Dubai is a popular destination for business and offers various options for company formation. The most common types of companies that can be established in Dubai include:
- Limited Liability Company (LLC): An LLC requires a minimum of two and a maximum of 50 shareholders. It offers flexibility in terms of business activities and allows non-residents to own up to 49% of the company shares, with 51% ownership reserved for UAE nationals.
- Free Zone Company: Dubai has several free zones that offer a business-friendly environment and provide various incentives such as 100% foreign ownership, tax exemptions, and customs duty benefits. Examples of free zones in Dubai include Dubai Multi Commodities Centre (DMCC), Dubai Internet City (DIC), and Dubai Media City (DMC).
- Branch Office: Foreign companies can establish a branch office in Dubai, which is an extension of their parent company. The branch office operates under the parent company’s name and conducts business in Dubai.
- Professional Service License: Professionals such as doctors, engineers, and consultants can obtain a professional service license to set up their practice or consultancy in Dubai.
The process of company formation in Dubai typically involves the following steps:
- Choose a company name: Ensure that the name is not already registered and adheres to the guidelines set by the Department of Economic Development (DED) or the relevant free zone authority.
- Select the company type: Determine the appropriate company structure based on your business requirements.
- Obtain necessary approvals: Depending on the company type, you may need to obtain approvals from relevant authorities, such as the DED, free zone authority, or other government departments.
- Lease office space: Provide documentation of an office or physical address in Dubai to register your company.
- Submit the application: Prepare and submit the required documents, including the application form, legal documents, passport copies of shareholders, and any other specific requirements.
- Pay fees and obtain licenses: Pay the necessary fees and obtain the required licenses and permits, such as a trade license, professional license, or industrial license.
- Open a bank account: Once your company is registered, you can open a corporate bank account to facilitate business transactions.
It is important to note that the specific requirements and procedures may vary depending on the company type and the chosen jurisdiction within Dubai. It is advisable to seek professional assistance from business consultants or legal experts who specialize in company formation in Dubai to ensure a smooth and efficient process.
