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Date: 23-10-2024
Dubai offers a unique combination of factors that make it an ideal location for businesses. Some of the key advantages include:
Mainland companies allow businesses to operate within the local market and outside the UAE without restrictions. However, this type of company generally requires a local sponsor who holds 51% of the shares, except in some specific industries.
Dubai offers over 30 free zones, where businesses can enjoy 100% foreign ownership, tax exemptions, and full repatriation of profits. Each free zone caters to specific industries, so choosing the right one depends on your business activity.
Offshore companies in Dubai are ideal for international business, offering confidentiality, tax benefits, and no requirement for a physical office. However, these companies are not allowed to conduct business within the UAE.
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The first step in forming your company is to select a business activity that aligns with your goals. Dubai offers a wide range of business activities, from trading and consulting to manufacturing and service-based industries.
Choosing the right legal structure is crucial. Depending on your business activity and goals, you can opt for a mainland, free zone, or offshore company. Each structure has its own set of rules regarding ownership, taxation, and operational scope.
Your company's trade name should be unique and comply with Dubai's naming regulations. Ensure that the name reflects the nature of your business and adheres to the specific guidelines provided by the Dubai Department of Economic Development (DED).
Once you have your business name and structure in place, you will need to obtain initial approvals from the relevant authorities. These approvals are mandatory before you can proceed with the formalities of business setup.
The next step involves submitting all required documents, including a completed application form, passport copies, and relevant approvals to the concerned authorities. In some cases, you may also need to draft a Memorandum of Association (MOA).
On average, it takes 1-2 weeks to complete the company formation process in Dubai, depending on the type of company and business activity.
Yes, foreigners can fully own a company in Dubai if they set up their business in a free zone. Mainland companies require a local sponsor unless it is an exception under specific regulations.
Most businesses in Dubai enjoy 0% corporate tax and 0% personal income tax, especially those set up in free zones.
Mainland companies require a physical office, while free zones offer more flexibility, allowing businesses to opt for virtual offices or shared spaces.
Some popular free zones in Dubai include Dubai Multi Commodities Centre (DMCC), Dubai International Financial Centre (DIFC), and Jebel Ali Free Zone (JAFZA).