Want to take advantage of Dubai’s business hub but have no idea where to start? We got you covered. Understanding how to register a company in Dubai involves knowing all the different jurisdictions in the country, what paperwork you’ll need to submit, the types of trade licenses, and how much this process will set you back by.
5 Advantages of Company Registration in Dubai
Less Bureaucracy Around Business Setup
Dubai is well-known for making it easy for foreigners to start companies in the Emirate by offering simple setup structures, eliminating most of the red tape around company formation. This is a major advantage for anyone looking to register a company in Dubai.
Complete Business Ownership
You can maintain complete ownership and control of your company in Dubai. Previously, this benefit was only available to free zone companies, however, it has been extended to most mainland businesses as well. Having full ownership of your company also allows you to repatriate all the profits to your home country without facing any barriers.
Minimal Tax Obligations
There are no taxes levied on personal income in the UAE. In terms of business taxes, there’s a 5% VAT and a 9% corporate tax. However, corporate tax is only collected from businesses and entities who make over AED 375,000 a year. This allows maximum profit retention for entrepreneurs who take on business registration in Dubai.
Strategic Location
The UAE is located close to many major international ports, giving it access to European, Asian, and African markets. This makes it a prime hub for business activities.
Government Incentives
In an effort to entice foreign business interest, the Dubai government offers many incentives to business owners across the Emirate. Perks like access to advanced technology, infrastructure, government support, and opportunities to network and expand business operations, makes company registration in Dubai a no-brainer.
Company Registration in Dubai Free Zone: An Overview
Business in the UAE can be set up either on the mainland or in a free zone. There are multiple free zones in the UAE, each one having its own offerings and benefits. Getting a free zone license allows companies to trade within their free zone and outside the country.
If you’re a Dubai free zone company with a license from the Department of Economy and Tourism (DET), you are allowed to trade with the mainland.
Dubai has over 20 free zones, each with its own free zone authority that sets the rules around the business setup requirements. You must renew your trade license every year, and might need to submit an annual audit report along with your renewal application. If you’re a small business, you may be exempt from this requirement.
Company Registration in Dubai Mainland: An Overview
For access to the entire UAE market, entrepreneurs can consider mainland company formation. Being on the mainland gives you the opportunity to bid for government contracts, easily scale up operations, and makes getting a bank account much easier.
Any area outside a free zone is considered to be the mainland, giving you multiple business location options all over Dubai. The Department of Economy and Tourism (DET) handles all the business license in Dubai applications.
How Much Does it Cost to Register a Company in Dubai?
You can expect to pay around AED 9,000 to AED 50,000 to register a company in Dubai.
The company registration in Dubai cost is affected by multiple factors like:
- Free zone vs mainland
- Number of visas
- Office space
- Number of business activities
- Type of trade license
- Type of business structure
How to Register a Business in Dubai: Step-by-Step
Hiring a business setup consultant in UAE is the best way to make sure that your online company registration in Dubai happens smoothly. If you work with Momentum, we can streamline the entire thing, getting your business up and running as soon as possible. Here’s how the process works in the country.
1. Business Location
Deciding whether to set up on the mainland or the free zone is step one. Once you do that, you can choose between all the available free zone options or a mainland location. Your company location will affect the rest of the business registration in Dubai process, so make sure you choose a location that works for your needs.
2. Company Structure
Dubai offers multiple business structures for entrepreneurs and investors to choose from:
| Free Zone | Mainland |
| FZCO (Free Zone Company)FZE (Free Zone Establishment)Branch of existing company | LLC (Limited Liability Company)Sole establishmentCivil companyPJSC (Private Joint Stock Company)Partnership Branch of existing company |
3. Trade License
There are trade licenses for every type of business activity in Dubai. In certain cases, you may be allowed to carry out multiple activities under the same license. These are the main types of trade licenses for company registration in Dubai:
- Industrial license
- Professional license
- Commercial license
- Tourism license
Trade license applications may take a few days to a few weeks to be approved. In most cases, you will need to obtain initial approval from the relevant authorities before you can submit the actual application. Generally, it is faster to get a trade license in a free zone than on the mainland.
These are some of the documents you’ll need for the application:
- Owner personal identification documents
- Shareholder(s) personal identification documents
- Share certificate
- Passport size photos
- No Objection Certificate
- Business plan
- Articles and Memorandum of Association
- Ejari documents
4. Visas
Your visa application process will only begin after you’ve gotten a trade license. Remember that the number of visas you need plays an important role in choosing a business location. Free zones offer limited visa quotas that are determined by the amount of office space that you need.
Mainland businesses have no such quotas and can apply for an unlimited number of visas. The company registration in Dubai cost is also affected by the number of visas you need.
5. Bank Account
The final step is getting a bank account for your business. For those dealing with company registration in Dubai free zone, working with a business setup consultant may be the best option as the process can get tricky. Having a business bank account is essential for keeping your expenses organized and makes it easier to stay compliant with the country’s business and tax laws.
Let Momentum Handle Your Company Registration in Dubai
Getting a company off the ground in Dubai can be a challenging ordeal, especially for foreigners unfamiliar with the local regulations. Momentum consultants offer expert business setup in Dubai services that eliminate the stress of figuring out how to get your company registered with the authorities. We offer a comprehensive solution that starts with recommending the best location for your idea and ends with a business set up for success.
