A Look at the Benefits of Company Registration in Dubai
First of all, it’s worth taking a look at the benefits of registering a company in Dubai. As mentioned in the introduction, company registration in the UAE can offer amazing advantages for Iranian and foreign applicants alike. Some of these benefits include:
- The time required to register a company and obtain residency is very fast;
- By registering a company, you can Two-year UAE residency obtain it;
- Under certain conditions, registering a company in Dubai allows you to obtain residency for your family as well;
- By registering a company in Dubai, you will not need to pay annual income tax;
- The value-added tax is zero percent, and the tax on income exceeding 375,000 AED in this country is only 9%;
- The company’s activity can be renewed annually without the need for actual business operations;
- It is possible to register a company with even just one shareholder and without the need for an Emirati sponsor;
- It is possible to register a family-owned company without the need for an Emirati sponsor;
- It is possible to register a company using a virtual office;
- It is possible to open a bank account in UAE banks;
- Shareholders can engage in other jobs and earn income by registering additional companies;
- Children can study in schools and universities in Dubai, among other benefits.
A Look at the Drawbacks of Company Registration in Dubai
Just as establishing a company in Dubai has its unique advantages, it can also have drawbacks for applicants. To make a smarter decision about registering a company in Dubai, you definitely need to be aware of the disadvantages as well. Some of the drawbacks of company registration in Dubai include:
- Residency obtained through company registration in the UAE is not permanent and must be renewed after the expiration of its validity period.
- You should know that Obtaining a UAE Passport It is not possible with company registration;
- Annual renewal of company activity requires payment of a fee;
- To register certain types of companies in Dubai, you must have an Emirati partner;
- Company shareholders must be present in the country for at least 1 day per year;
- Also, the shareholder must be present in the country for at least one day every six months to renew the family's residence permit.
- No more than 3 shareholders can be registered for the company;
- The cost of living in Dubai is much higher compared to Iran.
Obtaining Residency by Registering a Company in Dubai
The answer to this question is now quite clear; many applicants frequently ask our experts whether it is possible to obtain UAE residency by registering a company in Dubai or if this is just a marketing claim by immigration companies. The answer is that obtaining UAE residency through company registration in Dubai is completely feasible.
The residency obtained through company registration in Dubai is a temporary residency valid for 2 years. This residency is renewable, and after its expiration, one can obtain temporary residency in the country again. Additionally, by registering family members as company shareholders, it is possible to obtain Dubai residence cards for them as well. This is done by obtaining UAE Companion Visa It is also possible.
validity duration: The validity of this type of residence is 2 years and according to the UAE government, it can be extended as long as the company is in existence. Extension of stay: The extension of UAE residence can be done through company registration within 2 years and the extension is done for 2 years.
Persian Translation
Validity period: The validity period of this type of residence is 2 years and according to UAE government regulations, it can be renewed as long as the company exists.
Residence Renewal: UAE residence can be renewed by company registration for a period of 2 years, and the renewal is granted for a duration of 2 years.
Introduction to Different Types of Licenses for Company Registration in Dubai
Before we introduce the different types of companies in Dubai, it is necessary to become familiar with the concept of company registration licenses and to recognize their types. In general, the types of registration licenses can be considered as subsets of the various categories of companies in the United Arab Emirates. Our experts have access to various sources indicating that today more than 100 types of company licenses are issued for applicants registering companies in Dubai.
Among the most important licenses for company registration in the UAE, we can mention the following:
Commercial License or LLC
This is considered the best choice for Iranian applicants. Obtaining this license is very easy and more economical. With this license, you can get permission for buying and selling, trade, and commerce in Dubai, and also obtain residency.
Industrial license
If you meet the prerequisites for setting up a factory or production line in the UAE, you can register a company in Dubai using an industrial license and obtain residency in the country through it.
Professional License
If you have expertise in various fields, for example, if you are a skilled lawyer or an expert in computer engineering, you can use this license to start professional activities and obtain Dubai residency.
Other licenses
Other licenses available for company registration in Dubai include:
- Agricultural
- tourism
- Specialized
- Professional
- Service, etc.
Familiarity with types of companies for registration in Dubai
In the previous section, we mentioned that the best option among the available licenses for Iranian applicants to register a company in Dubai is the commercial license or LLC. Using the commercial license, various types of companies can be established in Dubai or other regions of the UAE. The choice of each company depends on your business plan and available resources. Also, the setup costs and conditions for each of these companies differ from one another. For some of them, you will also need to cooperate with an Emirati sponsor.
