How to start a business in Dubai

Dubai is of the most attractive investment destinations in the world. You already know why you should invest in this vibrant bustling business hub of the MENA region; but having decided to invest, how to start a business in Dubai?

The following is a primer on the options available to you.

COMPANY FORMATION IN DUBAI

A foreign company looking to explore-"how to start a business in Dubai, UAE" can set up as a branch office, a representative office, or a registered company. There are three jurisdictions available for a new business to register under : Mainland, Free Zones, and Offshore. All three have their own regulatory and operational systems.

It is vital  that you have complete understanding of the three jurisdictions and your options in each one vis-à-vis your goals and objectives. Your choice will decide how well you achieve them.

The following are some important information on each jurisdiction:

UAE Mainland

UAE mainland refers to the jurisdiction of standard / regular onshore incorporation. UAE mainland is the total geographical area, permitted by the Department of Economic Development (DED) of the respective emirate, in this case Dubai, for businesses to operate within.

Key advantages of the UAE Mainland license:

• No minimum capital requirement for company formation
• Simple and quick registration process
• Flexibility to set up offices and do business anywhere in the UAE
• Ability to take up work from both private and public sectors
• No cap on the number of visas issued (subject to office size)
• Ability to repatriate capital and profits up to 100%
• Exemption from corporate and income tax
• No annual audits required
• Flexibility to expand their businesses into different industries
• 100% foreign ownership allowed for specified business activities*

(* This is a recent development which came into effect from June 1, 2021. Prior to this, a minimum of 51% stake had to be mandatorily owned by a UAE National or entity in all Mainland companies)

UAE Free Zone

The UAE Free Zones, also known as Free Trade Zones, are special economic enclaves within the country. They were set up to be governed by special autonomous business-friendly laws and regulations to incentivize foreign investment. It has been a successful move and these zones have attracted huge global investments and played a stellar role in the UAE’s economic growth story.

The zones each usually specialize in specific sectors. Some of the more prominent sectors in Dubai include trade and logistics, commodities, IT, media, and education. Dubai has over 30 Free Zones in all.

Key advantages of a Free Zone license:

• Simple and quick set up
• 100% foreign ownership
• 100% repatriation of capital and profit
• No corporate or income tax
• No import and export tax
• Many designated Free Zones are VAT-exempt
• No visa restrictions
• Ability to recruit a skilled and diverse workforce
• Single window clearances for administrative work
• Logistical advantages
• Superb plug-and-play infrastructure

UAE Offshore

An offshore company is a business entity that operates from outside the country of its official registration or the location of its owners and stakeholders. Jebel Ali in Dubai is one of the jurisdictions in the UAE where an Offshore company can be formed. Offshore establishments have been well supported by the government in terms of liquidity, taxation, and ownership laws.

Key Advantages of an Offshore setup:

• Simple and quick set up: typically, 3-4 working days after document submission
• 100% full foreign ownership permitted
• Shares are transferrable by a written contract or deed
• Shareholders’ liability is limited to their capital share in the company
• Confidentiality of company beneficiaries’ names
• Subject to there being no suspicion of malicious or criminal activity
• Mostly exempt from corporate tax
• Businesses like tobacco and alcohol must pay municipal tax and duties
• No minimum share capital requirements either
• Flexibility to not have a physical office location with employees
• Can be represented by a law firm and accountant (subject to registrar approval)
• Lower operating costs typically
• Means for asset protection, international trading, tax planning, share acquisitions in other firms, real estate buying in the UAE (designated areas), trust funds, etc.

These benefits have attracted investors and multinational companies from around the globe.

SETTING UP YOUR UAE BUSINESS WITH MBG CORPORATE SERVICES

At MBG Corporate Services, we help with all your questions related to-"How to start a business in Dubai". We deliver the best benefits and expedite the company formation in Dubai, or indeed, anywhere in the UAE. Our services cover the entire spectrum of company formation procedures in the Mainland, Free Zones or Offshore. From company registration and trade license acquisition to contract drafting and notarization of documents, we guide you at every step of the process. Our consultants work closely with ministries, government bodies, and other relevant authorities in Dubai and across the UAE to ensure you get speedy government approvals and that we set up your company smoothly and quickly.

Some of our key Business Setup Services include:

• Sponsorship services
• PRO services
• Liquidation services
• Trade licensing and business registration
• Draft memorandum of understanding
• DED approvals
• Office rentals and setup

Over and above this, we offer high quality consultancy and advisory services to grow your business post- setup. These include Strategy & Transformation, Mergers & Acquisitions, Legal, Tax, Unified In-Country Value, and Technology – all customized to your needs and goals.

With decades long experience, best-in-class consultants and presence across continents, MBG Corporate Services is your ideal one-stop shop to set up your business in Dubai.

 Contact us and say Ahlan! to your new dream business in Dubai!