6 Necessary Steps to Follow for Company Formation in Dubai
Want to start a business in Dubai? Great! Before going ahead, you need to be aware of the notes and bolts of company formation in the city. It may take several days and several complex procedures. Before going ahead with your legal formalities, you need to consider some crucial elements that are required in the process.
Read on to know these elements.
Ownership
As a foreign national, if you want 100% ownership of your company, opting for a license and choosing a location in one of the many free zones of the UAE is mandatory. Without it, your aim of company formation in Dubai will remain unfulfilled. Specific kinds of activities that each free zone requires and transparency in the first step can be a getaway point for you to find your best option.
Business Type
Before anything else, make sure what type of business you are going to start. This determines the type of license you will require. Whether you are eligible for professional, commercial or industrial licenses, this will define the basis of your operations. But when selecting, do keep in mind that some activities like jewelry trade, food trading, veterinary activities, and legal consultancy require further approvals from governmental departments.
Legal form
Depending on the type of business and on your location, you need to follow specific rules regarding the make-up of your firm. For instance, if you aim to found a legal consultancy firm, you can only do this as a branch of the company or as a stand-alone company. A sole proprietor cannot take up this activity. It’s always important to know that each free zone has set restrictions regarding the company structure.
Trade Name
As an entrepreneur, you may be aware of the importance of the legal procedure when it comes to the trade name. The name you choose for your company must indicate the nature of your business unless it’s a branch of another company. Know all the rules before choosing a trade name.
Hiring Employees
In most legal forms, hiring a manager for overseeing operations and keeping him ready to be on board before the approval of your registration is essential. However, in some cases, you don’t need to hire an employee.
Share capital
It’s worth to know that the minimum share capital is defined in the Memorandum of Association of your proposed firm. In most cases, you don’t require to pay minimum capital at the time of setting up.
In a nutshell, the best way to form a company in Dubai is to contact an attorney or a legal firm. They will help you follow all the legal formalities and establish a business in the city of Dubai.