Dubai Business Setup - FAQ
Welcome to our FAQ section where we address the most common questions about setting up a business in Dubai. Whether you are new to the entrepreneurial scene or looking to expand your existing business, these FAQs are designed to provide you with a clearer understanding of the legal, procedural, and operational aspects of company formation in Dubai. Click on the questions below to explore detailed answers that can help guide you through your business setup journey.
Dubai offers several types of company formations including Mainland, Free Zone, and Offshore companies, each catering to different business needs and benefits such as tax exemptions, 100% foreign ownership, and more.
For Mainland companies, a local sponsor who holds 51% of the shares is generally required. However, Free Zones offer 100% foreign ownership, eliminating the need for a local sponsor.
Dubai is known for its zero-tax policy on personal and corporate income. However, VAT applies at a standard rate of 5%, and other specific business activities may be subject to different taxations.
The time to set up a company in Dubai can vary, typically ranging from a few days to several weeks, depending on the company type and the specific requirements of the chosen jurisdiction.
Foreign business owners can own property in designated areas in Dubai, known as freehold areas. Ownership conditions may vary based on the type of property and location.
The documents required can vary based on the type of business and its jurisdiction. Typically, you'll need a passport copy, business plan, NOC from a sponsor if applicable, and proof of trade name reservation and initial approval from the relevant authorities.
Yes, it is possible to operate certain types of businesses, particularly offshore companies, without the need to relocate to Dubai. However, for Free Zone and Mainland companies, physical presence or local management may be necessary depending on business activities.
Foreigners can open both personal and corporate bank accounts in Dubai. The process typically requires personal identification, proof of residence, company documents, and a personal visit to the bank for verification.
Companies in Dubai must adhere to annual audit requirements, renew their business licenses and permits, maintain accurate financial records, and comply with local employment laws and VAT regulations, if applicable.
Yes, transferring an existing business to Dubai is possible. This typically involves establishing a branch office or a wholly-owned subsidiary in Dubai. The specific steps and legal requirements depend on the business structure and sector.
If you cannot find the answer to your question in our FAQ, we invite you to book a free consultation with one of our experienced business setup advisors. This personalized session is designed to address your unique needs and provide tailored advice to help you navigate the complexities of establishing and growing your business in Dubai.
