Instructions for opening a company in Dubai, UAE

The appeal of the United Arab Emirates lies in its stable economy, developed infrastructure, favorable geographical location, minimal tax burden, and loyalty to foreign businesses. However, the registration process in the UAE requires careful study of the nuances of local legislation. In this article, we will outline the main steps where the help of business setup specialists may be required.

1. Selection of main activities for the license

The first and perhaps most important step is to determine the type of activity your company will engage in and its legal structure. This will determine the type of license you need. There are various types of licenses in Dubai, for example:

Trade: for companies engaged in import, export, and retail/wholesale trade.
Tourism: for travel agencies, hotels, and other organizations related to tourism.
Industrial: involving the production of goods.
Financial - banks, insurance companies, etc.
Professional - provision of services (consulting, IT, tourism, etc.).
A reliable banking system includes the most prestigious banks.

Legal assistance at this stage consists of studying the specifics of your company and its activities in order to select the optimal license. In the UAE, this is a particularly important stage, as activities must strictly comply with the license description. Otherwise, you may face serious penalties, a ban on activities, and financial losses when changing your license.

2. Location selection: Freezone or Mainland

The location of your organization affects regulation and taxation. The main options are:

Mainland or mainland part

Registering a local company provides unrestricted access to the UAE market. However, capital requirements and registration procedures are more stringent.
Free zones or free economic zones

They offer preferential terms, including 100% foreign ownership of the company, a simplified registration procedure, and infrastructure geared toward international business. However, activities are limited to the boundaries of a specific free zone. Examples of free zones include IFZA (International Free Zone Authority), Free Zone Meydan, DMCC, and others.

The choice of economic zone depends on the specifics of the business and long-term goals. Therefore, legal advice at this stage is also crucial: only an experienced specialist will be able to select a suitable location for your company, offering a comparative analysis of different zones and their advantages for your type of business.

3. Review of requirements and approvals

Before applying to register a company, you need to carefully study all the requirements for your type of activity. Some licenses require a more serious approach to the selection of premises and employees, or involve obtaining additional approvals from regulatory authorities. This may apply to medical, commercial, educational, and other licenses. Only after legal review can you see the full picture of the requirements for your planned type of business.

4. Application submission

Obtaining preliminary approval for activities
Reservation of the trade name of the future organization
Preparation and submission of all necessary documents, including statutory documents, documents on owners, etc.

It is best to entrust this stage to professionals who are familiar with the intricacies of local legislation in order to avoid delays and additional financial expenses.

5. Registration of a legal address

To register a company, you will need to provide a legal address. This can be a rented office or a virtual office. The choice depends on your needs, location, and budget.
Remember that even this stage requires a careful approach. Depending on the type of license, you can save money at this stage by setting up a virtual office, while some types of businesses will require a real office, retail space, or warehouse. The location of the office will also depend on the selected economic zone. For example, registration in a SEZ gives you the right to locate your office only within the selected zone. However, there are exceptions (for example, the Maydan free zone).

6. Processing visas for founders

After registering a company, investors can apply for resident visas for themselves and their close relatives. This process includes a medical examination and biometric procedures. It requires personal presence in the country. The visa processing time can vary up to two weeks, so it is important to plan this stage in advance with visa support specialists.

7. Opening a corporate bank account

To carry out financial transactions, you need to open a corporate bank account with one of the banks in the UAE. The process may require you to provide a set of documents, including company registration documents, founders' visas, and proof of funding.

The choice of bank depends on your needs and the specifics of your business. In most cases, consulting agencies provide invaluable assistance in the account opening process, reducing time and financial losses. A clear list of documents for each bank, established contacts with bankers, and assistance in preparing missing documents speed up the process, instilling confidence in investors.

8. Registering the company with the tax authorities (FTA)

The Emirates has a Federal Tax Authority, which is responsible for collecting taxes, including VAT (value added tax) and corporate tax. After registering your company, you must register with the FTA and obtain a tax number, which will allow you to fulfill your obligations correctly and in a timely manner.

9. Start of accounting

Compliance with the country's tax legislation requires accurate and timely accounting. It is recommended that immediately after registering a company, you contact an experienced accounting firm specializing in the UAE to set up an accounting system, assist in preparing tax returns, and provide advice on tax issues. Timely assistance from specialists will help you avoid fines and suspension of your organization's activities.

10. Registration with the Ministry of Labor and processing of work visas

If you plan to hire employees, you must register your company with the Ministry of Labor and obtain work visas for them. This process requires compliance with strict rules and requirements regarding salaries, working conditions, and other aspects of UAE labor law. In this case, it is also important to consult with lawyers specializing in labor law.

Thus, opening a company in Dubai is a promising decision that requires preparation and attention to detail. Familiarizing yourself with the intricacies of local legislation in collaboration with legal advisors is the key to successfully launching and developing your business in the UAE. Do not underestimate the complexity of the process and skimp on professional support, as this can lead to delays and additional financial costs. Remember that a competent approach to each stage guarantees the smooth operation of your company in one of the most dynamically developing regions of the world.