Business Setup in Dubai – Business Setup Service Consultant in Dubai

• Al Karama
• Al Quoz
• Al Qusais
• Bur Dubai
• Business Bay
• Deira
• Jumeirah
• Shaikh Zayed Road

General Partnership, Public Shareholding Company, Private Shareholding Company, Limited Liability Company, Free Zone Companies (FZC and FZE), Branch Office

Two or more partners are required to form a general partnership business. The partners must be Emirati nationals and will share responsibility for the company’s debts equally. Only the names of the partners can be part of the entity’s name if certain conditions are met. The partnership agreement might document each partner’s stake. In the following situations, the partnership will dissolve:

• The death of one member
• Bankruptcy of a partner
• Withdrawal of a partner
• Insanity of a partner

• General partnership
• Simple limited partnership
• Partnerships-en-comandante

Public Joint Stock Companies are another name for these businesses. Equal shares of the capital are distributed. In most circumstances, at least 10 founders are required to form a Public Shareholding Company. PSCs must have a minimum capital requirement of AED 10 million. A minimum of three directors are required on the board of directors. Another requirement is that the Chairman of the Board of Directors, as well as the majority of the board of directors, be Emirati nationals. Only 35% of the share capital will be kept by the founders, with the remainder having to be sold to the general public. Each member of a PSC is exclusively responsible for the value of the shares he owns.

In Dubai, a private shareholding company is comparable to a public one. To form a PrSC, you must have at least three shareholders. The shares, however, are not available to the general public. If any shares will be made available to the public, it must be stated in the documentation.

In Dubai, the most frequent type of business formation is an LLC. These businesses can be established on the Dubai mainland. An LLC licence grants you full operational rights in the United Arab Emirates. There is a minimum capital requirement for these businesses, which varies depending on the type of business. You must have actual offices in the nation to form an LLC. An LLC’s foreign owners are limited to owning no more than 49 percent of the company’s shares.

Free zone has two main types of companies:

• Free Zone Companies
• Free Zone Establishments

These establishments can include branches of foreign organizations operating with the same name in Dubai. Branches of free zone companies, GCC companies, and civil companies also fall under the same category.

The three types of licenses offered in Dubai are: Commercial License, Industrial License & Professional License

A commercial license has to be obtained by entrepreneurs who wish to conduct trading activities in Dubai. The business activities under this license are:

• Commercial brokerage services
• Importing & exporting goods
• Real Estate
• Rent-a-car services
• Retail stores
• Selling electronic products
• Selling of construction material

• Firstly, list of the activities you intend to carry out has to be established to obtain a commercial license.
• The next stage is writing a Memorandum of Agreement (MOA) outlining the activities.
• The third stage is to register the business with the Department of Economic Development.
• You’ll need to pay the money and apply for a commercial licence, after you’ve completed the registration process.

Industries undertaking manufacture activities like Production, Segregation, Accumulation, Packaging get this type of license.

Industrial license to business-owners is provided by the DED. the eligibility for license has few prerequisites like

• Local Sponsor

• Office Space

• Local Industrial License

• Minimum Capital Requirement

• Number of Workers

• To begin, documents must be submitted to the DED for preliminary approval.
• You can apply for an industrial license after receiving clearance that could take up to three months.
• Permissions from the municipality and other authorities have to be obtained.

Depending on abilities and knowledge, Individuals are granted the third and final sort of licence The most significant benefit of a professional licence is that it permits 100% foreign ownership. The only stipulation is that your service agent must be a local.

The professional license in Dubai is provided by the Department of Economic Development. The process for obtaining the license is includes:

• Firstly, make a list of business activities for the professional license which you will undertake.
• Service agent appointment.
• Submission of documents to the DED for initial approval.
• Trade name application and registration
• Renting office space and submission of documents.

This is a major factor where a realistic calculation will enable better planning. Cost affecting factors are

• business license type
• The type of business you

• Rental charges
• DED fees
• mainland trade license fees
• Administrative fee
• One-time Contracting license fee
• Brokerage Fee

The investor visa costs approximately 3200 AED including basic insurance, medical and Emirates ID.

The average cost for hiring an employee is between 7000 to 7500 AED approximately including insurance, medical and residency card.

In Dubai, starting a business is a quick and painless process. Before a business owner can open up shop in Dubai, several paperworks must be checked and a few approvals from government officials must be obtained. Although the application procedure for starting a business in Dubai is simple, someone with limited awareness of how things work in Dubai may be unable to finish it. The steps to set up a business in Dubai are following:

• If someone wants to start a business on the mainland of Dubai, they should first get a UAE citizen as local sponsor.
• After obtaining a sponsor, the next step is to secure a letter of authorization from the local sponsor.
• The company’s Memorandum of Agreement is now being prepared. The Memorandum of Association (MoA) lay forth the essential terms under which the firm will operate.
• The business owner must get first clearance from the Dubai Department of Economic Development (DED) at this stage.
• The firm must be registered under a distinctive trade name after receiving first permission from the DED.
• Once the business’s trade name has been finalised, the proprietor must hunt for a physical office location for their company.
• The business owner must apply for a trade licence after establishing a physical office.
• The business will be set up in Dubai within a week after acquiring a trading licence.

Personal and corporate taxes are exemption for mainland companies. But there is no exemption for municipality and custom tax.

The amount of minimum share capital required is unrestricted. Most free zones have a set of minimum values that each business operating in the zone must declare.

There is more flexibility and lesser restrictions for mainland companies with option to operate anywhere. But restrictions for free zone companies prevail. Businesses on the Dubai mainland are also permitted to trade with other companies in Dubai or the United Arab Emirates. Unlike free zone companies, you won’t have to worry about legal consequences if you want to engage in any type of trade. Of course, there are criteria that must be fulfilled. However, the majorities of administrative procedures is straightforward and require little time to complete.

Many free zones prohibit businesses from engaging in activities that are not relevant to the sector. For example, in a free zone where you can create a financial management firm, you might not be able to open a different type of business. Even if it is a possibility, you will need to follow legal procedures to obtain the necessary approvals. As a result, there will be limited company diversification inside free zones. This will not be an issue for mainland businesses. You can engage in a variety of business activities on the Dubai mainland without having to deal with any complications.

Diversification and expansion along with rental options are possible with mainland businesses.

Visa can be obtained for many employees by a mainland company owner and depends on the office space. Furthermore, the registration procedures are much more efficient. There are no limitations on currency or recruitment, and annual audits are not required. Overall, establishing a firm on the mainland of Dubai allows for greater commercial growth and easier adaptation to new markets.