Dubai company formation is often a very complicated process.
Dubai company formation is often a very complicated process. This is mainly attributable to the state’s bureaucracy, which has established strict regulations for qualification. Essentially, there are 3 types of businesses you can set up. This can either be an offshore, free zone or limited liability company (LLC). Let us now take a brief look at each of them including the benefits you can access and the requirements for registration.
Dubai offshore company
An offshore firm simply refers to a business that carries out operations outside of its home boundaries. The Offshore company formation Dubai option is open for those businesses that are in need of regional tax relief invoicing facilities. One of the biggest benefits of registering such a company is no minimum capital is needed. On the other hand, neither will you not need to establish a physical business premises in Dubai as well. Below are some of the most essential requirements you will have to comply with.
You will be required to register at least a single director.
You will also have to maintain financial records and issue annual financial statements, which will be audited by an approved firm.
You will be required to hold annual general meetings and generally act like a real company ought to.
The second option laid out for you is company formation in Dubai free zones that are scattered across the state.
In this particular case, you can fully own the business you register and you won’t need a sponsor or agent to manage your firm in proxy.
You will be allowed to open a bank account in Dubai and transact global business or even hold property.
100% secrecy can be upheld and the renewal fees are not exorbitant.
However, the biggest benefit for this option is the fact that your company will not be subjected to any commercial taxation.
Dubai limited liability company
The final option for starting a business in Dubai is registering an LLC firm. In this instance, you will need a local partner who will hold a majority of your business’s ownership (51%).
You will not be required to deposit a minimum share capital prior to the actual registration.
Still, you will have to demonstrate a required level of solvency. This includes offering accurate information on bank balances over and beyond your business’s setup expenses.
You will as well be required to obtain a residency VISA before you can get a license.
Under Dubai commercial law, an LLC firm cannot carry out operations in certain fields, including the banking and insurance sectors.