When it comes to Company Registration in Dubai, there are three main business establishments in Dubai. It is the Mainland, the Freezones and the Offshore establishment. The quickest and easiest way to set up your business in Dubai is in the form of a Freezone Company.
Dubai is bustling with business activities, it shows positive growth for a decade and is expected to show a spike in the future too.
With a host of infrastructure projects lined up for completion like the Dubai Creek Harbour and the much awaited Expo 2020; Dubai’s growth projections indicate an up word climb over the coming years. IMF has projected 2.8 percent GDP growth for UAE in 2019.
Experiences and Challenges faced while setting up my first business in the UAE
Here is my experience while setting up my new business in Dubai, UAE.
I landed in Dubai UAE, in the month of May 2019 with an intention to establish a company and open bank account. In fact, I did some homework by searching the internet before starting to UAE. I was really confused by seeing the offers of various authorities and Freezones.
Hence I thought of getting advice directly from a Business Consultant in UAE. I was lucky to find a trustworthy Consultant with their office at Dubai Airport Freezone, near to Terminal 2 of Dubai International Airport (DXB). They advised me to set up a company in a cost-effective Freezone.
I entrusted them the assignment to do all the paperwork. I was so happy to receive all company legal documents in 3 days! But the real challenge came afterward, it was the opening of a bank account. It took almost 15 days for me to open a bank account despite giving my business profile and source of income.
In the meantime, the deadline to sign a contract with my buyer was over and I lost one deal. But the good thing was that the above Business Consultant coordinated with the bank and got everything done in my absence.
Now I am waiting to sign the next business deal with all my company documents and bank account in place. I always wanted a company and bank account in UAE because of the freedom in that country to do business, the strong banking sector and more importantly the safety and security at that place.
What are the steps in the Company Registration Process in Dubai?
Freezones are the most preferred business establishment type among foreign investors and entrepreneurs. Freezones remains an all-time favorite among investors due to the following business benefits:
- Fast and easy business setup
- 100% foreign ownership
- No personal or corporate tax
- 100% repatriation of capital and profits
- No currency restrictions
- Exemption from import/export duties
UAE Freezone: A step by step guide
At the first instance, the business set up in Dubai might feel like a tedious task with a lot of paperwork, approvals, meeting authorities, getting clearance, etc. With the right guidance from an expert business consultant, the process could be hassle-free.
The company registration process in the Freezone includes the following steps.
1. Choosing the right business activity
The designated Freezone is to be chosen depending on the business activity to result in future business growth and sustainability.
Having clarity on the right business activity will help in streamlining the registration process. Multiple activities could be listed under a single trade license. Each Freezones have a permitted list of activities. Hence, the entrepreneur must choose the activity accordingly.
2. Choosing the Company name
Similar to choosing the business activity, finalizing on the tradename is also a key step. UAE has strict naming conventions. The applicant must ensure they use permitted naming and adhere to the guidelines. E.g. Business names that hurt religious sentiments are not permitted
Having assistance from an expert business consultant on the naming guidelines will help to save a lot of time and effort.
3. Company Incorporation paperwork preparation & submission
The company registration application needs to be filled up along with the chosen business activity and the finalized trade name. The shareholder’s passport copies and the application form must be submitted for verification to the authorities.
Some Freezones must require additional documentation such as business plan, Non-Objection Certificate, etc.
4. Receive license notification
Once the application is reviewed by the authorities. the concerned authorities will notify the status and will proceed to the issue of company license. So, now you are legally eligible to start working in the designated Freezone.
5. Open bank account
Post receiving the trade license, the next step is opening a bank account.
The banking sector in the UAE is very safe and secure. They offer a couple of business-friendly banking services. Based on the investor’s requirements and available offers from various banks, the opening of the bank account is initiated.
In some cases, the banks will require few supporting documents like business profile, investor details, past business transaction history (if any), etc.
6. Visa processing
This is the last step where the company can apply for a visa for the stakeholders and the employees. Based on the business category and package selected for business set up the visa quota varies across the various Freezones.
The visa processing will require some documentation and will take 2-3 weeks to get the visa stamped. Generally, the visa process follows the below steps:
- Entry Permit
- Status Change
- Medical Fitness Test
- Emirates ID Registration
- VISA Stamping
Most of the business consultant will have a PRO services arm. They will be well-experienced with the VISA Processing and the guidelines. They would liaise with the concerned Government Authorities to streamline the process and obtain the VISA Stamping at the earliest.
Finding a strategic partner for your company registration in Dubai
With the right support services from a seasoned business consultant, the company registration process in the Freezone could be completed in a weeks’ time.
As the business setup process requires a lot of documentation and clearances required, often inexperienced applicant could face difficulties. This is where a business consultant will come handy.
For any assistance regarding company registration in UAE feel free to reach out to us
Contact: Aurion Business Consultants