Frequently Asked Questions
Business Setup Services In Dubai, UAE
Why Set Up A Business In Dubai?
The business setup in Dubai is one of the dream objectives of those business owners who are well-informed and well-versed with the current circumstances in Dubai. The cosmopolitan metropolis is becoming one of the most important business hubs as a result of its ability to entice businesspeople from all over the world, including marketers, buyers, and sellers. Following are the major advantages of business setup in Dubai:
- The strategic location of Dubai enhances its significance in trading
- The policies of Dubai will help you achieve the proprietorship of your business
- There are three business structures available: Mainland, Offshore and Freezone. Based on your setup type, you can choose the structure
- Despite its ever-elevating demand, the taxation rates are low
- Dubai is booming in infrastructure as well, therefore, it becomes easier for you to find an appropriate workspace
What Is The Cost Of Starting A Company In Dubai?
The cost of starting a company in Dubai can be categories in two broad segments, viz; legal cost and rent. However, it is also important to note in the initial stage the type of business you want to do. Different business type will have different business structure and so will be the cost incurred in operating them. For instance, the cost of manufacturing unit will always be higher than the services.
The legal cost includes the professional fees and the charges of the government. It ranges between $2000-10,000 USD (7,346-36,730 UAE Dirham).
Prices for Dubai’s commercial office space range from $30 to $200 per square foot. Retail space in Dubai can cost anywhere from $90 to $500 per square foot. In other locations of the UAE, commercial leases might be found at lower rates. When all of the aforementioned steps have been taken, you will be ready to launch your business in Dubai. While there is an opportunity for profit in Dubai, the biggest obstacle is maintaining a healthy cash flow.
Can Foreigners Start A Business In Dubai?
You are going to be taken aback when you learn that only 15 per cent of residents in Dubai are locals, while the remaining 85 per cent are ex-pats. The cosmopolitan emirate is welcoming to visitors from other countries, and there is no sense of isolation, as one could have when travelling to a country in which they do not have a native population.
The business environment of Dubai is quite friendly, given that the fundamental rules are considered. For example, the name of the business should not violate the laws of the country by any means. There should not be any religious inclination taglines or business names. Also, most important, the legal forms of the company must be followed, for example –LLC, FZE, etc.
Nevertheless, the first priority should be to find a suitable business agent and consultant to help you navigate through the process.
Do I Need A Sponsor To Start A Business In The UAE?
To get a better grasp on this subject, you need first familiarise yourself with the many types of business structures that exist in Dubai. Mainland, Freezone, and Offshore are the three primary business formats that are applied in Dubai. The proper organisational structure for a company will be established according to the kind of commercial activity being carried out.
Because of this, in the beginning, phases of the business, we are expected to know if the operations are taking place on the mainland of Dubai or in a free zone. It is required to have a native Dubai sponsor if the establishment of the firm takes place on the mainland of Dubai, and it is essential to keep in mind that the local sponsor will be in charge of managing 51% of the company at all times. If, on the other hand, the company operates within the parameters of the Freezone business structure, there is no requirement for local sponsorship.
There are three mediums by which a foreigner can raise sponsorship for doing business in Dubai’s mainland:
- Individual sponsorship
- Corporate sponsorship
- Local Service Agent
What Is The Cost To Set Up A Company In Dubai?
Have you thought of opening a company in Dubai, United Arab Emirates? Before you begin the process of forming a business in the UAE, you need to make certain that you have selected the “free zone” that will provide you with the most favourable conditions for establishing your company. When picking from among the thirty free zones that are available in Dubai, this company planning in the UAE may become rather challenging and even complex.
- The fee for registering a company is:
The fee for registering a company in Dubai is a one-time payment that must be made to the Dubai free zone authorities during the initial stages of the process of registering a firm. Nevertheless, the specific fee for company registration will be determined based on the local legal structures. The fees associated with “registering a company in the Dubai free zone” do not typically display an unusually wide range of variation; rather, they are typically somewhere in the vicinity of AED 9,000 and AED 10,000.
