Incorporation is the process of forming a new business, company or another type of organization. It is the act of creating an entity such as a corporation or limited liability company. Incorporating your business means you have established its legal existence and have agreed to be bound by certain rules and regulations that apply to that entity. If you are considering setting up a new business in Dubai, then this blog post provides information on how to incorporate your company with all necessary requirements.
If you’re not sure where to begin when it comes to incorporation, we’re here for you! We’ll walk you through the steps needed for incorporating in Dubai and provide some suggestions on what type of offshore companies may work best for your needs. There’s no need to worry about all the legal requirements involved, as we already have your business covered.
Getting Incorporated in Dubai
Before you are able to start doing business in Dubai, it is important to incorporate your company properly with all related official documents. As there are different types of companies that can be formed in Dubai, depending on each type of activity performed, there are different legal requirements for each business.
Even though you may be looking to set up only a representative office, or branch of your company in Dubai, you will still need to incorporate the business appropriately. For example, if you want to open an affiliate branch that is not registered as a commercial company and does not provide its own service but serves as a channel for you to conduct your business in the UAE, it will still need to be incorporated under one of the permitted categories.
So make sure you get in touch with us and we’ll take care of all the work when it comes to incorporating your business in Dubai. We can also provide an introduction and pro services in Dubai with a good package that includes incorporation and opening a company bank account.
Offshore Company in Dubai
Dubai is a well-established and bustling business centre in the Middle East, located on the coast of the Persian Gulf. It is one of seven Emirates or Kingdoms that make up the United Arab Emirates (UAE). The UAE is a federation made up of these seven states (like US states) with their own rulers, but the executive head of each state is also the president of the UAE federation. To make it easier to understand, imagine if Texas was one of the US states (or Emirates) and George Bush was its president; then that would mean that he had authority over all companies based in Texas.
The United Arab Emirates is not your usual offshore jurisdiction. It is actually one of the top three locations for incorporating offshore companies in the world, so it has all advantages of an offshore jurisdiction and it also enjoys the full benefits of being part of a federation. This means that if you are considering opening up your new company or branch office in Dubai, you can expect your tax bill to be even lower than what is standard for Dubai, as the UAE is a zero-tax zone.
In order to become an authorized foreign company in Dubai, you will need to meet all legal requirements as set out by the UAE Federal Government. In most cases, it is relatively easy and straightforward, as long as you have a registered business firm or place of residence within the UAE, and your company’s name does not violate any previously registered trademarks.
One of the main reasons we decide to set up an offshore company in Dubai is because it has a flexible and open business environment, which lends itself well to all types of corporations. Not only that but even though Dubai is an Emirates or Kingdom, it is actually considered part of Asia and it is also a major financial and business centre in the Middle East.
It’s All About The Money
The UAE has established itself as one of the biggest players in the global market, and as such, Dubai has progressively become an attractive destination for foreign entrepreneurs and investors alike. Being part of a federation means that businesses can also benefit from its vast network of resources and strategic alliances.
Dubai is a popular choice for setting up an offshore company or branch office because of the country’s political stability and sound financial, judicial and business infrastructure; as well as its liberal tax regime which includes zero taxation on foreign earnings.
As mentioned before, Dubai has proved to be an ideal place to start up a company because of the country’s business-friendly environment, which is primarily due to being part of a federation. Under UAE Federal Law, 100% foreign ownership is permitted in almost every sector with no restrictions on the number of employees.
The tax regime in place is also very favourable though it can be complicated, especially when you are dealing across borders. More importantly, it is common for people to set up branch offices of their parent companies in Dubai and enjoy its zero-tax regimen (if they can meet certain criteria), which means that all profits will be taxed locally or at home depending on the company’s domicile country.
Thus having a presence in Dubai is usually more profitable than having a company registered in other countries, but the choice is yours. One of the main reasons why Dubai has become so popular as an offshore jurisdiction for international business activities is because it offers great benefits to all parties involved.
Having your business based or represented by an agent does not mean that you have no say over how the company is run. For instance, all UAE companies have to maintain a registered agent in the country, but this does not mean that you cannot appoint your own managers. In fact, it is becoming increasingly popular for entrepreneurs to only hold the official title of manager or to be appointed as an administrator or director – just so they can have a say over the way their company is being run.
The UAE legal system is based on civil law, which means that you can instruct your registered agent or nominee to manage the day-to-day affairs of the company for local customers and clients (and any others who are visiting Dubai). The choice is yours, but there are some important considerations when it comes to choosing an offshore company jurisdiction in Dubai.
Offshore Company Formation in an Offshore Centre
In addition to being a very attractive business destination, Dubai has become one of the biggest offshore financial centres in the world, and as such it offers some of the most prestigious and reputable offshore company registration services available today. However, finding a reliable agent or service provider can be difficult if you do not know where to look.
It is important to note that finding an offshore company formation agent or service provider in Dubai can be complicated because most of the best ones are actually based abroad and only offer their services to clients who have approached them directly. This means that they either offer their services through a web portal or via email – but there are numerous incidents where potential customers have complained of being ripped off or being offered ‘dubious’ offshore structures that are specifically designed for money laundering purposes.
Thankfully, there are some reliable and safe ways to go about setting up your business in Dubai, especially via offshore company formation Dubai. A good method is to find a reputable law firm that operates out of the country and then seek their help when it comes to picking an offshore company formation that suits your particular business needs.
The advantage of this approach is that you can contact the law firm directly (especially if they are based in Dubai) and discuss your requirements or business ideas without any worry of being scammed. Furthermore, there are numerously reputable law firms in the UAE that specialise in providing complete offshore company formation services to clients who seek their help.
The other option is to work with a limited liability partnership (LLP) or limited company. This approach makes it easier for you to buy and sell your business because there are no restrictions on shareholders, which means that the board of directors can be set up as you wish. However, this type of business entity does have its downsides because the UAE has no specific regulations in place for LLPs and limited companies – which means that they are not legal entities under UAE law.
The advantage of using an LLP or company to create your Dubai-based business is that it will allow you to enjoy the following benefits: – They can be run by a group of individuals. There are no restrictions on who the shareholders or board members should be, and as such it allows you to easily buy and sell your business because there is no change in the capital structure required. Furthermore, companies and LLPs do not need to appoint any management representatives (agents), which means that they are able to operate autonomously.
Also Read: 5 Facts About PRO Services In Dubai That Will Blow Your Mind