Registering a company in Dubai: How easy is it really?

The Dubai Company Act, in a majority of cases, deems it necessary for foreign investors to have a local partner with the majority interest. However, foreigners can fully own companies in free zones, which is why most people show an interest in Dubai freezone company formation.

If anything, requirements for company registrations tend to differ from case to case. This particularly depends on the type of company that you are interested in opening. The different types of companies that can be set up in Dubai include:

– partnerships

– limited liability companies

– branch offices

– private and public joint stock companies

– subsidiaries

– free zone establishments

– free zone limited liability companies

Requirements

Foreign investors need to take the following requirements into consideration when setting up a company in Dubai:

– shareholding structure

– minimum share capital requirements

– business licensing requirements

As per the Commercial Law, there is no need for limited liability companies to deposit a minimum share capital prior to registration. For this reason, the shareholders have complete control over the amount required for them to attain their business goals.

Now, the different types of business licenses issued by the Dubai Chamber of Commerce and Industry (DCCI) are:

– Professional licenses

Industrial licenses

Commercial or trade licenses

Other requirements for opening a company in Dubai

There are a few other requirements that need to be fulfilled by investors who are interested in opening a company in Dubai. These are inclusive of:

– An operational corporate bank account

– Ensuring that all native workers are registered with the Ministry of Labor

– Ensuring that all native workers are registered with the social security authorities

– Drafting and getting the company memorandum notarized

– Drafting and getting the company’s articles of association notarized

Differences between offshore and on-shore companies in Dubai

There are different procedures and requirements for opening an on-shore and an offshore company in Dubai. The basic differences between both are:

– There are no special requirements or limitations as such for offshore companies in terms of owners and shareholders of the company

– Onshore companies are not allowed to retain full foreign ownership. This means that the company must be sponsored by a local

– UAE offshore companies do not pay corporate tax, whereas onshore ones have several tax obligations

– Offshore companies are not allowed to function within UAE, while onshore companies do business within UAE

For more information about setting up a business in Dubai, make sure that you get in touch with us at crosslink.ae right now!