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The easy way to register a company in Dubai {advantages, disadvantages, cost}

One of the main concerns of people who want to register a company in Dubai is that they don’t know where to start. For this reason, in this article, we have told you the process of registering a company in Dubai, the types of companies and the necessary licenses and legal procedures, as well as the economic conditions, etc. With a business office in Dubai, we can provide you company registration services by opening a personal bank account in Dubai for free. Just contact us for advice.

Types of companies in Dubai
Dubai and the United Arab Emirates as a whole attract foreign investors more than before due to the provision of good facilities and infrastructure as well as tax incentives. However, when opening a company in Dubai, each step should be carefully planned and to take into account the business laws and requirements of the UAE government, if possible, use the advice of a local representative to complete the company registration process.

The types of companies in Dubai are:

Limited Liability Company (LLC)
Specialized legal and civil consulting company
Company registration by obtaining representation of large foreign companies
General Trading Company

Limited Liability Company (LLC)
The important thing you should know about registering a limited liability company is that at least 51% of the company’s shares must be in the name of a person with the nationality of the UAE; or simply sponsoring a company must be headed by a person who has the nationality of the UAE. The number of shareholders of a limited liability company is determined as a minimum of 2 people and a maximum of 50 people.

By registering an LLC, your ownership can be 100%.
It is also possible to register a company with one shareholder.
The value added tax in Dubai is five percent.
At the time of writing this article, there is no tax collection in Dubai; But tax laws are changing.
In most cases, to register a limited liability company in Dubai, people who come with a three-month or ten-day pilgrimage visa can get a new business license and register their company in Dubai.

Registration of General Trading Company
The registration of the General Trading Company allows its owners to operate without restrictions in all types of businesses and work areas. Also, by registering a General Trading company in the UAE, they can export goods, import them, and operate in the field of production and services. Legally, in the first step to register a general trading company in Dubai, the company must first be registered and then get a business license and register for value added tax.

Specialized legal and civil consulting company
Applicants who intend to start a company focusing on legal consulting or international representation, accounting, economic and financial consulting or medical and other specialized services, are allowed to take 100% ownership of the company. Of course, it is necessary to provide the necessary and sufficient documents to prove that they have specific skills, such as several years of work experience related to a specialized university degree in the same field. Otherwise, it is considered a commercial company and one hundred percent of its shares cannot be registered in the name of the applicant.

Company registration by obtaining representation of large foreign companies
Investors whose main office is in any place outside the UAE can register an official representative office in this country and in this way obtain residency in the UAE. Of course, proving the legal representation of a foreign company requires providing many documents and documents, including the fact that the company is profitable in the UAE, as well as documents regarding proper financial circulation.

Companies Registration Law in Dubai
In Dubai, the Companies Registration Act is under the supervision of the Department of Economic Development (DED). To register a company in Dubai, you must first determine the type of company you want to establish and its location. Then you should go to DED and submit your company registration request along with the necessary documents.

The documents required to register a company in Dubai are:

Officialization of the company’s founding document
Written declaration of ownership of the company
Company bank statement
Business license
Company establishment license
Legally and officially required permits
Tax returns
After submitting the necessary documents, DED will review your application. After the application is approved, you need to pay the company registration fee and then you will receive a company formation number. After this step, your company will be registered as an official company in Dubai.

Types of company registration licenses in Dubai
Dubai Economic Development Authority regulates four types of business licenses for company registration.

Professional license: Professional license is for service jobs and jobs that require mental abilities, academic education, or scientific and precise methods, such as legal and advocacy firms, accounting or consulting firms.
Business License: You can set up a limited liability company for business registration. For work related to buying and selling.
Service license: It is for people who intend to set up a hairdressing, repair, plumbing and similar service company in Dubai.
Industrial License: This license is issued to those who intend to set up industrial companies and factories in the UAE.
Requirements for LLC registration

Most hiring companies are limited liability companies (LLCs). This company can be private or public and has different conditions. The share structure of this type of business depends on whether the company will be registered in Dubai or one of its free zones. Those who want to open an LLC in Dubai must meet the following requirements:

If the company is registered in Dubai, it must have at least 2 shareholders, and if it is established in the Dubai Free Zone, it must have at least one shareholder.
In terms of share capital, a company based in Dubai does not need a minimum capital, however, in a free zone, the amount of money required is determined by each free zone authority.
The memorandum and articles of association are documents that must be prepared for the registration of a limited liability company.
Such a company needs a registered address in Dubai or in the free zone where it will operate.
The company must also set up a bank account at a local bank.
The acquisition license must be obtained according to the activities performed.
No matter the type of business chosen, a local representative must be appointed to register the company with the Dubai Economic Development Department.
Guide to obtaining UAE residency by registering a company in Dubai
Company registration in Dubai can help you obtain UAE residency. For this, you need to register a company in Dubai and then use a work visa to go to the UAE and apply for residency there. Obtaining residence after registering the company is done quickly and takes between one working week and one month. To register a company in Dubai, first select the type of company and then the location of the company office, collect the required documents and finally register your company with the relevant authorities. After registering the company, you can use a work visa to enter the United Arab Emirates. To do this, you must bring the required documents, such as a valid passport, birth certificate, work visa and proof of quality of life and education.

