Company incorporation in Dubai is a simple process without much hassle and needs basic requirements for issuing a license to the businesses. Once all the legal work is complete, it takes no more than a week to start working on the plan. The authorization depends according to the type of companies and their operations. If you are a foreign or a local looking to start a company here, then the Department of Economic Development will issue commercial, professional and industrial licenses according to the business nature of respective parties. However, for the trading of food, veterinary activities, ornaments trade, and legal consultancy, further approvals from other lawful departments are required.
A professional license is issued to those firms who are providing expert services such as advice or training. For the approval of this certificate, there should be more than one shareholder in the companies and, at least one must be a local service agent. An industrial license gives to the companies who want to manufacture and produce products on a large scale. Due to the UAE industries act of 1951, the business must get registered for this license before starting the project. Lastly, a commercial license is issued for trading and contracting activities in Dubai. Like the other two certifications, it also requires the majority shareholder to be an Emirati, so for any external requirements, they need to authorize it separately from the Dubai Authority. For the approval of these licenses and a better understanding between the partners, a trading name should be registered; the company’s asset and business description should be mention in the Memorandum.
Generally, the organizations found in Dubai are companies, partnerships, branch offices, free zone companies. After distinguishing the type of corporations following are the steps for a new company established in Dubai.
Deciding the Stakeholders
The capital shares are allotted with the help of the Memorandum of Article of Association. As per the company act set by the government of Dubai, Article 10 of Federal Law Number 2 of 2015, any organization enlisted in Dubai must have at least one UAE resident holding 51% of the offer with them. If you are a local or an outsider, the percentage needs to be following accurately. Besides this, if any a Free zone Company wants to exchange in a non-Freezone region, then they also require having a local shareholder’s support with them. So, off any chance you are non-Emirati pondering about a startup in UAE then you need to find a local Business Sponsor in Dubai first. The investor also needs to be reliable since the capital is divided under the investor’s right protection contract.
Finalizing the name
The name of a company is, in fact, its identity in the world. The brand is established publically after the characteristics of an organization are set up. The name has to be unique for easy remembrance among the audience and, then it needs to register the trademark by the government. The organization should be running by the name under which it is registered. The identity should not hurt the sentiments of any public regarding race, gender, cast any kind discriminated content or racist title is not allowed.
After the incorporation of a company is complete, talented employees hire for the start of work. In some cases, it is essential to employ a manager even before the registration is approved, but it is not the case for many other companies. Different setups have their regulations related to the structure of the business. The local agents sponsor for the visa if the employee hires from overseas.
The cost to set up a business in Dubai varies according to the budget, but it is not expensive at all. The costing is divided into major categories and there are no hidden taxes plotted in the formation. By 2018 customers are required to pay 5% Value added taxes to the business who later on pay to the authority. Luckily there are no capital gains taxes in Dubai means the company can buy and sell capitals especially in the case of real estate and property business. It is considered a lucrative quality for attracting investors for more sponsorship in an efficient manner. Lastly, there is no corporate tax imposed on companies apart from the banking and oil sector. The income saved from all of these taxes can further be utilized for expansion and progression by investing further in the updated technology for increasing competence.