Dubai, one of the world’s most vibrant cities, has successfully established itself as the number one choice when it comes to environment and company formation. the city has a number of free trade zones that encourage entrepreneurs and investors to direct their thought processes towards starting a business in Dubai. If you’re thinking of joining the thousands of business owners and business the good news is that company formation in Dubai is a relatively simple and speedy process with strong incentives, here is how to setup a business in Dubai a tax-free zone:
Decide on a business activity
The nature of your business can have a bearing on where you can or should set up in Dubai. For example, some free zones only allow certain types of business activities, such as media, medical or transport, and Aside from the restrictions, it often makes sense to set up in close proximity to businesses in the same sector.
Choose a company name
The UAE has some strict naming policies, so before you commit to a company name, make sure it conforms to then. Any name that includes offensive language forbidden, as are company names that refer to Allah, Him or any other religious, sectarian or political groups, like FBI or Mafia. If you choose to name your business after a person, that person must be a partner or owner of the company and the full name must be used – no initials or abbreviations. A business setup expert will be able to give you an idea on all the naming policies for business in UAE.
Apply for a business license
After choosing a trade name you have to apply for a business license. The list of the different business licenses issued by the free zone authorities has been stated above. The type of business license depends on the primary activity of your business. You need to submit the supporting documents while applying for the license.
Finish all the paperwork for company registration and licensing
You will be required to complete an application for company registration, to be provided together with copies of shareholders’ passports to relevant government authorities. Some free zones require additional documentation, such as a business plan or No Objection Certificate (NOC) – a letter from a current sponsor confirming that you are allowed to set up a business in the UAE. While perhaps the most arduous of all these steps, the paperwork does not have to be too taxing providing it is undertaken with expert help. Your business set-up consultants can advise you on the paperwork required and help in the processing.
Once the application has been approved, the government will issue the company license.
Open a bank account
You will have all the documentation you need to open your corporate bank account as well. The UAE is home to many banks, both local and international. You can either approach the bank of your choice or ask your business setup consultants to arrange meetings with a number of financial institutions to help you choose the most suitable option. Some of the documents required
- A corporate account opening form
- A board of directors’ resolution sanctioning the opening of the account, and the signatories to the account
- A copy of your company’s certiﬁcate of incorporation
- A copy of your share certiﬁcates
- A copy of the company’s memorandum and articles of association
- Copies of passports for all partners in the company
Choose an office space
Tax free business may provide flex-desk office service to support start-ups. You can either buy or lease office spaces in free zones. Office requirements depend on the number of employees and type of business activity of your company.
Apply for the visa
Apart from applying for your own visa, Dubai allows you to put in applications for staff and dependents – the exact number you can submit will depend on which free zone you choose to set up in. So, if you are looking to obtain visas for a spouse, child, maid or driver, it is best to seek expert advice to ensure that firstly, it is possible to do so in your chosen free zone, and secondly, that both you and anyone in the company you are hoping to sponsor for a visa meet all of the entry criteria.
Business setup services in Dubai
Setting up a tax free business in UAE involves al lot of procedures and steps that has to be adhered to.it is very important to take the help of a business setup experts in UAE. FAR Consulting Middle East helps startups and established businesses to establish in Dubai. Our team of experts will guide you throughout the entire process, will help you right from the alteration of visa processes of business setup. Contact us for further consultation.