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Company Formation in Dubai, UAE

Company formation in Dubai got easier with Avyanco. We strive to facilitate foreign investors with the best, most effective, and reasonable company formation services. Avyanco is a one-stop-shop solution offering visa registration, corporate sponsorship, golden visa services, corporate PRO services, company audit, taxation services, accounting, bookkeeping, and financial consultancy. Form your company now in Dubai!

Do you prefer to be an entrepreneur of your own company rather than putting so much effort into a private job and still having nothing in your hands ultimately? Do you want to maximize your wealth by 50X by setting up a business in one of the most profitable economies like Dubai?

To form a company can be a challenging task; moreover, company formation in Dubai can get complex as well. However, a company formation advisory can help you make the whole process smooth, effortless, and quick with the right industry knowledge and strategies.

company formation in Dubai

What Is Company Formation?

Company formation as the name implies is the process of setting up, incorporating and running a business. An owner or the investor is the legally responsible body for its operations whether financial, commercial, legal or more. A company owner is held responsible for its assets, finances and liabilities as well.

Forming and operating a business might be challenging especially for those who are in the town for the very first time. However, if you do it right the very first time and from the beginning, it becomes one of the most rewarding experiences you will ever enjoy.

With the right industry knowledge, years of experience and great connections, a company formation expert can help you manage the whole process efficiently. Avyanco is the globally reputable company formation expert assisting foreign investors to form companies with ease.

5-Step Process:

  • 1. Send an inquiry
  • 2. Get free consultation
  • 3. Make the initial payment
  • 4. Submit the document
  • 5. Proceed to incorporation

Company Formation in Dubai

Dubai has grown into a global economic hub for commerce and trade connecting the world. Its strategic location attracts and drives global businesses and trade operations seamlessly. Investors from around the world are drawn to Dubai because of its elite lifestyle. Company formation in Dubai becomes a highly lucrative investment for investors for a reason. Investors can form and conduct business in a wide array of industries for local and global trade including logistics, manufacturing, equipment and appliances trade and more.

In addition to that, other multiple factors make Dubai an ideal global business hub. It includes multiple jurisdiction options available, ease of forming a company, 100% foreign ownership of the firm and more.

Types of Company Formation Licenses in Dubai

A business license is a proof that your business is a legal firm operating anywhere around the globe. The types of licenses to conduct business activities might vary in accordance with each country’s laws and regulations.

To form a company in Dubai and conduct its operations you must obtain a trade license. The business trading license you will acquire depends on the activities you will carry out. Here are a few types of business licenses to open a business in mainland Dubai:

  1. Commercial License

    Commercial licenses are given to companies that conduct commerce including the buying and selling of goods and services. In addition, the general trading license is the one that is one of the most common licenses in Dubai. All professional license-related requirements, such as issue, amendment, and revocation, are easy to accomplish. Requirements are simple and easy in order to get a professional license in Dubai. However, the foreign investor must consult with a reliable Company formation specialist to comply with the requirements effortlessly.

  2. Professional License

    Professionals must get a professional licensee before engaging in any professional activity, including consultancy, medical services, security services, and more.

  3. Industrial License

    In Dubai, you require an industrial license in order to launch a manufacturing or industrial enterprise. Textile, metals, paper, and other sectors are a few that require an industrial license.

  4. Tourism License

    In Dubai, you need to obtain a tourist license in order to conduct business operations related to tourism and hospitality, such as hotel management, travel agency, and more.

Benefits of Forming a Company in Dubai

Benefits are endless when it comes to Dubai company formation. Due to corporate-friendly policies, business-friendly laws, and the rapid growth of the economy, Dubai has drawn the attention of worldwide investors.

  1. Tax Exemption

    You won’t have to pay any taxes when you form a company in Dubai, which is one of the major advantages. Dubai offers complete tax exemption from all levies, including personal, corporate, and income taxes. However, some businesses might be required to pay a 5% VAT that applies to specific commercial operations.

  2. Import and Export Duties Exemption

    Export and import taxes do not apply to the UAE’s free zone jurisdictions. This will significantly reduce costs and draw import and export companies. This aids in advancing global trade and preserving diplomatic ties with many nations.

  3. 100% Capital Repatriation

    The businesses qualify for all repatriation advantages. Profits and financial resources are also included in this. This indicates that the foreign individual is qualified to return to his native nation with all company gains.

  4. No Currency Restrictions

    Currency regulations are limitations placed on the exchange of foreign currencies by the government. The procedure of conducting business for international businessmen is made simpler by the absence of any form of currency limitations in UAE free zones, which means that any type of currency may be used without restriction.

  5. Effortless Immigration Process

    The processes for forming a company in a free zone or a mainland are easy and clear. Foreign investors can complete the licensing formalities quickly, which makes the establishment process much simpler.

Types of Company Formation in UAE

Choosing the right jurisdiction is one of the most crucial steps that can decide the success of your startup. If you choose the right jurisdiction for your company, the chances of your success will be higher. When planning to form a company in Dubai, there are various options available where you can form your company including mainland, free zones, offshore and more.

Mainland

While there are several locations throughout the world where you may form your company, Dubai offers foreign investors the most appealing incentives, legal systems, and jurisdiction possibilities, including the Mainland.

