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How to open a company for a non-resident in Dubai, UAE

How to open a company for a non-resident in Dubai, UAE - Makebiz

The United Arab Emirates is becoming more and more attractive for non-residents who want to start their own business. The strategic location, low taxes and well-developed infrastructure make this country an ideal place for doing business. Let’s take a closer look at how to open a company in a non-resident country, what registration options exist and what advantages this can bring.

Let’s note some advantages of doing business in the UAE

  • Low taxes: there are practically no income taxes, and in some cases the rates may be zero. This allows businessmen to keep most of their income and reinvest it in development.
  • 100% foreign ownership: Non-residents can fully own their company, eliminating the need to find a local partner.
  • Security and stability: a high level of security and political stability.
  • Developed infrastructure: high-quality office space, modern technologies and transport links, which makes doing business more convenient and efficient.
  • There are no restrictions on the movement of capital, which makes financial transactions more flexible.
  • Well-thought-out legal system: the legal infrastructure supports businesses and protects the interests of investors, creating confidence for entrepreneurs from other countries.
  • Global appeal: Dubai is becoming a popular destination for investors in the Middle East and for entrepreneurs from around the world, creating opportunities for international cooperation and expanding the customer base.

There are two main registration options in the UAE: on the Mainland and in free economic zones.

1. Mainland

The Mainland company allows you to operate throughout the country, including transactions with government agencies and businesses outside the Frison. The registration procedure is more complicated and requires a number of conditions to be met. For example, there are stricter requirements for office space, employee placement, and salary payments, as well as authorized capital. And in general, registration on the mainland is often more expensive than in the FEZ, due to increased government payments.

2. Free Zone (free economic zones)

Main advantages:

— In most free zones, minimum capital requirements are significantly lower than on the mainland.

— Easy registration: takes less time and involves fewer bureaucratic procedures.

— Flexible tax policy: when operating in the international market, businesses pay only corporate tax when a certain threshold is exceeded, but even here there are opportunities to receive a 0% tax rate.

— Flexible office space packages, including individual workstations and entire floors.

It is important to take into account that the activities of frison companies are limited to the limits of the zone itself or export trade. This means that if you need to work with clients on the mainland, you will need to create a branch or partnership.

When opening a company in the UAE, it is worth familiarizing yourself with a number of procedures:

1. Choosing the type of business and the organizational and legal form

Various types of enterprises can be registered in the Emirates, including: a limited liability company (LLC), a branch of a foreign company, etc. To select the most optimal option, we recommend consulting with lawyers.

It is important to determine the list of activities at this stage.: what exactly your organization will do, and what services it will provide. These activities will be added to your license later.

2. Reservation of the brand name

The name must comply with the requirements of the legislation, be unique and proceed from the essence of the future organization’s activities. The reservation certificate is issued by the Department of Economic Development (DED) and is useful when applying for a license.

3. Office rental

For registration on the mainland, there are requirements for the presence of a physical office, then the lease agreement is registered in the Ejari system. This confirms the legality of your office and its address.

For companies in the FEZ, it is allowed to have a virtual office or a place in a coworking space. However, this opportunity often depends on the required number of visas in the future. For example, in some frisons there is a rule that one visa can be placed on 9 square meters of office. 

4. Submission of the application 

The registration application is submitted to the DED or the FEZ administration. The package of documents usually includes:

  • Preliminary approval.
  • Copies of the founders’ passports.
  • The company’s Articles of Association and Memorandum (if applicable).
  • Certificate of reservation of the trade name.
  • Information about the office space
  • And other documents depending on the type of activity and place of registration.

5. Receiving submitted approvals

Some types of activities involve obtaining additional permits from regulatory authorities. This often applies to firms in the fields of finance, healthcare, education, etc. It checks compliance with the necessary requirements for the room, its equipment, location, etc. 

6. Opening a bank account

After obtaining a license, you can apply to open a bank account in your company’s name. This will allow you to manage finances and carry out commercial operations.

However, often the process of opening a business account requires the founders to have residency. Just after receiving the license, the founders can apply for resident visas as investors. To do this, you need to make an appropriate application, and then enter the country to undergo medical treatment. inspection, delivery of biometric data and receipt of Emirates ID in the future.

Interestingly, previously, non-residents could only open a company in the Emirates if they had a local sponsor, which limited their options. However, starting in 2021, this rule was abolished, which opened up new horizons for investors from different countries. It should be understood that there are certain restrictions in some areas of activity where non-residents are still required to have a local partner.

Opening a company in the UAE for non-residents has become more accessible due to changes in legislation. Thanks to favorable conditions and government support, there is an opportunity to successfully implement business ideas in this rapidly developing country. By following this guide and collecting the necessary documents, you will be able to successfully register your business and start a new chapter in your entrepreneurial activity. Don’t forget to consult with local experts and lawyers to avoid possible mistakes and optimize the process. Makebiz expert consultations will help you avoid possible problems and speed up the registration process.

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