Company Formation and How to do it in UAE

Dubai has gained a considerable amount of traction, and investors have been moving many of their operations to the UAE in an effort for expansion. Over the years, UAE has established itself as an important and prime destination for several multinationals to set up their businesses.

There has never been a better time to get started with a company in Dubai as the government’s laws, procedures and a friendly business environment make it a convenient and accommodating place for new and growing start-ups. You don’t have to worry about unnecessary visits to the lawyer, and can dive right into making your company’s existence a reality with the best business structure.

GCG Structuring helps clients with company formation within the UAE by helping them consider any and every option that would lay the foundation of their company. Keep in mind that the process of company formation isn’t just limited to registration and approval.With the help of our professionals, you will have your rough business model analyzed and evaluated to better understand liabilities, investment capital and any other external factors that might be necessary and need to be accounted for, in the selection of a rigid and optimum business structure.

Registering a Foreign Company in Dubai

Foreign Companies in Dubai will often set up a Branch or a Representative Office. A Branch is then permitted to take part in commercial activity within the UAE and consequently earn profits. However, Representative Offices can only market their own products but cannot profit within the UAE.

Both forms of companies need to go through a process with commercial registration and license that is linked to the name of the parent companies.

Keep in mind that all of your documents will have to be translated into Arabic by an official translator before being submitted to GCG Structuring.

Setting up a Representative Office (RO) or a Branch in UAE

It would be best to talk out the details with a consultant of ours who will take you through the technical details and the correct legal structure that you should take for UAE’s market.

You will need the following documents for registration of a company within the UAE.

Certificate of incorporation

  • Certificate of good standing
  • Articles of association
  • Certified passport copy for the General Manager
  • Statement that explains your operations within the UAE
  • Memorandum
  • Board resolution, and an appointed general manager with power of attorney
  • Audits of parent company from the previous 2 years
  • 2x Certified address proofs for your General Manager
  • 1x CV of the General Manager
  • 1x Reference letter from the bank for the General Manager

You will need to have all your documents attested from both your country of residence and from UAE’s consulate. This does take a significant time, but thanks to the help of GCG Structuring, our clients enjoy fast service and easy company formation within the UAE.

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Registering a Free Zone Company

You can find almost 40 Free Zones within the UAE with even more under construction. Free Zones are an attractive place for start-ups due to their tax advantages. There are no ownership restrictions in these regions and all businesses are governed by the Free Zone Authority (FZA) that issues licenses and moderates the business operations of all companies residing in Free Zones.

The best thing about a Free Zone Company is that you have a wide variety of advantages that support your business which includes absence of currency restrictions, logistic efficiencies along with the most important factor; 100% exemption from any income tax!

The company registration procedure in Dubai Free Zones is quite simple once all the documents are prepared. The required documents to open a company in RAK are:

  • Passport copy
  • Visa copy if applicable 
  • If no res. visa then last entry stamp in UAE or the copy of visit visa
  • 3 proposed company names
  • 1 photo with white background
  • UAE address if applicable and home country address
  • Email and mobile for each shareholders

We take the above-mentioned documents for our clients and help them get set up in a Free Zone in no time!

Registering a Limited Liability Company (LLC)

Onshore or mainland companies in Dubai are licensed by the Department of Economic Development (DED) and governed by the UAE Commercial Companies Law (CCL). 

However, unlike companies in the Free Zone, onshore companies can participate in business activities without any restriction of location and therefore they are able to conduct their sales/trade anywhere in the Gulf Cooperation Council (GCC) states.

You’ll mostly find registered LLCs in the mainland because that’s the model that offers the most flexibility and freedom of operation.

GCG Structuring helps LLCs get set up in mainland through a few important documents needed at the time of registration that include:

  • Certified passport copies for managers and shareholders
  • NOC from UAE residence visa sponsor
  • (If applicable) Copy of UAE residence visa
  • 1x Bank reference letter for shareholders
  • 1x CV for shareholders
  • 1x Signed Sovereign Application Form
  • 2x Certified address proofs for each shareholder

As we help you to get set up as an LLC in Dubai, you’ll be able to perform mostly all operations that you would want to as a business which includes just about everything except investment, banking or insurance. The government doesn’t require you to pay any capital requirements.

You can choose to have either of the three licenses as an LLC in UAE; Commercial, Industrial or Professional.

Registering a Sole Proprietorship

Now, if you want to operate within UAE as the sole owner of your company, then you would be going for sole proprietorship that would be in your name. You will be liable for all financial responsibilities of the company.

Foreign nationals looking to set up an establishment based on sole proprietorship should look for help with GCG Structuring to assist them through with the extensive process of obtaining licenses, visas etc.

Keep in mind though, sole proprietorships are only allowed to engage in professional services such as medical, engineering, management, consultation or other similar services.

Similar to what we’ve discussed for other company structures before, agencies like GCG will help you to set everything up from A-Z and help you go to your respective markets easily. We will guide you through the entire legal process, financial structure, etc. and anything and everything that will be vital to your business.

In order to successfully register your establishment, you’ll have to make sure you have the following documents both notarized and attested from your home country as well as the UAE.

  • Passport copy for shareholder (Certified)
  • UAE Residence Visa Copy
  • NOC from Visa Sponsor (If applicable)
  • Proof of education
  • Qualifications
  • Experience
  • Passport copy for General Manager Copy
  • 2x Certified address proof for General Manager

The process itself can be relatively time-consuming and often complex, but like we said, if you’re new to Dubai, then we know just about everyone there is to know to get your company up and running. Just get us the documents and let us handle the rest!

Registering Offshore Companies

Offshore Companies in the UAE are set up with the intention to work outside its jurisdiction. There are several benefits of setting your own offshore company up in the UAE, many of which include an opportunity for expansion in the international market, a business-friendly environment, tax neutrality on your earnings, etc.

We help offshore clients get set up with the best banks within the UAE for international transactions. Keep in mind however that offshore companies aren’t allowed to deal with residents or have any sort of physical location in the UAE.

You might face errors while you try to fill out the forms and provide documents for the registration of your company. But, with the help of GCG Structuring, we’ll get the process done for you with ease. We’ll help you get all applications set up and get your employees visa along with getting you a bank account in the most reputable banks that value your business!

For the entire process, you’ll have to provide us with the following documents:

  • A business plan for the next 3 years (Not always necessary though)
  • Bank reference letter or a 6-month bank statement
  • Passport copies of your shareholders
  • CV of your shareholders
  • Business Activity
  • Proof of your address
  • 3 options for name reservation

Once we have everything from your end, we’ll get started right off by getting your offshore business set up in Dubai, so you can start earning!

Like we’ve discussed above, while forming a company in Dubai can be easy, having the right contacts and good relationships with the local banks can carry you a long way. It’s important that you develop a good relationship with your bank for a smooth experience as you carry out your operations within the UAE.

Form a Company in UAE Now with GCG Structuring!

Get in contact with us now through our website and we can set up a meeting to discuss the technical side of your business and get you ready with the most optimum business model for your future company in Dubai!

Everyone’s making use of the potential for investment in Dubai, it’s time for you to set up a company in the UAE as well! Let’s get you started right away!