Company Formation: Why and How to Form a Company in Dubai

Since the last decade, Dubai has experienced a very high growth rate be it in tourism, gastronomical business or making an investment for business setup. Right now is the best time to invest in a company formation in Dubai as signs of its economy are really promising. The impressive growth in previous years has attracted a large number of foreign investors and business owners. So, if you are thinking about forming a company of your dream or passion, Dubai is the right place as company formation is a relatively simple and speedy process with several benefits, especially in the free zone areas of UAE.

Although there are other options including onshore and offshore, free zone areas are particularly popular among the foreign entrepreneurs due to a number of reasons as they offer 100% company ownership, 100% repatriation of capital, 0% corporation, no currency restrictions and full import and export tax exemption.

No doubt, administrative, financial and technical aspects of company formation in Dubai may seem daunting, but with the right assistance of proficient business consultants of Dubai, forming company would begin to seem as a less complicated process.

Here are a few steps to follow which will help you in figuring out how to form a company:

Choose the business type

There are some limitations when it comes to forming a company in a free zone. Thus, the first step is to decide the nature of your business activity. It is generally more beneficial to form a company in close proximity to companies in the same sector. Check the transport links too. In case your business heavily depends on the import or export activity, it would be in your best interest to choose one of the free zones that are situated close to the airport or port.

Decide the company name

Choose the name of your company with care and only after knowing the naming conventions because the UAE government has strict naming conventions. Names which include offensive language or words that refer to Allah, Him or any religious, sectarian or political groups are forbidden. In case you choose to name the company after a person, it is mandatory that the person must be the partner or owner of the company and only full name must be used instead of initials or abbreviations.

Complete all incorporation paperwork

After deciding the company name, business type and activity, you will be required to complete an application provided along with the shareholders’ passport copies and submit them to the government authorities. Some free zones also require a Non-Objection Certificate (NOC). All this paperwork really seems to be arduous, thus hiring a business advisory firm in Dubai will really assist you in carrying out all difficult task and paperwork with least hassle. Once your application is processed successfully, the government will issue the company license.

Open a bank account

Once the paperwork has been completed, you will possess all the documentation to open your corporate bank account in any of the local or international banks located in UAE. You can either proceed with the bank of your choice or you can ask your business set-up partner to arrange meetings with various institutions to figure out the most suitable option.

Process the visa

Here is the final step of company formation –applying for a visa. Many of the free zones allow you to submit applications for staff and dependents and the exact number of applications will depend on which free zone you have chosen for company formation in Dubai. Thus, if you are looking to obtain visas for a spouse, child, maid or driver, it is best to take the advice from business consultants. This will help you ensure to do so in the chosen free zone as well as you and your sponsor meet all the eligibility criteria for visa.

By following these steps and with the right support, you can form a company in Dubai with ease.

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