At present-day age, UAE has become a global hub for investment and business set-ups. Due to this reason, many people are dreaming about company set-up in Dubai, the UAE. Even though UAE is the second-largest producer of natural gas and oil in the world; but the country has greatly shifted its economic focus far away from the deep wells of natural gas and oil. 71% of the GDP comes from health care, construction, tourism, aviation, and other non-gas and non-oil sectors. That is why the importance of company set-up consultancy in Dubai is increasing. Consultants are experts in the specific fields, and they work as advisors either to the individuals or to the companies. They are much helping for advertising, accounting, business set-up services, auditing, career counselling, computer programming, editorial services, human resource (HR) & pay role management, insurance, PR, publishing, management of taxes, and targeting the market and market values.
So, it is a well-known fact that UAE is an excellent place for establishing and growing business. So, in this article, some good questions are discussed for consulting a company set-up in the UAE.
1. Why the UAE is the best and most suitable place to set-up a company/business?
One of the best advantages of starting a business or a company set-up consultancy in Dubai is its politically tranquil and peaceful environment that serves as the best source for the survival and growth of the business. Other than this, there are many top banking institutions such as FAB, Standard Chartered, and HSCB. Due to this reason, the investors and business persons don’t have to look for any other options, and banking solutions; as these banking institutes are highly capable of providing financial assistance and banking opportunities.
Railways, ports, roads, telecommunication lines, and other kinds of infrastructures for communication are highly effective and advance, so this place is ideal for diverse business management. However, getting the company set-up consultancy is always beneficial.
2. Is the Tax Policy of Dubai supportive for the Establishment of Business Companies?
The taxation policies in Dubai are highly favourable and helpful to start both domestic and foreign business. The policy is so much helpful that the federal government is not taking tax on the income of companies and individuals. However, since January 2018, Value Added Tax (VAT) introduction with a rate of at least 5% from case to case.
The business of gas and oil industries is subject to 50-55% of the tax rate, whereas banks with the branches or subsidiaries are subject to 20% of the tax rate.
For the new companies in Dubai it is a must to pay the one-time entry fee for the registration of entrepreneurs, 10% of the warehouse and annual rent, and 5% of the yearly wages that are paid to the employee to the respective municipalities. By getting company set-up consultancy, you can get the exact idea regarding tax you need to pay.
3. Shall I Prefer Free Zone Establishment, or Offshore Company, or Free Zone Company?
There are various special zones in Dubai and Emirates. These zones are build in the specific trading areas and are offering unique custom and tax-related opportunities. The special offers are being provided for the regulation of trade and for attracting direct foreign investment. Do not forget to get a company set-up consultancy before making any decision.
Control of Free Zones
Independent authorities control these free zones. It is a must for the individuals to register themselves and get a relevant permit and trading license. In one zone, the interested individuals can register themselves for an offshore company, free zone establishment, or for the free zone company.
Making Company in a Certain Zone
If someone wants a company in a specific zone, then they can start either by using free zone establishment or free zone company. The only difference between these two kinds of company start-up is that only one individual can start and own free zone establishment. Whereas, two owners are a must for the free zone companies.
Other than this, the free zone companies only allow 100% of foreign ownership. In addition to this, they are exempt from tax, and they can hire employees from the local workforce. But there is a downside the trading options for them only allow in registered zones.
They may not be allowed in some other zones as there is a requirement for the establishment of a business or company related to the specific industry. However, trading outside these zones can be possible by appointing a local distributor or commercial agent. Get advice from company set-up consultancy agency.
Offshore and International Business Companies
The offshore companies or the international business companies are best for those investors who do not show interest in trading in Dubai or UAE. It is also best for those investors who show interest in holding a specific vehicle for many kinds of international assets. It is one of the excellent company creation in the UAE due to its associated advantages.
These companies can be established in the free zones, and foreigners can also own them. One of the significant advantages of these companies is that they are exempt from tax, but they can only trade within the limited boundaries. The best decision can be made by taking the service of company set-up consultancy or company formation consultancy in Dubai.
4. What is the possible time frame for making and starting the company and opening for a bank account?
The duration for the establishment of the company and staring its operating is variable from zone to zone. This duration is strongly dependent on that either the company is an offshore company, free zone establishment, or free zone company.
Period for Setting Up Companies
In general, the required period for offshore companies is shorter. The establishment of a free zone establishment, and free zone companies take more time. Depending on the World Bank’s website ranking for Dubai, the company set-up may take several weeks from licensing to set-up a bank account.
Services of Specialized Agents or Companies can be Greatly Helpful.
However, by taking services of specialized agents and companies, the formation time can reduce to only a few days. These agents are working legally and are providing excellent tips, advice, and management offers to take an effective start for the company. They can help to speedily complete bureaucratic registration processes that otherwise may take a longer time.
No Trouble After Registration
After proper registration of business and company, there are no chances of facing trouble for opening a corporate account and starting a business. So, businesspersons can select their desired banking services according to the ease and feasibility.
Personal Identification and Submission of Documents
The submission of the right information and documents is always a must-do thing for a company set-up in Dubai. This documentation should be authentic and related to the business.
After submission of this information, the account opening can take 2-3 weeks or sometimes even more time. However, the business person needs to visit the desired bank for at least once. Or company-set-up consultancy like us (Thallium Consulting) can arrange the entire process without visiting the bank.
5. What Kind of Documents are Required for Starting Company in Dubai?
This is greatly dependent on the choice of the businessperson. One may have an interest in making an individual company or may have to open a branch of already existing foreign companies. But for all category’s documentation requirements for company creation in UAE.
