How to Start a Business in Dubai
How to Start a Business in DubaiUpdated on Thursday 19th January 2017
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Dubai is the capital of the Dubai Emirate in UAE and an important business hub since the beginning of its oil exploitation in the 1960’s. Dubai has developed into a global international place and pursued a western-style business model. Nowadays the city has 20 economic zones called free zones that were designed around one or more business industries, with the objective of encouraging foreign investments, by guaranteeing a set of advantages. In this exotic and highly dynamic business environment, the legal advice of a Dubai law firm is a must for anyone interested in starting a business in Dubai.
Types of enterprises in Dubai
Depending on the domain of the company you intend to start – commercial or industrial - you might want to run your business in one of the following ways:
- • just outside the jurisdiction where the company was incorporated, case in which you need to register an International Business Company;
- • within the incorporation jurisdiction, with some restrictions, situation in which you should go for an Onshore Company;
- • benefit from unlimited access to the UAE’s market, case in which you should consider the option of a residential (local) company.
When you want to start a business in Dubai, what you must decide next is the legal form that is most adequate for your enterprise. The sole proprietorship is one of the simplest types of business forms in Dubai. Otherwise you can either form a limited liability company (private or public) or a kind of partnership. Another option would be to set up a branch office or a subsidiary. If you plan to have a capital represented by stocks then you should register a private or public joint stock company. Other two types of companies which are definitory for the Dubai business climate are the free zone limited liability company and the free zone establishments.
Our attorneys in Dubai will help you find the most advantageous business form so that you can easily and successfully start a business in Dubai.
What do you need for company registration in Dubai?
In view of the registration of a company in Dubai, a foreign investor needs to make sure that the minimum share capital requirements are met, that the required licenses are obtained and that the shareholding structure is firmly and definitively configured.
The public companies are required a share capital of minimum 10 million AED. For the insurance and investment businesses, the minimum required is 25 million AED and for other financial institutions the capital is minimum 40 million AED. The limited liability companies are not obliged to deposit a share capital prior to registration. In total, the registration takes usually no more than a few days.
Please contact our law firm in Dubai at any level of your business formation. Our lawyers will assist you by insuring all required permits and licenses and informing you about all the legal details you need when you start a business in Dubai.