In recent years, Dubai has become a popular place for businesses from all over the world. With its booming economy, strategic location, and friendly business environment, it’s no wonder that many Colombian entrepreneurs are looking to set up shop in this exciting city.
Dubai offers a great chance for Colombian business owners to explore new markets and grow their companies. As Colombia strengthens its economic ties with the Middle East, establishing a business in Dubai can open doors to many opportunities.
Here we will walk you through the process of registering a company in Dubai from Colombia, highlighting the key steps and considerations that Colombian entrepreneurs need to keep in mind.
Why Choose Business Setup in Dubai from Colombia
Here are some compelling reasons why setting up a business in Dubai from Colombia is a strategic move:
1. 100% Foreign Ownership
One of the major attractions of setting up a business in Dubai is the option for 100% foreign ownership, especially in free zones. This allows Colombian entrepreneurs to maintain complete control over their businesses without the need for a local sponsor.
2. Tax-Friendly Regime
Dubai offers a competitive tax regime, with limited corporate income tax and no personal income tax, or capital gains tax, making it an attractive destination for businesses.
3. Free Zones
Dubai offers numerous free zones, each with its own specific regulations and incentives. Businesses operating in free zones enjoy significant tax benefits and customs privileges.
4. Economic Growth and Stability
Dubai boasts a robust and diverse economy with significant growth in sectors such as tourism, real estate, technology, and finance. Its economic stability makes it a safe choice for investment.
5. Cultural Similarities
The increasing cultural exchange between Colombia and the UAE creates opportunities for Colombian businesses to connect and resonate with local consumers.
6. Lifestyle and Quality of Life
Dubai is known for its high standard of living, modern amenities, and excellent healthcare and education systems. This attractive lifestyle can benefit Colombian entrepreneurs and their families, making relocation more appealing.
Types of Companies You Can Register in Dubai
When considering starting a business in Dubai, it’s essential to understand the various types of companies you can register. Each type has its own benefits, regulations, and ownership requirements.
1. Mainland Companies
Mainland companies are businesses registered with the Department of Economic Development (DED) in Dubai. They are allowed to operate anywhere in Dubai and the wider UAE. Traditionally, a local sponsor (UAE national) was required to hold at least 51% ownership. However, recent changes allow 100% foreign ownership in specific sectors.
Key Benefits:
- Access to the local UAE market without restrictions.
- Ability to bid for government contracts.
- Flexibility in choosing office space.
- Wide range of business activities.
2. Free Zone Companies
Free zones are designated areas in Dubai where foreign investors can set up businesses with specific advantages tailored for certain industries.
Key Benefits:
- 100% foreign ownership.
- Full repatriation of profits and capital.
- Exemption from import and export duties.
- No corporate tax for a specified period.
Popular Free Zones:
- Dubai Multi Commodities Centre (DMCC)
- Dubai Internet City (DIC)
- Dubai Media City (DMC)
- Ras Al Khaimah Economic Zone (RAKEZ)
- International Free Zone Authority (IFZA)
- Jebel Ali Free Zone (JAFZA)
- Dubai Airport Free Zone (DAFZA)
3. Offshore Companies
Offshore companies are registered outside the UAE but can conduct business activities internationally. They are not permitted to operate within the UAE market directly. Offshore companies are often considered for asset management, holding companies, or for businesses that require a presence in the UAE for international dealings.
Key Benefits:
- Complete confidentiality and privacy for owners.
- Asset protection and tax advantages.
- Minimal reporting and compliance requirements.
Besides, these jurisdictions you also have to decide on business structure depending on your business needs. Here are some options:
- Limited Liability Company (LLC): An LLC is a popular type of mainland company that allows for two to fifty shareholders, with limited liability.
- Joint Venture: A joint venture involves two or more parties coming together to undertake a specific business project, sharing profits, losses, and control.
- Professional or Service Company: This type of company is set up by professionals (such as doctors, engineers, and consultants) who wish to provide services rather than products.
