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Company Formation Dubai

There are seven Emirates in the UAE and each of such Emirates has its own procedures to start business. Even though there are federal laws which, clearly, have the power along all UAE, different Emirates have different additional rules and regulations which apply. Thus, for example, the procedure and requirements to start business in Dubai and the procedure to start the same business in Abu Dhabi would be rather different.

In each Emirate there are different options for the company formation – as the Free Trade Zone onshore or offshore company as well as the Non-Free Trade Zone Company with the local sponsor or local agent in Dubai or other Emirate.
It is also a prerequisite to define the exact scope of the services the company would provide. For example, if you do the company formation with the local sponsor in Dubai and decide to participate in governmental tenders in Abu Dhabi, most likely your company would be rejected from such tenders in Abu Dhabi as it must be, for such cases, be formed in Abu Dhabi .

It is important for a new start up company to set up the appropriate business vehicle to suit the needs of the company.  Taking the wrong decision at the very start will cost the business valuable time and money.

Dubai company formation
Many think about Dubai when they decide to start business in UAE. However, to start business in UAE, there are a number of other options in the United Arab Emirates for the company formation. Generally if you are not linked to Dubai, other Emirates of UAE may be the more cost-efficient  option for the company set up as well as the office and land / storage facilities costs.

What are the most common challenges faced when starting business in Dubai and other Emirates?
  • Definition of the right type of the company and right type of its license and place (Emirate, Free Trade zone) of the company  formation / registration.
  • Finding a local sponsor.
  • Preparing and filing all the documents for the company formation with the respective authorities.
  • For the licenses which require some professional qualifications – preparing and filing all the necessary documents to receive the respective approvals for the license.
  • Opening bank account. Even though it does not seems to be hard to open a bank account, sometimes, without the knowledge on how the banks work, opening a bank account in Dubai can be quite complicated and time-consuming.
  • Business in Dubai and other Emirates of UAE can be formed in a number of different ways with different costs and requirements. In total the options are as follows:
    • types of companies;
    • Under UAE federal law, foreign businesses have three main entities to choose from in order to conduct business in the UAE: a local limited liability company (“LLC”), a free zone entity (“FZE”), and an international business company (“IBC”).
    • Companies can also operate by setting up a branch of a foreign company, a representative office of a foreign company, a private or public joint stock company, a general or simple limited liability partnership, a joint venture or providing services as a professional or a consultant through a civil company.
Six out of seven emirates (the exception is Abu Dhabi) offer the possibility to conduct business out of a free zone. And two emirates, Dubai and Ras al Khaimah (RAK), offer an IBC regime.

Supporting you to set up business in Dubai
  1. In addition to incorporation of companies in the UAE, when it is required by customers, our company can provide any management or administrative support.  Services available include:
  2. Identify strategic objectives, mission statement and key performance indicators.
  3. Preparation of business plans and receiving of the license.
  4. Carry our any mecessary research and benchmarking of industries or organisations.
  5. Co-ordination of work with banks for fast and efficient servicing and resolving the technical and other day-to-day operational issues.
  6. Structure verification of business transactions from its tax implications perspective.
  7. Systems set up for information security.
  8. Systems set up for hierarchy and personnel reporting.
  9. Systems set up for control over departments.
  10. System of accounting and auditing.
  11. Setting up all workflows, job descriptions and systems of reporting and control.
  12. Communication support with Governmental authorities in UAE.
  13. Systems of operative management and control over the office.
  14. Company structure with back-up functions in the event of personnel disease / discharge or force majeure in the technical part.
  15. Prepare reviews of staff or department performance.
  16. Pre-selection of personnel and assistance on the matter of its accommodation.
  17. Choice of an office space. In case of leasing a shell office – arranging the fit-out of the office and the office equipment.
All the objectives above will be handled in such a way that after our company completes the assignment your company’s office in the UAE will function absolutely on its own. It means that we execute our assignments “key ready” with all the documents and instruments of control and work flows to be handed over to our customers.

Time for execution of the task varies from 6 to 12 month depending on the objectives’ extent and details in combination with the efficiency and speed of the interaction with the customer and deadline for the project completion.

Companies, who plan to set up in the UAE functioning production facilities, assembling facilities, logistics and other production and business facilities, will be assisted by our advisors, who  provide the complete spectrum of services required for start–up of such business: from the market analysis, choice of plot of land, receiving permissions and licenses for buildings and production facilities construction and assembling all the way down to the complete support on all stages of construction and starting up the business facilities.

Branch of a foreign company
Foreign companies can establish a branch office in the UAE. A branch office may not carry out any commercial activity in its own name, it may only negotiate and enter into contracts on behalf of the parent company, and if goods and services are required to fulfill that contract, they have to come directly from the parent. Support activities by the branch are allowed.

All the phases will be planned in advance and fully coordinated with the customer. We regularly inform on the work in progress.