Dubai has emerged as a global business hub, attracting entrepreneurs and companies from around the world with its pro-business environment, strategic location and zero-tax policies. For those looking to expand their international footprint, setting up a company in Dubai is an excellent move. Praman Advisors Private Limited, a firm specializing in legal and business consultancy, simplifies this process by providing end-to-end support for Dubai incorporation.
1. Overview:
Dubai offers three primary types of business setups, each with unique advantages:-
- Mainland Company: A mainland company can conduct business anywhere in the UAE and can trade with local, national and international markets. For many business activities, you can now have 100% foreign ownership.
- Free Zone Company: There are over 40 free zones in Dubai, each designed for specific industries. A free zone company provides 100% foreign ownership and full repatriation of profits and capital, along with customs duty exemptions. However, its business activities are typically restricted to the free zone and international markets.
- Offshore Company: An offshore company is a legal entity that cannot conduct business within the UAE but is used for international trade, asset protection and holding companies.
Praman Advisors helps you identify the most suitable structure for your business goals, guiding you through the regulatory landscape to ensure a seamless setup.
2. Benefits:
Establishing a company in Dubai offers significant benefits and working with a professional firm like Praman Advisors can maximize these advantages:-
- 100% Foreign Ownership: In most free zones and for many mainland business activities, you can retain full ownership of your company, without the need for a local sponsor.
- Tax Benefits: Dubai is a low-tax jurisdiction. Companies can benefit from zero corporate and personal income tax and no withholding tax. A 9% corporate tax is applicable on profits exceeding AED 375,000 for mainland companies. Free zone companies often enjoy tax exemptions.
- Strategic Location: Positioned at the crossroads of Europe, Asia and Africa, Dubai provides unparalleled access to global markets and supply chains.
- Repatriation of Profits: There are no restrictions on the repatriation of capital and profits, offering complete financial flexibility.
- Advanced Infrastructure: Dubai boasts world-class infrastructure including ports, airports, and a robust digital network, facilitating smooth business operations.
- Streamlined Process: Praman Advisors handles the complexities of the application and documentation process, saving you time and effort and reducing the risk of errors.
3. Documents Required:
The exact documents needed can vary based on the type of business and jurisdiction but generally, you will need the following:-
- Passport copies of all shareholders and directors.
- Emirates ID copy (if applicable).
- CVs of the proposed manager and shareholders.
- Recent utility bill for proof of address.
- Bank reference letter.
- Memorandum of Association (MoA) or Articles of Association (AoA).
- Business plan (for certain free zones or activities).
Praman Advisors will provide a comprehensive checklist and assist in the preparation and attestation of all required documents to ensure they meet the specific requirements of the relevant authorities.
4. Process to Apply:
The process of company formation in Dubai can be complex but with Praman Advisors, it becomes a structured and efficient journey.
- Initial Consultation: Discuss your business model and goals with a Praman Advisors consultant to determine the best legal structure (mainland, free zone or offshore) and jurisdiction for your company.
- Name and Activity Approval: Praman Advisors will assist you in selecting and reserving a unique company name and getting initial approval for your business activities from the relevant authority (e.g. Department of Economy and Tourism or a Free Zone Authority).
- Document Submission: Submit all required documents which Praman Advisors will verify and file on your behalf.
- License Application: The team will apply for the necessary trade license (commercial, professional or industrial) based on your business activity.
- Visa and Immigration: Praman Advisors can help with the application for residency visas for shareholders and employees.
- Bank Account Opening: Guidance is provided on opening a corporate bank account in the UAE.
5. Fees and Timelines:
The costs and timelines for Dubai incorporation are not fixed and depend on several factors including:-
- Jurisdiction: Mainland, free zone or offshore. Free zone setups can be more affordable initially.
- Business Activity: Some specialized activities require additional approvals and fees.
- License Type: Commercial, professional or industrial licenses have different fee structures.
- Visa Requirements: The number of visas required will affect the overall cost.
While a basic free zone license can start from around AED 15,000 to AED 20,000 (roughly $4,000-$5,500), the full cost can be higher depending on the specific setup.
Manju Laur: 📞 +97119 94042
The timeline is typically 02 to 04 weeks, if all documents are in order and no major complications arise.
Praman Advisors provides transparent, customized quotes after an initial consultation to ensure you have a clear understanding of all costs involved.
Frequently Asked Questions
A mainland company can operate throughout the UAE, while a free zone company is restricted to its specific free zone and international markets. Free zone companies, however, offer 100% foreign ownership and significant tax benefits.
No, with the help of a business setup consultant like Praman Advisors, you can complete the entire process remotely. We can act on your behalf via a Power of Attorney.
A free zone company cannot directly conduct business in the mainland. However, it can do so by appointing a local agent or by setting up a branch of its free zone company in the mainland.
Yes, all companies in Dubai must have a physical address to operate. Free zones often provide cost-effective options like "flexi-desks" or shared office spaces for this purpose.