Among the most important types of companies in Dubai, the following can be mentioned:
Limited Liability Company (LLC)
This type, is considered the best form of company registration in Dubai for Iranians. The partners' liability is limited, and its management offers greater flexibility. Previously, these companies required an Emirati sponsor, but nowadays company registration in Dubai without a sponsor is also possible in some cases. Each partner's liability depends on their shareholding. To establish this company, you need at least 2 partners and up to 50 partners.
Public Joint Stock Company
For launching larger businesses, the Public Joint Stock Company is a better option. By establishing this company, the necessary capital can be raised through a public offering of shares. The initial capital required for this company is higher than other types.
Private Joint Stock Company
If you want to raise the necessary capital from private investors, undoubtedly the Private Joint Stock Company is a better choice for you. In these companies, shares are purchased only by a specific group.
Free Zone Company
As the name suggests, Free Zone Companies are registered in the free zones of the UAE, such as Dubai. These companies have special advantages, including specific tax exemptions and 100% ownership. If you intend to engage in international import and export, this company is a suitable option.
Offshore Companies Registered in the UAE
If you want your company to be registered in the UAE but operate outside the country, Offshore Companies registered in the UAE are definitely a suitable option. These companies also benefit from certain legal exemptions and have a simpler structure.
Branch Offices
If you own a company and now want to have a branch in the UAE, Branch Offices are the best option for you; for this reason, they can be considered the exact opposite of the previous company type. Registering a branch office is a very smart move to enter the Dubai market.
Other Types of Companies in Dubai
The types of companies in Dubai are not limited to these; other common types of companies in the UAE include the following:
- General Partnership Company
- Limited Partnership Company
- Civil Company
- Sole Establishment
- Holding Companies
- GCC Company Branch
- Local Company Branch
Overview of the Company Registration Process in Dubai
Now that we are familiar with the types of companies in Dubai, it is worthwhile to take a look at the process of establishing and registering a company in Dubai. Generally, the company registration process in Dubai can be summarized in the following steps. For more detailed and accurate information, you can contact our experts and receive the necessary consultations.
Obtaining Company License
The first step is to determine the nature of the company and obtain the relevant licenses. In the Dubai company licenses section, we thoroughly covered the various types of licenses. Commercial companies are the best option for Iranians.
Choosing the Legal Structure of the Company
The next step is to choose the company's legal structure; in other words, you must select one of the types of companies in Dubai mentioned earlier, based on your needs, resources, goals, and UAE laws. Registering an LLC in Dubai is the best choice for Iranians.
Company Registration
In the third step, you must register the company’s trade name. There are specific rules regarding company names; for example, the name must be in Arabic or English and must also be registered with the Dubai Department of Economic Development.
Obtaining Initial Company Approval
After completing the above steps, you need to apply for initial company approval through the relevant authorities in Dubai. After that, you can proceed with the other steps to complete company registration in Dubai.
Preparing the Articles of Association or Agreement
Depending on your company’s legal structure and type, you need to obtain these documents. For limited liability companies, public joint-stock, or private joint-stock companies, you must obtain the Articles of Association or MOA. For sole proprietorships, you need to obtain the Agreement or LSA.
Choosing the Company Office Location
According to UAE laws, all types of registered companies must have a designated office location. Therefore, at this stage, you must rent a place to set up your company office and register it on the Dubai Land Department website.
Obtaining Other Government Approvals
Sometimes, you need to obtain additional government approvals for your company registration. For example, you may need specific approvals for installing fire-fighting equipment in your company office.
Obtaining Approvals and Submitting Documents for Company Registration
After receiving various government approvals, which may include special permits such as fire-fighting equipment installation approvals for the office, you must submit the necessary documents to the government to complete the company registration and establishment process in Dubai.
Paying Company Registration Fees and Obtaining the Business License
At this stage, you must pay the final fees for company registration in Dubai. You also need to obtain your business license through the UAE Department of Economy.
Registering the Company with the Chamber of Commerce
In the final step, you must also register your company with the Chamber of Commerce. This should be done in the same area where you received the initial approval. After this, the company registration process in Dubai will be complete.
Obtaining Company License
The first step is to define the nature of the company and obtain the relevant licenses. In the section on company licenses in Dubai, we became fully acquainted with the various types of licenses. Commercial companies are the best option for Iranians.
