Starting a new business in Dubai is easy but you must understand the rules and regulations in order to set up your company successfully. If this is done then you will enjoy many benefits. This article explains all about the formation and planning process of a company in Dubai.
Starting a business in Dubai is fairly easy. Dubai is a leading business and economic centre which made suitable conditions for business growth, especially, for the growing population of other countries. There are basically 2 categories of legal business, you could establish in Dubai, namely: free zones and registered free zones.
In free zones, company formation is absolutely free. Companies are allowed to open an office without any money being kept as capital. Companies are also not required to have a business license or an office. But, to start a business in the registered free zones (which are also called commercial zones), company formation needs to be done through a bank account and it is absolutely mandatory to hold a valid passport and visa for the concerned business.
In the free zones, company formation is absolutely free but the only disadvantage is that there is no choice of legal name. You need to select a name based on the location of your office. If you want to serve the people of Dubai with good service then you should choose a name wisely. Some people do not care about this and try to register their businesses with bizarre names. In such a case, the law considers such conduct as criminal. The registration of your company is not completed until you have received the keys from the authorities.
Company formation in Dubai is also easy in the onshore countries because they do not require the same licensing as the Dubai authorities do. All you need to do is get a license and you are ready to go. Most of the foreign companies that register themselves in Dubai do so via the license number they have obtained while doing business in the country. This license is issued by the Dubai authorities and cannot be reclaimed by an individual. On the other hand, all over the Middle East, all companies have to apply for a license number after registration.
Company formation in Dubai has a few more steps than it does in the onshore jurisdictions. The first and foremost thing is that there is a need for a Company Registration application form from the Dubai Office of Corporate Affairs. This form can be collected from the office at any time of the year except when offices are closed for holidays. Once the form has been submitted, you have to give a reply to the question: “are you an eligible company?” followed by the appropriate identification number. The Company Registration authority will check your eligibility and then decide whether you require a minimum share capital requirement or not.
Company formation in Dubai may be done through onshore registration with a local registration company. Companies that register themselves with a foreign investor interested in doing business in the emirate will require a Company Registration certificate. This is also the case if the company incorporation services are being offered by a UAE national or an international firm. Once the registration is done with a local company registration authority, the Company Registration certificate will be delivered to you along with the necessary documents and registration fees payable. The Company Formation service providers will deliver all the requirements needed to incorporate a company in Dubai within a stipulated time period.
However, in many cases, company incorporation in Dubai is free of cost. If you are a foreign national and you are planning to start a business in the emirate, you must know about the various rules and regulations governing company setup in Dubai. You must find out the company formation procedures applicable to you. You must ensure that all the legal formalities are done in order to start your business. All these can be done online without any hassles by following the simple steps of company formation in Dubai.