Company formation in Dubai is the most convenient method of opening a new business entity in the country. In addition, registration of a new company name is very easy and nominal fees are also applicable. The process of company formation in Dubai is recognized as a completely legal one and it also comes with several regulations, which are equally professional.
There are several advantages to doing company registration in Dubai. It is one of the fastest ways to get registered in the city, and you do not have to wait for years to avail of the benefits. Companies are now allowed to issue two types of dividends namely, a fixed percentage of the equity or a predefined income tax rate. A limited liability company or an offshore subsidiary is established in Dubai. Company formation in Dubai can be done through a registered agent or by self-registration.
Bank accounts are mandatory in the company incorporation process in Dubai. You have to maintain a minimum balance in your bank account and have to inform the bank about any movement of assets and payments. There are professional services in Dubai that provide assistance to individuals who want to open an account in Dubai.
If you are a non- UAE national, you have to follow the laws of the country you are emigrating to. This means that you cannot use the company name of your home country when you start a business in Dubai. Thus, in order to avoid confusion, it is better to choose a simpler name. The Arabic word for partnership in Dubai is Al Eshaqi. The word ‘Al’ does not stand for anything and should therefore be capitalized. You may have to check with your bank to understand what kind of partnership is stipulated for your business and whether you can use it while registering a company.
Another point to consider while choosing a company would be ownership structure. In Dubai, a company would usually be owned by one or more foreign investors. This ownership may be indirect or direct. For instance, a UAE national owning a stake of a company would have the same ownership as a foreign investor owning a large part of the shares.
Share capital is another important issue to consider while forming a company in Dubai. It is necessary that all shareholders of the company registered in Dubai must have an equal right to voting. They cannot hold more than 10% of the shares. Foreign investors may buy more than a percent share of the issued share capital of a company registered in Dubai. However, they cannot hold shares for more than two weeks.
Company formation in Dubai may also require the submission of documents in Arabic and/or English. Companies must submit their Articles of Association, Memorandum of Association, Corporate seal, Memorandum of Management, and Audience List. Companies are required to submit one copy of the Memorandum of Association and one copy of the Corporate seal. Company formation in Dubai also requires the submission of the document called the “abu Dhabi”. This is a brief description of the nature of the business entity and the legal description of the company.
Once all these documents are submitted, the company is considered to have been duly formed in Dubai. Company formation in Dubai is completed through the local sponsor. The sponsor is a company registered in Dubai. Company formation in Dubai through the local sponsor has some benefits. Some of the advantages include exemption from the requirement for a registration number, no requirements for an international account, and the most important benefit – the formation of a business has been completed within the law of the emirate.
