Chat with us, powered by LiveChat Business Dubai Archives - Page 6 of 6 - Shuraa UK

Business Dubai

Start an IT Company in Dubai

How to Start an IT Company in Dubai?

Start your business effortlessly in the UAE from the UK with Shuraa, your trusted expert for opening an IT company in Dubai. We were running around looking at all options with different free zones and sponsors, but it was very straightforward in the end” says Chris Leighton, Co-founder, AirZones, a UK-based company that was established in Dubai, United Arab Emirates, in September 2021. It has just been a short while and the company is already thriving in the UAE and seen as a promising competitor in the market.  According to the UK’s Department for International Trade, more than 6,000 UK-based companies are already registered in the UAE, with bilateral trade set to reach £25 billion (Dh127.1bn).  UK businesses that choose Dubai as their base can access undeniable support and a uniquely nurturing environment for development. In fact, establishing an IT business in Dubai comes with a host of benefits. How to open an IT company in Dubai from UK? The process to open an IT Company in Dubai is smooth and convenient. It hardly takes a week to complete, given the steps to start an IT business in Dubai are followed carefully. The process of setting up an IT Company in Dubai starts with these six important steps: 1. Determine the type and location of your IT company To start with, you’ll need to decide the type of business you want to set up. This is because your business type will determine the type of license required — commercial professional or industrial, as you will need approval from other departments. Moreover, the Department of Economic Development (DED) lists 2100+ activities for business owners to choose from, including various IT business activities. Additionally, the 45 free zones in the UAE each have their own regulations and formalities. Dubai free zones allow companies to undertake IT-related activities, but some free zones have specific licenses for such activities.  2. Choose Your Business Location Now, you must decide where to establish your IT company. You can choose a location in the free zones, such as DMCC Authority Free Zone and Creative City Fujairah. Though, DIC (Dubai Internet City) is the most preferred location to open an IT company in Dubai. 3. Secure the premises Once you settle the legal procedures and select the location, you can search for your office, based on cost, size, location and other facilities. 4. Register the Trade Name The name of your company should reflect the nature and type of IT business in Dubai the company is involved in. However, if your IT company is a branch of another company that already has a name, then its name should not be offensive, provocative or insulting to anyone. 5. Designate share capital Decide on the share capital in your IT company. The Memorandum Of Association of your IT company decides the minimum share capital. Often, business owners do not have to pay minimum capital to start an IT business in Dubai. 6. Hire employees  After setting up your office, start the hiring process. Dubai has an abundance of skilled workforce. Hence, you can have a manager ready to be on board before you get the approval to set up a Dubai IT company. Although, in some cases, you may not be able to hire a workforce, and therefore, you may need to involve contractors. Benefits of starting an IT company in Dubai Taxation is one of the important benefits of setting up an IT company in Dubai for freedom from corporate taxes and free differentiation of profits when it’s set in a free zone. Moreover, you receive hassle-free availability of resources such as skilled workforce from all over the world along with avant-garde internet facilities. Considering the favourable market conditions and ease of global reach in Dubai, your IT business can have an edge over others in the industry. Furthermore, information and communications adoption in the region in blend with digital implementation makes it a hotspot for new investors and growing entrepreneurs. Dubai offers many free zones to motivate local and foreign investors to start their businesses. Also, IT-oriented free zones in Dubai guarantee extraordinary business conditions, integrating office structure and accommodation areas for companies and personnel. Documents required to open an IT company in Dubai The investor has to submit various documents to the Department of Economic Development. The list of documents is as follows. Passport of the owner and the partners of the firm Entry Stamp / UAE Visa The local partners chosen by the investor need to submit a neutralisation book. NOC for expatriate partners from the various sponsors chosen. The agreement of partnership must be signed in front of the notary. What is the Cost of opening an IT company in Dubai? Setting up an IT company in Dubai includes various costs, ranging from company registration and license fees to office expenses and share capital amount. Company Registration Fee is a one-time payment. The cost for registering to open a company in Dubai in a free zone is AED 9,000 to AED 10,000. Contrary to the company registration fee, license fees are a recurring cost. It can cost anywhere between AED 10,000 to AED 50,000 per year.  Start your IT Company in Dubai with Shuraa UK The support and a uniquely nurturing environment for growth found in Dubai are unmatched. From the ease of doing business to taxation, everything is hassle-free. Moreover, the IT industry in Dubai has tremendous potential for growth in local as well as overseas markets. Got a great business idea you want to execute? Everything you need can be found in Dubai.
Read more
LLC company formation in Dubai

