Key Considerations When Registering A Company in Dubai

Key Considerations When Registering A Company in Dubai

Before deciding on theĀ Dubai free zone company registration, consider a few key things. This article will discuss the Taxation system, foreign ownership restrictions, business license requirements, and office space requirements. These are some of the main questions you should have answers to before registering your company in Dubai. There are many other key considerations, however. For more information, read on. After you have a thorough understanding of these questions, you will be well on your way to forming a company in the UAE.

Taxation system:

Among the benefits of registering a free zone company in the UAE is its low corporate tax rate. Although this rate is only applicable to businesses that conduct business with the Mainland, it is beneficial for free zone companies, which are subject to different tax rates than mainland businesses. Depending on the size and nature of your business, you may qualify for a tax incentive in the form of lower corporate tax rates.

Foreign ownership restrictions:

Several restrictions must be met when registering a company in Dubai free zone. Depending on the sector in which the company operates, the restrictions can differ. In the financial sector, the restrictions vary from one emirate to the next. In some emirates, a company must be owned by a UAE national or have a 100% Emirati partner. These regulations are outlined in the Dubai free zone company registration agreement.

Business license requirement:

One of the most important parts of forming a company in the UAE is choosing a trading name. Your trade name will help you distinguish yourself from competitors and register your business presence. When applying for a Dubai Free zone company registration, you must choose a name that is unique and matches the conventions of the UAE. If you are forming a new company, you must list at least three names to ensure that your application is processed smoothly.

Office space requirement:

While registering a free zone company in Dubai may seem like an unnecessary step, it is a necessity for most business entities. The DED sets a minimum requirement for office space, and if your company is registered in one of the free zones, you will need to have an office. This requirement is different for onshore and offshore companies. For example, in Dubai, you must have an office that’s 200 square feet or more, but the requirements for virtual offices are slightly different.

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