Foreign business owners and investors in the UAE have two different options in setting up a business. As the choice of one of these two options has implications for the company moving forward, it is important to consult with an experienced lawyer and law firm about company formation. This recommendation is true for all areas, including Dubai.
The Options
The two options for setting up a business by a foreign owner will be a mainland company or a free zone company. A mainland company can be located anywhere outside of the free zones in Dubai, but the foreign business owner can only retain 49% ownership, with the other 51% held by a UAE national.
With a free zone company, the foreign owner can retain 100% ownership and have 100% repatriation of both profits and capital as well as zero import and export duties and several other benefits. These businesses, however, can only be located in specific free zones and cannot do business in the UAE without first having locally appointed distributors and paying a customs duty.
The Need for Legal Services
Understanding all aspects of company formation within the Emirate is critical. This is very different than setting up a company in other areas of the world. There are several requirements that must be met, including procuring office space, business plans, corporate bank accounts and, of course, a host of different applications and approvals. The lawyers can also help in selecting the correct free zone for your business, which will have long-term logistic and business implications.
Working with a law firm that specializes in consultancy for company formation in the Emirate makes the complex system very easy. The law firm will ensure all documentation required for the business formation is provided to the correct authority and that all documents are provided in Arabic for consideration of the governing body.
For assistance with free zone or mainland company formation in Dubai, contact the experts at STA Law Firm. Additional information can be found online at website.
