Before, UAE used to be a country with no vision for growth, and for most businessmen out there it was not a favorite destination to set up shops for companies. But the country has jumped exponentially in the last couple of years, offering the perfect environment and scenarios for building a successful sector. Industrialization’s strength and mobility have overtaken the entire UAE.
The basics about the establishment of a new business in Dubai
The first thing you need to know about the business setup in Dubai is that the company will be set up as an LLC or Limited Liability Business. Only then will you be given the option to register the company either in the Freezone or on the Mainland.
Creation of a Freezone company Dubai vs. Formation of a Mainland company
If you’re planning to set up a company in Freezone, be sure to keep in mind that companies that are established in Freezone will not need any sponsor to register it. That seems to be an easy route, but you should also bear in mind this Freezone businesses are not allowed to do business directly within the UAE. Hence, they are limited only to their zones or do business outside national borders. Along with that, there will also be a lot of rules and specifications to be met. That is a more short-term solution too.
But when you’re looking for a long-term, then Mainland registration is the way to go. Not only will you get the green signal to do business inside the UAE, but you’ll also get access to any specific location inside the country.
Looking for a 100 percent regulated Dubai-based company ensures that Dubai-based Freezone company formation would help foreign investors get all the power they want. On the other hand, companies listed on the Mainland are eligible for foreign investment of 49 percent and 51 percent reserved for the local sponsor.
The Important Process
Once you have decided to set up a shop in Freezone or on the Mainland, it is now time to choose a local sponsor and then apply for a license. It involves building a good relationship and medium of contact with your partner along with numerous other formalities such as establishing the company’s Memorandum of Agreement, ownership information, etc.
Besides that, you’ll also need an entry stamp on your passport. In addition to this, you also need to send various other papers, such as board resolution, incorporation certificate, visa and passport for other shareholders, etc.
Other things to keep in mind
It should be noted that the license cost should be down from $1000 to $6000 anywhere. Once you have received the license, you can proceed to set up your business bank account and start operating from day one. When you opt for Mainland registration, you will get access to the lucrative UAE country market.
Another thing to remember is to choose a professional director. A professional manager will help you get the most out of your business, oversee day-to-day tasks, manage tax systems in your company, etc. The power you wish to give to your professional manager is solely yours, and it will be paid outside the shareholding system. When you want to manage your company remotely this is an important thing to consider.