Open company in Dubai
As business setup consultants in Dubai, we have a lot of people asking "what is freezone in Dubai". A free zone in the UAE is regarded as a jurisdiction where expatriates can register their company and own the company shares 100%. These companies are exempt from corporate profit taxes. They are also permitted to use their licenses to carry out their businesses in any of the 7 Emirates in the UAE.
It is relatively easy to open company in Dubai. The requirements are pretty straightforward but most of the free zones in Dubai require your physical presence to open company in Dubai free zone. However, if you are not able to make the trip down to Dubai, you can give a Power of Attorney (PoA) which should be legalized in the UAE embassy and Ministry of Foreign Affairs. Then your representative will be able to finish the paperwork formalities on your behalf.
Some of these free zones in Dubai have capital requirements and most of them need you to provide annual audit reports after the first year of the company renewal.
When you want to open new business in Dubai, the most important thing to have in mind is the type of business activity you want to operate under the company. This would determine the most appropriate free zone in Dubai for you toopen business in Dubai.
There are quite a number of free zones to choose from and they all offer various business activities. So you should go through their activity list to see which one suits exactly what you would be doing when your company is registered.
If you are considering investing in a business in Dubai, DMCC company formation is an option for you to look into. It has a great reputation and is a very popular free zone.
Some business activities require external approvals because of the nature of the business. For example, if you want to trade some particular good online, let’s take the sale of cosmetics on Amazon website, you need to get external approvals from Dubai Municipality to be able to actually sell this commodity because it has to go through various health checks to ensure that it won’t be harmful to the consumers.
If you are going to be carrying out your business activities in other countries except the UAE, a great option for you would be to open offshore company. Offshore companies in the UAE are not allowed to operate or earn profits inside the UAE. They are also not eligible for resident visas under the company.
Offshore companies allow a legal entity that is registered in UAE to carry out your business activities abroad. They are eligible to open a corporate bank account to receive the funds or income from the offshore business operations.
A popular option available to open offshore company in Dubai is JAFZA offshore. The setup takes 1-2 weeks, depending on your business activity. JAFZA offers a broad list of business activities to choose from.
They recently changed the requirements and you no longer need to have 2 directors in the company. The shareholder can also be the director and their presence will be needed during the registration to visit JAFZA authority to verify their signature and sign the company documents.
An alternative to JAFZA offshore is RAK International Corporate Centre (RAK ICC) which is located in Ras Al Khaimah. A company there can be registered remotely and it takes 2-3 working days for you to get your corporate documents issued.
You cannot register this company personally but need to do it through a registered agent. You get a P.O. box and a registered address which is the same as that of your agent. This company registration is affordable and it also has a low cost of its annual maintenance.