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When starting a new business, you’ll need to submit more than a license. Several documents need to be submitted, and a good company formation service will take care of many of these aspects for you. The Creative Zone is an excellent option because it provides concierge services to help you prepare documents, liaise with banks, and find office space. Modern companies will love the amenities available in the Creative Zone, such as co-working spaces and meeting rooms. Read below some important things you should remember before company formation in Dubai.
UAE free zones allow 100% foreign ownership with 0% corporate tax:
The UAE is currently the only country to offer 100 percent foreign ownership of companies without the requirement for a local partner. With the new law, companies will no longer have to partner with a local entity and give up a majority of the company’s shares. Furthermore, 100% foreign ownership is now available onshore, allowing foreign companies to establish their operations without any ownership stakes.
Dubai is a good option for investors:
If you’re planning to start a company in Dubai, you’re not alone. The UAE is considered one of the most promising locations for company formation. The country is projected to lead the economic growth in the Arabian Gulf this year, significantly outpacing Saudi Arabia. Here are some important things to keep in mind before you choose Dubai as the location of your business.
They require a local sponsor:
The first thing to remember before company formation in Dubai is to select the correct type of company. It must be UAE-based, and a limited liability company must be at least 50 percent owned by a UAE national. In mainland Dubai, a company must have a local sponsor covering 51% of the ownership. Local sponsors may be an individual, a company, or service agents for a parent company.
They limit the number of shareholders:
When forming a limited liability company (LLC) in Dubai, you must have 50 shareholders. Moreover, if you have more than seven partners, you must form a board of directors with at least three shareholders. Limited Liability Companies can engage in any business activity. In addition, they can carry out business activities such as trading. However, they cannot carry out financial transactions without the approval of a regulatory.