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What's Involved In A Dubai Company Registration - Legal Facts And Terms You Need To Know About
As with any countries and cities, there are unique laws as to how a company is established, as well as some rules and regulations to be followed to avoid hurdles during its operations especially getting past the Dubai company registration process.
* Not Easy To Start A Business In Dubai
For starters, Dubai is one of the few places on Earth where starting a business is a tedious task. According to the World Bank's Survey, Dubai is ranked 33rd of the easiest places to do business -- considering its low rankings, we can safely say that starting a business in the city is going to be very hard, especially if it's your first time. This is mostly attributed to the government bureaucracy that places stringent measures to qualify for a business standing in the city. If you're aiming to put one up in the city then here are some legal facts and terms you need to acquaint yourself with before you get started.
1. Type of Business
There are 4 categories of business you can set up in Dubai, namely:
* LLC (Limited Liability Company) - this type of Dubai company registration is defined when a foreign company becomes one of the shareholders of an incorporation in UAE. This requires you to have a sponsor within the business that holds majority of the shares -- preferably above 50%
* Franchise/Branch Company - this business setting requires a local agent or sponsor to act as registrant. The sponsor is the only one eligible to handle all the operations of the business.
* Offshore Company - this type of Dubai company registration refers to a business operating outside its boundaries. Example, a business in Switzerland opens up a similar enterprise in UAE.
* Free Zone Company - are business that 100% owned by the person who set it up. You don't require a sponsor or an agent to act as liaison to manage the venture. There is no restriction tying you down.
2. Power of Attorney
If you are going to be working with a business consulting firm to set up your business in Dubai then it is necessary to issue a Power of Attorney prior to Dubai company registration to give them full authority over the processing and filing of various forms and legalities so you won't encounter any problems afterward.
Setting up a business is not without its fees. Prior or during a Dubai company registration, a firm might require you to deposit a set amount of money in their bank account so they can proceed to pay all the necessary fees to set up your business.
4. Legal Documents
Be ready to be swamped with legal requirements and documents when you're planning to set up a business in Dubai. Whether it's an LLC, franchise, offshore, or free zone, there are certain documents to be processed to various government agencies in Dubai, namely the Dubai Registrar of Companies, UAE Ministry of Foreign Affairs, and Dubai Chamber of Commerce.
5. Bank Account
During the processing of your company registration, another necessity is to open up an account in one of the local banks in the city. To open up an account, a business owner is required to attend an interview with a bank representative, submit an application, and produce relevant documents pertaining to the business.
* Look For a Business Consulting Firm
If you don't have the patience to undertake all these necessary requirements on your own then it would be best to look for a local business consulting firm in Dubai to help you out. Processing all these requirements and jumping from one government agency to another might be too much for you to handle. Having a team of specialist who are knowledgeable on the local business sector can help speed up the process of your Dubai company registration and get it done without the stress.
Article keywords: Dubai Company Registration, Legal facts and terms
Article Source: http://www.articles3k.com
Ramapati Singhania specializes in creating and managing web businesses. His
latest website focuses on dubai company formation helping you to incorporate offshore companies in Dubai, Sharjah Airport, Jebel Ali and Ras Al Khaimah in the United Arab Emirates.