With a faster-growing Economy, Dubai has become one of the most demanding countries in the world to start a business. Businessmen and entrepreneurs around the world are seeking ways to register their business in Dubai. However, the company registration process in Dubai has increased its manifold over the years.
Whether you are planning for Mainland Company Formation in UAE or a Freezone Company Formation in UAE, you have to deal with the lengthy company incorporation process. We often notice that many aspiring entrepreneurs drop the idea of company expansion due to the complex process. One needs to have a basic idea of types of business entities and their registration processes to incorporate their business in the UAE seamlessly.
The legal structure for the business in the Dubai
Dubai is a country with versatility and huge business scopes. One needs to determine the type of company before its incorporation. The following is a list of some most popular company formations in the UAE.
Sole Proprietorship
Sole Proprietorship refers to a company 100% owned by an individual. The business owner has full control over the company and its operation. Generally, people from all over the world can open a sole Proprietorship company. However, UAE and GCC nationals have the right to open an industrial company.
Civil Company
Professionals including doctors, lawyers, and a tax consultant can easily set up a civil company in the UAE. An Emirati must possess 51% of the business.
Limited Liability Company (LLC)
An LLC should possess shareholders between two to fifty. However, each shareholder should take the liability for their share. Generally, profits and losses are divided between shareholders. However, 51% of shares must be possessed by a UAE national.
Foreign Company Branch
A foreign company is free to expand its business in the UAE. In this case, the company must be 100% owned by the parent company. Take note that any goods should be imported through a local trading firm.
Free Zone Company
Freezone Company Formation in UAE requires two to five stakeholders. Initially, there are many advantages of setting up a free zone company in Dubai but some of the companies can’t directly trade in the Dubai market. For more information, you may contact a Company Registration expert in the UAE.
Mainland company
A mainland company refers to an onshore company. It gets a license from the Department of Economic Development (DED) that allows business owners to trade in the local market as well as outside of the UAE without any curtailment.
Basic steps to follow to register a business in Dubai
Whether you are dealing with Freezone Company Formation in UAE or Mainland Company Formation in UAE, you need to follow these basic steps.
- Depending on the nature of business, business owners need to choose a business entity.
- Complete the online documentation process with the assistance of our representative. It is the most important part of the process.
- Reserve the company’s name within 7 days of document submission. Make sure that your company name is unique.
- Pay the basic licensing and registration fees,
- Check and sign all the legal documents at the final stage of company formation.
- A bank needs to be opened in the name of the company.
The list of the pre-requisites
- Online pre-approval of application form
- Copy of passport
- Proof of residence
- Parent company documents
- 3rd party approvals for certain types of business
Final Note
The company registration process in the UAE takes upto 6 weeks or more depending on the type of company. However, eLegal Consultants with its expert Litigation lawyers has made the entire process easy for business owners and entrepreneurs. Whether it is mainland or Freezone Company Formation in UAE, we assure business owners a hassle-free registration process. Contact us to avail the most experienced and affordable Company Registration lawyers in the UAE.