A mainland firm has received a license from the Department of Economic Development (DED) in the applicable emirate. For international investors, it is one of the most alluring jurisdictions since it offers several advantages. Benefits of obtaining a mainland license include:

  • Friendly Laws.
  • Strategic Location.
  • Profitable Opportunities.
  • Elite-Class Infrastructure.
  • Rapidly Growing Economy.

Free Zones

In the United Arab Emirates, free zones are locations where companies can be formed and operated. They frequently allow for 100% foreign ownership by investors and business owners and are tailored for a certain sector. There are more than 37 different sorts of free zones that allow investors to conduct numerous business activities, such as those involving gold, media, and various commodities. To avoid paying hefty fines and penalties, every firm must abide by the restrictions specific to that free zone.

Here are a few notable benefits of working in Free Zone Dubai:

  • 100% foreign ownership.
  • No corporate or income taxes.
  • Developed business communities.
  • Effortless business set-up process.
  • 100% exemption from customs duty.
  • 100% repatriation of capital and profits.

Offshore

An offshore firm operates outside of the country where it was initially registered. Investors may form an offshore company in Dubai for a variety of reasons, including tax savings, increased revenue, and a 100% return on investment.

Dubai Company Formation Requirements

Whether you plan for company formation in UAE or any other place in the world, there must be rules and regulations that you will have to adhere to. To provide certain documentation reflecting your credibility in the country is an act mandatory in Dubai. Foreign investors will have to provide a few essential documents to the relevant governmental authority. Below-mentioned are the documentation that you will need to provide to the DED.

  • Attested LLC agreement.
  • Tenancy contract.
  • License Application.
  • Initial approval certificate.
  • Governmental forms.
  • Name reservation certificate.
  • External department’s approval.
  • EJARI registration certificate.

Legal Entities of Company Formation in UAE

When looking to form a company in Dubai, the very first and most important thing to consider is deciding on the legal structure of the firm. Foreign investors can conduct a business line with any legal entities in Dubai including LLC, sole proprietorship, private shareholding companies, and more.

  1. Limited Liability Company (LLC)

    An LLC requires two to fifty investors typically. Each partner is in charge of their particular share proportion. Gains and losses are distributed to shareholders according to their specific shares or the % of investment in the business. Additionally, a management board must consist of a minimum of three owners in an LLC corporation with more than seven partners in Dubai.

  2. Civil Company

    Even when civil firms are wholly owned by business partners, a UAE National Local Service Agent is still necessary. Additionally, the foreign business may become a partner if it works in the same sector as the civil company. Foreign investors may form a civil company in Dubai being partnered with a local agent.

  3. Sole Proprietorship

    A sole proprietorship is a type of business that has just one owner and is controlled entirely by them. In this business, the proprietor will have total authority over both daily operations and financial outcomes. The investor will be the only body held responsible for each business operation.

  4. Foreign Company Branch

    Foreign-based companies will be able to establish branches or franchises in Dubai and other UAE cities. However, the branch business that acts as the parent firm’s representative may apply for a license with 100% foreign ownership.

  5. Private Shareholding Company

    A commercial corporation with the following characteristics is referred to as a private shareholding company in Dubai. It is owned by a non-administrative body. Foreign investors from countries around the world can open a private shareholding company in any industry in Dubai.

  6. Public Shareholding Company

    A PSC is a business where the capital is split into equal shares and the liability of the shareholders is constrained to the number of shares held by the business. In Dubai, a public joint stock company is frequently referred to as a public shareholding company (PJSC).

Steps for Forming a Company in Dubai

Company formation becomes easier than ever before in Dubai with the help of a right and trusted business formation consultancy like Avyanco.

  1. Choose Your Business Activity

    Determining the type of your company and business activity is the very first step of a company formation in Dubai. There are more than 2,100 business activities to select from, all of which may be found in the commercial, professional, industrial, and tourism sectors. On the DED website, you may see the whole list.

  2. Decide on a Jurisdiction

    You can set up business in the mainland or free zone as well. However, if you choose a free zone setup then make sure to be careful about certain things. There are more than 30 free zones in Dubai, as was previously mentioned. Which free zone you decide may depend on the nature of your firm and the industry in which you will operate.

  3. Choose a Company Name

    Another important step is to choose your company name. Make sure that the name is not already allotted to some other company. Your company name must be simple, easy, and full name. Make sure it is not blasphemous as well.

  4. Apply for Initial Approval

    To obtain your business license, you must first apply for initial clearance from the concerned body. You have three options for applying: online, in person, or via a third party. Avyanco can help you make the process smooth, easy and quick.

  5. Setup Your Office Location

    Every company in Dubai is required to have a physical address. Luckily, forming a business up in a free zone will make it simple for you to locate your new workspace easily.

Cost of Company Formation in UAE

The costs of company formation depends on different factors to know more about our costs check out our company formation packages in UAE and contact our company formation specialists for more details.

Why Choose Avyanco Company Formation Specialists in Dubai?

Avyanco offers a plethora of company formation services in Dubai to potential foreign investors. We make sure to remain with you throughout the whole setup process. Avyanco also provides consultancy, auditing, accounting and bookkeeping, tax services, and expert advice to investors. Our aim is to help you grow in Dubai’s fast-paced business environment without any obstacles.

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Avyanco delivers its customers with the most authentic and effective consultation to setup a business in Dubai and
keep their book of record in place with top-class auditing and accounting services.

Address

Office No. 1406 The Exchange Tower, Business Bay, Dubai, UAE