How To Set Up A Limited Liability Company In Dubai, UAE

Limited Liability Companies (LLCs) are a popular choice for entrepreneurs looking to establish a business in Dubai, UAE. Setting up an LLC can be a strategic move for entrepreneurs looking to establish a presence in the Middle East. LLC company formation in Dubai offers a number of benefits, including limited liability protection for shareholders and the ability to conduct business in a tax-friendly environment.  Dubai is an attractive location for setting up an LLC due to its business-friendly policies, strategic location, and growing economy. The city serves as a hub for trade and commerce in the region which makes it an ideal base for businesses.  Therefore, we will provide you with a step-by-step guide on LLC company formation in Dubai, its benefits, costs, and other things you need to consider before you setup a company in Dubai.  What is an LLC Company in Dubai? An LLC Company in Dubai also referred to as a Limited Liability Company, is the most popular business structure for the UAE mainland. An LLC can have a minimum of two and a maximum of fifty shareholders. Importantly, these shareholders’ liability is limited to their investment in the company. This means their personal assets are protected if the company faces debts or lawsuits.  Setting up an LLC in Dubai typically involves registering a company name, obtaining a business license, securing visas (if needed), and opening a corporate bank account.  Benefits of Setting up an LLC Company in Dubai Here are some of the key benefits of setting up an LLC company in Dubai:  1. Limited Liability Protection This is a major advantage. As an LLC owner, your personal assets like your house or savings account are shielded from liability if the company faces debts or lawsuits. Your financial risk is limited to your investment in the company.  2. Tax Advantages Dubai offers a tax-friendly environment for LLCs. There’s typically limited corporate income tax levied on LLCs. Profits “pass through” to the individual shareholders who are then taxed on their share of the profits.  3. Ease of Setup Compared to some other business structures, forming an LLC in Dubai is considered relatively straightforward.  4. Management Flexibility LLCs offer flexibility in how you choose to manage the company. You can either have the members (owners) handle it directly or appoint external managers who aren’t shareholders.  5. 100% Foreign Ownership  Dubai allows 100% foreign ownership for LLCs on the mainland, with some exceptions. This can be a significant advantage for foreign investors looking to establish a business in Dubai.  6. Multiple Visas An LLC allows you to sponsor employees and apply for multiple visas, which can be helpful if you plan on hiring foreign staff.  7. Stronger Business Image An LLC structure can present a more professional and established image for your company compared to a sole proprietorship.  Documents Required to Setup LLC in Dubai To open an LLC in Dubai, you’ll need to submit a variety of documents to the Department of Economic Development (DED). This may include:  Photocopies of all shareholders’ passports (including visa pages if applicable)  Application form for registration from the DED  For UAE nationals only, a photocopy of the applicant’s Emirates ID  Trade name reservation form  Memorandum of Association (MOA) & Articles of Association (AOA) if applicable  Bank reference letters  NOC (No Objection Certificate) if required  How to Setup a Limited Liability Company in Dubai, UAE? LLC company formation in Dubai follows a simple, systematic process: 1. Choose Your Business Activity This initial step involves identifying the specific activities your LLC will engage in. The UAE government offers a vast selection of business activities (over 2,000) to choose from. You can find a detailed list on the Department of Economic Development (DED) website.  2. Reserve Your Company Name Once you’ve chosen your business activity, it’s crucial to secure a unique and appropriate name for your LLC. You can submit a name reservation application to the DED for approval.  3. Secure a Business Location While not mandatory, having a physical location can be beneficial depending on your business needs. If you plan to operate from a rented space, secure a tenancy contract and obtain a location map.  4. Prepare the Memorandum of Association (MOA) This is a crucial document that outlines the company’s structure, ownership details, and management rules. You’ll need to draft and notarize the MOA.  5. Apply for a Business License Submit the required documents, including the MOA, tenancy contract, and application forms, to the DED. There might be associated fees for processing the license application.  6. Open a Corporate Bank Account With your licenses in hand, you can proceed to open a corporate bank account for your LLC. This is essential for conducting business transactions.  7. Secure Visas (if required) If you plan to live and work in Dubai or hire employees, you’ll need to sponsor their visas through your LLC.  8. Comply with Tax Requirements Register for tax purposes with the Federal Tax Authority (FTA) and ensure compliance with tax regulations in the UAE.  Consider consulting with a business formation specialist in Dubai at Shuraa Business Setup. Our expert can guide you through the process to ensure you meet all the requirements and overcome complexities.  LLC Company Formation Cost in Dubai The LLC license cost in Dubai approximately starts from AED 18,500 to AED 30,000. However, the overall cost depends on several factors, including:  Chosen business activity  Business Location  Government fees  Visa costs  Office rent  Additional approval and permits  This is a general estimate, and the actual LLC company formation cost in Dubai may be higher or lower depending on your specific circumstances. To get a more accurate quote, it’s recommended to consult with a business formation specialist in Dubai at Shuraa who can consider the details of your business activity, location, and any additional requirements.  Start Your LLC Today with Shuraa!  Setting up a business in Dubai is easier than ever with the Limited Liability Company (LLC) structure. This business format is a favourite among many entrepreneurs for its simplicity and protection
Read more
100% foreign ownership in Dubai

