Types of Legal Structures Permitted in Dubai Mainland
A legal structure is essentially the type of company to be incorporated in Dubai. A legal structure is determined based on the number of shareholders. The following are the common legal structures permitted for company incorporation in Dubai.
- Limited Liability Company (LLC)
- Sole proprietorship
- Joint Venture
- One Person Limited Liability Company
- Branch of a foreign company
- Branch of a UAE company
Types of Legal Structures Permitted in Dubai Free Zones
The following are the type of legal structures permitted in Dubai free zones:
- Free Zone Establishment (FZE)
- Free Zone Company (FZCO)
- Branch of a Foreign Company
- Branch of a UAE Company
- Trusts / Foundations (Dubai International Financial Centre)
- Single-Family Offices (Dubai Multi Commodities Centre)
Process of Company Formation in Dubai
The process of business setup in Dubai is straightforward. However, each step needs to be executed properly, otherwise, the license clearance will be delayed. Help from business setup consultants in Dubai is the best solution to expedite the process. The following are the steps:
- Select the business activity
- Determine the Legal structure
- Reserve a company name
- Obtain initial approval from licensing authority
- Obtain external approvals if the activity bears financial risks (mainly applied to mainland companies)
- Rent an office space
- Submit the documents
- Obtain the license
In the free zones, the office space comes generally comes with the license. The Office space will be located within the free zone premises. In the mainland, investors can rent a space in a business center. For offshore entities, the office of the registered agents in Dubai can be used as the company’s office address.
Benefits of Associated with the Process of Business Setup in Dubai
Dubai provides a host of benefits for foreign investors that explains the steady flow of foreign direct investments into the country. Some of the benefits are:
- Complete reparation of capital and profits
- No corporate tax or personal tax (VAT is levied at a nominal rate of 5%)
- 100% ownership for the free zone, offshore and mainland companies
- Excellent connectivity through land, sea and air
- Flexible bank account opening options
- Ability to sponsor residence visa of dependents
- Cost-effective business setup options
- Cheaper and competent labour force
The Best Business Setup Services in Dubai, UAE
There are two ways to set up a company in Dubai: trying it alone, or through business setup consultants in Dubai. Trying to incorporate a company is riddled with huge risks as it increases the burden on the investors. The process of business setup in Dubai will go in the wrong direction if investors try to single-handed lay execute complex processes such as filing license applications, drafting vital documents, applying for visas, opening a bank account, obtaining approval from authorities etc.
The investors will find themselves in a maze struggling to find the right way. On the other hand, the help of company formation specialists in Dubai such as Jitendra Business Consultants (JBC) will help the investors make strategic decisions such as choosing between a free zone opens mainland license, correctly selecting the activities & legal structures etc. JBC’s business setup services in Dubai will enable the businessmen to make the right decisions at the right time.