How to setup Civil Company in Dubai

If anyone searches to do a civil company formation in Dubai would face many choices. You can choose to form in one of the Dubai many free zones that benefit from zero percent corporate along with personal taxes. You could also set up the LLC in Dubai mainland. No need to hand over a 51% stake of your business to a local sponsor, it offers complete access to the UAE market that free zone businesses don’t.

There is a third option for overseas entrepreneurs of the civil company formation in Dubai. This includes 100% ownership, access to the local market, and involves unrestricted liability. The Dubai mainland company set up is open for qualified professionals, who are in specialist sectors like lawyers, doctors, accountants, consultants and engineers.

The civil company allows you to hold 100% ownership of your company. There is a rule to have a Local Service Agent (LSA) in the UAE, that is needed to form this type of a company in Dubai mainland. The Local service agent does not hold any stake in your business. LSAs would communicate with the government on your behalf, assisting the license approvals, work permit and visa applications, for which they have a percentage of company profits or an agreed fee.

The civil company formation in Dubai

If you are a professional and looking to make a name in the local market, then it is mandatory to understand whether the Civil company formation in Dubai serves the best option for you.

Easy and quick setup

The good news is that the set up of a civil company or civil company formation in Dubai is both easy and quick. You have to apply to the DED for your license. The government has taken the step to make the process more simple, you just need to meet the eligibility criteria.

Work with a local service agent (LSA)

Civil companies do not require to work with a local or corporate sponsor. You have to involve the LSA services to liaise with the government departments on your behalf. The LSA does not hold any company’s stake or on your business decisions. Trustworthy LSA can be found by the company formation specialist to ensure the whole process goes without a hitch.

Liabilities

The civil companies do have a 100% liability, this is important when you make the choice. You are not personally accountable for any debts of the company when you go for an LLC company formation in Dubai. This makes a great layer of protection. The civil company has 100% liability, that means creditors can go after your assets and possessions. The two different company types share certain similarities in terms of structure, like the event of liquidation and hence the difference becomes clear.

Ease to sponsor dependents

Will you be able to sponsor your employees for their visas?

As a shareholder of the civil company would sponsor their dependents for residence visas. To meet your application criteria, you can sponsor the visa for staff like your drivers, spouse and other dependents. The process is easy, you have to apply for the entry permit, medical fitness test, change of status, Emirates ID registration, and visa stamping. Get advice from an expert regarding this.

Affordability

New expat gets delayed due to the apparent cost of doing business, but it is possible to establish a business in the Emirates for a minimal outlay. You have to apply for your professional license in Dubai to form your civil company, this costs around AED 17,000. There is no requirement to provide the paid open share capital, while setting up a new civil company and total startup costs are low.

Multiple shareholders

This allows you to form your firm with more than one shareholder. The civil company formation in Dubai needs a minimum of two shareholders as well the maximum being 50. It can be either individuals or the corporate entity.

Multiple visas

The civil company formation in Dubai is popular with a larger firm. This allows the owner to apply for more visas, there is no upper limit for the mainland firm. The more visas you apply for, the more office space you must have. The rule of thumb is 100 sq feet of office space per visa. This visa rule can be negotiable with the DED. For instance, if you have a remote workforce of 500+ employees, then it requires more than 50,000 sq feet of the office space.

Your corporate bank account

Once obtaining your professional license and forming your civil company, it is speedy as well easy to open your bank account. The company formation expert advises the best bank to suit your requirements and also arrange meetings in-branch for you. You can even approach any local or international bank on your own.

Ways to set up a civil company in Dubai

The civil company holds a professional license in Dubai, the civil company formation in Dubai is the only company set up option that is made for professionals. To get a civil company in the UAE is a jump to a market, for which you get qualified and hope to enter. The benefits are 100% foreign ownership and full access to the local market.

The approach also comes with a risk compared to an LLC. In this type of setup, you hold the large responsibility of your company share. You have to be serious, if you go for a not plain closing, as the owner of the firm you would lose much more than your company. The advice of the consultant is the key and this needs to be taken as an account of a serious issue.

If you are aware of all the hurdles that come your way of being an owner of the firm, then nothing can stop you to fulfill your dream. Ensure to get advice from Black Swan Business Setup Service team to start your firm smoothly. Blackswan BSS can help you in step by step for Setting up a Civil Company in Dubai.

Originally posted 2021-09-29 09:53:57.