Dubai is world-renowned as a global business hub that attracts entrepreneurs from across the globe who are seeking to establish their businesses here. If you’re seeking a welcoming economy and a liberal trade regime for businesses, Dubai is an excellent choice. This leading global commercial centre is home to an open market and ever-growing customer base, along with attractive incentives for investors.
That being said, many foreign entrepreneurs wonder if they can open a company in Dubai and operate it without facing any legal or regulatory issues. Below, we explore this question, and outline how Chesterfield can support you in this endeavour.
The short answer to the question ‘Can foreigners open a company in Dubai?’ is yes, they can! However, there are several legal and regulatory requirements that must be met. These requirements can vary depending on the type of business you wish to operate here, and the location in which it is established. As such, it’s essential to understand the steps involved in opening a company in Dubai.
One of the main things to consider when opening a Dubai company is the type of business entity that you want to establish. There are several options available, including a Limited Liability Company (LLC), a Free Zone Company, a Branch Office, and a Representative Office.
Each type of business entity has its advantages and disadvantages, and it is essential to choose the one that best suits your unique business needs.
- Limited Liability Company (LLC)
An LLC is the most common type of business entity in Dubai. It requires at least two shareholders, and a minimum share capital amount of AED 300,000 (approximately USD 81,745).
Shareholders can be individuals or corporate entities, and they are liable only for the amount of capital they have invested in the company. An LLC can engage in any legal business activity, except for banking, insurance, and investment activities.
- Free Zone Company
A Free Zone Company is a type of business entity that is established in a designated free zone area. These areas are designed to attract foreign investment, and provide several benefits, including 100% ownership by the foreign investor, 100% repatriation of capital and profits, and exemption from corporate and personal income taxes. A Free Zone Company can engage in any legal business activity allowed in the free zone area.
- Branch Office
A Branch Office is an extension of the parent company established in Dubai. It allows the parent company to conduct business in Dubai without the need to establish a separate legal entity. A Branch Office is 100% owned by the parent company, and can engage in the same business activities as the parent company.
- Representative Office
A Representative Office is a type of business entity that is established to promote the parent company’s products and services in Dubai. It cannot engage in any business activity, and its scope of work is limited to market research, promoting the parent company’s products and services, and coordinating with local suppliers and clients.
Establish your Business in Dubai with Chesterfield
Now that we’ve discussed the different types of business entities available in Dubai, let’s explore how Chesterfield can help foreigners establish their business in Dubai.
Chesterfield offers a wide range of services to help foreigners establish their business in Dubai. Our services include company registration, business setup, legal and regulatory compliance, accounting and tax advisory, and business consulting.
- Company Registration
The first step in establishing a business in Dubai is company registration. Chesterfield can assist with the entire process, from choosing the right type of business entity to registering the company with the relevant authorities. Our team of experts has years of experience in company registration, and we can ensure that the process is smooth and efficient.
- Business Setup
After the company registration process is complete, the next step is to set up the business. Chesterfield can assist with all aspects of business setup, including obtaining the necessary licenses and permits, opening a bank account, and registering for tax purposes.
- Legal and Regulatory Compliance
Dubai has several legal and regulatory requirements that businesses must comply with. At Chesterfield, our consultants possess in-depth knowledge of the legal and regulatory environment in Dubai. They remain on hand to support you throughout the entire company formation process, and are available to answer your every question, query or concern.
Chesterfield remains on hand to support you throughout the entire company formation process in Dubai. With offices in the region, we are ideally situated to support you at every step of the process.
We offer in-depth knowledge and expertise, expert advice, ongoing compliance, and other business-related support. Our team of professionals, including expert lawyers, accountants and tax advisors, will remain by your side throughout the entire process and beyond, ensuring a smooth, seamless company formation procedure.
Contact Chesterfield today to discuss your specific Dubai company formation needs.