If you’re looking to begin a business abroad – look no further than Dubai. As a widely known trading hub of the center East and geographic region (MENA) region. Dubai boasts a wealth of advantages for businesses. Also, firms looking to succeed, thrive and hook up with the remainder of the planet.
Just at the start of 2019, Dubai’s economy has expanded by 2.1% with total GDP reaching USD 56.7 billion within the primary 6 months of the year. Fortunately, if you’re thinking of putting in place a business in Dubai. The method is comparatively simple – especially within the variety of the UAE’s free zones.
What you wish to understand before fitting
Generally, there are some things you will need to know. secondly, before you begin the method to line up your business in Dubai. Let’s take a glance through each of them.
Economic Zone: Free Zones vs Offshore
Before putting in, you’ll have to decide if you’d wish to operate in an exceedingly country or Offshore. Secondly, ounting on your requirements, both options have their own benefits and specifications.
Free Zone
If you’re searching for 100% ownership of your company, consider applying for a license and site in one in every of Dubai’s free zones. Essentially, it’s a special economic area where business owners can enjoy many ownerships and 0% taxation benefits.
Currently, there are over 30 free zones operating in Dubai. Here are some examples:
Dubai Multi Commodities Centre (DMCC)
UAE International Financial Centre (DIFC)
United Arb Emirates Internet City (DIC)
Offshore
Offshore companies can even be registered in a very country, and revel in many of the identical benefits. However, it’s not a substitute for a area company. Secondly, the most difference between a country company and offshore is that the operations of the business. They even have no requirements for minimum capital deposited before incorporation.
However, unlike operating as a country business, a sponsor is required. It is able to restrict your foreign ownership to only 49%.
Types of Licenses
The Department of Economic Development (DED) is to blame of issuing licenses. Secondly, there are 3 main types you’ll be able to apply for:
Commercial license
To set up a business in Dubai that involves trading activities or the buying and selling of products, you wish to get an ad license. This license can cover businesses that are in import & export, sales, logistics, travel & tourism, general stores and land.
Industrial license
This license type is issued to businesses that are engaged in manufacturing activities that transform natural materials and resources into final products – manually or mechanically. This license covers businesses like textiles manufacturing, metal manufacturing and paper manufacturing.
Professional license
The professional license is issued to businesses that are service providers, artisans or craftsmen. samples of businesses that apply for this sort of license include medical services, beauty salons and repair services.
Sponsorship
No local sponsor is required when putting in in a very free port like DMCC. in a veryll|one amongst|one in every of} the most benefits of incorporating in a free port is that you just are ready to founded an entity with 100% foreign ownership without the necessity of a UAE national as a partner or sponsor.
Dubai free-zone company setup process
When fixing a business, free zones are particularly more fashionable foreign entrepreneurs and permanently reason – they provide 0% corporation and private tax, 100% company ownership, 100% repatriation of capital and profits and no currency restrictions.
Here are the 7 steps you’ll have to go for founded your business within the free zone:
Find your commercial activity
The first step to starting your business and getting a license is to see the character of your venture. There are over 2,100 business activities available to settle on from, all falling into different groups within the economic, commercial, professional and tourism space. you’ll be able to find the complete list on the DED website.
Settle on a free port
As stated before, there are over 30 free zones in Dubai to decide on from. the character of your business can have an impression on which area you chose to line up in. Generally, it often is sensible to line up in close proximity to businesses within the same sector.
Choose an organization name
Firstly, When choosing your business name, it’s important that it conforms to the UAE’s strict naming conventions. Secondly, If you’re naming the business after someone, you’ll must prove the person may be a partner or owner of the corporate (no initials or abbreviations allowed).
Naming your business may well be an advanced process. you’ll be able to save time and energy by consulting an expert to assist you follow the conventions and find your name approved.
Apply for initial approval
You’ll have to apply for initial approval to confirm that the Dubai DED has no objections to you starting a business, so you’ll be able to start within the next steps for your license. you’ll apply for this online, nose to nose or through a 3rd party (like through a law firm). The documents you’ll have to provide will depend upon your business nature, but generally are:
Business registration and licensing form
Copy of your passport or ID
Copy of your residence permit/ visa
The company’s articles of association
Feasibility study of the project
If you wish help applying, please contact one in every of our experts who can guide you thru the method to make sure you’ve correctly filed and ready documents.
Open a company checking account
Once you’ve been approved and received back all the mandatory documents, you’ll be able to now open a company checking account. The UAE has many banks, both local and international, to decide on from. These include HSBC, Citibank, Barclays, Abu Dhabi depository financial institution, bank of Dubai and plenty of more.
To learn more about this, take a look at our most up-to-date blog where we outline a 5-step process to successfully open your checking account in Dubai.
Find your office location
It’s compulsory for all businesses in Dubai to own a physical address. Fortunately, fitting in a very area will facilitate your find your new office space easily.
Business services providers gives an oversized range of business property, office buildings and business center accommodation to rent, hire or lease to any size and kind of business.
