Dubai, the pearl of the United Arab Emirates, attracts entrepreneurial minds and influencers from all over the world with its business climate and unlimited opportunities. This cosmopolitan metropolis offers a unique setting in which to realize your entrepreneurial ambitions: whether you want to establish an innovative start-up, expand your business internationally or launch your company in Dubai as an expat, the city stands out as one of the most dynamic economic centers in the Gulf region, promising growth and success.
In this article, discover the different steps you need to take to bring your business project to fruition in the United Arab Emirates.
Starting a business in Dubai as an expat
Setting up a business in Dubai as a foreigner is entirely possible. In fact, the United Arab Emirates is one of the best countries in which to start a business. This is due in particular to the low or zero tax rate. If you are interested in this opportunity, however, it is vital to comply with local legislation.
To set up your own business, you need to establish your business needs and objectives, after which you have several options open to you:
- Free Zone Company: These are special zones where foreign companies can establish themselves without the need for a local partner. These zones offer advantages such as 100% ownership by the foreign investor, tax-free imports and exports, and favorable trade and tax regulations.
- Limited Liability Company (LLC): In the case of an LLC, a foreigner can join forces with an Emirati partner, who will generally hold at least a 51% stake (a majority share in the company). This enables the company to operate locally outside the free zones and work directly with the local market.
- Branch Office: Existing foreign companies can open representative offices in Dubai to develop their presence in the region without creating a separate legal entity.
- Professional Company: Professionals such as doctors, lawyers, engineers, etc., can set up a professional company to practice their profession in Dubai.
Tips for setting up a company in Dubai
Here are a few points to help you launch your company:
- Renting an office is a prerequisite for starting a business;
- The company’s registered office cannot be that of the company director;
- There is no minimum capital required to start a business;
- The manager must obtain a permanent residence permit renewed every 6 months, so it is not necessary to live in Dubai to set up a business;
- A license is required for each paid activity and is generally valid for 12 months, so it must be renewed before the end of the period.
Whichever option you choose, a foreigner wishing to set up in the United Arab Emirates must comply with local regulations and legal requirements to set up a business in Dubai. It is strongly recommended that you consult a lawyer or business consultancy firm familiar with the process of setting up a business in Dubai, to guide you through the various steps involved.
Setting up a business: steps to take
Once you’ve made up your mind, here are the steps involved in setting up your own business as an expat in Dubai.
- Choose the type of business: As stated above, you can opt for a Free Zone Company, an LLC, a representative office or a professional corporation, depending on your business objectives.
- Business name: Choose a name that complies with rules and regulations.
- Drafting articles of association and legal documents: Prepare the articles of association and other legal documents needed to register your company.
- Company registration: Register your company with the Dubai DED (Department of Economic Development) for companies operating outside free zones. If you choose to operate in a free zone, register with the relevant body.
- Share capital: Deposit your company’s required share capital into the company’s bank account in accordance with legal requirements.
- Obtaining licenses: Obtain the necessary business licenses according to the type of activity you wish to carry out. Licenses can be obtained from the DED or the free zone authority.
- Open a bank account: Open a bank account in your company’s name with a local bank in Dubai.
- Residency visas: Apply for residency visas for you and your employees, if applicable, so that you can reside and work legally in Dubai.
- Tax and accounting: Familiarize yourself with Dubai’s tax laws and accounting requirements for your business.
What are the advantages of setting up a business in Dubai?
Dubai is a popular destination for entrepreneurs and company directors, mainly for the following reasons:
- Simple steps;
- Several options for company structure;
- Tax advantages: no corporate income tax or VAT;
- Legislation in favor of business start-ups, with a very rapid registration process;
- An ideal geographical location, between Europe, Africa and Asia;
- An excellent tourist destination;
- Constant economic growth.
You can find all the advice you need for a successful expatriation to Dubai here.
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