Dubai Company Formation overview
Before opening a company in Dubai there are several things to consider. First, you must decide whether the company will be an offshore, onshore or free zone company. Then you will need to obtain a license if required and file the necessary paperwork with authorities. Find out more about each type of company below.
An offshore company is one that operates outside of the UAE. For this type of company, no license is required. There is also no corporate tax on this kind of company. Out of the three types of companies, this has the lowest cost and the easiest procedure for company formation. A virtual office will be required for an offshore company. Anyone can be a shareholder or director of an offshore company.
An onshore company is one that operates within the UAE. For this company, a license is required and there are corporate taxes. Onshore companies require an office within the UAE as well as shareholders within the UAE. The formulation procedure is more difficult than for an offshore company as well as a higher cost.
Free Zone company
A free zone company can operate both inside and outside the UAE. For this type of company, a license is required. However, there is no corporate tax. This company requires an office or warehouse. Anyone can be a shareholder or director of a free zone company.
Requirements for opening a company in Dubai
To open a company in Dubai investors must meet the business licensing requirements, understand the shareholding structure, and meet the minimum share capital requirements.
Public companies require a minimum share capital of 10 million AED while insurance and investment companies require a minimum share capital of 25 million AED. Financial institutions require a share capital of 40 million AED.
The company also must draft and notarize the articles of association and company memorandum. Native workers also must be registered with the Ministry of Labor and the social security authorities.