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Dubai is one of the fastest-growing business hubs in the world, with Dubai acting as its major financial centre. With the increasing popularity of the destination all over the globe, today almost every leading corporation has a base in the country. From providing special free zones for encouraging more and more Foreign Direct Investments to a huge number of customers, Dubai has a lot of perks for businessmen. But starting a company in Dubai is not that easy and involves several steps to be followed. This is where the expertise of business consultants in Dubai come to the fore with their expertise.
With an growing number of businesses who are looking to establishing their respective companies in the country, the demand for business consultants in Dubai is witnessing a steady growth pattern. If you are also contemplating about foraying into the Dubai and start your own company here, it will serve you well if you have adequate knowledge regarding the intricacies of company formation in the Dubai.
Why form a company in the UAE?
If you wish to conduct your business operations legally in the UAE, it is essential for you to form a company in the country. This will not only endow you a legal status here but also make you eligible for various perks and benefits on offer from the government. Here are some reasons explaining the need for a company in the UAE: –
- UAE is home to one of the most liberal trading systems and therefore, setting up offshore companies have never been so easy.
- Infrastructure and other business facilities including transportation, business office, internet connectivity etc. are easily available.
- You will be able to find a huge pool of skilled and unskilled workers for your company.
- There is an easy licensing, and paperwork process for foreign investors and most of these have been made online. The process is made as simple as possible and also involves minimal use of manual labour and time. Moreover, there are experienced business consultants in Dubai to help you out.
- Provision of free zones: UAE has special free zones like Jebel Ali Free Zone, Ajman Free Zone, Dubai Design District etc. having tax rates at a very subsidized rate. So, if you set up your business in any of the free zones in UAE, you will have maximum profits with minimum gains.
Process of company formation in the UAE
The process of company formation in the UAE is quite complex and involves several steps to be followed. Here are the various steps involved in forming a company in the UAE: –
- Decide the nature of your business: You should start by choosing the business activity you want to engage in. This basically involves selecting the nature of your business, such as medical, information technology, media, and communication, etc.
- Select your business location: Selecting your business location is of utmost importance in establishing your company. Based on the nature of your business, you can choose a suitable location. There are different zones from which you can choose – offshore, mainland and free zones. Other considerations such as a lot of import and export of goods and services, might want you to choose a location that is closer to the airport or if the target audience for your product is the domestic consumers, then you may want to locate your business in the mainland area which is a commercial hub.
- Choose the structure of your company: If you are going for an offshore type of company, you will be required to have a local partner who will be a shareholder of your business with at least 51 per cent of the stocks. This requirement does not function for companies set up in the free zones as the foreign investors will own 100 per cent ownership.
- Give your company a name: After you have decided your company’s structure and business activity, you can select a suitable name for the same. You must make sure that the name conforms with the company rules as established in the UAE. For example, no political or religious sentiments should be reflected in the names; no offensive words to be used etc.
- Finish all the required paper works: You must reserve and get your company’s name documented; review and get your business policies and company’s rules documented; submit your shareholder’s and your passports; in case of free zones, you may have to submit a Non-Objection Certificate, etc.
- Apply for licensing your company: You may opt for a commercial or professional or industrial license according to your business activity. You have to provide the required documents asked by the Economic Department, fill in the application for your business license, and pay the required fee.
- Register your company: For registering your company, you need to take the approval of various authorities as asked by the Economic Department. This step also involves VAT registration that is easily available online.
- Get your visas processed: You need to apply for your visa and make sure that all your staffs have filled in for the visa applications. A visa process mainly consists of an entry permit or an employment visa stage, a status change/ adjustment change, medical fitness test, and registration for Emirates ID.
- Collect your license and other important documents: The last step is to keep tracking the status of your license and other important documents. Once they are available, you must collect it and start with your business.
Well, you need not worry about completing all these steps for company formation in UAE on your own. With the expert services of business consultants in UAE available to guide you through this intricate process, there is nothing to hold you back from availing the amazing opportunities on offer.