Dubai has shown unbelievable success in trade perspective. When we think of the best countries to begin the business in, Dubai is among the first names that crosses our mind.
But have you ever thought why it is so?
Let’s have a look on the reasons of company formation in Dubai:
- An international environment is the window of exceptional opportunities
- Reliable infrastructure is the certain factor of enduring success
- Economic connections strengthen the decision of company formation
These factors make Dubai one of the best areas to start a business in 2022. If you wish to start a business in Dubai, DED (Department of Economic Development) will issue company formation rights after fulfillment of all formalities.
Benefits of free zone entities:
- 100% foreign ownership
- 0% income tax
- 0% corporate tax
- No import export duties
- No custom duties
- Expats can be hired from anywhere
- 100% of profit and capital repatriation
Company setup and trade license in Dubai 2022:
Surprisingly, UAE has around 45 free trade zones. Majority of them are located in Dubai and all have independent rules and regulations. Due to the independency, they all differ in policies and business resource facilitation. This is the plus point for all the entrepreneurs as they get wider exposure with all the required business resources.
Free zone setup options:
The most common free zones in Dubai and UAE are enlisted below:
- Dubai Multi Commodities Centre (DMCC)
- International Free Zone Authority (IFZA)
- Dubai Internet City (DIC)
- Ras Al Khaimah Economic Zone (RAKEZ)
- Dubai International Financial Centre (DIFC)
- Dubai Knowledge Park (DKP)
- Abu Dhabi Global Market (ADGM)
- Umm Al Quwain Free Trade Zone (UAQ FTZ)
- Jebel Ali Free Zone Authority (JAFZA)
- Hamriyah Free Zone
- Dubai Silicon Oasis
- Dubai Media City
Obtaining a trade license:
Obtaining a trade license is one of the vital steps of company formation in Dubai in 2022. But, if you can spot the right team of professionals to cope up, this step can be quick and easy for you. If you wish to start a business in Dubai, DED (Department of Economic Development) will issue company formation rights after fulfillment of all formalities. This means that DED is the ultimate authority to gain a trade license too.
If you are a new comer from other country who have a very little or no knowledge about middle east, this process can be challenging for you. Here the help of professionals can be a life-saver. The professional consultants will not only help you with the formalities but can offer you professional assistance after the setup too.
The professional constancy companies have a team of experts from diversified background contributing to the quick proceedings of the formalities. Under expert supervision, you can start your own venture without hiccups.
Types of licenses available for businesses in Dubai:
Before digging deep into the topic of obtaining a license, let’s briefly overview the types of licenses available for business:
- Commercial Trade License
- Professional License
- Industrial Trade License
- Tourism License
Procedure of obtaining trade license in Dubai:
1. SELECTION OF ECONOMIC JURISDICTION:
There are mainly 3 economic jurisdictions in Dubai i.e; offshore, mainland and free zone. Before applying for trade license, you have to decide which economic jurisdiction you want to operate in.
2. SELECT COMPANY’S LEGAL STRUCTURE:
After selecting the jurisdiction, you have to select the legal structure of your company as it will determine the rules and regulations of your venture.
3. DECIDE ALL YOUR BUSINESS ACTIVITIES YOU WISH TO PERFORM:
Before you seek your trade license, you have to be very clear about the business activities you wish to perform. Nothing can be work in ambiguity and same goes for your business activities too.
4. OBTAIN INITIAL APPROVALS:
Once all your business activities are defined, you will be required to seek the initial approvals from Department of Economic Development (DED). You will be required to fill an application form provided by the department.
5. GET OFFICE SPACE:
Get a designated site for business operations are mandatory. If you do not have any physical space, you can opt for virtual space as well.
6. PREPARE MOA:
You will need Memorandum of Association (MOA) before applying for trade license. You can draft MOA with the help of legal experts.
7. GET APPROVAL FROM EXTERNAL BODIES:
DED will specify few government bodies and agencies to get the approval from before proceeding further.
8. DOCUMENT SUBMISSION TO DED:
There are a few important documents that are mandatory to proceed to next step. Here are the documents that you need to submit to the DED:
- Copies of all the shareholders’ passports.
- The initial approval letter from the DED.
- Filled up the DED application form.
- The Memorandum of Association.
- The tenancy contract and EJARI.
These are the common documents, and some more may be required depending on the business activities you choose to perform.
9. COMPLETE THE FINAL APPLICATION:
After submission of all the relevant documents, you will be required to fill the final application for to DED.
10. PAY THE FEES:
Once all the formalities are done, you can pay the fees to DED and get your trade license and unlock the door of endless opportunities.