If you are a business which is looking for expansion and growth and have concluded Dubai to be the perfect spot for the same owing to its business-friendly policies, tax benefits, and strategic global location, then see no more. The middle eastern market and the state-of-the-art infrastructure has made Dubai a perfect option to incorporate a company for taking a lucrative move. Here is everything you need to know to navigate your way through the process of incorporating business in Dubai.
Choosing the business activity
The first step before Dubai company incorporation of a company would be to identify and classify the business activity under which your company falls. The relevant authority, Department of Economic Development (DED) of Dubai segregates these activities into various sectors like professional, commercial, industrial, tourism, etc. and your business activity would be determinant of the kind of licence you will be required to obtain.
Selecting the legal structure
There are several legal structures for various businesses and each comes with its own pros and cons, some of the most-sought after structures are:
- Limited liability company (LLC)- The most suitable option for business is often this type of structure, especially if the business requires local sponsorship wherein the sponsor holds 51% shares in the company.
- Sole proprietary- This type of legal structure is best for the businesses who want to take over full control and make decisions on their own terms of profits, liabilities and operations.
- Branch office- This business structure allows the companies to set up a branch of their business in Dubai with the help of a local partner however, the main company still remains liable for the activities that are being carried out in the branch.
Application of Initial approval
The next step in the process of incorporation is obtaining an initial approval from the DED to proceed with the process. This approval makes sure that the government has no objection with you running the business in Dubai for which you need a completed application form, passport copies of the stakeholders of the company, proof of reservation of trade name and NOC from the sponsor in case of taking help of a local sponsor.
Drafting MOA, securing business location and licence
The next steps are more technical as it requires drafting Memorandum of Association (MoA) that describes company structures, capital held, business activities carried out, roles and responsibilities of the employees etc which has to be signed and notarized. Further, securing a business location is necessary as having a physical address is mandatory for carrying out business in Dubai. Finally, obtain a Dubai business licence after initial approval depending upon the business activity and submit the same with the DED.
Conclusion
As all the important steps are met in the process of incorporation and the business is registered with relevant authorities and a corporate bank account for carrying out domestic and international transactions, the business can finally start its journey towards growth and expansion in the holistic and dynamic business landscape of Dubai.