New Company Registration in Dubai
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Unlock Your Business Potential : Register Your Company in Dubai Today
Starting a business in Dubai begins with choosing between a mainland or free zone company setup. Each option comes with its unique requirements and advantages, making it essential to make the right choice based on your business activities and goals.
For mainland companies, you may require a Local Sponsor, depending on your business activity. While many activities no longer mandate a Local Sponsor, some sectors like Construction and Defence still require one. With over 2,100 commercial activities eligible for licensing, expert business setup consultants can help determine whether your company needs a Local Sponsor and guide you through the process.
A Local Sponsor, who must be an Emirati citizen aged 21 or above, legally owns 51% of the company shares as per UAE law. However, this does not mean they are entitled to 51% of the profits. Compensation for the Local Sponsor can be structured in various ways, such as fixed payments or a share of the sales. The sponsor will also represent the company in dealings with Government agencies.
To simplify this process, working with experienced company formation consultants in Dubai is crucial. They can connect you with the right Local Sponsor and ensure compliance with UAE regulations, allowing you to focus on growing your business.
With CleritBiz, you gain access to expert guidance, ensuring a seamless company registration experience in Dubai.
Company Registration in Dubai Free Zone
Setting up a company in a Dubai Free Zone is an excellent alternative to a mainland setup, offering unique advantages for businesses. Free Zones are designed with specific objectives and come equipped with dedicated infrastructure to support various industries.
Unlike mainland companies, Free Zone companies do not require a Local Sponsor, allowing 100% foreign ownership. However, Free Zone companies are limited in the range of activities they can perform. Certain sectors, such as banking, finance, and investment, are not permitted. Additionally, only Limited Liability Company (LLC) structures are allowed in Free Zones.
Free Zones are ideal for businesses focused on international trade, e-commerce, or specific industries like technology and logistics. Choosing the right Free Zone depends on your business activity and growth objectives.
Let CleritBiz guide you through the process of Free Zone company registration, ensuring a hassle-free experience tailored to your business needs.
Steps to Follow for New Company Registration in Dubai with CleritBiz
If you’re looking to register a new company in Dubai, CleritBiz simplifies the process with expert guidance. Here’s a step-by-step guide
1. Choose a Company Name and Activity
Select a unique company name that complies with the Department of Economic Development (DED) guidelines and define your business activity.
2. Decide on the Legal Structure
Analyze the advantages and requirements of legal structures such as Mainland, Free Zone, or Offshore and select the one that aligns with your business goals.
3. Obtain Necessary Licenses
Depending on your chosen activity, apply for the relevant licenses and permits required to operate legally in Dubai.
4. Get Initial Approval
Submit your selected company name and activity for initial approval from the DED or Free Zone authority.
5. Draft and Notarize the MOA
Prepare the MOA or Local Service Agent (LSA) agreement, detailing the ownership structure and responsibilities of shareholders, and get it notarized.
6. Rent Office Space
Secure a physical office or workspace, as most legal structures require an official address for your business operations.
7. Get Final Approval and Licensing
Submit all required documents and obtain final approval from the DED or Free Zone authority, along with your business license.
8. Open a Corporate Bank Account
Choose a reputable bank and open a corporate account, ensuring compliance with UAE banking requirements.
9. Register for Visas
If hiring employees, apply for their visas through the General Directorate of Residency and Foreigners Affairs (GDRFA) and secure work permits.
10. Register for VAT
If applicable, register for Value Added Tax (VAT) based on your business activity and adhere to tax regulations.
Types of Company Registration in Dubai
Dubai has become a global business hub, attracting entrepreneurs and investors worldwide. Understanding the various types of company registration is essential to choosing the right structure for your business. At CleritBiz, we guide you through the process and help you make an informed decision.
Choosing the right company registration type is crucial for the success of your business. At CleritBiz, we provide expert assistance to ensure a seamless company setup process tailored to your goals.
1. Free Zone Company
A Free Zone company offers 100% foreign ownership and numerous incentives, such as tax exemptions, simplified licensing, and streamlined procedures. This option is ideal for businesses in trading, manufacturing, and services, especially those targeting international markets.
2. Mainland Company
A Mainland company allows businesses to operate both locally and internationally. It requires a local Emirati sponsor or partner, holding 51% ownership. This structure is suitable for businesses in retail, food service, and professional services, providing access to the local UAE market.
3. Offshore Company
An Offshore company is a non-resident entity designed for conducting business outside the UAE. It offers privacy, asset protection, and tax advantages, making it a preferred choice for international trading and investment activities.
4. Branch of a Foreign Company
Businesses with existing operations outside Dubai can establish a branch in the emirate. This allows you to expand operations under the same branding without requiring a local Emirati partner.
Business Structures for Company Registration in Dubai, UAE
When registering a company in Dubai, it’s essential to choose the right business structure based on ownership, operational goals, and future plans. Here are the main business structures available:
Each business structure is designed to cater to specific needs. Whether you’re an individual, a partnership, or an established company looking to expand, there is a structure that aligns with your goals. At CleritBiz, we analyze your requirements and guide you in selecting the best business structure to ensure success and compliance with UAE regulations.
Sole Establishment
If there is only one business owner, the company must be registered as a Sole Establishment. This structure allows the owner full control but carries unlimited liability for the business’s obligations.
Limited Liability Company
Ideal for businesses with 2 to 50 shareholders, where all shareholders hold equal ownership. An LLC is a versatile structure suitable for most commercial activities. If there are more than 50 shareholders, the company must be registered as a Private Limited Company.
Public Joint Stock Company
If you aim to take your company public in the future, registering it as a Public Joint Stock Company is essential. This structure enables companies to raise capital by offering shares to the public.
Private Limited Company
A Private Limited Company is designed for businesses with majority and minority shareholders, offering more flexibility in ownership distribution. It’s an excellent option for companies planning to scale up or maintain distinct shareholder roles.
Branch Office
A Branch Office allows an existing company to expand its operations into Dubai. The branch operates under the same branding and ownership as the parent company, offering full operational rights.
Representative Office
Similar to a Branch Office, a Representative Office is owned by an overseas company but cannot make a profit. Its sole purpose is to represent the parent company and outsource all its work back to the main office.
Frequently Asked Questions
Yes, foreigners can own 100% of their business in Dubai Free Zones and certain Mainland activities. In other cases, a local Emirati sponsor or partner may be required.
The process typically takes between 1 to 10 business days, depending on the business structure, activity, and completeness of required documents.
Yes, CleritBiz offers comprehensive support, including assistance in finding suitable office space, whether it’s a leased office, co-working space, or virtual office.
Yes, businesses must meet compliance requirements, including license renewal, maintaining financial records, submitting VAT filings (if applicable), and adhering to UAE labor laws.
Absolutely. CleritBiz provides end-to-end visa processing services for employees and dependents, ensuring compliance with UAE immigration laws.
Free Zones offer 100% foreign ownership, tax exemptions, streamlined licensing processes, and world-class infrastructure, making them ideal for international businesses.
Simply contact CleritBiz, and our team of experts will guide you through the entire process, from selecting the right business structure to obtaining the necessary licenses.
Share your requirements and aspirations with our experts, and we’ll guide you in deciding whether your new company setup in Dubai should be located on the mainland or in a specialized free zone. Let us help you make the best choice for your business success.
