Thinking to register a Company in Dubai from UK? You’re not alone! Dubai’s unique blend of innovation, opportunity, and growth makes it an attractive destination for entrepreneurs. But what makes it so special?
Expanding or starting a business in Dubai can open doors to new markets, customers, and revenue streams, all while benefiting from the city’s tax-free haven, 100% ownership, and business-friendly ecosystem.
Additionally, the UK and UAE have been strengthening their bilateral trade relations. This growth has naturally led to more UK businesses looking to establish a physical presence in Dubai to capitalize on the region’s market potential.
Therefore, to make it easy for entrepreneurs like you, we’ll break down the benefits of doing business in Dubai and provide a straightforward guide on how to register a company in Dubai from the UK.
Why Register a Company in Dubai from the UK?
Registering a company in Dubai from the UK offers a wide range of benefits and opportunities for entrepreneurs:
1. Excellent Connectivity
Dubai’s geographical location provides excellent connectivity to the vast markets of the Middle East and Africa. Additionally, Dubai’s world-class infrastructure, including modern airports and seaports, facilitates seamless global trade and logistics which makes it an ideal location for businesses involved in international commerce.
2. Low Taxation
Dubai offers a competitive tax regime with low corporate tax rates which makes it attractive for businesses seeking to reduce their tax burden. The VAT rate in the UAE is relatively low (5%), and certain sectors may qualify for exemptions or zero-rated VAT.
3. Business-Friendly Policies
Dubai’s pro-business policies, including intellectual property protection and a stable regulatory environment, create a favourable environment for entrepreneurship and investment.
4. Access to a Growing Economy
Dubai’s economy is highly diversified, with booming sectors such as trade, tourism, real estate, finance, and technology, providing numerous opportunities for UK businesses.
5. 100% Foreign Ownership
In both Mainland and Free Zone companies, foreign investors can enjoy 100% ownership of their business.
6. Global Talent Pool
Dubai attracts talent from around the world, making it easier for UK businesses to find skilled professionals across various industries.
Dubai’s Business Setup Options
When registering a company in Dubai from the UK, understanding the various business setup options is crucial. Dubai offers three primary types of business setups: Free Zone Companies, Mainland Companies, and Offshore Companies.
1. Mainland Companies
Mainland companies are businesses registered under the UAE’s Department of Economic Development (DED) and can operate anywhere within the UAE and beyond. Benefits of mainland companies include:
- Mainland companies can directly trade with the local market and engage in domestic business activities.
- Full business ownership is allowed for most of the business activities.
- Companies can engage in a wide range of business activities.
- Mainland companies have more flexibility in terms of business operations and ownership structures.
- Companies can bid for government contracts, which is often restricted for free zone and offshore entities.
2. Free Zone Companies
Free zones in Dubai are designated areas where foreign companies can operate with minimal regulatory restrictions. These zones offer numerous benefits, including:
- Foreign investors can have complete ownership of their businesses.
- Free zone companies enjoy a corporate tax exemption for a certain period.
- The setup process is relatively straightforward and efficient.
- Each free zone offers specialized infrastructure and facilities tailored to specific industries (e.g., media, technology, logistics).
- Companies can repatriate 100% of their profits and capital.
Popular free zones in Dubai include:
- International Free Zone Authority (IFZA)
- Dubai Multi Commodities Centre (DMCC)
- Dubai Internet City (DIC)
- Jebel Ali Free Zone (JAFZA)
- Dubai International Financial Centre (DIFC)
3. Offshore Companies
Offshore companies are established outside the UAE’s territorial waters and are primarily used for holding investments and conducting international trade. They offer:
- Offshore companies enjoy a corporate tax exemption.
- They provide a level of privacy and confidentiality.
- They are ideal for conducting international trade and investment activities.
- Offshore companies are not required to have a physical office in the UAE.
Consulting with a business setup expert like Shuraa Business Setup can help you choose the most suitable option and ensure a smooth registration process.
