All you need to know about Company Registration in Dubai

Registering a company in Dubai is a popular choice for entrepreneurs and businesses due to its strategic location, tax advantages, and a thriving business environment. Here’s everything you need to know about Company Registration in Dubai:

1. Types of Business Structures

• Mainland Company: Allows you to operate within the UAE market and internationally. Requires a local sponsor holding 51% of the shares, except in some cases where 100% foreign ownership is permitted.
• Free Zone Company: Offers 100% foreign ownership, no corporate tax, and full repatriation of profits. However, businesses are restricted to operating within the free zone and internationally, with limited access to the UAE mainland market.
• Offshore Company: Provides 100% foreign ownership, tax exemptions, and confidentiality. It is primarily used for international trading, holding assets, and tax planning. However, it cannot conduct business within the UAE.

2. Choose a Business Activity

• Activity Classification: The business activity must be specified and categorized according to the Department of Economic Development (DED) guidelines for mainland companies, or relevant free zone authorities for free zone companies.
• Compliance: Ensure that the chosen activity aligns with the licenses available in Dubai (e.g., commercial, industrial, professional).

3. Select a Company Name

• Naming Rules: The company name must be unique, not conflict with existing businesses, and adhere to naming conventions set by the DED or free zone authorities.
• Approval: The name must be approved by the relevant authorities, and certain words (e.g., "bank," "insurance") may require special approvals.

4. Obtain Initial Approval

• Mainland Company: Apply for initial approval from the DED. This step indicates that the government has no objection to you starting a business in Dubai.
• Free Zone Company: Initial approval is obtained from the respective free zone authority.

5. Draft and Notarize the Memorandum of Association (MoA)

• MoA Content: Outlines the company’s structure, ownership distribution, and other operational details.
• Notarization: The MoA must be notarized by a public notary in Dubai.

6. Choose a Business Location

• Mainland: A physical office is required. The lease agreement (Ejari) must be registered with the DED.
• Free Zone: Office space is usually provided within the free zone. Some free zones also offer flexible options like Flexi-desk or virtual offices.

7. Submit Documents and Apply for a Business License

• Documents Required:
• Duly filled application form
• MoA and Articles of Association (AoA)
• Passport copies of shareholders and directors
• Ejari or lease agreement
• Initial approval certificate
• Submission: Submit these documents to the DED for mainland companies or the respective free zone authority for free zone companies.
• License Issuance: Upon approval, the business license is issued. The type of license (commercial, professional, industrial) depends on the business activity.

8. Obtain Additional Approvals

• Specific Activities: Certain business activities (e.g., financial services, healthcare) may require additional approvals from relevant ministries or authorities.
• Sector-Specific Compliance: Ensure compliance with any sector-specific regulations that may apply.

9. Register with the Dubai Chamber of Commerce

• Mainland Companies: Registration with the Dubai Chamber of Commerce is mandatory for all mainland companies.
• Free Zone Companies: Some free zones may require or offer optional registration with the Chamber of Commerce.

10. Open a Corporate Bank Account

• Documents Required: Business license, MoA, passport copies, and sometimes a reference letter.
• Bank Selection: Choose a bank based on services offered, fees, and international presence.

11. Visa Processing

• Investor/Partner Visa: Shareholders may apply for an investor or partner visa.
• Employee Visas: The company can sponsor visas for employees, subject to a quota determined by the size of the office space.

12. Comply with Post-Incorporation Requirements

• Accounting and Auditing: Maintain proper accounts, and auditing may be required depending on the business structure.
• VAT Registration: If the company’s turnover exceeds the VAT threshold, VAT registration with the Federal Tax Authority is mandatory.
• Annual Renewals: The business license must be renewed annually, and the lease agreement (Ejari) should be updated if necessary.

Key Considerations

• Mainland vs. Free Zone: Decide based on the nature of your business, target market, and ownership preferences.
• Costs: Company registration costs vary depending on the type of license, business structure, and location. Budget for initial setup costs, license fees, and operational expenses.
• Professional Assistance: Consider hiring a local consultant or law firm to navigate legal requirements and streamline the registration process.

This comprehensive overview covers the essential steps and considerations for company registration in Dubai, helping you make informed decisions tailored to your business needs.