Other Company Registration Steps
In addition to the general steps for company registration in Dubai, it is important to note that there are other procedures involved as well. Some of the additional steps for company registration in Dubai include the following:
- Travel to the UAE: For administrative tasks and fingerprinting, signing contracts;
- Obtaining a residence card and ID card: This step is carried out after company registration;
- Opening a bank account: One of the most important actions after registering a company in Dubai;
- Obtaining residency for family members: This step becomes possible after completing all previous stages;
- Hiring staff: This step can be undertaken to advance the company’s activities.
Requirements for company registration in Dubai
Registering a company in Dubai has specific requirements that you must fully understand before proceeding with the registration process. Among the requirements for company registration in Dubai that you should pay attention to are the following:
Company name requirements in Dubai
Preferably, your company name should be in Arabic. An English name is also allowed but must be conventional. If you wish to use a unique English name, you may be required to pay more than 2000 AED for this. Naturally, your chosen name, whether Arabic or English, must not have been previously registered.
In the article Guide to Choosing a Company Name in Dubai Read more about this.
Residency requirements through company registration in Dubai
Among the essential conditions you must meet to register a company and subsequently obtain residency through this method are the following:
- The minimum legal age to register a service company in the UAE is 18 years old;
- Obtaining a father's permission to register a company between the ages of 18 and 22;
- The applicant must not suffer from contagious and dangerous diseases;
- No criminal record or international prosecution cases;
- No history of deportation by the UAE government.
For more information on this topic, read the article Dubai Residency through Company Registration Read it.
Required documents for company registration in Dubai
Paying attention to the required documents for company registration in Dubai and providing all necessary items can greatly assist your application. Therefore, you should have all the required documents for company registration in Dubai fully prepared before submitting them to the relevant authorities. Among the most important documents you will need in this regard are the following:
- Completing and submitting the company registration application form in Dubai
- Submitting a business plan
- Providing passports with sufficient validity for the company managers
- Providing the passport and identification documents of the Arab sponsor
- Providing a No Objection Certificate (NOC) from your sponsor
- Bank reference letter for each of the company shareholders
- Copy of documents related to obtaining a tourist visa
- Company articles of association
- National ID card
- Photo
During the company registration process in Dubai, you may also need additional documents. Our experts will guide you through these stages and provide the necessary information at the appropriate time.
Cost of company registration in Dubai
The cost of company registration in Dubai includes various items. Before starting the company registration process in Dubai and obtaining UAE residency, it is necessary to estimate all these costs and allocate an appropriate budget. In general, the costs of company registration in Dubai can be summarized as follows:
| Title | Cost |
|---|---|
| Administrative and office expenses | Approximately 9,000 to 10,000 AED |
| Company registration license fee | Minimum 10,000 and maximum 50,000 AED |
| Initial company capital | At least 1,000 AED |
| Company registration operational costs | It can vary depending on the type of your business |
| Cost of choosing a company name | Approximately 2000 AED |
| Office rental cost | At least 5,000 AED annually |
| Residency and deposit fees | 4,500 AED and 3,000 AED |
| Company registration and change of residence type fees | 1000 AED |
| Ejari certificate or lease contract cost | 4,000 to 6,000 AED |
In general, the cost of company registration in Dubai and obtaining residency through it can be as low as around 11,000 AED (sometimes about 18,000 AED) at the cheapest. Also, for registering a General Trading company, it is necessary to pay at least 32,000 AED (sometimes more than 35,000 AED).
Company registration duration in Dubai
The duration of company registration in Dubai and subsequently obtaining residency through this method depends on various factors. Therefore, no specific timeframe can be given. Naturally, the more complete your file is, the more accurately you have prepared the required documents, and the better cooperation you have with immigration lawyers, the shorter the company registration period in Dubai will be.
Generally speaking, the average duration for company registration in Dubai is only 2 weeks (14 working days). This is why many experts believe that the process of company registration in Dubai and obtaining residency through it is much faster compared to other countries. It’s worth noting that only in cases of company name similarity or other administrative issues might this period extend slightly beyond 2 weeks.
Final words
In this article, we discussed company registration in Dubai and provided a comprehensive guide for you. If you want to obtain residency in the United Arab Emirates and start a new life in this country, undoubtedly Company registration in Dubai for Iranians can be a smart choice. Our team of experts is always ready to answer your questions; for more information and consultation, please contact us through our communication channels.