Documents Required for Company Registration
The specific documents may vary depending on the type of company (Free Zone, Mainland, or Offshore) and the business activity. Here’s a general list of the essential documents needed to start a buiness in Dubai:
- Valid passport copies of all shareholders, directors, and managers.
- Copy of the UAE entry stamp or residence visa (if the individual is already a UAE resident).
- Recent passport-sized photographs.
- A tenancy contract or Ejari (a registered lease agreement) for the company’s office space in Dubai.
- For UAE residents, a No Objection Certificate (NOC) from their current sponsor.
- A detailed business plan.
- Proof of good financial standing and credibility.
- Memorandum and Articles of Association (MOA).
Consult with our local business setup specialist to ensure you have all the necessary documents and comply with the specific requirements for your chosen company type.
How to Register a Company in Dubai from UK
Company setup in Dubai from the UK involves a series of steps that ensure compliance with UAE regulations while facilitating a smooth setup. Here’s a step-by-step guide to the process:
1. Choose the Business Activity
Determine the nature of your business and select the appropriate activity from the list provided by the Dubai Department of Economic Development (DED) or the relevant Free Zone Authority.
2. Select the Legal Structure
Choose the legal structure that best suits your business needs, such as a Limited Liability Company (LLC), Free Zone Company, Branch Office, or Offshore Company.
3. Select a Business Name
Choose a unique and appropriate name for your company. Ensure the name complies with Dubai’s naming conventions and is not already registered.
4. Obtain Necessary Approvals
Obtain necessary approvals from relevant government departments, such as the Department of Economic Development (DED) or the specific free zone authority.
5. Secure a Physical Office
Secure physical office space or warehouse if required. This step is crucial for Mainland Companies, where an Ejari (registered lease agreement) must be submitted.
6. Apply for the Business License
Submit the required documents to the relevant government authority (DED for mainland companies, free zone authority for free zone companies). Pay the applicable fees for the business license, which varies depending on the jurisdiction and business activity.
Once approved, you will receive the official business license which allows you to legally operate your company in Dubai. However, depending on your specific industry or business activities, you may need additional permits or licenses.
7. Open a Corporate Bank Account
Select a suitable bank in Dubai. Provide necessary documents for account opening, including passport copies, proof of address, and company registration documents.
8. Obtain Visas and Work Permits
If you plan to employ foreign workers, obtain the necessary visas and work permits. Coordinate with immigration authorities and comply with visa requirements.
9. Register for VAT
Determine if your business is required to register for Value-Added Tax (VAT) based on the UAE’s VAT regulations. If applicable, register for VAT with the Federal Tax Authority.
Remember, our company formation experts will assist you throughout the business set-up process to ensure compliance with all applicable laws and regulations.
Company Registration Cost in Dubai from the UK
The license cost for company registration in Dubai ranges between AED 12,900 to AED 28,900 (approximately £2,700 to £6,000). The exact cost depends on the type of company, business activity, and company size & structure.
Business Taxation in Dubai
All companies registered in Dubai are generally subject to corporate tax, regardless of their ownership structure. Companies with annual taxable income below AED 375,000 are exempt from corporate tax. For companies with taxable income exceeding AED 375,000, a flat rate of 9% applies. Small and medium-sized Freezone companies may qualify for 100% tax exemption.
Dubai is also part of the UAE’s VAT system, which is implemented at a standard rate of 5%. This applies to most goods and services sold within the UAE. Certain industries or products may be subject to specific taxes, such as excise taxes on tobacco, alcohol, and carbonated beverages.
Ready to Expand Your Business?
In recent years, more and more UK entrepreneurs and investors are choosing to register their companies in Dubai, taking advantage of its status as a global business hub. The emirate offers a favorable business environment, world-class infrastructure, and a thriving market.
At Shuraa Business Setup, we’re here to make the process of setting up your business in Dubai simple and stress-free. We handle all the legal requirements, licensing, and paperwork so that you can focus on building your business.
Don’t miss out on the incredible opportunities Dubai has to offer. Contact Shuraa Business Setup today!