New Dubai residence conditions for Iranians in 2023
The conditions of residence in Dubai may change periodically due to the spread of the Corona virus and economic changes in these countries. But currently, the residence conditions for Iranians are as follows:

  1. According to the new rules, there is no need for a sponsor or a partner to register another company.
  2. Iranians can travel to Dubai with a 3-year work visa and after entering the UAE, they must apply for residency as soon as possible.
  3. To apply for residency in Dubai, you must meet one of the following conditions: Having a company in Dubai with a minimum quota of 7500 US dollars
    Having a property in Dubai worth at least 250 thousand US dollars
    Having a bank account in Dubai with a balance of at least 250 thousand US dollars
  4. To start the company, you can travel to the UAE with a tourist visa and do legal work there.
  5. To apply for residency in Dubai, you must submit your application through a recognized employer or company in Dubai.
  6. You must have a valid passport, proof of your quality of life and education, and a health certificate.

Company registration fee in Dubai
The cost of registering a company in Dubai along with obtaining residence for Iranians starts from 20,000 dirhams. These fees vary depending on the type of company you want to establish and its location in Dubai. The cost of registering a company in Dubai includes various costs such as the cost of company registration, the cost of translation of documents, the cost of licenses and legal documents, the cost of visa extraction and other costs. The cost of registering a company in Dubai for onshore companies is usually between AED 10,000 and AED 20,000. But the cost of registering a company in Dubai for offshore companies may be higher due to the need for a lawyer and other costs. Please note that these fees are provided as a general indication only and may vary depending on the type of company and specific circumstances. It is better to consult a legal or financial expert before starting the company registration process.

Why register a company in Dubai?
First of all, it should be said that this method is the cheapest and fastest way to obtain UAE residence. The UAE provides conditions for people to turn whatever they have in mind into a way to earn money with supportive regulations. By registering the company in Dubai, it will be possible to stay in Dubai with unlimited extension. The conditions for company registration in the UAE include the following:

Obtaining a 2-year residence
The possibility of registering the company individually or with partners
Business without paying taxes
Opening branches in countries such as America, England and…
Obtaining residence for family members
Cost-effective and the cheapest way to get accommodation
Short process of 14 days
Full ownership of the company
Acquiring an international business identity
Opening an international bank account

Step-by-step guide to company registration in Dubai (UAE)

The step-by-step guide to company registration in Dubai are:

Choose the type of company
Choose a company name
Preparation of documents and licenses (company establishment document, ownership statement, bank statement, business license, company establishment license and tax declaration)
Fees to the Department of Economic Development (DED)
Submission of documents
Awaiting approval by DED
Receive company formation number
Company registration
Please note that these steps are provided as a general guide and additional steps may be required depending on the type of company and specific circumstances.

Company registration procedures in Dubai
The economic outlook of the United Arab Emirates
Overall, the UAE economy is expected to grow at a slower pace in 2023 than in 2022. Here is a forecast of the economic situation for the UAE in 2023:

GDP (Gross Domestic Product) Growth: The UAE’s GDP growth is expected to slow from 7.6% in 2022 to 3% in 2023. The decline is due to a number of factors, including an expected drop in oil prices, the ongoing war in Ukraine and rising inflation.

Oil sector: The oil sector is expected to account for 25% of the UAE’s GDP in 2023, down from 30% in 2022. This decrease is due to the expected decrease in the price of oil, which is currently trading around $100 per barrel.

Non-oil sector: The non-oil sector is expected to grow by 3.5% in 2023, up from 3.2% in 2022. This growth will be driven by sectors such as tourism, manufacturing and financial services.

Inflation: Inflation is expected to increase to 3.4% in 2023, while it has reached 2.8% in 2022. The increase is due to a number of factors, including the ongoing war in Ukraine, which has driven up food and energy prices.

Government Debt: UAE government debt is expected to increase to 40% of GDP in 2023, rising to 35% in 2022. This increase is due to the government’s efforts to support the economy during the Covid-19 pandemic.

Economic challenges of the emirate in the future
The economy of the UAE has made great progress over the past decade and has seen significant growth in industries such as oil, gas, tourism, transportation, finance and technology. However, like other countries, the economy of the UAE is also facing some risks. Some of the risks facing the UAE economy in 2023 include:

Dependence on oil
Low diversity in the economy
Capital market fluctuations
International sanctions
Legal problems
Low resilience against economic sanctions

Benefits of registering a company in the Emirates of Dubai
Strong and growing economy
Strong infrastructure
Minimum tax on imports
Disadvantages of registering a company in Dubai
Trade restrictions in the free zone
Limited commercial activities
Find a local partner
Free zones in Dubai
There are more than 30 free industrial zones in Dubai. Forming your business in a free zone gives you 100% ownership. Dubai Free Zone Company allows you to repatriate your earnings and profits to your home country.

Dubai Free Zones have the following benefits:

easy integration process;
less restrictions on hiring employees;
No import and export taxes;
high-quality infrastructure facilities;
Access to low-cost services.