Dubai is one of the most popular business hubs in the Middle East. For this reason, many foreign individuals, especially Iranians, are now eager to reside in Dubai by purchasing property. One of the best investment methods in the Emirates, which has gained significant attention from our country's people, is registering a company in Dubai. In fact, numerous investors have chosen establishing a company in Dubai to initiate a highly profitable business in one of the world's developed countries.
In recent decades, the authorities of the United Arab Emirates have created favorable conditions and opportunities for entrepreneurs. If you're interested in obtaining more information about company registration in the Emirates, make sure to stay connected with us until the end of this article at NewWay. In the continuation of this article, we intend to provide you with useful information regarding setting up a company in Dubai for Iranians.
- Required Conditions for Registering a Company in Dubai
- Advantages of Registering a Company in Dubai
- Types of Companies Eligible for Registration in Dubai
- Steps for Registering a Company in the UAE
- How Much Does Company Registration in Dubai Cost?
- Summary of Company Registration in Dubai
Required Conditions for Registering a Company in Dubai
In order to establish a company in this modern city, it is necessary to become well-acquainted with the business conditions in this city. This will enable you to gain the necessary knowledge and launch a suitable and profitable business with less risk. One of the conditions for registering a company in the UAE is that the investor cannot obtain 100% ownership of the company and must have a local shareholder as a partner. However, in free zones, 100% ownership of the company is possible for foreign investors.
The specific conditions for registering a company depend on the nature of your business. Nevertheless, some initial conditions are entirely general. This means that any business you have must meet the following minimum conditions:
1. Age Requirements
The first necessary condition for registering a company in this developed city is to be within the traditional age range of at least 18 and maximum 60 years old.
2. Financial Capability
You must have the financial capability to cover company expenses such as office space, factory, workshop, etc.
Advantages of Registering a Company in Dubai
Starting a business in Dubai by registering a company in this city comes with numerous advantages, which are mentioned below. You can also learn about various types of Dubai visas by referring to the comprehensive article on the NewWay website to acquire complete information in this regard.
1. Obtaining Dubai Residency through Company Registration
The most important reason why Iranians and other foreign individuals are interested in establishing their companies in Dubai is to obtain Dubai residency through company registration. It's important to note that the UAE does not issue permanent residency for any immigrant. However, temporary residency conditions exist in this country, and investors based on the capital they have invested in company registration receive residence visas for themselves and their families for 3 to 10 years. Moreover, this visa can be indefinitely extended.
2. Low-Risk, High-Return Investment
Since the UAE is one of the developed countries in the world and there is no requirement to pay taxes for starting a business by registering a company in this country, starting a business here carries low risk. Investors who register a company in Dubai will receive good profits within a short period of time. If the company's profitability is high, UAE banks offer good loans and banking facilities to investors. Additionally, investors can easily hire cost-effective workforce for their companies.
Another low-risk, high-return investment option in the UAE is buying a house on installments in Dubai, which is comprehensively covered in this NewWay article.
Types of Companies Eligible for Registration in Dubai
If you intend to migrate to Dubai through company registration and invest in Dubai, here we introduce you to various types of companies that can be registered in Dubai. This way, you can register a suitable company in this city based on your economic budget and capabilities.
A total of 12 types of companies are eligible for registration in the UAE. However, among these companies, only the registration of some of them is possible for Iranians. The registration of three types of companies, namely Joint Stock Company, Limited Liability Company (LLC), and Limited Liability Company (LLC) known as LLC, is possible for Iranians. LLC is a better choice for Iranians. The types of companies eligible for registration in the UAE, which actually consist of these 12 types, include:
- General Partnership Company
- Limited Liability Company (LLC)
- Private Joint Stock Company
- Local Company Branch
- Foreign Company Branch
- Sole Establishment Company
- Limited Partnership Company
- Civil Company
- Public Joint Stock Company
- GCC Company Branch
- Free Zone Company Branch
- Holding Companies
Steps for Registering a Company in the UAE
The process of establishing a company in Dubai varies based on the conditions and type of company, but generally, the steps to register a company in the UAE consist of three phases. In the first phase, you need to obtain initial approval from the UAE government. In the second phase, your company is registered with the Department of Economic Development (DED) of the UAE. In the third phase, you should obtain a renewable two-year residency.
To register a company in Dubai, you must first prove your financial capability to a bank and then provide the identification documents of your partners. In the next step, define the company's business activity, draft its memorandum of association, and obtain a tax number from the UAE's tax authority. Then, introduce the manager and the managing director of the company. In the subsequent step, visit the Chamber of Commerce to apply for company registration.
After approval for company formation and receiving the authorization, you need to publish the company's initiation in a widely circulated newspaper. Following the issuance of the trade license, open a corporate bank account in one of the UAE banks and introduce all company employees.
How Much Does Company Registration in Dubai Cost?
Generally, the cost of registering a company in Dubai in 2023 varies based on the type of company. Factors such as the type of license and the zone in which you are starting your business impact the costs. Therefore, it's not possible to provide an exact figure for the required cost of setting up a company in the UAE. However, as an approximate estimation, the minimum cost can be around 20,000 AED, and the maximum required amount for company registration could be around 40,000 AED.
One of the reasons investors are attracted to registering a company in the UAE is the country's special tax regulations. In the UAE, there is zero income tax, and no taxes are levied on bank accounts and financial transactions. However, for company registration, a 5% tax is applicable on the total cost, and each year, a 5% tax must be paid for company renewal.
It's interesting to note that for company registration and living in Dubai, you can also opt for virtual company registration. In this case, you don't need to provide a rental agreement, and by virtually registering your company in Dubai, you can obtain residency in the city.
Frequently Asked Questions about Registering a Company in Dubai for Iranians
Registering a company in this developed country offers Iranians numerous advantages, and they can achieve their desired profits in a short time by establishing their company in this city. However, many investors always have questions. Here, we answer the most important questions in this field.
On average, by establishing a company in Dubai, you can have a three-year residency in this city. However, the amount of investment for the company also significantly influences the duration of residency. The higher the investment amount for the company, the longer your residency duration in this city will be. This extended residency duration ranges from 5 to 10 years.
The cost of Dubai residency with company registration varies depending on the type of company and other factors, and it's not possible to provide an exact figure. However, as a general guideline, the minimum cost for registering a company in Dubai is around 20,000 AED, and the maximum cost is around 40,000 AED.
Summary of Company Registration in Dubai
In recent years, many Iranians have chosen the UAE as a destination for investment, and the reason for this is the country's economic progress and high security. Moreover, the company registration laws in Dubai are very accommodating, and very low taxes are considered for it. By registering your company in the UAE, you can easily achieve substantial profits in a short period of time. The standard residency duration is 3 years, and it can be extended up to 10 years based on the investment amount. You can renew your residency in this country accordingly.
One of the most popular investments in the UAE and one of the ways to obtain residency in this country is to register a company in Dubai.