Company formation in Dubai

Friday, 15 January 2016

Minimal tax rates and highly developed infrastructure facilities make UAE, especially Dubai, a very attractive company incorporation destination. Although the tax regime is easy, company incorporation is not an easy task. The compliance are not easy to obtain and generally involve complex procedures. Fret not; this blog post will give you a clear heading towards business setup in Dubai, simple steps.

Step 1:  Decide on the type of business and activities:  before company formation in Dubai, identify the business activity implies to 1) commercial 2) professional or industrial. Depending on target markets decide on the type of entity free zone company, LLC a branch office or a sole proprietorship.

Step: 2 open a bank account to prove solvency and for financial transactions. Initial capital may vary between $13,000 to $300,000. It can be immediately withdrawn.

Step 3: submit a registering application with the respective authority, for business setup in Dubai it is the Department of Economic Development (DED).

Step 4: get the MOA notarized: hire a lawyer to explain clauses and complete the documentation.

Step 5 Obtain trade license and commercial registration certificate from Dubai Chamber of Commerce and Industry by submitting the following company documents:
The notarized Memorandum of Association (from step 3);
·         company name approval issued by DED(from step 2);
·         signed legal contract between investor and UAE National who is the legal        representative         of the company;
·         original company approval from DED;
·         Due diligence of each partner.

Step 6: obtain an office space in ftz virtual office will be good enough but in Dubai a physical office is required in the name of company.

Step 7: if you want to employ other people in your company you need to get them work visas and an establishment card for company.

Step 8: Register the employees with the Ministry of Labour and Social Affairs. For this the                           requirements are as follows:
·         employment contract in triplicate;
·         trade license copy;
·         employer's passport copy;
·         UAE residence visa

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