- November 1, 2020
- Posted by: DBS Editorial Team
- Category: Company Formation in Dubai
Factors to consider while forming a company in the UAE
Forming a company in Dubai or anywhere across the UAE is a major decision. As an entrepreneur, you need to consider several factors. These factors may also differ depending on the type of business that you intend to set up. In this article, we have listed down the most generic factors that every company has to take into consideration.
Here are the 7 factors you must consider while forming a company in the UAE:
1. Business Activity
The idea of your business must be approved by the Department of Economic Development for mainland or the free zone authority you choose to form a company in the UAE. For instance, few free zones just permit specific kinds of business activities and have limitations for certain business activities. Understanding the feasibility of your business activity in the UAE will take you in the right direction and assist in alternatives at an opportune time.
2. Pick Company Name
The UAE has some listed guidelines that you will need to follow while naming your company. Hence, before you decide on an organization name, ensure it abides by the guidelines noted by the Economic Department or the free zone authority. For example – any names that incorporate hostile language are not allowed. Also, organization names that allude to Allah, Him, or in reality some other strict, biased or political names are not permitted. In case you choose to name your business after an individual, then an individual must be the proprietor or partner in the company.
3. Paperwork for UAE Company Formation
You will have to submit the company formation application along with the copies of the passports of the investors. In some cases, you would require extra documentation, such as a feasibility report or a Non-Objection Certificate (NOC) – a letter from the sponsor affirming that you are permitted to set up a company in the UAE. Choose a business setup advisor that can help you with all the required paperwork for company formation in the UAE.
4. UAE Company License
This is the most important factor of all. When your application has been prepared, the administration will give you with the organization a permit also known as a company license. In UAE there are several licenses given to companies depending on their trade. Speak to a business setup consultant for free to understand more about business licenses in Dubai or anywhere across the UAE.
5. Bank Account Opening
When your administrative and paperwork is all set, you will have the documentation required to open your corporate bank account. The UAE offers expats to start a business and open foreign bank accounts so that they can trade worldwide. You can choose from UAE banks such as Emirates NBD, Abu Dhabi Commercial Bank, Commercial Bank of Dubai, etc. Or even international banks such as HSBC, Citibank, Barclays, etc. You may either visit the preferred bank yourself or ask your business setup advisor to help you with the following and they can open a bank account in the UAE for your business in no time!
6. Process Your Visas
Getting your investor visa in Dubai or anywhere in the UAE is a simultaneous process when you set up your company. However, if you intend to process more visas for your dependents or staff, the specific number can be submitted to the business setup company you are dealing with and they will process the needful on your behalf, making it easier for you! The business setup company will not only get your business license but also process the visa requirements related to visa status change, clinical wellness test, Emirates ID enrolment, visa stamping, etc.
7. VAT in the UAE
The UAE presented the utilization charge VAT on first January 2018. Since then, companies are required to register and enroll for VAT. if their supplies or imports surpass the enlistment limit of AED 375,000. A company can voluntarily register for VAT in UAE if their supplies and imports are not exactly the compulsory enrolment limit, yet surpass the intentional enlistment edge of AED 187,500. The VAT law orders that the organizations to maintain books for the VAT. For more on VAT registration and other VAT-related administrations, as an organization, you may appoint a VAT expert.
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Speak to an Expert
Speak to our experts at DBS Business Setup – the pioneers of business setup services in Dubai and everywhere in the UAE. We have years of experience and expertise in forming various types of companies in the UAE. To experience it yourself book a free consultation with our experts on company formation today!
Call us on +97145667485 or WhatsApp us on +971555813673. You may also follow this link https://www.dubaibusinessservices.com/contact-us/ to connect with a business setup consultant right away!