The UAE is a global business hub for Indian businessmen. According to sources, more than 30% of entrepreneurs have registered a company in the UAE. The number of Indians starting a business in the UAE is increasing yearly. More than 50,000+ entrepreneurs have registered a company in the UAE.
Registering a company in the UAE is easy and efficient, but it can sometimes be confusing for you in many other ways. Business owners who want to start a business must choose the various types of licenses available, depending on the nature of their business and the right jurisdiction for the business. A business plan is important to run a business in the UAE. You need to know the benefits, what name you should choose, documentation, costs, etc.
In this blog, we will help you get all the required documents, licenses, and permits to run your business. Continue to read more.
Why Register a Company in the UAE?
Registering a company in the UAE offers many benefits. The main advantage is the location, which is between Europe, Asia, and Africa. This is why the UAE is the key hub for setting up a business. The second most important benefit is the tax benefits. Yes, you heard it right. There is no corporate tax for most companies and no personal income tax.
You get 100% foreign ownership and provide customs advantages for importing and exporting goods. These factors, along with a business-friendly environment and a strong economy, make the UAE a great place to start and grow a business.
Types of Company Registration in Dubai
There are three types of company registration in Dubai: Mainland, Free Zone, and Offshore. Each jurisdiction has its laws and rules.Mainland Company Formation
A Mainland company is a business entity officially registered with the Department of Economic Development (DED) in its emirate. Registering a company on the mainland helps businesses operate in the UAE and abroad. There are many benefits to forming a Mainland company, including:- 100% foreign ownership for 1000+ activities
- No restrictions on Trade within the UAE
- Wide range of business activities
- Streamlined company formation process
Free Zone Company Formation
Free Zones are special economic free zones in Dubai that attract investors and entrepreneurs. A Free Zone company formation offers 100% foreign ownership & simplified business setup. Not only this, registering a company in the Free Zone has many benefits:- Tax exemptions
- Streamline company registration process
- 100% ownership
- Enjoy world-class infrastructure and facilities in the free zone.
- International Freezone Authority (IFZA)
- Jebel Ali Freezone (JAFZA)
- Ras Al Khaimah Economic Zone (RAKEZ)
- Dubai Multi Commodities Centre (DMCC)
- Dubai International Financial Centre (DIFC)
Offshore Company Formation
An Offshore company is a business entity established outside the country where it conducts most of its operations. Registering a Company in the Offshore Company Formation has many benefits:
- They are often used for asset protection
- Tax optimisation
- Ease of global transactions
- Your assets are safeguarded from business liabilities
Offshore company formation must comply with local and international regulations, including anti-money laundering laws and reporting requirements.
Steps to Register a Company in UAE
Registering a company in the UAE is not as difficult as it seems. You can set up a business in the UAE with the proper guidance. You can contact Shuraa Business Setup for help with the company formation. Below are the steps which will help you to register a company in the UAE:Step 1: Select a Business Activity
The first step is to select a business activity. Do proper marketing research before starting a business. Proper research is important as it will help you to know what's going on in the UAE market. Once you finish the analysis and research, you can start a business in Dubai.Step 2: Select a Company Formation
Once you have a business activity, the next step is to select a jurisdiction. There are three company formations in the UAE:- Mainland Company Formation
- Free Zone Company Formation
- Offshore Company Formation
Each jurisdiction has advantages and a set of laws and rules. The jurisdiction depends on your business requirements. If you are still determining which jurisdiction will be right for your business, contact our Shuraa experts. Our experts will help you choose the right one for your business needs.
Step 3: Choose a legal structure
Once you have chosen a jurisdiction for your business, the third step is to choose a legal structure to register a company in the UAE. This helps you decide on the legal form or your company structure. There are different legal structures in which you can register your business in the UAE:
- Limited liability company (LLC)
- Sole Establishment
- GCC company branch
- Local company branch
- Free zone company branch
- Foreign company branch
Step 4: Get a trade name and approvals
In this step, you must choose a good name for your business. Remember to follow the guidelines of the Department of Economic Development (DED).
Avoid using existing trade names. You will get a list of existing company names, and you can check the same. Once you have chosen a trade name for your business, you must get the DED's approval.
Step 5: Get Business License
The next step is to apply for a business license to operate legally in the UAE. The type of business license depends on the chosen business activity. There are generally four types of business licenses available in the UAE. This includes:
To get a trade license in the Free Zone, you must get the permits from the relevant free zone authorities. Additional approvals and permits might be required Depending on your business activity
Step 6: Rent an office space
Renting an office is important on the Mainland as you need physical space to operate your business. You can choose your office according to your business requirements and get an EJARI certificate. There are multiple options, including a shared desk, a virtual office, or a flexi desk. In Free zones, renting an office is not required, as having a physical space is optional.
Step 7: Open a Corporate Bank Account
Opening a corporate bank account in the UAE is important for your business. It will help you keep track of your business's financial status and cash flow. You can open a bank account with a local or international bank in Dubai.
The documents required to open a corporate bank account are:- You need your company registration certificate
- A trade license
- Passport copies of shareholders
- Proof of address
Step 8: Employment Visas and Permits
If employees work for your company, you must sponsor their visas with the General Directorate of Residency and Foreigners Affairs Dubai, or GDRFA. Documents required for the Immigration process are as follows:- Employment contracts
- Passport copies
- Medical fitness certificates
These are the general steps that will help you register a company in UAE. If you are stuck somewhere with the company formation process, you can contact our Shuraa experts, who have extensive years of experience in business setup in the UAE. We provide end-to-end business services to people who want to start a business.
Documents Required to Register a Company in the UAE
Below are the documents required to register a company in the UAE:- Your Valid Passport for all stakeholders
- Memorandum of Association (MOA)
- Trade name approval
- EJARI registration certificate
- Business plan
- Additional documents as per your business activity and location
Cost of registering a company in the UAE
The basic license cost to register a company in the UAE generally starts from AED 12,900*. However, the overall cost of the business setup can vary depending on several factors:- Type of business activity
- Type of business license
- Business Location
- Office rent
- Visa requirements
- Additional approvals and permits
Register a company with Shuraa
Dubai has always been a top priority for entrepreneurs from India who want to establish a business there. However, company registration in Dubai can be complicated for those unfamiliar with the local rules and formation. When forming a company, you need help from a trusted business setup consultant like Shuraa.
Shuraa experts have been in the business setup game for 23+ years. Shuraa has experts who are good at forming a company in the UAE. We provide a full range of services, including company registration, documentation, translation, sponsorship support, business licensing, office space solutions, and ongoing PRO services. Contact Shuraa today!
