If you’re looking to start a company in Dubai, then this blog post is for you. We’ll cover the different types of companies available and how to register one. Along with some best practices on taxes, accounting, employment law, and more! You’ll find that starting your own business in Dubai can be an exciting experience but it’s important to do your research before jumping into anything. This blog post aims at providing all the information needed for someone who wants to start their own company here in Dubai. In this blog, you’ll find Best Tips for Company Formation in Dubai
From registering a new business through establishing it as a limited liability entity (LLC) or partnership; exploring options like a sole proprietorship or branch office; understanding what type of licenses are required; completing tax obligations; dealing with legal issues related to commercial contracts; accounting and bookkeeping requirements; employment law issues like visa applications for employees, independent contractor contracts; and much more.
Types of Business in Dubai
There are many different options when it comes to starting a business here in the UAE. The most popular option is establishing an LLC (limited liability company). This type of company is considered a “closed joint-stock” establishment which means that it’s private and has a limited number of owners. The Dubai government also offers an LLC company license to foreign investors looking to set up businesses here in the UAE, so you’ll be able to jump into action immediately after completing your registration.
The most common type of business in the UAE is an LLC company. This type of company is considered a “closed joint-stock” establishment which means that it’s private and has a limited number of owners. The Dubai government also offers an LLC company license to foreign investors looking to set up businesses here in the UAE, so you’ll be able to jump into action immediately after completing your registration.
Company Formation in Dubai
Here are some benefits of LLC companies in Dubai:
1) The company is treated as a separate legal entity, which means that you can sign contracts and agreements under your company’s name without having to disclose your personal details like national ID or passport number. So, if something goes wrong with that contract then the liability will be entirely on the company’s shoulders rather than your own personal assets.
2) Income tax is not charged on profits earned by LLC companies in Dubai. And unlike some other jurisdictions, this income tax exemption also applies to foreign-owned LLCs that are registered outside of the UAE (Saudi Arabia, Bahrain, Jordan).
3) Private individuals with an interest in the LLC are able to enjoy limited liability. This means that they are not personally liable for any debts or damages incurred by their company unless they have acted illegally or in bad faith.
The Dubai LLC Company License is issued by the Department of Economic Development (DED) and required a minimum Dh7,000 registration fee. You can click here to find out how and where to register your LLC company in Dubai.
Another popular option for foreign investors is to establish a branch office in the UAE. This type of company is known as a “branch establishment” and it’s issued by the Ministry of Foreign Affairs (MoFA). You can also add unlimited owners under this license although it’s a requirement that at least one of these owners is a UAE national.
The MoFA branch office license costs Dh6,000 and includes 1 year’s unlimited operation. If you want to extend the license for more years after this initial period then it will cost Dhs200 per additional year required. To find out how and where to register your branch office in Dubai, click here.
A third option to consider is a local partnership or Sole Proprietorship. This type of establishment is usually chosen by small businesses and freelancers. This license doesn’t require any capital and can be obtained at the Rera Registration Office, which will cost Dhs400 for one year’s unlimited operation (some additional fees may apply).
However, customers and suppliers could file a criminal complaint against the local partnership because it does not provide any legal protection to its owners. This can make it very difficult for your business to grow and attract investors.
Sole Proprietorship (Individual) – The Business Owner’s Legal Responsibility
A sole proprietorship is a business owned by one individual who has full responsibility for all of its debts and liabilities. This means that any creditor can demand payment from the owner’s personal bank accounts or seize his/her property if it is owned in the sole proprietorship name.
Operating a business under your own name could be a very dangerous route to take especially if your company incurs debt. In those cases, creditors could easily seize your personal bank accounts or even your house if it’s owned by the sole proprietor’s name.
This type of license is also not recommended for foreign investors as there is no legal protection for investors in a sole proprietorship. This means that customers and suppliers could file criminal complaints against them without having to disclose their personal details. This could potentially lead to the closure of your business.