Thinking of starting a business in free zone and don’t know what to do for company formation in Dubai?
Company formation is too complex to understand and needs a professional company formation expert to help the business to register and set up in Dubai. Dubai is one such destination that helps new businesses or entrepreneurs and offers tax free, 100 percent foreign ownership and free customs duty benefits to investors.
The company formation in Dubai starts with the application for a business license. There are three licenses namely:
- Industrial license
- Trade license
- Professional license
This license is primarily given to industries that are into manufacturing roles for the conversion of raw material or semi-finished goods into finished products by use of power or any other energy legalized by the state and used in assembling and packaging as well as the production of the products.
This license is for businesses that invest in general trade areas recognized by State or in a particular trade that conducts either wholesale or retail trade in the country. Other fields that require a trade license include transport, hotels, and general contractors.
This license is applied by businesses that depend on their skills rather than capital investments. Businesses that fall in this category include service oriented firms like engineering, educational service providers, consultancy companies, medical practitioners and financial services providers.
Once the business owner has got the license for this preferred business, the next is to get his company registered in Dubai and that needs professional help from company formation experts on the way forward. These experts advice on the type of license to apply for your business and procedures required for the application process such as the various governmental departments to approach for the authorization.
The next important step is to know the type of company that is to be opened in Dubai. Only three types of companies can be opened in Dubai and they are:
- Offshore company
- Onshore company
- Free zone company
The opening of an offshore company in Dubai is simpler compared to any other type of company. The requirements for the formation are quite cheap and few legal restrictions are followed. The company having its base in Dubai is not required to have an operating license and is also exempt from the corporation tax. For offshore company formation, any person can be a shareholder, director or promoter and can be wholly owned by foreign nationals.
The onshore company formation is different from the offshore company formation with few variations. The onshore company does operations within the borders of Dubai and conducts business operations internally dealing directly with local consumers without going for services of wholesalers. The onshore companies do not enjoy the benefit of tax exemption like offshore companies and are liable to pay the corporation tax depending on the field of production to the authorities. The foreigners are allowed membership for the formation and shareholding of onshore companies at 49 percent irrespective of the field of operation.
Free Zone Company
Dubai is one of the world’s leading free zone hub with many free zones offering suitable conditions for different startups that are involved in industrial, technological, and automobile fields. The company formation process for free zone is not at complex as that of an onshore company and more inviting than many others free zones in the world. The various free zones provide competitive and favorable business environments for new businesses.
TRC pamco assists the clients with company formation services, location of business, identifying a partner, licensing and complying with legal requirements, formation & documentation.
For more information or for any enquiries, please call us @ 971-422 98 777 or mail us at email@example.com.
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