Dubai Company Formation Primer

Dubai is a popular destination for incorporation of companies. This is so because the business atmosphere is conducive and regulations are not as rigid as it is in other countries. Generally speaking, the time taken to incorporate a company in the UAE and the cost involved in much lower than elsewhere. The lack of routine interference by the authorities and leak-proof-privacy-guaranteed kind of business environment has made Dubai the most sought after destination in business also.

If you are keen to have a functional business in Dubai, you will certainly be in need of a primer on Dubai company formation. There are numerous consultancies and private firms that can guide you in understanding the detailed procedure of company formation. Before approaching these consultancies, it is advisable for you to be in possession of a certain degree of knowledge about company formation. With a generic idea, you can be in tune with the consultancy and you will know if they are playing by the rules.

Here are a few pointers you should keep in mind if you have an interest in company formation in Dubai –

A few doubts plaguing your mind would be - What kind of company do you want to form in Dubai? Do you need a legal presence? How many shareholders are you required to have? Will your personal details be anonymous? Which law will you become governed under? What is Dubai Company Formation Cost?

Three major types of companies can be formed to conduct business in Dubai-

• Off-shore: It is not necessary to conduct business from Dubai or have an office in case of an off-shore company. Although, one may hold bank accounts, real estate and other investments. Set up time and capital requirements are both minimal and it is mostly operated by expatriates from outside of Dubai.
• On-Shore: An agent of a national of UAE will be required for an on-shore company. Generally, intra-Emirati trade related businesses are conducted with an on-shore license. A type of on-shore business is the branch office model. Branch Office – A subsidiary of a foreign company or a representative office that is owned wholly by a foreign entity may be opened in Dubai under Companies Law. A limited liability company may also be formed. Free Zone: In Dubai, a Free-Zone Company and a Free-Zone Establishment are two different things, requiring separate share holding pattern. These can be operated by expatriates from within or outside the country, without the need for a UAE based agent.
• Free Zone Authorities are designated regulatory bodies for each free zone in Dubai. A number of trade and export businesses can be conducted with a free zone license. It is advantageous as there are no taxes levied and revenue arising from business can be repatriated.

There are nominal requirements for setting up a company in Dubai –the required shareholding pattern, a bank account, approved licenses, paperwork of workers (if any), real estate, and the bare minimum share capital. These nominal requirements are common to almost all companies with variations differing as per the type of company.

For completion of paperwork and regulatory formalities or to know Dubai Company Formation Cost, one has to take the help of a local consultancy as they are quick and effective. Apart from that, a tax consultant, a UAE based agent, a legal consultant and an auditor may have to be hired from time to time as the business progresses. Although different types of companies are governed under different laws, the factor of privacy is the same. As records are not open to public scrutiny, personal details will remain confidential and out of reach.

If you are looking for Offshore Company Formation Service in Dubai, then the author of this article recommends Dubai Business Blog.