Company Formation in Dubai : Process, Cost Involved - 2024

What is Company Formation in Dubai?

Company formation in Dubai is the process of forming up a new business entity in the city. It involves registering your company with the appropriate authorities, obtaining necessary licenses and permits, and fulfilling legal requirements to establish your business legally. This process allows entrepreneurs and investors to start and operate businesses in Dubai, whether it's a small enterprise or a large corporation. Company formation in Dubai typically includes steps such as choosing a business activity, selecting the right legal structure, registering the company name, submitting required documents, and obtaining a trade license. Overall, company formation in Dubai provides individuals and businesses with the opportunity to tap into the city thriving economy and vibrant business environment.

How to Open Company in Dubai

If you're an entrepreneur looking to set up a company in Dubai, understanding the procedure is crucial. Here's a step-by-step guide to help you navigate the process of company formation in Dubai, ensuring compliance and a smooth start to your business venture.

1. Decide on the Business Structure

The first step in the company formation process in Dubai is to decide on the business structure. This choice will impact your company's legal requirements, operational framework, and ownership structure. Options include:

• Free Zone Company: Offers 100% foreign ownership and tax benefits.
• Free Zone Establishment (FZE): Suitable for a single shareholder.
• Limited Liability Company (LLC): Requires a local sponsor owning 51% of the shares.
• Onshore Company: Involves local partnerships and can operate across the UAE.
• Offshore Company: Ideal for international business without a physical presence in Dubai.
• Branch Office: An extension of a parent company, operating within Dubai.

2. Reserve Your Company Name

Choosing a unique company name is essential. The name must comply with the regulations set by the Dubai Economic Department (DED) or the relevant Free Zone Authority. Key considerations include:

• Uniqueness: The name should not be similar to any existing company name.
• Appropriateness: It must align with the public peace, morality, and legal form of the company.
• Relevance: The name should reflect the business activities and should not include names of governing authorities, religions, or external bodies.
• Professionalism: Avoid derogatory or controversial terms. If using an individual’s name, it should be the full name, not a nickname.

3. Apply for a Business License

Once the name is reserved, the next step is to apply for a business license. The type of license you need depends on your business activities:

• Commercial License: For trading activities.
• Industrial License: For manufacturing and industrial operations.
• Professional License: For service providers, artisans, and technicians.

The DED handles the issuance of local company licenses, ensuring your business operates legally in Dubai.

4. Decide on the Location/Jurisdiction

Selecting the right location for your business is critical. You can choose between purchasing or leasing office space based on your needs and budget. Free zones in Dubai offer various office sizes and facilities to accommodate different business requirements. Factors to consider include:

• Business Activity: Ensure the location supports your operational needs.
• Employee Count: The office should comfortably house your workforce.
• Budget: Align the cost of the office space with your financial plan.

5. Open a Corporate Bank Account

After completing the necessary registrations and obtaining approvals, the final step is to open a corporate bank account. This account will facilitate financial transactions, helping you manage your business finances efficiently.

Is Company Formation in the UAE Costly?

People often think that company formation in the UAE is expensive, but it doesn't have to be! With the help of the right advisors, like RadiantBiz, company formation in Dubai or anywhere in the UAE can be both easy and affordable.At RadiantBiz, we analyze your needs and provide you with the best company formation services and packages tailored to your requirements. RadiantBiz offers all-in-one solutions to lower UAE company formation costs with our flexible pricing structure. Our advisors take into account your startup needs and offer packages that fit your budget perfectly.

What is Freezone Company Formation?

Company Formation in UAE Freezone comes with its own rules and expenses. Each Freezone has its own authorities that determine the costs. Starting a company in a Freezone can range from as low as AED 5750* to as high as AED 50,000*. Entrepreneurs have several options for Freezone company formation in the UAE market. Here are some of the most budget-friendly and affordable Freezone.

What is Offshore Company Formation?

The UAE is known for being a tax-free zone, making it attractive for various industries and investors. Offshore company formation in Dubai or anywhere in the country comes with several benefits, leading to the formation of many offshore companies each year. At RadiantBiz, we offer affordable packages for offshore company formation in Dubai, Jebel Ali, Ajman, and RAKEZ. We also help with offshore bank account opening services. Generally, the cost of offshore company formation starts from AED 10,000 for Ajman Free Zone and RAK Free Zone, and approximately AED 18,000 for JAFZA.

Company formation Consultants in Dubai

Are you interested in Forming up your own company in Dubai, UAE with 100% ownership? Seeking a cost-effective business setup in UAE? Need quick Company formation services? We're here to help! RadiantBiz is one of the top business setup consultants in Dubai, offering fast and affordable solutions for mainland and free zone companies.We provide comprehensive business setup services for startups, medium enterprises, and large businesses in Dubai and the UAE. Whether you're looking to start a mainland or free zone company, we ensure promising results. Our services include trade license assistance, business visa services, trademark registration, trade license renewal, company liquidation, accounting and bookkeeping, opening business bank accounts, PRO services, and establishing branch offices in Dubai.Our dedicated business consultants are here to make your life easier and turn your dreams into reality. Trust us for reliable business setup services in Dubai.The allure of business formation in Dubai is particularly appealing to entrepreneurs worldwide. Dubai offers unique benefits that set it apart from other emirates. With the UAE focus shifting from oil and gas, the government is actively supporting new businesses, making it an attractive destination for entrepreneurs.

What documents are Required for Company Formation in Dubai, UAE?

Company Formation in Dubai, UAE usually requires several important documents. These can vary based on your business type and chosen company structure (mainland, free zone, or offshore). Typically, you'll need:

• Two passport-sized colored photos of all shareholders.
• Copies of shareholders' passports.
• Copies of residence visas.
• Memorandum of Association (MOA).
• Article of Association (AOA).
• Trade Name Reservation Certificate.
• Initial approval certificate.
• Lease agreement.
• Power of Attorney.
• Bank reference letter.

Eligibility Criteria for Business Formation In Dubai

The requirements for business formation in Dubai or the UAE can vary depending on the type of business and where you plan to register it (free zone or mainland). However, some general criteria include:

‍Age: You must be at least 18 years old to register a business.

‍Nationality: There are usually no nationality restrictions, but some free zones may have specific requirements for foreign investors.

‍Criminal record: You should have a clean criminal record in the UAE and elsewhere.

‍Funding: You need enough funds to start and run your business.

‍Business plan: You must have a clear business plan outlining your goals and strategies.Resident visa: If you're not a UAE national, you'll need a resident visa to live and work there.