Company formation is the process of legally incorporating a business as a limited company or LLP at Companies House. Upon formation, a company becomes a legal individual with its own rights, responsibilities and liabilities.The process is also referred to as ‘company incorporation’ and ‘company registration’.
When you incorporate a limited company, it becomes an individual ‘person’ in the eyes of the law. Incorporated businesses are completely separate from their owners in terms of finances, liabilities, contractual agreements, and ownership of property and assets.
How easy is it to register a company in Dubai?
In most cases, the Dubai Company Act requires a foreign investor to have a local partner who will own the majority interest. The only places investors may incorporate fully foreign owned companies are the Dubai free zones. The company registration requiremts will be different from case to case because of the type of company one chooses to open in Dubai. According to the Company Law, investors may set up the following types of companies in Dubai:
- – limited liability companies,
- – private and public joint stock companies,
- – partnerships,
- – branch offices,
- – subsidiaries,
- – free zone limited liability companies,
- – free zone establishments.
For those seeking a simpler form of doing business in Dubai, the sole proprietorship could be an appropriate choice. Depending on the selected type of company and licensing requirements, the registration procedure with the Dubai Companies Registration Office will take several days.
Points to be kept in mind before incorporating a business.
- Select a local sponsor, a UAE national for local business startupThere are plenty of business opportunities available in Dubai, as well as in the other Emirates of UAE. However, if you really want to start a business which must exploit the potential of Dubai then you need a locally registered LLC business.
A UAE national must be taken as a 51% partner who is called a local ‘sponsor’. A local company provides the freedom to locate the business anywhere in the city. For a business startup in Dubai, this is a boon because it affords the best choice of locations to suit your budget.
- Select a Free Zone if you wish to own your business 100 Keep in mind that the only way for a business startup in UAE to start without taking a UAE national acting as your partner is to locate your business in one of the Free Zones.For a business startup, Free Zones offer three great advantages
- 100% ownership
- Speedy startup
- Duty-Free customs boundary.
- Select a Location that optimizes suitability, convenience, and costs. You need to set up your business in an area that is most profitable for your business or most convenient to your business. If you are planning a Free Zone company then you must make the selection based upon the criteria of distance, costs and if it is suitable for your product, business model, and trade requirements.
- Confirm your Visa eligibility and requirementFor a business startup in the UAE, a visa permitting you and employees to live in UAE is essential to run your business.
Visas are allowed for almost all businesses.
However, their number varies according to a variety of criteria such as the size of the office, nature of the business, the category of the employee or the investor.
- Hire a registration agent to take you through the process of business startupHiring a business advisory firm to register your business startup may be your best option.A company registration agent will do many things for you:
- Advise you on the right license and jurisdiction that meets your objectives
- Prepare documents including legal documents
– Company registration (Package)
– BOD resolutions
- Submit physically to banks, authorities
- Monitor completion of jobs
- Help you open a bank account
- Facilitate and solve problems with your bank, legal issues, your jurisdiction
- Trust and fiduciary services
- Act on behalf of clients
– Accounting & Bookkeeping
– Bank operation in a limited way on instructions
– Manager Simply put, a company incorporation agent will help you to maneuver through the legalities involved in starting a new business in the United Arab Emirates. visit: http://www.namaccountants.com or contact us : +971-558876440