Dubai is the most dynamic business hub, setup your business in Dubai Now
Dubai, the most dynamic business hub, is an appropriate place for giving a roof to new businesses.
Expanding from start-ups and small businesses to entrepreneurs and massive multinational corporations, Dubai lets everyone work easily, efficiently, and speedily.
Establishing your business in Dubai gains you high benefits such as good governance, tax saving, a premium lifestyle, and endless growth opportunities. Adding to the point, Dubai, a much desirable place, offers an International and extensive workforce from varying cultures.
For all its aspects of setting up a company,
- Free zone v/s Mainland,
- Proprietorship v/s Partnership,
- Specialty v/s activities and
- Budget v/s value,
it offers numerous options to choose from:
Free zone v/s Mainland
A prime decision you require to take for a new business setup in Dubai is selecting the location. You can choose to establish your business either in the Free zone or on the Mainland. The main feature that makes the Free area outstanding is its allowance for 100% owned companies in Dubai.
The first free zone launched in Dubai was Jebel Ali Free Zone Authority (JAFZA). It was a small-scale operation with just 19 companies, But by the end of the decade, it was awarded ISO Certification.
Presently, thousands of International individuals and institutions are housed under Free zone.
Proprietorship v/s Partnership
The second significant decision that you need to make is the legal entity of your business. The number of shareholders and their nature consideration in the UAE are the key elements determining your legal entity.
If you plan to offer service-related activities in Dubai, you can register yourself with a sole proprietor mainland license. Free zone limited liability company (FZ LLC), free zone entity (FZE), or free zone company (FZ CO) are the other options with which you can register yourself.
If you are engaged in trading and contracting activities, the favorable option for you is to get registered with a limited liability company (LLC) on the Mainland. The limitation for this type of company is that you can put a maximum of 50 shareholders.
For more than 50 shareholders, you typically need to register as a Private Limited Company (PLC). Another option is a public joint-stock company (PJSC). This is a more complex structure where directors act as trustees for shareholders.
Specialty v/s activities
An integral part of setting up a new venture is determining your activity to apply for the license. There are a few activities that have restrictions, and a few are prohibited.
If you have a primary specialization in a specific field, you would not require to search much. But if you are going for retail or trade, which are wider business categories, you will have more choices in different sectors.
Newly established Freezones offer a unique feature that ensures greater flexibility.
According to this, professional, industrial and commercial activities can be integrated into a single business license. Furthermore, for acquiring the license for the Mainland, the owner needs to identify the exact nature of his business.
Budget v/s value
The expenses which occur in the setup depend upon a number of factors, i.e. type of license, type of company to be incorporated, and the number of work visas required. The amount of minimum share capital, which is not always required, depends upon the size and structure of your enterprise.
Charges of office are significantly varying, Ranging from a 1-year contract for desks to workshops to long-term reserves of 25 years for prominent office places. Everything is prepared to ensure your convenience.
Also, there are no hidden costs; everything is presented in the beginning itself.
Consequently, the total cost can be sliced into four major components:
- Licensing and share capital requirements
- Visa process