Unlike many thinks, Company formation in Dubai, especially in free zones, is a relatively speedy and simple process. There has been no better time to form a Company in Dubai than in the current scenario. There is much news daily regarding ambitious projects being introduced resulting in United Arab Emirates growth projections. According to the latest figures of economic growth, there is an increasing number of companies attracted to doing business in Dubai.
You can set up any type of business you need, can be an onshore or offshore. Free zones are mostly preferred for setting up business for foreign investors because of the following reasons:
- 0% personal and corporate tax
- 100% repatriation of profits and capital
- No currency restrictions
- 100% company ownership
- 100% export and import tax exemption
Step-by-Step Procedure for Company Formation in Dubai
While the financial, administrative and technical aspects to form a company in Dubai may seem daunting, there is a need for this step by step procedure with the consultation of several business consultants.
1. Business Activity Needs to be Chosen
The nature of the business may decide which free zones should be selected for set up. There are certain activities allowed in certain free zones. For example, medical, media or transport, etc.
Aside from government restrictions, a business should be set up in the same market sector. Transport links should also be kept in mind. If a business relies majorly on export and import, then you should look for a free zone near seaport or airport.
2. Company’s Name Needs to be Chosen
You need to propose 3 names out of which Department of Economic Development chooses one. Any name which uses offensive language is forbidden as well as any country, religion or political name. If a business is named after a person, he/she needs to be an owner or partner of the company. A business consultant will help in this process by giving you verse and chapter on all name conventions. In this way, precious time is saved.
3. Incorporation Paperwork Needs to Be Finalized
You will be needed to complete the application for the chosen company’s activity as well as the name attached with passports of shareholders. Your business consultant will help you with this cumbersome paperwork.
4. License notification Receiving
Once processed, you will get your company license issued by the government.
5. Opening of a Bank Account
Once the paperwork is done, you can open a corporate bank account with the received documentation. There are several banks in UAE like Abu Dhabi Commercial Bank, Commercial Bank of Dubai, Emirates NBD plus global names like Barclays, Citibank, and HSBC. A business consultant will help you choose a bank according to your business activity.
6. Process your Visa
This is the last step and by completing this step, you can do your business in Dubai’s Free zone. You need to apply for your visa as well as the visa for dependants and staff. The number of applications you can submit depends upon the Free zone chosen. If you are seeking for child, spouse, driver or maid visa, you need to take the advice of business experts who will guide you with the free zone that provides.
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After all this, there are four stages-
- Entry permit
- Status adjustment
- Medical Fitness test
- Emirates ID registration
With all the above mentioned 6 steps completed, any person can do business in a Free zone in Dubai. UAE is leading in economic growth in the entire Arabian Gulf getting significantly ahead of Saudi Arabia, which is the region’s biggest economy.
The company formation in Dubai is made simple with the help of various business consultants who charge some fees for the activity that is needed to be performed. Business consultants should be trained in their fields for performing this kind of tedious job.
Also Read: 7 Ways to Make Passive Income in Dubai
You need to do proper research on which business consultants are the best and who charge competitive pricing. They will help you from start to the end: the idea of setting up the business in Dubai to when it’s fully incorporated. There are some further options to do business in Dubai like an offshore company, or a mainland jurisdiction company.
So, what are you waiting for? Apply for business in this great city of Dubai and prosper.