Let’s discuss how to register a company in Dubai free zone area if the directors are foreigners. All foreigners prefer LLC company registration process as easier to apply for work permit. Every year foreign companies like Indian companies are attracted to starting business in the UAE. As Dubai is the largest business hub in the world with a mix of multi-culture.
At a glance of company registration cost, process, time:
- Total estimated cost- AED 30K-40K
- Registration time- 7 days
- Cost of local sponsor- AED 10K
- Work permit obtain- by 30 days
- Income tax rate-Zero % in free zone and 17 percent in mainland
- Open bank account- Emirates NBD, Commercial bank of Dubai and Marsheq bank
The country has great markets and stunning products of the middle east. Conducting a business needs Dubai company registration with the government. Limited Company Registration in Dubai Free Zone is very easy and by following a few simple steps you can register a company in Dubai.
The whole registration process takes a short time. The best thing about setting up a company in Dubai is that foreign investors can hold 100% control of the company. They can either register a new company in Dubai or open up a branch office as needed.
They should ensure that they have a National Service Agent’s own. That agent should be residing of UAE appointed who will act as their liaison. Without a local agent, registration will not be complete. There are many foreign companies and individuals contact us from:
- Turkey and other countries
They contact us to guide them for Dubai company registration and work permit of the directors. Also, clients contact us to know the company registration process in Dubai. Follow the steps which we will discuss.
Documents Required for Branch Office
Before the registration process, there are certain documents that have to be prepare and submitted. These documents are at most from the parent company of their own homeland. The list of requirements includes the following:
- Certificate of Incorporation in the home country
- Memorandum and Article of Association of the parent company
- Audited Financial Accounts of the parent company for the past two years
- Power of Attorney (issued in favor of the company appointed General Manager)
- Bank Guarantee issued in favor of the Minister of Economy and Planning
- The bank guarantee must show an amount of AED 50000. This should renew every year upon approval of Ministry of Economy
- A ‘Service Agent’ agreement with a UAE national
Steps of Company Registration in Dubai Free Zone
Here are the steps of how to register a company in Dubai. Follow the steps to open a Private Limited Company (LLC) in Dubai under FDI Law. Under the guidance of the Service Agent, these steps should be of a minimal hassle.
Apply For Busines Licence to MEC
The first step is investor will file for business license to Ministry of Economy & Commerce. Along with this application, the foreign entity must submit a Service Agent Agreement. This agreement should clear data that the agent is either a UAE national or a 100% UAE owned company.
Forward Application to Economic Department
MEC department will forward an application to Economic Department for next step. It will start working when an agreement between the agent and business license is made done.
The purpose should ensure that foreign company like Indian companies feel secure about the local government’s approval. It is crucial to have the local government’s approval to run a business in Dubai
Application Forward to FFC Committe
Once the job is complete by the Economic Department then again forward the application to FFC Committee. During this stage of processing, nature of business will confirm after justification. This business activity needs approval by MEC. Keep in mind that there are certain activities that are prohibited in Dubai.
So, it is wise to do a thorough check-up on what is allowed and what is not permitted before setting up a company in Dubai.
After approval by the Federal Foreign Companies Committee, foreign entities now need Ministerial licenses. The Ministry of Economy and Commerce issues such licenses after verification.
The license will contain detailed information about valid activities. In short, it will state what the company is permissible to do in Dubai.
Brance Office Permission
Branch offices are permitted by the Commercial Register of the Economic Department. Over here, the required license is provided by the department of UAE.
Issue a Certificate Of Registration
The last step of registering a foreign company in Dubai is at the Dubai Chamber of Commerce and Industry. You can have look of foreign entity incorporation process. The Government will issue the foreign entity a Certificate of Registration. This is proof that the foreign company has been incorporated. And officially can start the operation without any more fuss in Dubai.
Dubai Company Registration Cost (AED)
All are in concern about cost of LLC company registration although amount of fees are not same in all consultancy firms. Some of consultant written cost without local partner and some of them without work permit. And, some of them have written all inclusive fees in a package.
|PARTICULARS OF SERVICE||MINIMMUM FEES||MAXIMUM FEES|
|PRIVATE LIMITED (TOTAL APPROXIMATELY)||35000||50000|
|BRANCH OFFICE (TOTAL APPROVAL)||70000||90000|
|ECONOMIC DEPARTMENT FEE||3000||3500|
|AGENT AGREEMENT WITH NOTARY||300||500|
|TRADE LICENSE FEES & COST||15000||20000|
|COMMERCIAL LICENSE FEE||700||800|
|MEMBERSHIP OF CHAMBER||1500||3000|
|LOCAL DIRECTOR SERVICE||7000||10000|
|CONSULTING FEES & COST||7000||14000|
Company Registration Time in Dubai
|PRIVATE LIMITED||10 DAYS||15 DAYS|
|BRANCH OFFICE||10 DAYS||30 DAYS|
|AGENT AGREEMENT||2 DAYS||3 DAYS|
|MEMBERSHIP OF CHAMBER||3 DAYS||10 DAYS|
|BANK ACCOUNT||3 DAYS||7 DAYS|
Ownership and Type of Company
|TYPE OF COMPANY||FREE ZONE||LLC|
Frequently Asked Question
The minimum cost of LLC registration is 35000 AED, however, this cost can easily go up to 50000 AED depending on the charges for different business entities in Dubai.
Registration of a new company in Dubai will require different licenses and permits and depending on the business nature, the number of licenses or permits required will be determined.
Depending on the requirements of the licenses and permits, the time required to open an LLC in Dubai will take around 15 – 30 days.
If every document for your business registration is correct and without any mistakes, the time required will be less but if there are any mistakes or some documents information is wrong then it will take longer to register a company in Dubai.
The VISA arrangements can take a minimum of 7 days however, it can take up to 15 days depending on the complications regarding the company registration.
There are numerous benefits in registering a company in Dubai Free Zone. The benefits of Dubai Free Zone are provided below:
· Foreigners or investors are allowed to have 100% ownership of the company in Dubai Free Zone
· Formation of the company can be done alone
· Bank account opening facility in Dubai
· More privacy
· Tax exemption
· Renewal charge less
· Able to liquidate anytime
· Allowed to do any international legal business
· Able to do multiple activities
· Can own properties freely
The cost for professional service may vary depending on the company and requirements of licenses and permits. This can also depend on the amount of time required for company registration.
The professional fee for company registration in Dubai is around 7000 AED but it can get higher depending on the previously mentioned variables.
The professional service can get you a local director. You must seek help from your professional service as this facility can be taken from them in Dubai. In Dubai, you will need a local director for LLC registration.
A Dubai citizen must hold a 51% share of the company to successfully register his/her company.
As a requirement, you will need a local director for your company. In most cases, there were no issues found. If you keep paying them regularly then this will allow a good relationship between the director and the owner.
The director can be the silent partner of the company while you are being the main owner.
Dubai provides 3 categories of licenses to register a company. The license will depend on the nature of your business. The categories are:
· Commercial License
· Industrial License
· Professional License
These licenses are issued by the Department of Economic Development in Dubai or DED in short. There are multiple locations of the offices to provide the licensing services.
A commercial license is issued to the company that will conduct any kind of trading activities in Dubai. The industrial license will be issued to those that will be in the industry for manufacturing and industrial activities and Professional licenses will be provided to those who are service providers, artisans, professionals, and craftsmen.