100% foreign ownership in Dubai

The 100% foreign ownership law for onshore companies has attracted a lot of eyeballs from all around the world. Business owners and budding investors can now enjoy complete business ownership in the mainland region as well. Therefore, you’re now freed from the hassle of finding a reliable local sponsor (UAE national) who’ll have legal participation in your company alongside 51% shareholding as well. The latest amendment in the Companies Law has empowered expats to enjoy 100% foreign ownership in Dubai mainland, much like the legal structure in free zones. All you need to do is check whether your business activities meet the required criteria to savor 100% ownership in the UAE and apply for the same by taking help from the business consultants at Shuraa UK. How to Open an Onshore Company with 100% Foreign Ownership? Setting up your venture in the mainland region with 100% ownership in the UAE is a big plus for investors looking to find a home for their business in the country. All you need to do is follow the steps mentioned below to launch your onshore company: 1. List your Business Activities It’s imperative for business owners to list down all the activities that they wish to carry out in the UAE once they establish their onshore company. The Department of Economic Development (DED) maintains an exhaustive list of around 2,000 permissible business activities. You can choose the ones that match your business model, and the same would reflect in your approved trading license. 2. Finalise the Company’s Legal Structure 100% foreign ownership in Dubai mainland has opened a new world of opportunities for onshore company formation. You can now form an LLC (limited liability company) without a local sponsor. This implies you no longer need a UAE national who’ll have 51% shareholding of your company. All you need is assistance from a local service agent (LSA) who’ll help you with the paperwork, legal procedures, and more to ensure you don’t face any trouble opening your dream venture in Dubai mainland. The best part is that the LSA doesn’t have any legal shareholding in your company, so you can enjoy 100% foreign ownership of your enterprise. 3. Trade Name Reservation The next step to launch your onshore company with 100% foreign ownership is to reserve a legal trading name for your business. The name you choose should be indicative of your business activities and shouldn’t be copied from an established brand in the marketplace. The UAE government requires you to submit a list of 3-4 preferred trading names, and you get the approval/rejection status of each name in quick time. Ensure that the names you select are unique, catchy, and devoid of any derogatory terms or words that hurt the sentiments of any religion or community. 4. Secure an Office Space An office space that gels well with your venture’s personality is a must-have. Therefore, explore as much as you can before finalising the office space for your onshore enterprise. It’s recommended to rent office space rather than investing in real estate for several reasons. It’s beneficial as you don’t need to invest hefty sums of money upfront and also facilitates hassle-free relocation. New-age investors and entrepreneurs can also secure virtual office space for their venture in the mainland region. You can launch your company virtually without investing in physical office space by getting in touch with our business experts. You need to sign a sustainability agreement with us, and we’ll take care of the rest. 5. Apply for a Business License 100% foreign ownership in Dubai opens the gate for several lucrative onshore business opportunities without the legal involvement of a mandatory local sponsor. Therefore, you’re your own master, and the keys to the kingdom of your corporate success rest in your hands. Applying for a business license in the UAE involves a lot of paperwork and approvals. This is done to ensure that unauthorised agencies don’t set up their firms in the Emirates and fake applications are also filtered through rigorous documentation. You must have the initial approval certificate, payment receipt of trade name reservation, identity proof documents, and more to apply for a business license. 6. Procure a Visa and Open a Corporate Bank Account The last steps involve the procurement of visas for yourself and your family. You can obtain a visa by sharing your investment plan, or by investing in more office space. Moreover, business owners can also secure visas for their domestic staff. Having a corporate bank account in a reliable bank is also vital during your stay in the UAE. Always choose a bank that offers long-term business benefits alongside robust banking facilities. You can connect with the legal advisors at Shuraa UK in case you face any issues in opening a bank account for your company. Benefits of Forming an Onshore Company in the UAE? 100% company ownership in the UAE is now legalised for onshore companies as per the UAE Federal Law No. 19 of 2018 on Foreign Direct Investment (FDI). Therefore, you now have complete control over the day-to-day business activities, finances, and everything related to your dream venture. Remember that you may still need an LSA for company establishment. However, they won’t intervene in any of your business activities. Mainland or onshore company formation is also beneficial because you’re presented with the opportunity to capture a larger audience segment. Business owners can trade freely within Dubai, the UAE and international trading is also seamless for mainland companies. Companies in the mainland region enjoy some exclusive privileges. Onshore companies also get a preference for government projects and other such legal tenders. Launch your Onshore Company in the UAE Investors shouldn’t miss out on the opportunity to establish their companies in the mainland region and enjoy 100% company ownership in the UAE. The process to set up your onshore company has undergone changes due to the amendments in the Companies Law. You now need a local service agent instead of a local sponsor to
Read more