One of the world's most hospitable cities for international investment is Dubai. In recent years, the emirate has made it simpler than ever for business people to incorporate a business in Dubai.
Foreign entrepreneurs can benefit from the UAE's 0% corporate and personal income tax rate as well as the fact that, in the majority of circumstances, they are now free to maintain 100% ownership of their businesses.
Choosing between a mainland company and a free zone company is one of the first choices you must make when opening a business in Dubai. The ownership laws serve as the primary differentiation between the two.
Applicants must have a sponsor who is a UAE national and owns at least 51% of the company unless they work in sectors where 100% foreign ownership is permitted. Foreign nationals, however, are permitted to hold 100% of a company in a free zone without a local partner.
How To Start A Business In Dubai As A Foreigner?
Create a business plan
Starting a business anywhere, much less in a foreign country, is challenging. The process of starting a business requires a lot of planning and preparation. Developing a business plan that details your company's fundamental organizational structure is important.
Choose a business structure
You must choose a business activity that is reliable, matches your qualifications, and falls within your area of expertise. You must also decide on your company's legal structure, such as a limited liability company, partnership, or sole proprietorship. The most suitable setup and license type for your organization will depend on the kind of operations you plan to conduct.
Register the business name
In Dubai, naming a firm is a little different from how it is in most of the rest of the world. You must essentially follow a rigid set of naming conventions.
Avoid using any disrespectful or vulgar language. You are required to select a unique trade name that accurately defines your line of business in accordance with the policies and guidelines of the Department of Economic Development or the applicable free zone authority. Additionally, you must submit an application to the same body for initial approval, which is a certificate that enables you to move forward with the establishment of your business.
If you are forming a mainland company that requires local partners, draft a Memorandum of Association (MOA) which specifies the share capital, the profit and loss allocation, and the rights and obligations of each shareholder. In addition, UAE National, who will function as your administrative representative, must have signed a local service agent contract.
Select a suitable location
Your business must be situated in a location that is suitable for it, adheres to zoning requirements, and is safe and secure. You might also need additional government approvals from organizations like the Dubai Municipality, the Ministry of Health, or the Roads and Transport Authority, depending on your line of work.
Your passport copy, visa copy, NOC letter from the sponsor, MOA, LSA agreement, trade name reservation certificate, initial approval certificate, tenancy contact, and other relevant paperwork must all be submitted to the DED or the freezone authority. Fees for registering your business and obtaining your license must also be paid.
Depending on the sort of business you establish, you will receive your business license within a few days or perhaps immediately after your documents are verified and the fees are paid. Your license will make it easier for you to run your business in Dubai. Following that, you can begin marketing your goods or services, opening bank accounts, applying for visas, and hiring workers.