- Cost of the License:
The acquisition of the necessary business licence constitutes an essential stage in the process of establishing a company in one of Dubai’s free zones. A trading licence, a services licence, and an industrial sector licence are the three business licences that are considered to be the most essential. Although the expense for registering a company in Dubai is a one-time payment, the annual fee for a trading licence can be anywhere from 10,000 to 50,000 UAE Dirhams.
- Fee for the Office:
Renting an office space in Dubai is a necessary step in the process of acquiring a business licence in that city. Every free zone in Dubai provides a variety of workspace options to meet the needs of a variety of businesses, including service, smart, and flexible desks. In Dubai, the cost of renting an office will normally range between AED 15,000 and AED 20,000 per month. At Make My Company, we provide a variety of all-in-one office solutions that are suitable for any new business established in Dubai, regardless of its size. These solutions are ideal for both small and large companies. My company offers a wide choice of serviced desks, individual coworking offices and spaces, as well as premium business centres in
Dubai. Each one comes complete with a diverse assortment of essential amenities, making it possible to launch and grow your ideal company in Dubai.
- Capitalization of Shares:
The “share capital amount” that is required as a bare minimum can vary, particularly from one Dubai free zone to the next. This “share capital amount” can be anywhere from AED 1,000 to AED 1,000,000, depending on the nature of the business activities and the types of licences that are being applied for. AED 50,000 is the “average share capital requirement” for businesses looking to set up shop in one of Dubai’s free zones.
What Is A Trade License?
The UAE municipal corporation or the state government are the two entities that are responsible for issuing trade licences, and almost any company operating in the UAE will be required to have one. Business Trade License in Dubai is the legal approval document from the UAE authority that permits you and required certifications that you will have to carry for any desired trade or business activities in the UAE. If you wish to engage in any commercial or business activities in the UAE, you will be required to have this licence. It is crucial that you realise that obtaining this permit does not give you ownership of the land or any authorization or grant for other business activity other than the one for which it is issued.
Make My Company works closely with the UAE “municipal corporation authorised licence department” as well as a variety of other industry-specific advisory departments in Dubai to help clients obtain licences for their businesses during the business setup process. For instance, the health care industry, the construction and engineering industry, the real estate industry, and a great many others.
In this regard, it is vital for the company formation in Dubai to get the requisite main licences from the local agencies responsible for the issuance of licences before beginning the manufacture, storing, or exchanging of any other activity. Before beginning operations in the United Arab Emirates (UAE), the business application needs to be diligently submitted to the “Commissioner in the Corporation” and verified within the allotted time frame of “30 days.” At the time that the application for the company setup licence is being submitted, the startup is expected to hand in all of the necessary legal documents.
Can A Freezone Company Do "Business In Dubai Mainland"?
The United Arab Emirates Free Zones are the best and most popular choice for almost all investors when conducting business in the Mainland of Dubai. This is due to the many advantages offered by these zones, which include a “tax-free zone,” a grant of 100 per cent foreign ownership, and the simplicity of establishing a company in Dubai, United Arab Emirates.
Even if your intended business is successful in Dubai, there will come a time when you have to test new things and broaden your operations into other areas of the United Arab Emirates that are not considered “free zones.”
The company that was established in the “Freezone” has the ability to conduct business on the Mainland as well; nevertheless, it is limited to the numerous restrictions imposed by the local legislation and the authorities of the UAE.
Indeed, any business that focuses on providing services is qualified to create a branch of a “UAE Free Zone company” or can become a “100 percent subsidiary” of any “Free Zone company formed on the mainland.” Both of these options are open to entrepreneurs. During the process of founding the corporate branch, a citizen of the UAE who will serve as the UAE-based “Local Service Agent” might be appointed or elected.
By adhering to the different customs processes that are specific to the UAE, “Free Zone trading companies” operating in the UAE are able to export their products and goods to enterprises located on the “Mainland.”
Even though the United Arab Emirates (UAE) Free Zones are physically located within the UAE, they are legitimately deemed to fall under a different legal jurisdiction for any and all trade activity.