Expanding your business from Malaysia to the UAE offers numerous opportunities in a rapidly growing market. The UAE has become a global business hub, attracting entrepreneurs worldwide. UAE has also seen remarkable growth in its business sector. For instance, during the first nine months of 2024, the Dubai Chamber of Commerce welcomed over 51,000 new companies, marking a 4% increase compared to the previous year.
Additionally, the value of exports and re-exports by its members reached AED 224 billion, reflecting a 7% year-over-year growth.
Abu Dhabi has also experienced significant business growth. The Abu Dhabi Global Market (ADGM) reported a 31% surge in company registrations during the first half of 2024, with assets under management increasing by 226% compared to the same period in the previous year.
For Malaysian businesses, expanding into the UAE means tapping into a dynamic market with a strategic location, favourable tax policies, and a supportive business environment. The UAE's commitment to economic diversification and innovation further enhances its appeal as a destination for international business expansion.
Why Register a Company in the UAE from Malaysia?
Business setup in Dubai from Malaysia comes with several advantages, making it a strategic move for entrepreneurs looking to grow internationally. Here’s why setting up a company in the UAE is a great decision:
1. 100% Foreign Ownership
Recent reforms now allow full foreign ownership in many business sectors, giving Malaysian entrepreneurs complete control over their businesses.
2. Easy and Fast Business Setup
Compared to many other countries, the UAE offers a quick and streamlined company registration process. In some free zones, businesses can be set up within 1-2 days with minimal paperwork.
3. Residency Visa for Entrepreneurs
By setting up a business in the UAE, Malaysian investors can apply for a residence visa, allowing them to live and work in the country while enjoying the benefits of UAE residency.
4. Lower Corporate Tax Rate than Malaysia
Corporate tax is only 9%, and it applies only to businesses earning above AED 375,000 (~MYR 480,000) per year. Many free zones still offer zero corporate tax for specific sectors. Whereas corporate tax in Malaysia is 17% for profits up to MYR 600,000 and 24% for profits above that, which is significantly higher than in the UAE.
5. Better Banking System for Foreign Entrepreneurs
UAE banks offer multi-currency accounts, digital banking, and international transactions with no restrictions.6. No Currency Restriction
UAE businesses can trade freely in multiple currencies with no restrictions. Whereas, Malaysia has foreign exchange controls, requiring approvals for large transactions.
Types of Business Structures in the UAE
When setting up a business in the UAE, choosing the right business structure is crucial. The UAE offers three main types of business setups, each with its own advantages depending on your business goals.
1. Mainland Company (For Local Trade & Government Contracts)
A Mainland Company is registered under the Department of Economic Development (DED) and allows businesses to operate across the UAE and internationally.
Key Benefits:- Ideal for businesses looking to trade directly in the UAE market.
- 100% foreign ownership is allowed in most business activities.
- Can bid for government contracts, unlike Free Zone or Offshore companies.
- No restrictions on office location—businesses can open branches anywhere in the UAE.
2. Free Zone Company (For Tax Benefits & 100% Ownership)
A Free Zone Company operates within a designated economic zone and is ideal for businesses targeting international markets. Key Benefits:- 100% foreign ownership without needing a local partner.
- 0% corporate and personal income tax in most free zones.
- No customs duties on imports and exports within the free zone.
- Faster setup process, with some licenses issued in 1-2 days.
Documents Required for Company Registration in UAE From Malaysia
If you’re a Malaysian entrepreneur looking to set up a business in the UAE, you’ll need to prepare certain documents to complete the company registration process. This typically includes:- Passport copies
- Visa copy (if the applicant is already in the UAE)
- Emirates ID (if applicable, for UAE residents)
- Trade name reservation certificate
- Memorandum of Association (MOA) (for Mainland companies)
- Bank reference letter
- Office lease agreement (Ejari or free zone lease contract)
- Business plan
- No Objection Certificate (NOC)
- Power of Attorney (POA) (If appointing a representative to handle registration on your behalf)
Type of Business License
To register a company in the UAE from Malaysia, choosing the right business license is crucial. Here are the main types of business licenses available in the UAE:
1. Commercial License
The Commercial License is for businesses involved in trading activities, including import/export, retail, and e-commerce. It allows entrepreneurs to engage in the sale and distribution of goods within the UAE and internationally.
2. Industrial License
The Industrial License is required for businesses engaged in manufacturing and production. This includes factories, food production units, and textile or machinery manufacturing companies that require industrial facilities and raw materials.
3. Professional License
The Professional License is ideal for service-based businesses such as consultancy firms, freelancers, artisans, and healthcare professionals. It is issued to individuals or companies providing specialized services based on their expertise.4. Freelance Permit
The Freelancer Permit is suitable for self-employed professionals in fields like digital marketing, content writing, IT, and photography. It allows individuals to operate independently without the need for a local sponsor or a physical office.
How to Register a Company in UAE From Malaysia?
Registering a company in the UAE from Malaysia involves several steps, from selecting a business activity to obtaining the necessary approvals. Here’s a step-by-step process:
1. Choose a Business Activity
The first step is to determine the nature of your business, whether it involves trading, consulting, manufacturing, or other services. The UAE offers various business licenses based on the activity you select.2. Select a Jurisdiction
You can set up your business in one of three jurisdictions:- Mainland: Allows you to operate anywhere in the UAE and internationally.
- Free Zone: Offers full foreign ownership, tax benefits, and easier company setup.
- Offshore: Suitable for international business and asset protection, but you cannot operate within the UAE market.
3. Choose a Company Structure
Select a suitable legal structure, such as a Sole Proprietorship, LLC (Limited Liability Company), Branch Office, or Free Zone Establishment, depending on your business type and ownership preferences.
4. Register the Trade Name
You must choose a unique trade name that complies with UAE regulations and register it with the Department of Economic Development (DED) or the relevant Free Zone authority.
5. Obtain Initial Approvals
Certain business activities require pre-approvals from specific government entities, such as the UAE Central Bank, Municipality, or Health Authority, depending on the industry.
6. Get the Business License
After submitting the required documents and approvals, you can obtain your Commercial, Industrial, Professional, or Tourism License from the relevant authority.
7. Apply for a UAE Residence Visa
As a Malaysian entrepreneur, you can apply for a UAE investor visa to reside and operate your business in the country. You can also sponsor visas for your employees and family members.
8. Open a Corporate Bank Account
Once your company is registered, you can open a business bank account with a UAE bank to manage transactions. Different banks have specific requirements, and choosing the right one is essential for smooth operations.
Shuraa Business Setup can assist you in the entire process, handling documentation, approvals, and company formation, ensuring a smooth and hassle-free setup.
How Much Does It Cost to Start a Business in Dubai from Malaysia?
The cost of registering a company in the UAE from Malaysia varies based on the business structure and location. For mainland companies, the commercial license fee starts from AED 12,900 annually. In free zones, the license cost ranges between AED 10,000 to AED 50,000 per year, depending on the selected free zone and business type. Additional costs may include trade name registration, visa fees, office space rental, and administrative charges.
Note: It is advisable to consult with a professional business setup consultant at Shuraa to obtain accurate and up-to-date information tailored to your specific needs.
How Shuraa Business Setup Can Help
Business setup in Dubai from Malaysia is a great opportunity to grow in a strong and tax-friendly market. With full foreign ownership in many sectors and easy business policies, the UAE is the perfect place for Malaysian entrepreneurs to expand. While the process may seem complicated, Shuraa Business Setup makes it simple.
We take care of everything, legal paperwork, company registration, bank account setup, visas, and even office space. Get in touch with Shuraa today and let us help you start your UAE business hassle-free.
