Today we’re heading to Dubai, one of the world’s most popular nations amongst tourists, investors and businesspeople for the attractive economic market to be found in the United Arab Emirate.
This didn’t just happen overnight, instead, companies and people alike have relocated themselves and their commercial operations there in order to grow personally and professionally, propagating developments and changes to company establishment procedures, something which has made the process a little easier, (and also more advantageous!) for you in your own business endeavours in Dubai.
Why Dubai?
There are two main areas in Dubai where companies can be established, the Mainland and free zones, the former requiring a business license from the Department of Economic Development due to its status as an onshore business.
Now, Mainland Dubai is becoming an increasingly popular option for company set-up due to the ability to operate within local and international markets without restriction, as well as there being no capital requirement for obtaining a business license within Dubai. These are useful to bear in mind when moving your commercial operations overseas as domestic markets can often be overlooked when there are attractive incentives on offer.
So how does the company formation process work?
Now, this does depend on where in the country you’re looking to set up your company. Let’s start with the mainland:
· You must be present in Dubai at the time of company establishment
· Before going to Dubai, you must have your Power of Attorney notarised and attested in the UAE embassy of your home country
· Once in the UAE, the Ministry of Foreign Affairs must also notarise and attest the Power of Attorney
· In order to obtain your business license, you must wait 5-10 days, an appealing wait time as it can all be completed within one trip to the nation
It’s now a good idea to compare this with the company formation in a free zone:
· The process can be undertaken remotely
· The license is issued within 3-5 days, even faster than the mainland license
· Unlike the mainland, there is a minimum share capital for free zone companies, this depends on the Emirate you are setting up in. For Dubai this is AED50,000 (about US$13,600)
Above you can see the distinction between both types of area for company establishment, but as we are looking at mainland Dubai today, it is worth looking at the process in a bit more detail. Please find the more detailed steps below:
1. Identify your specific business activity and select the necessary legal form
2. Register your business name and apply for approval
3. Memorandum of Association and Local Service Agent Agreement and selection of operating location
4. Obtain government approval and submit documentation
5. Collect your license
So, even in more detail, it is apparent that this process is quite straightforward, allowing you fast market access and company formation.
Are there other benefits to doing business in Dubai?
· Complete domestic freedom to trade across Dubai
· By starting a company on the mainland, you can apply for an unlimited number of visas, allowing you broad scope for workforce expansion
· You are eligible to receive government contracts with a mainland company, meaning you have the opportunity to receive lucrative business deals
So, if you are interested in finding out more about how establishing a company in Dubai could be perfect for you, as well as other opportunities to develop your business, contact us today! Below this article, you will find a link to set up a free fifteen-minute consultation with us to discuss your options further.
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