Business Setup in Dubai | Company Registration in Dubai
As one of the giants in the Middle East, Dubai City offers many business opportunities to foreign investors. Because of that, such foreign establishments set up different kinds of businesses in Dubai. It has expanded its region's opportunities for constant trade and business development. Despite being an Oil-rich country, Dubai has diversified its economy from oil production, which now only accounts for less than 1% of its economy.
With rampant diversification and economic growth in the Middle Eastern City, the Dubian Authority has issued nearly 46000+ business licenses in the first half of the fiscal year 2022. This figure is significantly higher than the issued licenses in the previous year, showing a quarterly growth in Company Registrations in Dubai. You can account for the growth of Businesses in the economy to the following:
- Business-friendly Corporate Policies
- Corporal Tax Regimes
- City’s Infrastructure
From the aforementioned points, you can say that Dubai is MECCA for starting new businesses. Therefore, Setting up a Business in Dubai can benefit business owners and entrepreneurs, especially foreign nationals.
Types of Registration of Company in Dubai
The following are the different types of dubai company registration:
Free Zone Companies
The free zone business setup Dubai is different from mainland companies because these are situated in the Free Trade Zones where different laws implement related to taxation, customs, ownership, etc. In the free zone, the owner has complete ownership and their entrepreneurs can establish two types of Dubai companies; Free zone establishment and Free zone company.
Limited Liability Company
To form an LLP in Dubai, a minimum of 2 shareholders and a maximum of 50 shareholders are required. The liability of the members is required for their capital contribution. Except for banking, insurance, or investment, an LLC Dubai company can carry any kind of business.
Onshore Company
An onshore company is set up in the mainland of Dubai which is managed by the Directors. Recently the Dubai government has notified that now foreign entrepreneurs also have 100% ownership and complete authority to participate in business activities. But first was limited to 49% ownership for foreign investors.
Offshore Company
A business that is run outside the jurisdiction of a company is known as an offshore company. An offshore company formation in Dubai is completely done by foreign investors who have 100% ownership of the business.
Branch Office
It is a part of the main branch of any company. Branch offices can be set up on the mainland or in the free trade zone. This is the best way to expand the business in the local market and reach the local customer base.
Benefits of Company Registration in Dubai
![Benefits of Company Registration in Dubai Benefits of Setting up a Business in Dubai](https://www.registrationwala.com/storage/app/public/services/July2024/Benefits of Company Registration in Dubai.jpg)
The following paragraphs have detailed some of the benefits of company formation in Dubai.
Why Must You Register Your Business as a Company in Dubai?
We have enlisted some of the major benefits of registering your Firm as a Company in Dubai. So let us look at them one by one.
1. Business-friendly Environment of Dubai
The UAE Government has rapidly adopted technology for business incorporation procedures in Dubai. It has made the company registration process very easy in Dubai. An applicant can easily complete the procedure in a few days. The incorporation requires almost no paperwork, and the online steps are easy, even for the novice.
2. Complete Business Ownership to Foreign Nationals
The Emirate Authority introduced certain amendments in the Commercial Companies Law of UAE last year, allowing foreign investors to have complete ownership of their businesses. This is a major step forward in inviting more Foreign Investors into the Gulf City. Foreign investors and establishments conduct more than half of Dubai's total economic activities.
3. Availability of more than 30 Free Zones in the Gulf Region
The investors from Foreign Lands can set up their companies in the Dubai Mainland Area which consists of Free Zones. Free Zones are the regions where doing Business allows a 100% ownership of the Business to the Foreign National and complete profit claim with provisions of repatriation and capital invested without any tax cuts. Dubai provides more than 30 Free Zones for budding entrepreuners as well as investors from all over the world. The investors can further collaborate with the other players in the same economic sector.
4. Flexible Tax Regime and Tax Benefits to Corporate Entities in Dubai
One of the major benefits of registering your Business as a company in Dubai is that the company need not pay any taxes. The Authority levies no corporate or personal taxes in Dubai. Although, a few companies are liable to pay the VAT (GCC) at 5% on specific business activities, as applicable by the Dubai Corporate Laws.
5. Strategic Geographic Location of the Gulf City
Dubai City has a strategically advantageous location as it sits on the crossroads connecting from all directions of the sea and land. Also, the City is one of the biggest re-export hubs in the world. With one of the world's most active and busiest airports/seaports, Dubai also boasts one of the most efficient logistics infrastructures. The UAE government has invested greatly in making Dubai one of the world's greatest tourist hubs.
6. City’s Advanced Infrastructure
Dubai has one of the most developed and advanced infrastructures in all of Central Asia. Boasting of possessing one of the world's best infrastructures, Dubai’s logistical capabilities are ever-evolving. It offers excellent public transportation, telecommunication facilities, and public terminals. The Dubai Expo 2020 showcased significant advancements the City has made in its overall infrastructure.
Who undertakes Company Registration activities in Dubai?
The regulatory Authority for Company Registration in Dubai is the RoC, i.e., the Registrar of Companies. Businesses must file their new applications for company registrations with the RoC. It is where the companies have to file their compliances and registration applications.