Steps for business setup in dubai are easy to access. Contemporary Indian investors and entrepreneurs intending to register a business in Dubai can now avail themselves of a diverse range of advantages. To incorporate a company in Dubai from India, you do not need a local shareholding UAE partner for a mainland business setup, and the government has implemented numerous other business-friendly measures.
How to do business setup in dubai?
If you want to business setup in dubai from India, follow this step-by-step guide:
1. Finalize Your Business Operations
The operational dynamics of your organization play a pivotal role in defining your company’s business model. Additionally, various activities require necessary approvals and certificates. It’s imperative to meticulously compile and submit these listings to the relevant authorities. If you’re considering registering your company within a specialized economic zone, you have the option to opt for a free zone setup tailored to your business. Alternatively, if you’re aiming for a mainland presence, you can register it as a sole establishment or as a limited liability company (LLC). Your chosen business activities will determine the optimal structure for your company.
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2. Secure an Exclusive Trade Name for Your Company
Another critical stride when establishing a company in Dubai from India involves the registration of a distinctive trade name for your enterprise. Opting for trade names that reflect the nature of your company is advisable, as they contribute to enhancing your company’s prominence within the industry. Ensure meticulous adherence to the stringent naming conventions prevalent in the United Arab Emirates. It is essential to steer clear of any use of offensive, blasphemous language, or terminology that could potentially offend religious sentiments, among other sensitive considerations.
Below are certain directives that must be adhered to when formulating a trade name:
The trade name should:
- Not contravene the moral values or public order of the nation.
- Align with the intended scope of activity and the legal identity of the company or business entity.
- Avoid including names of religions, governing bodies, or symbols affiliated with external organizations.
- Be unique and not have been registered previously.
- Refrain from commencing with terms such as “Universal,” “Middle East,” “International,” and their Arabic equivalents.
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3. Submit an Application for Initial Approval
Initial approval signifies an initial endorsement bestowed by the UAE Government, enabling foreign investors to advance with their business establishment within the country. This endorsement indicates the government’s non-objection to the business setup, but it does not confer upon the business proprietor the right to operate or engage in the intended business activity.
4. Formulate the LSA/MoA
For those considering company registration on the mainland, collaboration with a Local Service Agent (LSA) is necessary. It’s important to note that LSAs do not interfere in your business decisions; their role revolves around aiding license applications and obtaining mandatory approvals. Contrary to common misconceptions, there’s no requirement to allocate 51% ownership to a UAE national, even if your company operates on the mainland.
The signing and establishment of the Memorandum of Association (MoA), tailored to your company’s model and structure, is a crucial step in this process.
5. Initiate the Business Licensing Process
It’s important to note that companies operating on the mainland must submit a license application to the Department of Economic Development (DED). Alternatively, businesses within free zones can direct their license applications to their respective governing authorities. Moreover, it’s crucial to be aware that post obtaining the business license, you might also need to secure additional approvals from other regulatory bodies. Additionally, consider exploring the distinctions between Free Zone and Mainland business setup in dubai.
6. Establish a Business Bank Account
Once you’ve diligently completed all the essential paperwork for registering your business setup in dubai from India, the subsequent step involves opening a dedicated business bank account. In this regard, it’s vital to select a bank that aligns with your company’s requisites and offers favorable terms and substantial advantages to aid in optimizing operational costs. Refer to a guide on how to initiate the process of opening a business bank account for entrepreneurs in the UAE.
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7. Understanding the Expense of Company Registration in Dubai
The cost associated with registering a company in the UAE lacks a fixed, universal figure. This variability arises due to a multitude of factors, including the geographic location of the company, the nature of the license, visa prerequisites, office dimensions, and various other considerations.
For Indian entrepreneurs, the opportunity to register their company in Dubai from India exists at a starting cost as affordable as AED 20,000.
8. Necessary Documentation for Registering a Company in Dubai from India
- Recent passport-sized photographs of the applicant for company registration.
- Duly filled-out application form.
- Copy of the Emirati ID belonging to the Local Service Agent (LSA).
- Documents about the Local Service Agent (LSA) and Memorandum of Association (MoA), duly notarized and attested.
- Passport copies of all relevant legal stakeholders.
- External approvals, if deemed necessary.
- Valid tourist visa of the individual applying for company registration.
- Ejari number associated with the rental space agreement or sustainability contract from a business center.
Advantages of Establishing a Business in Dubai or UAE
- Companies operating in the Tax Free Zone are exempt from paying taxes, allowing for increased profitability.
