Setting up new company


Overview

Dubai is the most modern and progressive emirate in the UAE, that is developing drastically. Investors are flocking into Dubai to establish their dream firms, as they realize the potential of the city and the future it holds. The city houses the maximum number of free zones in the whole of UAE. What attracts most to entrepreneurs in setting up a business in Dubai is the direct tax-free nature of its business zones. One of the most important considerations while setting up a new company in Dubai is the cost of setting it up. The UAE government is on a constant lookout to ease the process of doing business in UAE. The recent amendments in policies prove the same. The new move will encourage more investors to establish their enterprise in UAE, which will result in a significant positive effect on foreign direct investments.

Possible Options for Setting up A Company

One can setup a free zone company, an offshore company or a mainland company in Dubai:

  • A free zone company is fully owned by the person who sets it up. There is no requirement of an agent or a sponsor to manage or liaison. While starting a company in Dubai in any of its many free zones ( JAFZA, DAFZA, DMCC, Dubai South & Dubai Silicon Oasis ), it is important to keep in mind that there are different rules and regulations, procedures and fees involved with different free zones. Many of these free zones require the business owners to have a minimum amount of capital if they are setting up a new business in Dubai as compared to just opening a new branch of an existing business or company. Company formation in Dubai free zone is quite beneficial because it allows full ownership of the venture and can be set up by one person itself. One can also open a bank account in Dubai in this setup and can also hold properties. The free trade zones are exempted from commercial taxes, import and export duties, land tax, property and building license fees. The free trade zones offer a regulated and secure business environment licensing a whole range of business activities.

  • Going offshore is among the most popular ways of managing and expanding business horizons as it offers lucrative but tax-efficient strategies to the foreign entrepreneurs and organizations. And when it’s a question of an offshore company formation in Dubai, the aggregate benefits double up instantly. As a tax-free business territory with state-of-the-art infrastructure, strategic location, relaxed business policies and easy access to the wider global market, Dubai is one of the renowned and preferred regions in the world for an offshore business setup. In this type, 100% foreign ownership is permitted, 100% repatriation of profits, No minimum capital requirement, Can conduct international business, Can maintain corporate bank account in UAE, No requirement to deposit the capital in bank, No physical office required, An efficient regulatory regime, minimum share capital can be US$ I, Can own shares in other companies in UAE and Single share-holding is also possible. Offshore companies can eliminate or minimize many types of tax payments such as on capital gains, profits on business earnings and property sales. An offshore company legitimately assists in gaining confidentiality over the investors’ financial affairs. Dubai is the only offshore where business owners are allowed to own or hold real estate. Offshore company incorporation or registration in Dubai and even trademark registration requires specialized knowledge. We shall help you with every aspect of a business setup in Dubai including trademark registration, PRO services, accounting services to payroll services.

  • A mainland business license lets you work on government projects that are extremely profitable. Competition will also be less, as free zone companies are not provided with the opportunity to work for government entities. Moreover, mainland companies don’t demand for a minimum capital requirement, which makes the establishment even easier and affordable. Selecting the type of license is the first step in starting a business in UAE. You can choose from commercial, professional and industrial license. In a mainland setup, a foreign investor can own maximum of 49% shares and at least 51 percent of the shares should be owned by the local sponsor. But, off late, the government has approved a new investment law allowing 100 percent foreign ownership on mainland. This means you no longer will have to rely on local sponsors to begin your own company.

At Lemon, we can assist you as under –

  • Draft various documents required for setting up a business in Dubai.
  • Manage submissions and handle the various legalization.
  • Get visas and work permits for your employees.
  • We provide options for partnerships in case of offshore company or a branch office.
  • Get various approvals required from different ministries and departments.
  • Set up your bank accounts.
  • Setting up a branch of foreign or other local company.
  • Setting up company in Free Zones outside Dubai like RAK, Sharjah, Ajman etc. for the clients who doesn’t need physical office in Dubai.
  • All in all, we shall make your Dubai business setup process fast and easy for you.