownership, while free zone businesses allow for 100% foreign ownership.

• Location and operations: Mainland businesses can operate anywhere in Dubai, while free zone businesses are limited to operating within their designated free zone area.

• Trade restrictions: Mainland businesses have no trade restrictions and can freely conduct business with any other company in the UAE, while free zone businesses may face certain limitations on trading within the UAE.

• Tax incentives: Mainland businesses are subject to corporate tax, while free zone businesses enjoy tax exemptions for a certain period of time.

• Import and export regulations: Mainland businesses must adhere to UAE import and export regulations, while free zone companies have their own specific regulations in place.

• Licensing and registration: Mainland businesses must obtain a commercial or industrial license from the Department of Economic Development, while free zone companies need to register with the relevant free zone authority.

• Cost and fees: Setting up a mainland business typically involves higher costs and fees compared to establishing a free zone company.

• Employment regulations: Mainland businesses must adhere to UAE labor laws.

Some of the best locations for a business setup in Dubai are:

• Dubai International Financial Centre (DIFC): This area is known as the financial hub of Dubai and offers a wide range of support services for businesses, including networking opportunities, visa processing, and access to government services.

• Dubai Media City: As one of the largest media hubs in the region, this location is ideal for businesses in the media, marketing, and advertising industries.

• Dubai Silicon Oasis: This free trade zone is specifically designed for technology-based businesses and offers a supportive ecosystem for startups.

• Jumeirah Lakes Towers (JLT): With its strategic location and affordable office spaces, JLT is a popular choice for small and medium-sized businesses.

• Business Bay: This commercial and residential area is located in the heart of Dubai and offers a modern and cosmopolitan environment for businesses.

• Dubai South: With its proximity to the Expo 2020 site, this upcoming business district has great potential for growth and development.

• Jebel Ali Free Zone (JAFZA): As one of the oldest free trade zones in Dubai, JAFZA offers a well-established infrastructure and a wide range of business activities.

• Dubai Healthcare City: This specialized zone is perfect for businesses in the healthcare, wellness, and pharmaceutical industries.

• Dubai Internet City: Another technology-focused free trade zone that provides a supportive environment for IT and tech-related businesses.

• Dubai Knowledge Park: This area is dedicated to education, training, and human

There are a few factors to consider when determining the cost of setting up a company in Dubai. These include the type of company, the location, legal and regulatory requirements and any additional professional services’ that may be required.

One of the main costs associated with setting up a new company here in Dubai is the trade and business license. This is obtained from the Department of Economic Development (DED) and its cost can vary depending on the type of company and its activities. For example, a trading business license and trade license, for a trading firm business may cost around AED 15,000(Only license). It involves other cost such as investor visa, ejari, other administrative charges. You need to contact business setup consultants in Dubai for more accurate information.

Visa processing times and associated fees for obtaining a Dubai employee visa for foreign companies can vary based on several factors, including the type of business journey, of company registration and visa, the nationality of the company formation a residence visa applicant, and the current workload of the visa processing center. Typically, one might expect:

• Processing Times:

• Normal processing: Approximately 5-7 business days.

• Express processing: 1-3 business days, subject to additional fees.

• Associated Fees:

• Entry Permit Fee: Roughly AED 200 – AED 500 (price varies depending on the type of entry permit).

• Employment Visa Fee: Around AED 2,000 – AED 7,000 (may change based on the level of service required).

• Medical Examination and Emirates ID Fee: Approximately AED 1,000.

It’s important for companies to budget for these expenses and time frames when planning to hire international employees.

• Determine Eligibility: Ensure your company is registered and licensed to operate in Dubai. You must have a trade license from the Department of Economic Development or the relevant free zone authority.

• Choose a Bank: Research and select a bank that suits your company’s needs, considering factors such as services offered, fees, and branch locations.

• Prepare Required Documents: Typically, you will need your company’s trade license, memorandum of association, shareholder documents, and passport copies of the company’s directors and signatories.

• Appointment and Application: Book an appointment with the bank and fill out the application forms for a corporate account. Some banks may allow online submissions as a first step.

• Compliance and Due Diligence: Be prepared for the bank’s compliance checks and due diligence procedures, which are in place to prevent money laundering and terrorism financing.

• Initial Deposit and Account Activation: Once approved, you will need to make an initial deposit as stipulated by the bank to activate your corporate bank account.

Remember, with bank accounts, each each bank account, may have its specific requirements and procedures for bank accounts, so it is vital to consult with the bank directly for precise instructions on bank account using.

Dubai offers Indian creditor companies lucrative incentives without any tax system. Tax benefit outweighs Indian tax policy. With lower import tariff free and double taxes, you can easily create a profitable business in Dubai.

There are several ways in which business setup consultants can help you in business setup in Dubai. Overall they take care of your complete process of business setup in Dubai with out hassle.

1. Understanding Local Business Laws and Regulations: Dubai has its own unique set of laws and regulations for businesses, which can be quite complex and difficult to navigate for those who are not familiar with them. Business consultants are well-versed in these laws and regulations and can guide individuals through the process of setting up a business in Dubai, ensuring that all legal requirements are met.

2. Choosing the Right Business Structure: There are several different types of business structures available for those looking for a business setup in Dubai, such as sole proprietorship, partnership, or LLC. Business consultants can provide valuable insight into which structure would be most suitable for an individual’s specific business needs, taking into consideration factors such as liability and taxation, business consultancy.

3. Assisting with Documentation and Paperwork: Setting up a business in Dubai involves a lot of paperwork and documentation, which can be overwhelming and time-consuming. Business setup services can assist individuals with gathering the necessary documents and filling out the required forms, ensuring that everything is completed in accordance with the regulations.