Setup your Business in Dubai

Setting Up a Business in Dubai

Entrepreneurs from all around the world choose to invest in businesses in the UAE, as well as setup a business in Dubai. For over many decades, Dubai has established a well-known reputation as a profitable destination for investment and business. The city has transformed its local and international trading community making it a successful environment for a commercial and corporate number of diverse business sectors. Dubai has a growing multi-jurisdictional nature, with the absence of income tax for registered mainland and free zone trades, it has become the main trading center in the region for local and foreign companies who wish to setup a business in Dubai.

Mainland Dubai

To set up your business in Dubai mainland, you need to register and acquire the Trade licensing of corporate entities from Dubai’s Department of Economic Development (DED). The Commercial Companies Law (CCL) is the federal law that regulates all business entities set up in Dubai mainland and regulates corporates business entities set up in UAE.

Free Trade Zones in Dubai

UAE’s free trade zones are economic areas where the goods and services can be traded, with preferential tax and customs rates. The main purpose of the free trade zone is to boost international businesses in the regions by offering benefits. UAE has free zones and it has evolved with an increasing advantage over the years.  Free zones are suitable for specific industries or business types.

• Why setup your business in a free trade zone in UAE?

There are many advantages to set up a business in Dubai, UAE free zone. Some of these include Easy setup, the tax, and duty regime, 100% foreign ownership in the UAE, the opportunity to conduct trading within the UAE, receiving support and assistance, and the privacy protection policy.

Limited Liability Company (LLC)

The most common way to set up a business in Dubai is to form a Limited Liability Company (LLC). When a business is formed as LLC, the Commercial Companies law proposes that at least 51% of the shares be registered with a UAE legal person or nature. Commonly referred to as a local partner. When the LLC is formed with a Local partner and is owned by a foreign investor, the Memorandum of Association can be structured to transfer all authorities, rights, and powers to operate/manage and ability to make decisions in the LLC to the foreign investor.

Off-shore Company in Dubai

Off-shore companies are business entities that are generally used as a holding company in the UAE. For instance, the Jebel Ali Free Zone in Dubai offers the concept of Offshore Companies in the UAE. It is easy and quick to setup a business in Dubai with an Offshore structure. And there is no limitation on foreign ownership and no minimum share capital requirement. Businesses setting up as an offshore company in Dubai can open and operate bank accounts and own investment inside and outside of the UAE. another advantage is in the Dubai property Ownership. Incorporated offshore companies in the Jebel Ali Free Zone can own real estate in Dubai in certain areas. Generating income from the real estate investment, which can be held in the company bank account.

Is Dubai a good place to set up a Business?

There are many advantages that makes Dubai not only an ideal but profitable business hub in the UAE. The key factors that make Dubai an ideal destination to start a business are:

• The vibrant and growing economy
• The concept of visionary leadership encouraging modern advancements in the city
• A well-suited investment atmosphere with government support
• The Free Zones in the UAE
• The fair tax regime
• The geographical location suiting the strategy of diver business sectors
• The UAE legal system
• The advanced infrastructures in the city
• The availability of Human Resources
• The city possesses a secure and stable political and social environment

Common Business structures preferred in Dubai

Dubai provides various options and trade licenses valid to establish a business structure in the city. These are the common business structures preferred in Dubai.

1. General Partnership
2. Partnership Limited by Liability
3. Joint Venture
4. Public Joint Stock
5. Private Joint Stock
6. LLC
7. Partnership Limited by Shares