Company registration in Dubai

Being the 2nd largest & most populous emirate of the UAE, Dubai is also a major financial, economic & cultural center. Dubai's closest neighbors are the emirates of Sharjah & Abu-Dhabi. The key sectors of the Dubai economy include oil production, trade, construction, real estate, tourism & shipping.

The capital of Dubai is the city of Dubai. Dubai has a population of more than 2.2 million people. The official languages are Arabic & English. The national currency is the Dirham (AED).

Registering a Company in the UAE: Advantages

According to the 2021 Doing Business rating, the UAE is ranked:

• 15th for protection of minority investors;
• 11th for ease of doing business;
• 9th for fulfillment of contract conditions;
• 7th for ease of property registration;
• 5th for obtaining building permits;
• 2nd for the simplicity of the tax system;
• 1st for connection to the power supply system.

Those wishing to open a company in Dubai or open a bank account in the UAE can take advantage of the following benefits:

• geographical position (availability of major ports located at the intersection of trade routes from Southeast Asia, Africa & Europe);
• dynamically growing economy;
• stable socio-political situation;
• high GDP;
• programs for the development of SMS businesses;
• foreign investments;
• DTA agreements with over 63 countries;
• 20 free trade zones.

Types of Companies in the UAE

Those wishing to remotely open a company in the UAE can choose from one of the following business organization forms:

• JV;
• SP;
• FZE;
• FZCO;
• branch.

If you intend to register a company in Dubai, your best choice would be FZE & FZCO. Their advantages include quick & easy registration procedure, few documents, convenient management scheme & complete exemption from taxation. You can also open a branch of a foreign or already registered enterprise in the UAE, as well as open a branch in another FEZ (if you already have a registered company in the UAE).

To register a company in the UAE, you will need to comply with the following requirements:

• choosing a unique company name;
• having at least one founder (can act as a director);
• having at least 2 directors (individuals and legal entities);
• having shareholders: from 1 for FZE, from 2 to 50 for FZCO (individuals / companies);
• having a secretary;
• having a minimum authorized capital: from 300,000 AED;
• keeping accounting records for 10 years;
• renting or buying an office in the selected FEZ;
• getting a business license.

Taxation

Those interested in registering a company in a Dubai Free Zone will have to pay the following taxes:

1. VAT - 5% (full tax exemption is possible);
2. oil & gas production tax - up to 55%;
3. banking tax (for branches of foreign companies) - up to 20%.

Please note that there’s no personal income, dividends & capital gains taxes.