How to Register a Company in Dubai – A Crucial Guide
Are you looking to know how to register a company in dubai? To do that, you need to understand the process and laws surrounding company registration in the city. Our ultimate guide removes the mystery and helps you learn the steps to successfully registering a company in Dubai.
This article covers setting up the legal framework for the company, choosing the right business structure, and finding the right office space and partner. Additionally, our guide answers important questions like which sort of company license you need, which type of taxation you'll have to pay, and so much more. After reading this guide, you'll have all the knowledge and confidence needed to know how to register a company in dubai.
I. Choosing the Right Type of Company
When setting up a company registration in UAE, there are several company structures to choose from. Local companies in the city are limited to three types: public shareholding companies, limited liability companies, and professional companies. A public shareholding company is suited for larger firms, while a limited liability company is suitable for small and medium sized business. Professional companies are designed for service-based businesses such as attorneys, medical practitioners, etc. All of these company structures require ownership of a minimum of fifty one percent by UAE nationals in order to be eligible for registration. If ownership is less than fifty one percent, then you will need to partner up with a UAE National.
II. Obtaining a Trade License
The next step in company registration in UAE is obtaining the right trade license. The Dubai Department of Economic Development (DED) is responsible for issuing trade licenses to businesses in Dubai. While applying for a trade license, it's imperative to select the activities the company intends to undertake. Each activity needs to be authorized by the DED and may also come with additional requirements such as special licenses or permits. Depending on the type of company structure you set up, the process for obtaining a trade license may differ. The most
important point is to make sure that all activities you intend to undertake are listed on the DEDs registry.
III. Locating an Office Space
Once you have obtained the right trade license, the next step you need to do is locate an office space for your company registration in UAE. Depending on the type of business, you may choose from various office spaces such as commercial, industrial, or residential. You can also find a shared office space such as a coworking space or a serviced office space. Additionally, when selecting an office space it's important to keep in mind that the property must be approved by the Dubai Land Department. This is applicable for all the free zones in Dubai.
IV. Finding a Sponsoring Partner
Normally, if you want to register company in dubai, it is required to have a Legal Sponsorship. A legal sponsorship is a partnership between a foreign company or investor and a local partner, also referred to as a sponsoring partner. This sponsoring partner must be a UAE National, and his role is to ensure that all the necessary documentations and filings are completed properly and in a timely manner. Finding the right partner can be a challenge as the sponsoring partner should not only understand the market but also provide added value to the business. It is recommended to seek the help of a local service provider to assist with the selection process.
V. Taxation and Bookkeeping
The next and equally important part to register company in dubai is taxes and bookkeeping. The UAE levies value-added tax (VAT) for certain activities on goods and services. Generally, the rate of VAT for businesses in Dubai is zero percent. However, you will need to apply for a VAT registration if the annual revenue of the business exceeds certain thresholds. Additionally, business owners in Dubai should ensure that their books and accounts are well maintained and audited regularly. This is important for filing taxes and reporting annual returns as all companies in Dubai are required to file for annual returns on or before the 31st of December each year.
Summary
Dubai is an amazing and attractive place to start a business. It offers several advantages such as attractive tax rates, attractive locales, and world-class infrastructure. With an understanding of the registration and filing processes, setting up a business in Dubai is relatively easy.
Author Bio
This guide has covered all important steps for registering a company in Dubai, from choosing a company structure, obtaining a trade license, and finding the right office space and partner, to taxation and bookkeeping. After reading this guide, you have all the knowledge you need to start setting up your business in Dubai. If you are looking to register a company in Dubai, you can visit InZone.
InZone
Burlington Tower, Plot Number -39-0, Business Bay Dubai, United Arab Emirates P.O. Box 487644, Dubai, United Arab Emirates
971 800 469