Company Establishment Processes in Dubai

Since the United Arab Emirates is a hierarchical society and a Muslim country, the local business culture is multi-layered. In the United Arab Emirates, most companies have a vertical hierarchy, with older, more experienced employees occupying the top positions of the company. Although it is a conservative country, the United Arab Emirates aims to be understanding towards foreign investors and encourage investors. As of 2017, it has been calculated that there are 131,000 registered enterprises in the United Arab Emirates, most of which are owned by foreign operators.
According to the Ease of Doing Business Index 2020 report published by the World Bank in October, it is 16th in the world ranking. the United Arab Emirates, which is ranked next, has an ease of doing business score of 80.9 out of 100 and is the easiest country to start a business in the Middle East and North Africa region.
The most preferred emirate to establish a company in the United Arab Emirates is Dubai. Dubai, which was selected as the second best city in the world to start a business according to the HSBC global survey, stands out with its good business environment, first-class infrastructure and good work-life balance. The most important advantages of starting a company in Dubai are that it is easy to start a business, foreign investors are encouraged, and in some cases the company is exempt from taxes.

Questions and Comments about Starting a Company in Dubai
What are the Options for Starting a Company in Dubai?
How to Open a Company on the Mainland in Dubai?
What is Dubai Limited Liability Company?
What is Dubai Professional Company?
How to Set Up a Free Zone Company in Dubai?
How to Set Up a Company Branch in Dubai?
Is an Online Company Established in Dubai?
How Long Does It Take to Start a Company in Dubai?
How Much Does It Cost to Start a Business in Dubai?
What are the Advantages of Starting a Company in Dubai?
* Frequently Asked Questions
How is the Taxation System for Companies in Dubai?
Which Are the Biggest Dubai Companies?
What are the Turkish Companies in Dubai?
What Visa Should I Get to Start a Business in Dubai?
Can He Settle in Dubai by Setting Up a Company?
Where to Get a Consulting Service to Start a Business in Dubai?
What are the Options for Starting a Company in Dubai?

The options for establishing a company in Dubai for foreign citizens are listed below.
* Establishing a company on the mainland
* Establishing a free zone business
* To establish a company branch

How to Formation a Company on the Mainland in Dubai?

Formation a company in Dubai mainland is advantageous because there is no need for a sponsor or local service agent to register the company, foreign founders can own the entire company in many types of companies, and investors can actively reach a multicultural audience.

The types of companies that can be opened in Dubai on the mainland are limited liability companies and professional companies.
To establish a company on the mainland in Dubai, it is necessary to select one of the more than 2000 commercial activities listed by the Department of Economic Development (DED), such as agriculture, accommodation, manufacturing, determine the region where the company will be established, decide on the legal entity of the company, determine the name of the company, obtain a mainland trade license, select an office space and apply for a visa.

What is Dubai Limited Company?

Dubai limited liability company is a type of company that can be established in the fields of trade, business and industrial activities. Dubai limited liability company can be established with a minimum of 2 and a maximum of 50 partners.
In order to establish a limited liability company in Dubai, the company must be introduced to the Economic Development Department, the Company’s Establishment Agreement must be prepared and notarized, the company documents and the business license application form must be sent to the Economic Development Department and registered in the Dubai Trade Registry.

What is Dubai Professional Company?

Dubai professional company is a type of company that can be established by 2 or more people, gives its founders the advantage of owning the entire company and can be opened by talented professionals in areas such as consulting, law, accounting, doctor.
When setting up a professional company in Dubai, if all of the partners are citizens of another country, a Local Service Agent (LSA) must support the company license. The task of the Dubai professional company Local Service Agent is to support the relationships with ministries such as the Ministry of Migration, the Ministry of Economic Development and the Ministry of Labor.
In order to establish a professional company in Dubai, it is necessary to have a company name consistent and proportional to the company’s business activity, to introduce the company to the Economic Development Department, to sign a Civil License Agreement, to conclude a Service Agreement with a Local Service Agent, to send company documents to the Economic Development Department and to register in the Dubai Trade Registry.

How to Set Up a Free Zone Company in Dubai?

