In Dubai, starting a business is a reasonably quick and simple process, especially in the Dubai free zone area. To encourage improve foreign trade investment, the government has established a number of free zones, which are managed by a free zone administration. Free zones are encourage to make their own federal rules, exempt from mainland or Dubai business governance. It also takes the smallest amount of time and paperwork. Foreign businesses are permit to operate entirely within a free zone. You can thank the relevant free zone authority for firms that are permitted on their property in the financial, academic, media, retail, hotel, and other sectors.
But before starting a Freezone company set up, an entrepreneur should be aware of a few very clear requirements. The six key components that will help you integrate a business procedure are listed below.
Choose the right type of legal entity
Choose the type of legal entity that your company needs before anything else. You have the option of forming a free zone establishment, free zone company, or free zone limited liability company. The differences between these two are the total number of shareholders and whether the shareholder is a natural person or a legal entity. Each of these Business Set up Dubai has various advantages and shortcomings. The management needs to know which type of organisation will be best for the enterprise.
Choose a business activity
Choosing the kind of company activity you want to engage in is the second step. You have a wide range of places to start a business because many free zones permit multiple commercial activities. The area in which you can register your business will be impacted by this. The best recommendation is to consult with a business formation specialist to ensure a smooth process because Dubai has some particular regulations about what activities are permitted.
Choosing the Name of the Company
Before choosing a name for your business in Dubai, you need to consider a number of factors. To begin with, you must confirm that the chosen name is accessible for use and that no other business is already utilising it for administrative purposes. Additionally, you must be careful to avoid using words that are blasphemous or have a political or religious connotation. Similar to this, the person you want to honour by naming your company after must also be a partner and shareholder. Additionally, avoid using initials or abbreviations and always use full personal names.
Prepare your license application
It’s time to make your Dubai free zone business official by submitting your licence application after deciding on the kind of entity, business activity, and company name for your business. The laws of the specific free zones have precedence over any agreements made by businesses there. You must submit the required documentation in order to receive the necessary approvals. Additionally, keep in mind that the list of documents will change based on the type of economic activity, the firm type, and the free zone council legislation.
However, you must first obtain a preliminary approval from the relevant authorities. The following documents are require of you in order to do it.
- Application for the incorporation of a firm
- a comprehensive business plan
- a copy of the trade licence or registration certificate currently in effect
- Coloured passport copies of the manager and the shareholder designated by the company
- Specimen signature of the company’s shareholder and the appointed manager for the new business.
- 2 years’ worth of audited financial statements for corporations, or a letter of recommendation from the shareholder’s personal bank
- NOC from current sponsor
- Unit title deed
- Letter of the Intent
- Registry Identification Code Form for the manager or director.
You might also need to present documentation of invoices or work orders when signing up as a freelancer. In the vast majority of circumstances, they must submit:
- Registry Identification Code Form
- Application for registration
- Bank reference letter
You must pay registration and licence costs after receiving the initial approval. Depending on the type of licence required, the cost may change. The following documents are then require for registering your business:
- A completed application for registration
- Board Resolution appointing Manager/Director
- Power of Attorney given to Manager or the Director
- Memorandum and Articles of Association
- Specimen signature of Manager/Director
- Passport-size photo of Manager or the Director
- Share capital data
Applying for visas
You can begin your visa application after registering your business. Additionally, you can apply for visas for your hired help and any other domestic employees you may have. This application procedure includes status modification, getting entrance permits, registering an Emirates ID, taking a medical fitness test, and stamping the visa. You can simply get assistance at this step from a specialist in company formation.
Open a Bank Account
It is crucial to open a bank account so that the business can have a separate identity from the account holder. However, opening a corporate bank account in Dubai is not that simple, and there are many things to consider. But, a qualified specialist in business formation may help and make recommendations regarding the finest bank that best suits your unique needs. You will be given instructions on what paperwork to provide in order to open a bank account. The following is cover in these documents:
- An account opening form
- A signed copy of the board of directors permitting the starting of the bank account.
- A copy of the share certificates
- Copies of the passport
- A copy of the memorandum of association and the article of association.
These are a few of the elements that management should take into account when establishing a business in the free zone. A business can naturally form if these factors are kept in the back of your mind, and doing so will also guarantee that the company is head in the right direction. Now, if you want to learn tips for Dubai Mainland Company Formation, contact us today.