Basic Aspects to Consider For Offshore Company
Formation in Dubai
Dubai is one of those cities in the world that is known for its liberal taxation policies that promote foreign business investment. With a very tolerant and inclusive culture, Dubai welcomes foreign nationals to start a lucrative business career in this economically blooming city of the world. Offshore company formation in Dubai is not a herculean task. In fact, starting a business in Dubai will take not more than a week once all the legal procedures are duly followed and completed. Many Indians find Dubai as a convenient location for starting their businesses because of this main reason – the easy legal requirements.
However, before you get started with meeting the legal requirements, there are some essential aspects that you need to look at.
Important considerations for starting a business in Dubai
1. License requirements
Every business and offshore company formation in Dubai will require relevant licenses. The type of license required will depend on the type of business. There are commercial, professional or industrial licenses available that will define the scope of operations of your company so it is important to choose the correct license for your business. Apart from these basic licenses, certain types of businesses such as food trading, jewelry trading, veterinary consultancies or legal offices would require additional approvals from relevant ministries or government departments. A good research is essential to understand the scope of your business operations and then apply for all the relevant approvals and legal licenses. In this regard, an expert business consulting firm in UAE can be of great help and many of such consultancies have their offices in different cities of India as well.
The Department of Economic Development (DED) in Dubai lists all the approved activities for business in the country. As different Free Zones in Dubai have their own set of regulations and approval formalities so it is best recommended consulting an expert.
2. Ownership or control
As a foreign national, you can claim 100% ownership of your business only if you operate in any of the 45 Free Zones in UAE. For all local businesses that cater to the local market, there are restrictions on share of ownership by foreign nationals. In most such cases, there has to be a local Emirati with a share in your business. There are different legal structures as recognized by DED, each having different restrictions on share of ownership by a foreign national. It is important you thoroughly check these requirements to understand the stakes of control and ownership.
3. Trade name and share capital
The trading name of your enterprise should also follow the local legal requirements. The rules regarding trade names are available on the official website of DED. As for the share capital, there is usually no requirement for paying of the minimum share capital at the time of setting up your company. However, there are guidelines as to the minimum amount of share capital to be mentioned in the Memorandum of Association.
4. Local support and employees
As per most legal requirements set out by the DED, every foreign business would require a manager to be hired locally to oversee the business operations. The business owner can apply for business visa that can permit multiple entries and stay in Dubai for up to a year, again based on the license that your business is holding. Local support in form a local partner, agent or sponsor is mandatory for businesses that operate with DED licenses. Those businesses that are operated out of the Free Zones will also benefit immensely with local support.
The above aspects for offshore company formation in Dubai are absolute essentials that every foreign national aiming to start a business in UAE should be thoroughly aware of.