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Business Setup in Dubai - Important Considerations

  • Company setup in Dubai can be done either by individual expatriate or by Companies as well. There are various other options that can make you successful in establishing your company. However, to start a business in Dubai or to open an offshore company is not an easy task. You have to follow certain procedures and follow rules under laws of Dubai Business Development Commission (BDC).

    Company registration in UAE is available by any of the above business setup options, as per requirement. A UAE business entity registration is compulsory and the Companies (who wish to register in Dubai) need to fill in the application for Registration of Companies with the Companies Office of Dubai. Companies (who wish to register in Dubai) need to follow the procedure for submission of application and payment for the subscription fee for offshore company incorporation in Dubai. There are three main types of Company registration in UAE.

    Company Formation in Dubai: Company formation in Dubai is not much different from other countries. The Companies (who wish to establish a company in Dubai) has to provide the Companies' Office with the required documents such as Articles of Association, statutory instruments, Memorandum and Articles of Organization. If all the documents are submitted in the proper manner, the Companies (who want to establish a company in Dubai) is approved for registration at the end of this procedure. If the Company (who wants to establish a company in Dubai) needs funding then the process of capital transfer becomes the next process after company formation in Dubai. The person, who holds the seat of office, of the company must have a seat in the house of members (whereby he has to fulfill his duties), for the purpose of satisfying the company formation demand of the clients.

    Business setup in Dubai can take place through different types of establishment, for instance: sole proprietorship, partnership, limited liability partnership, etc. Before registration, it is important that all the partners in the business must have their own representative office in Dubai. A sole proprietorship is when a person owns only one asset, whereas in a partnership, two people hold shares and in a limited liability partnership, the two partners share their assets. These are the general forms of establishing businesses in Dubai.

    Registration of companies in Dubai: To start a business in Dubai, one needs to obtain registration with the appropriate Dubai Company Registry. There are no services available online that offer registration of companies in Dubai at very reasonable prices. Most of these companies offer company formation, registration of business, document preparation, company director and shareholder profile, company seal and letter of appointment. Some of these companies also offer audit services at an extra cost.

    Free Zones in Dubai: The state of Dubai has many business setups services that help the new entrepreneurs attract investors to invest money in their business. Many investors prefer to invest in the free zones of Dubai due to the incentives they receive. For instance, if the business succeeds, the investors get to keep a fixed percentage of the investment. If not, then they lose nothing.

    Registration of New Companies: Companies can register with the Dubai Company Registry directly or via the Companies' Registry of the UAE. Companies can also choose to register with the Middle East Investment Agency (MEIA) of Dubai. Many foreigners choose to open a company in Dubai through these agencies as the process of registration is fast, convenient and hassle free. The main advantages of registering a company in Dubai are:

    If you are planning to invest money in Dubai, then it is advisable that you look for registration services offering pro-services in addition to the basic registration services. For instance, a business registration agent can help you find out whether the business you want to establish is legal and registered with the relevant authorities in Dubai. As previously stated, Dubai has a well-developed legal system with the maximum expertise in commercial matters. Therefore, before making a decision about the registration of a new company, it is important that you consult a commercial attorney who is familiar with the laws and regulations of Dubai.