- Branch Office: A branch office is an extension of a foreign company that allows it to operate in Dubai without registering a separate entity.
Documents Required for Business Setup in Dubai from Colombia
Here’s a list of the essential documents that Colombian entrepreneurs need to prepare when setting up a business in Dubai:
- Passport copies: Valid passports of the business owners or authorized representatives.
- Visa: A valid visa for Dubai or a residence permit.
- Company name: Proposed name for the company, subject to availability and approval.
- Business plan: A detailed outline of your business activities, objectives, and financial projections.
- No objection certificate (NOC): If applicable, a letter from the relevant authorities in Colombia authorizing you to set up a business in Dubai.
- Lease agreement: A rental agreement for the company’s office space in Dubai.
- Commercial license application: A form to be filled out and submitted to the Department of Economic Development (DED).
- Memorandum of Association (MOA): A legal document outlining the company’s objectives, registered office, share capital, and ownership structure.
How to Register a Company in Dubai from Colombia? Step-by-Step Process
Setting up a company in Dubai may seem challenging, but by following a clear step-by-step process and Shuraa’s assistance, Colombian entrepreneurs can do the registration smoothly.
Here’s a detailed guide to register a company in Dubai from Colombia:
1. Define Your Business Activity
The proposed business activity must comply with Dubai’s regulatory framework and must be specified in the application. Ensure that the chosen activity aligns with the type of company being registered (mainland, free zone, etc.).
2. Choose a Business Structure
Choose between a mainland company, free zone company, offshore company, or other structures based on your business goals and operational needs.
3. Reserve a Trade Name
Choose a business name that reflects your company’s activities and adheres to Dubai’s naming regulations. Submit your trade name for approval through the Department of Economic Development (DED) or the relevant Free Zone authority.
4. Secure Office Space
Depending on the type of company, find a suitable office space, co-working space, or warehouse that meets Dubai’s regulations. Sign a tenancy agreement to secure your office space, which is required for final registration.
5. Apply for Business License
Submit the completed application along with the required documents, including the MoA, tenancy contract, and initial approval certificate, to the DED or relevant Free Zone authority. Pay the licensing fees to obtain your business license.
6. Obtain Necessary Permits and Licenses (if applicable)
Depending on your business activities, you may need additional permits or licenses, such as a trade license, industrial license, or health license.
7. Open a Corporate Bank Account
Choose a suitable bank in Dubai and submit the necessary documents for account opening. The bank will review your application and open the corporate bank account.
8. Apply for Visas
If you plan to live and work in Dubai, apply for residency visas for yourself and your employees.
Note: If applicable, register for VAT with the Federal Tax Authority (FTA).
Cost of Company Registration in Dubai
When considering the costs involved in registering a company in Dubai from Colombia, it’s essential to note that a general business trading license typically starts at AED 12,999*. This fee covers the essential requirements for operating a trading business in the emirate and is a foundational expense that entrepreneurs should budget for when planning their company setup.
Keep in mind that additional costs for office space, sponsorship, visa and immigration fees, and other permits may apply, depending on your specific business needs and structure.
Additionally, free zones offer personalized business setup packages tailored to meet specific needs. At Shuraa, we provide tailored business setup packages that suit your budget, whether you’re looking to establish a presence in the mainland or a free zone.
Ready to Launch Your Business in Dubai?
Registering a company in Dubai from Colombia can open up a world of possibilities for Colombian entrepreneurs ready to take the leap. At Shuraa Business Setup, we’re here to help you every step of the way. Our services include expert advice, document preparation, help with getting your business license, PRO services, office space options, and local sponsorship.
By choosing Shuraa, you’ll have a supportive partner with the knowledge and experience to make the process easier for you. Don’t miss out on this chance to expand your business in one of the world’s top business hubs.
Reach out to us today for a free consultation, and let’s start your journey in Dubai together.