How To Expand Business In Dubai (UAE) As Foreigner/ Non-resident?

The UAE, United Arab Emirates is the nation with a geographical location within the Middle East. It comprises of the 7 emirates federation and has the Abu Dabi, Ajman, Fajairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. Also, the population of this country has the majority of expats, and this accounts for around 7.8 million of the people who are residing there with around 1.4 million Emirati Citizens.

This nation has a robust & quite conducive & welcoming business environment due to the stable political as well as the macroeconomic conditions. Also, UAE is among the 26th best nations in the world that have been doing business according to the business report published in the year 2017 by the group of World Bank. Dubai is one amazing place to set up your business owing to its extraordinary taxation business. This is among the top-notch and quite sought-after places for conducting business & quite a desirable destination for Company Formation in Dubai by global investors.

Why Dubai is most attractive venue for global investors?

Today, it has become quite the popular choice for both international as well as domestic companies owing to its strategic location, diversified culture, convenient accessibility, low operational cost due to reduced labour as well and the logistics price. There are greater than 25 FTZ (Free Trade Zone) in this place and this is attracting huge numbers of global business owners for business formation in Dubai.

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Different Categories of Company Registration in Dubai

FTZ (Free Trade Zone) Establishments

There are free zone incorporations that have been set up in FTZs and specialized legal regulations have been formulated concerning taxation, ownership, customs duties, and much more that are different from the laws in the Dubai mainland. So, the foreigner businessman can have cent percent ownership within the company established under FTZ, free zone establishment as well as free zone corporation.

LLC (Limited Liability Company)

There are at least two of the shareholders who are eligible for establishing an LLC in Dubai mainland. Also, a maximum of 50 shareholders can be there for setting up the LLC. The contribution of the shareholders is limited to the share capital only. Any type of business can be conducting the LLC except the banking sector, insurance, or any other type of monetary investment opportunities.

Onshore Companies

The on-shore companies have been set up within the Dubai mainland. The business must have directors from Dubai as part of its management. Also, this country is facilitating only 49% of the ownership and there must be the establishment of this type of business having the national sponsor.

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Offshore Incorporation

There has to be the formation of the business entity which will be operated externally to the nation’s jurisdiction. It can be a wholly owned foreign business registered in Dubai mainland but needs to have the base in some other country. Thus, foreign businesses can have complete ownership of offshore businesses.

Branch Office

The branch office is serving as the extension of the parent incorporation setup. So, there can be any foreign entity which is having a branch office within the Dubai mainland along with the majority of the FTZs all across the place. Also, there is extremely remarkable provision available for the corporations Abroad to set up branch offices and search for ways to look for expansion in the local markets of the UAE.

Different categories of corporate licensing in Dubai Mainland

Business licensing

So, in such type of the incensing provision businesses working in relation to any type of trade are required to seek this type of license.

Professional Licensing

The companies that are providing services and employing artisans, and technical staff can seek this type of licensing provision.

Industrial Licensing

Companies dealing with manufacturing operations can avail of this type of license.

Steps of business formation in Dubai

Nature of Company

This is the initial step for Company Formation in Dubai. So, there are many provisions to pick up from like you can set up Limited Liability Company, Free Zone Incorporation, establish branch office or representative setup.

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Type of business activity

Once you determine the nature of business, make sure to decide upon the activities that you would like to get involved in. Ensure to choose the right activity as it is going to decide upon your licensing type.

Choice of company name

Select the right name of your incorporation for business formation in Dubai. This should be able to reflect the nature of the business that you are involved in. Also, it must comply with the naming conventions and you can check the same with DED (Department of Economic Development).

Seeking initial approval

Also, choose the name of the company and seek approval from DED. Conduct business planning, choose the company’s name along with submission of all pertinent paperwork.

Drafting MOA (Memorandum of Association)

Draft MOA of the business and this will outline the objective of your company, shareholders, and capital along with other requisite details.

Seek Trade Licensing

Enroll your business with the Dubai Chamber of Commerce to seek membership certification.

Enroll with the Chamber of Commerce

So, enrolling with the concerned authorities to get TRN (Tax registration number) & must comply with all the regulations about the taxation requirements. Also, register your firm with the MOHRE (Ministry of Human Resources & Emiratization) to seek labor cards & compliance with employment rules.

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Opening bank account

The final step is to start opening your bank account in UAE to conduct all your business transactions.

Take assistance from Dubai business setup service providers

Take assistance from company registration consultants that provide bespoke advisory and help for all those savvy investors who would like to set up all their operations within Dubai mainland, whether offshore or on shore.