Starting a Business in Dubai - Complete Guide by UAE Consultants

STARTING A BUSINESS IN DUBAI

WHAT ARE THE COSTS OF STARTING A BUSINESS IN DUBAI AND UAE?

ONLINE CALCULATOR: UAE COMPANY SETUP COSTS

THE MOST FREQUENT QUESTIONS REGARDING STARTING A BUSINESS IN DUBAI AND UAE

TYPES OF COMPANIES IN UAE

We would like to draw your attention to the fact that generally to start business in Dubai or other UAE emirate one of the following types of companies can be used:

1) an offshore company;

2) a company in a free zone (a freezone company);

3) a company with local partner/local agent (a local company).

We will describe in more detail each type, so that you could determine what type of company you might require to be able to conduct business in UAE.

DOING BUSINESS IN UAE VIA OFFSHORE COMPANY

UAE OFFSHORE COMPANY REGISTRATION is the most cost-effective option of all available if you intend to set up business in Dubai (UAE) but to conduct business activity outside UAE only. Cost of RAK, Ajman offshore or Dubai company registration is between USD 2,500 and USD 5,000, while annual registration renewal will be between USD 1,950 and USD 2,500.

Offshore company suits well for international trade and transactions.

OFFSHORE IS ALLOWED:

1. to conduct business activity outside UAE only,

2. to hold bank accounts in UAE banks,

3. to have up to 5 business activities on business license,

4. to be a shareholder in other companies in UAE.

OFFSHORE IS NOT ALLOWED:

1. to conduct business in UAE,

2. to rent an office space in UAE,

3. to apply for resident visas for its employees,

4. to apply for Tax Residency Certificate,

5. to receive funds from UAE companies or to pay UAE firms.

If that is how you plan to start business in Dubai and your plans are in line with criteria “allowed” and “not allowed” outlined above, then we can assist with RAK or Dubai company registration in offshore zone in UAE.

If you see that offshore company is not the right fit, we suggest to move on and have a closer look at a free zone and a local company in Dubai and UAE.

Detailed information on offshore companies in UAE, including costs, clarifications if you can register a company independently and avail from nominee services, you can find out

HERE >>> WHAT YOU SHOULD KNOW ABOUT OFFSHORE COMPANIES IN UAE

A COMPANY IN A FREE TRADE ZONE (a freezone company) is a company which is a Dubai/UAE resident and which is registered in one of over 30 free zones. Free zone companies in Dubai and other emirates allow 100% foreign ownership. For a better understanding of what a free zone is, it can be compared to a certain geographical area in the city or to a district. By way of example, there are over 20 of such districts in Dubai alone.

Cost of company registration in a free zone varies and depends on the emirate and a free zone where company is incorporated.

A FREE ZONE COMPANY IS ALLOWED:

1. to conduct business in Dubai and UAE, as well as outside of the country,

2. to work with companies from other free zones, as long as services are provided from the registered office only (e.g. consulting, web-sites development, online marketing, branding services and alike),

3. to recruit staff and apply for employees’ resident visas,

4. to rent office space in the free zone where company is registered,

5.to apply for UAE Tax Residency Certificate.

A FREE ZONE COMPANY IS ALLOWED:

1. to conduct business in Dubai and UAE, as well as outside of the country,

2. to work with companies from other free zones, as long as services are provided from the registered office only (e.g. consulting, web-sites development, online marketing, branding services and alike),

3. to recruit staff and apply for employees’ resident visas,

4. to rent office space in the free zone where company is registered,

5.to apply for UAE Tax Residency Certificate.

A FREE ZONE COMPANY IS NOT ALLOWED:

1. to lease an office outside of the free zone where company is registered,

2. to work with and provide services to individuals and companies from other free zones and local companies if business activity requires onsite presence at client’s premises outside of the free zone where company is registered (e.g. fit-out services, engineering services, repairing, installations etc.),

3. to trade and distribute products and goods outside of the free zone where the company is registered (trade is allowed only inside the free zone or outside via a local company-distributor),

4. to take part in governmental tenders.

If this is how you wish to start a business in Dubai and UAE, then we can assist with Dubai company registration in a free zone or we can have a look at free zones in other emirates.

If you, however, see that a free zone company is not the right fit, we can advise on and assist with setup of a local company in Dubai (UAE) or other emirates.

More information on UAE and Dubai free zones business setup

HERE >>> BUSINESS SETUP IN DUBAI FREEZONES AND FREE ZONES IN UAE

SET UP BUSINESS IN DUBAI VIA LOCAL COMPANY

UAE LOCAL COMPANY is a company which is a resident of the UAE and that is registered in partnership with a local sponsor/partner or with a local agent. In case of a local partner, 51% of the company is owned by a UAE citizen or UAE local company.

Local company registration option is the most expensive of all described on this page. Cost of company incorporation in Dubai varies from USD 12,000 to USD 15,000 for the first year and approximately USD 10,000 for annual renewal.

LOCAL COMPANY IS ALLOWED:

1. everything (shall be in line with company’s business activity). In addition, local company can rent an office in any part of the emirate and participate in governmental tenders.

LOCAL COMPANY IS NOT ALLOWED:

1. not applicable.

If that what you plan to do in the UAE is in line with criteria “allowed” and “not allowed” outlined above, then we can assist with registration of a local company in Dubai or any other emirate in the UAE, and advise you on how to start a business in Dubai and UAE in general.

We are providing business consulting services in the UAE and we will be delighted to advise you on all matters related to doing business in UAE. We will advise you not only on starting a business in UAE but also how to find right partners, clients and how to market your products and services efficiently. Business in Dubai means not only to take good care of your assets but also to significantly multiply your wealth. This is exactly the reason why most of our clients choose Dubai for their business needs.

More detailed information on local companies in UAE

HERE>>> BUSINESS SETUP IN DUBAI AND UAE OF A LOCAL COMPANY

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