Forming Individual Company
In the case of forming the individual company, the copies of the personal passport are required. If the company is a group of partners, then all individuals shall submit copies of their passports. Additionally, the submission of utility bills is just as a proof of residence.
Submission of Important Documents
As a legal person or company, the individuals should be well prepared for the submission of multiple copies of essential documents such as articles of association, memorandum, and certificate of incorporation.
Proper Guidance About Document Submission
The agent or any specialized person will provide a proper guideline about the submission of documents that the individual has to submit.
Variation in Documents According to Structure of Company
The nature of the required documents is strongly dependent on the structure and purpose of the company. For making a specialized or professional company, some certificates are necessary that are demonstrating the competence level of the individual for offering specific services. The best company set-up consultancy is offering excellent services to guide the requirements according to the nature of the company.
6. Is it required to be a resident of the UAE to start a company in Dubai?
No, it is not necessary, and the opportunities for opening a business and companies are open for almost all nationalities. The businesspersons can also hire a law firm or specialized agents that can provide intermediary services between interested individuals and governmental organizations.
Start and Moving to Dubai Soon After Registration is Not Immediate
Even after the individuals have registered their company, they cannot immediately move to Dubai . They may hire a competitive manager for completing their tasks.
The residence is Must for Professional Services Providers.
Despite the availability of various options, if a business or company is mainly build to offer professional services, then there is no exemption of staying away. In this scenario, staying at the point or zone of the company’s establishment and company set-up consultancy is a must for the professional service providers .
7. What Should I know about getting the Residency Visas?
The residency visa can be easily obtained by being an employee or by taking the start of a free zone entity. The residency requirements are different for each zona so the foreigners should apply to the immigration department in the zone where the company will be started. Company set-up consultancy in France is offering reality-based guidelines so that the company owners do not have to face trouble with the regulations.
Visa Renewal and Activation
Other than this, there is the expiration of a residency visa after three years, so it is necessary to apply for visa renewal. However, there is no limitation for the resurrection of the visa. Another important thing is that the businessperson should enter Dubai for at least once six months to keep the visa active. Thus, if someone fails to do so, then the visa will be revoked.
No Residency Visa for the Owners of Offshore Companies
The owners of offshore companies are not eligible to get a residence visa. Due to differences, like company and business, they cannot enjoy the same rights as the owners of other business companies.
8. Is it Necessary to get A License?
Yes, this is an absolute obligation, and all companies need to get a license. Either, the company is professional, industrial, or commercial; the individuals should apply to get a license from the relevant authorities.
Obtain License from Independent Authority
The procedures for granting licenses for the establishment of companies control and regularize by the independent authorities. These authorities are governing the specific zones in which the company is to be open once they get company set-up consultancy. The interested individuals for opening a particular company should follow the recommended protocol to get a license.
9. What Kind of Business Activities are Allowed for the Companies?
While various kinds of business activities take place in Dubai, but no one can start a gambling business. Other than this, insurance services and activities also have a restriction.
Insurance for Foreign Investors
Only Dubai International Financial Center Free Zone is allowing specific foreign investors to set-up and owns their insurance companies.
An extensive range of legal and technical requirements is a must for diamond trading. For example, there is a requirement to get the Kimberly Process Certificate for the trading of the rough diamonds. With this certificate, there is no possibility for the trading of blood diamonds or conflict diamonds.
10. Which Kind of Form or Structure Should be Chosen by Company?
If the purpose is to extend the already existing business in Dubai, then there is no need to follow strict protocols and rules for setting up offshore company, free zone company, or free zone establishment. For this purpose, the opening of the branch office will be enough after getting company set-up consultancy. All the foreign branches must have a service agent. The company set-up consultancy can make the entire process easy and straightforward.
Nationality of Service Agent
Other than the facts mentioned above, it is just that the company set-up consultancy service agent should be native. If the agent intends to make its own company, then the company owner shall be the Dubai resident or UAE national.
Specific Zone to Open Company
Although there are many zones in Dubai, the majority of them typically focus around 1-2 industries. The perfect zone for the desire company set-up consultancy can select by the evaluation of the nature of the business. For this purpose, the businesspersons should have a clear understanding of the business activities and the goal of the company.
Let suppose, if someone shows interest in running a media film, then the free zone in Dubai Media City will be a perfect choice. This zone is specifically designed for supporting media business so investors can get success in this zone.
RK Maritime City Free Zone
This place is an excellent platform for logistic related business. Here the opportunities for success related to the logistics business are best and can take the business to the next heights.
Company Set-up: Zone for Offshore Company
If someone shows interest in opening an offshore company, then various zones are offering excellent opportunities for international business-related activities. Especially, the RAKIA zone is offering a flexible and cheaper environment for establishing offshore companies.
Company Set-up: Individual Business Company
Interested persons can start an individual business company that, in nature, is just like an offshore business. But here, the main difference is that the international business company has an excellent legal status for business.
All kinds of company set-up a consultancy, company creation in UAE. Company formation agency in Dubai and the company set-up a consultancy in France. All are strongly serving the purpose to guide the investors.
These are the most important questions that business owners might be thinking. Or otherwise, they should know about all these things before starting a company in Dubai. Other than these factors, learning the Arabic language is significantly important and can lead the company or business to the next heights.
Learning this language as suggested by the company formation agency in Dubai enables you to understand the culture and natives better so the business owners can successfully enhance and build relationships with local and foreign communities as many people take pride to speak this language. Make sure to get company set-up consultancy services.