What Are the Types of Company Formation in Dubai?
There are 3 types of company formation in Dubai, namely:
Mainland company
If you want to operate your business in the UAE mainland, you must register your company in one of the UAE Department of Economic Development (DED). As a DED-licensed onshore company, you will be provided a business license to start doing business in Dubai.
Free Zone company
This company is registered within the special jurisdiction under a particular emirate. To date, more than 40 free zones are operating in the UAE.
Free zone authorities have regulations, and their regulating body is called the Free Zone Authority (FZA).
A local sponsor is not required in a free zone company; thus, a foreign investor will enjoy 100% ownership of the company formation. Likewise, external approvals from agencies that do not belong to the free zone will also not be necessary.
Offshore company
This is a business establishment that is operated outside the location of the original registration. Dubai's increase in company formations has made the UAE a perfect business hub worldwide. There are also benefits to enjoy in offshore companies, such as tax exemptions, international funding, investor-friendly laws and regulations, and facilitating international trade.
What Are the Entities for Company Formation in Dubai?
The type of company formation that is right for you will depend on your business activities, your chosen jurisdiction, and others. All of these entities for company set-up can be established on the mainland, while many can also be allowed to register within the UAE free zones.
- Public shareholding company
- Private shareholding company
- General partnership
- Limited partnership
- Joint venture
- Limited liability company (LLC)
Benefits of Company Formation in Dubai
Many benefits can be gained when you register your business in Dubai. Some of these are as follows.
- No taxation
- Ease of business set-up
- Technological advancements
- Top-notch infrastructures
- Easy visa processing
- Recruit expat employees
- More than 40 free zones
- Great geographical location
- Comfortable and quality lifestyle
- Exceptional government support
Company Formation Process in Dubai
The process involved in company formation in Dubai is very simple.
- Select a business activity. If you are doing business in production, segregation accumulation and packaging, you will apply for an industrial license. Other businesses such as import/export, sales, real estate, brokerage services, retail and rent-a-car will require a commercial license.
- Choose the area of company formation - free zone or mainland. Both have advantages; however, for new entrepreneurs, it is suggested that you choose a free zone because it offers more benefits than the mainland.
- Prepare a Memorandum of Association (MoA) which contains the basic conditions in which the company will operate.
- Get initial approval from DED.
- Register your business under a unique trade name
- Arrange a physical office space for your company formation.
- Apply for a trade license.
- Open a bank account in an Islamic, international, or local bank.
- Foreigners need to go through visa and immigration processes.
How Jaxa Auditors Can Help You in Company Formation in Dubai
If you need help setting up your business in Dubai, Jaxa Auditors offers you, our services. We are a team of company formation specialists and will be happy to bring your business aspirations to life. We can do more than handle your license application. We can assist you in opening your corporate bank account and selecting the financial institution best suited to your specific needs.
Jaxa Auditors will also provide you with assistance on visa and immigration processes. We can deal with all government formalities, work permits, permissions, and other things required before you can trade in the UAE.
Our experts will work efficiently to establish your company in Dubai, free you to attend to more important details of running your company.
Call us at 971 4 2207 355 or email at jiby@jaxaauditors.com if you need additional information about company formation in Dubai or if you want to avail of our services. We will be delighted to assist you in this regard.