A free zone business in Dubai is a type of company where the entrepreneur is exempt from VAT. The operating expenses of the free zone company in Dubai are minimal for entrepreneurs, and all payments for office space, amenities and use of public services are paid annually in advance.

Establishing a free zone business in Dubai is preferred due to tax exemption, exemption from filing audit report, ease of 100% profit transfer, easy transfer of ownership and availability of international quality warehouses.
In order to establish a free zone business in Dubai, it is necessary to determine the legal entity, determine the company name, apply for a business license, select an office space, get pre-approval, register the business and get its license.

How to Set Up a Company Branch in Dubai?

Although the company branch is connected to a commercial enterprise, it covers the places and sales stores where commercial activities are carried out on their own.
Establishing a company branch in Dubai is preferred by people who want to actively expand in the Dubai Sunday. Branches enable large organizations to streamline their business operations in new markets and allow the investor to test Sunday conditions and audience response before investing in a broad growth plan.
In order to establish a company in Dubai, a National Service Representative (NSA) must be appointed, the representative must register a commercial title on behalf of the company, apply and obtain a company license. After obtaining a company license in Dubai, the applicant must open an office, apply for a residence visa and open a corporate bank account.

Is an Online Company Established in Dubai?

An online company can be established in Dubai.
In order to start an online company in Dubai, investors need to register on the Basher platform, which allows them to set up their business in Dubai within 15 minutes through a unified online platform.
Basher is an application connected with federal and local government agencies that provide commercial licensing services.
In order to obtain a business license while starting an online company through Basher, the same standard fees defined by the relevant Economic Development Departments (DED) and other local and federal organizations related to business licensing must be paid by credit card or through eDirham. When setting up an online company, all foreign investors must have a valid UAE ID, have a valid UAE Pass account, and have a UAE Pass digital signature if they are setting up a limited liability company.
Within 60 days after obtaining a commercial license, the investor must change his visa status to an investor visa and submit a lease agreement to the Economic Development Department within one year.

How Long Does It Take to Start a Company in Dubai?

The establishment of a company in Dubai takes an average of 4-5 business days, and the registration of an established company takes an average of 7 business days.

How Much Does It Cost to Start a Business in Dubai?
The cost of setting up a business on the mainland in Dubai is at least AED 23,000, while the cost of setting up a free zone business is AED 50,000 per company and AED 10,000 per shareholder.
It costs an average of AED 25,000 to set up a company branch in Dubai.

What are the Advantages of Starting a Company in Dubai?

The advantages of starting a company in Dubai are listed below.
* Ease of business installation
* Possibility of hiring foreign workers
* Most types of companies are exempt from taxes
* Dubai has an advantageous geographical location
* Dubai has a first-class infrastructure
• The visa acquisition process should be easy
* The support of the state to foreign investors

Frequently Asked Questions
The most frequently asked questions and answers to our center by people who want to start a company in Dubai have been shared below.

How is the Taxation System for Companies in Dubai?

The corporate taxation system in Dubai is advantageous for foreign investors.
Of the companies established in Dubai, only foreign oil companies and branches of foreign banks are subject to VAT up to 55%.
Companies established in Dubai are subject to consumption tax if they import, manufacture or stock consumer goods.

Which Are the Biggest Dubai Companies?

The largest Dubai companies are listed below.
• Emirates
• Emaar Real Estate
• DP World
* Dubai Islamic Bank
* Mashreq
* Dubai Insurance Co.
* Dubai Investments PJSC
* Dubai Islamic Insurance & Reinsurance Co.
* Dubai National Insurance & Reinsurance Ltd.
* Dubai Refreshments Co.

Which Visa Should I Get to Start a Business in Dubai?

To start a business in Dubai, a Dubai business visa must be obtained.
People who are going to start a business in Dubai can apply for a Dubai business visa themselves without the need for a sponsor located in Dubai.

Can a Company Be Established and Settled in Dubai?

Yes, it is possible to settle in Dubai by establishing a company.
Since the United Arab Emirates grants a residence permit through investment, it is possible to settle in Dubai by setting up a company.