- The option of obtaining a lifetime business visa provides entrepreneurs with long-term stability and ease of doing business.
- Regardless of their nationality or place of residence, investors enjoy unrestricted ownership, enabling them to have full control over their business ventures.
- The repatriation of all revenue and capital allows for easy and efficient transfer of funds abroad.
- Imports and exports are exempt from all taxes and fees, minimizing costs and promoting international trade.
- The abundance of talent in Dubai enables entrepreneurs to tap into a diverse and skilled workforce, supporting business growth and innovation.
- Dubai is a cosmopolitan city with a prominent financial center, providing access to a thriving business environment and potential partnership opportunities.
- Establishing a corporation in Dubai allows investors to register a corporate bank account, secure workspaces, and obtain resident visas for the business, facilitating seamless operations.
- Limited liability companies in Dubai offer investors a sense of security by offering flexible operational processes, a range of ownership options, lower investment risks, and the ability to hire staff members.
Best places to Start Setup Business From India To Dubai
Here are some of the best places to consider for business set in dubai:
- Dubai Mainland: Setting up in the mainland allows you to operate anywhere in Dubai and beyond. It provides access to a wide customer base and various business opportunities. You can establish a Limited Liability Company (LLC) with a local Emirati partner, which can provide you with more flexibility and opportunities to engage in different industries.
- Free Zones: Dubai boasts numerous free zones that offer various advantages such as 100% foreign ownership, tax exemptions, and simplified import and export procedures. Some popular free zones include Dubai Multi Commodities Centre (DMCC), Dubai Internet City, Dubai Media City, and Dubai South.
- Dubai International Financial Centre (DIFC): If you’re interested in financial and professional services, DIFC is a prominent financial hub that provides a business-friendly environment, modern infrastructure, and access to a network of global institutions.
- Dubai Silicon Oasis: This free zone focuses on technology and innovation. It’s an ideal location for IT companies, tech startups, and research and development centers.
- Jebel Ali Free Zone (JAFZA): One of the oldest and largest free zones in Dubai, JAFZA is known for its logistical advantages and excellent infrastructure. It’s suitable for trading and industrial businesses.
- Dubai Healthcare City (DHCC): If you’re in the healthcare sector, DHCC provides a comprehensive ecosystem for medical services, research, and education.
- Dubai Knowledge Park (DKP): If you’re in the education and training sector, DKP provides a specialized environment for learning institutions, training centers, and professional development providers.
- Dubai Maritime City: Ideal for maritime and maritime-related businesses, this free zone offers a strategic location for companies in the maritime industry.
- Dubai Airport Free Zone (DAFZA): Positioned near the Dubai International Airport, DAFZA is well-suited for businesses involved in aviation, logistics, and trading.
Difference between business setup in dubai Mainland, Freezone and Offshore
- Mainland Company: A mainland establishment is a corporate entity registered with the Department of Economic Development (DED) in the specific emirate of its operation. It allows companies to conduct business within the local UAE market as well as internationally. Mainland companies have the freedom to trade with any other company in the UAE, including government entities. They are also able to bid for government contracts. However, depending on the business activity, a mainland company may require a local sponsor who will hold at least 51% of the shares, except in certain designated free zones.
- Freezone Company: Freezone companies are registered in specific economic zones or free zones designated by the relevant free zone authorities in Dubai. These zones are governed by their own regulations and offer various benefits such as 100% foreign ownership, exemption from customs duty, and repatriation of capital and profits. Freezone companies are restricted from doing business within the local UAE market, except through a local distributor or a mainland agent. However, they can conduct business freely with other companies within the same free zone or internationally.
- Offshore Company: An offshore company, also known as an International Business Company (IBC), is registered in an offshore jurisdiction like the Jebel Ali Free Zone Authority (JAFZA) Offshore or Ras Al Khaimah (RAK) Offshore. Offshore companies offer tax advantages and are not required to have a physical presence in the UAE. They are not allowed to conduct business within the UAE or with mainland companies, but can engage in international business activities. Offshore companies are commonly used for asset protection, wealth management, or holding intellectual property rights.
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Conclusion –
Due to the necessity of adhering to additional compliance measures in India when establishing a company abroad, it is recommended to engage the services of a Chartered Accountant well-versed in both Indian and Dubai/UAE Tax and Investment Regulations. This proactive approach ensures legal conformity from the outset, mitigating potential regrets down the line. Lets start with business setup in dubai now.