Thinking about expanding or to register a company in Dubai from Russia? You're not alone. Dubai has quickly become a hotspot for international entrepreneurs thanks to its attractive tax policies, thriving economy, and geographical location.
Business setup in Dubai for Russians offers the perfect mix of business-friendly regulations, political stability, and access to a booming international market. Bilateral trade between Russia and the UAE has also witnessed a significant increase. In 2022 alone, trade turnover surged by almost 68%, reaching a total of US$9 billion. The number of Russian companies registered in Dubai has experienced a substantial rise. Thousands of Russian businesses now operate in the emirate, across various sectors.
However, before you begin, understanding the Dubai company registration process, the legal requirements, and the necessary documentation is crucial to ensuring a smooth and successful setup.
To help you get started, we will walk you through everything you need to know about registering your business in Dubai from Russia to ensure a smooth and successful setup.
Why to Setup a Business in Dubai from Russia?
Dubai has emerged as a popular destination for Russian businesses seeking to expand their operations. Here are some key reasons why Russian entrepreneurs choose Dubai:
1. Ease of Business Setup
The UAE government has created a smooth and streamlined process for setting up businesses, especially in Dubai’s free zones. With full foreign ownership and simplified regulations, Russian entrepreneurs can establish their companies with ease.
2. Sanctions and Restrictions
The imposition of sanctions and restrictions on Russia has made it challenging for many businesses to operate in certain markets. Dubai's neutral stance and its position outside of these restrictions have made it an attractive alternative.
3. Free Trade Agreements
The UAE has signed numerous free trade agreements with other countries, which can reduce trade barriers and make it easier for Russian businesses to export their products and services.
4. Low Taxes
No doubt, Dubai is a tax haven for businesses, with zero to limited corporate tax and zero personal income taxes. This is especially appealing to Russian entrepreneurs who want to maximize profits and minimize tax liabilities
5. Attractive Residency Options
The UAE offers various residency options for investors, including long-term visas and the Golden Visa program which makes it easier for business owners and their families to reside in Dubai.
6. Free Trade Zones
Dubai offers a range of free trade zones (FTZs) and special economic zones (SEZs) that provide significant tax advantages and regulatory benefits. These zones attract businesses from around the world, including Russia.
Dubai's Business Setup Options
When it comes to register a business in the UAE, Russian investors have multiple options to choose from based on their goals and business needs. There are three main types of business setup options available in Dubai, UAE:
1. Free Zone Companies
Free zones are designated areas in Dubai that offer favourable business regulations and tax incentives for foreign investors. They are designed to attract specific industries and sectors, providing 100% foreign ownership without the need for a local sponsor.
Key benefits:- 100% foreign ownership.
- No corporate tax.
- 100% repatriation of profits.
- Simplified setup procedures.
- Access to a wide range of free zone benefits.
- No physical office requirements.
- International Free Zone Authority (IFZA)
- Jebel Ali Free Zone (JAFZA)
- Dubai Media City (DMC)
- Dubai International Financial Centre (DIFC)
- Dubai Multi Commodities Centre (DMCC)
- Ras Al Khaimah Economic Free Zone (RAKEZ)
2. Mainland Companies
Mainland companies are businesses that are registered with the Dubai Department of Economic Development (DED) and are allowed to operate anywhere in Dubai and the UAE without geographic restrictions.
Requirements for establishing a mainland company:- Trade license
- Local office and commercial license
- Compliance with local labor laws and regulations
- 100% foreign ownership, for many business activities.
- Businesses can engage in local sales and operations.
- Companies have access to the entire UAE market.
- No restrictions on commercial activities.
3. Offshore Companies
Offshore companies are incorporated in Dubai to conduct international business outside the UAE. These companies are often used for holding assets, tax planning, or international trade and do not conduct any local business in the UAE.
Purpose of Offshore Companies:- Offshore companies can be used for tax planning and optimization purposes.
- They can provide a layer of asset protection.
- Offshore companies can be used for international trade and investment activities.
Documents Required to Register a Business in Dubai from Russia
The specific documents required for business registration in Dubai can vary depending on the type of business entity you choose (free zone company, mainland company, or offshore company) and the nature of your business activities. However, here are some general documents that are typically required:
- Passport copies of the business owners
- Company name reservation form
- Business plan outlining your company's objectives, activities, and financial projections
- No objection certificate (NOC) from your home country (if applicable)
- Lease agreement for office space in Dubai (Ejari or Tenancy contract)
- Bank reference letter
- Additional approval and permits, if required
How to Register a Company in Dubai from Russia?
Here’s a step-by-step application process to start a business in Dubai from Russia:
1. Choose Your Business Activity and Jurisdiction
Determine what type of business you want to operate. This will affect the licenses and permits you need. Decide whether you want to establish a free zone, mainland, or offshore company based on your business goals.
2. Select a Trade Name
Choose a unique name for your business that complies with UAE naming regulations. You can check name availability through the Department of Economic Development (DED) or the relevant free zone authority.
3. Register your Business with DED
Submit your application for initial approval to the DED or the relevant free zone authority. This involves providing necessary documents like passport copies and business plans.
4. Rent an Office Space
Secure a physical office space (for mainland companies) or a virtual office (for free zone companies). You will need to provide a lease agreement as part of the registration process.
5. Obtain Necessary Licenses and Permits
Apply for the required licenses and permits based on your chosen business activity. This may include a commercial license, trade license, professional license, or specific industry-related permits.
6. Open a Corporate Bank Account
Choose a bank in Dubai to open a corporate account. Prepare the necessary documents, including your business license and company registration documents.
7. Apply for Visas
Once your company is registered, you can apply for investor and employee visas. This includes obtaining Emirates ID and residency visas for yourself and any staff.
Consult with our local business setup specialist in Dubai to ensure compliance with all regulations and requirements.
How Much Does It Cost to Register a Company in Dubai?
The license cost of registering a company in Dubai from Russia typically starts from AED 12,999* for Mainland LLC. Keep in mind that the cost can vary depending on several factors, including the type of business entity you choose (free zone company, mainland company, or offshore company), the size of your business, and the specific requirements for your industry.
Here are some of the potential costs:- Government fees
- Visa and work permit fees
- Office space rental
- Additional approvals
- Annual license renewal fees
It's essential to note that these are just some of the potential costs involved in registering and operating a business in Dubai. The actual costs will depend on your specific circumstances and the size and scope of your business.
How Shuraa Business Setup Can Help Russian Entrepreneurs
Company formation in Dubai from Russia comes with many benefits, like a friendly tax environment, easy access to new markets, and strong support for foreign investors. Dubai is a great place for Russian entrepreneurs to expand their businesses and explore new opportunities.
While the registration process can seem complicated, you don’t have to do it alone. There are experts ready to help you every step of the way. At Shuraa Business Setup, we offer complete business setup services, including handling paperwork, getting licenses, processing visas, and assisting with banking.
For Russian clients, there’s also tailored support, such as language help and legal services, to make things even simpler. With the right support, you can confidently start your business in this exciting city. Take the leap and start your journey in Dubai today.
