Starting a business in Dubai as a foreigner is a fairly simple process. Those interested can choose mainland Dubai or free trade zones in Dubai in order to register a company and benefit from an advantageous tax system. Our company formation agents in Dubai can help you with the formalities related to registering a company and the minimum investment to start a business in Dubai. We present below the steps you should follow in this regard.
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How can I open a company in Dubai?
Foreign investors must first choose the right business structure. Most business people prefer a limited liability company, the simplest and most adapted structure among the existing ones. Here’s what you need to do for starting a business in Dubai as a foreigner:
- You need at least 1 shareholder to register an LLC in Dubai’s free trade zones. At least 2 stockholders are needed for the Dubai mainland.
- Choose the type of activities you wish to implement in Dubai.
- Prepare a name for the company and then check its validity.
- Depending on the activities, you need to apply for a trade license in Dubai.
- Company documents such as Articles of Association and Memorandum of Association are drafted.
- Next, the registration of the company for the payment of taxes is required.
- The Department of Economic Development in Dubai is the authority that provides the agreement for the establishment of a company.
- The company will be registered for the payment of the social contributions of the employees.
It is worth noting that there is no minimum investment to start a business in Dubai. However, foreign investors can set off with a certain amount of money they want to invest in the company. Find out all about it from our company formation agents in Dubai. We provide support for starting a business as a foreigner in Dubai.
What types of trade licenses are there in Dubai?
To open a company in Dubai you need to obtain a trade license. Let’s review the existing categories:
- A professional license is required for service-oriented firms in Dubai. Those who offer management, IT, marketing, education, and healthcare services must obtain this license.
- A commercial license is required for any trading business in Dubai. The most common activities are those related to the sale of products and services in Dubai. Talk to us if you need information about starting a business in Dubai as a foreigner.
- An industrial license must be obtained from those who want to work in the manufacturing sector in Dubai.
- A tourism license is required for those with activities in this sector. For example, travel agencies are required to present this type of license.
Taxation of LLCs in Dubai
As mentioned above, a limited liability company is the simplest business structure available in Dubai. Starting a business in Dubai as a foreigner also involves paying attention to the taxes you pay. There are several advantages for those who establish their business in this city, and among them we list:
- 5% VAT.
- No corporate tax, except for the oil & gas sector.
- Free repatriation of profits.
- Protection of the double tax treaties signed by UAE with countries worldwide.
Regarding the UAE economy and its direction, here is some information in this regard:
- The total FDIs for 2020 have exceeded the threshold of USD 150 billion.
- In 2020, accommodation and food services accounted for about 40% of total FDI.
- Electric power generation is another attractive sector for foreign investors. It has absorbed about 13% of total foreign investment in 2019.
- UAE offers good-quality business conditions to foreigners, and the economy is dynamic and diversified.
- The country is rich in natural resources such as oil and gas.
- There is no need for minimal investment to start a business in Dubai.
So, starting a business in Dubai as a foreigner is a simple process. Contact our team of local agents for complete information.