How to Setup an Onshore Company in Dubai?
An onshore company in Dubai refers to a resident company that meets the criteria to operate a business in the UAE and act as a sponsor for its employees.
There are two major business jurisdictions in UAE the Mainland and Free Zone for setting up an Onshore Company in UAE. Often foreign investors do not understand the difference between onshore and offshore companies.
From the viewpoint of a foreign investor, onshore companies are those governed by the commercial companies law of the country, while offshore companies are non-resident entities registered in offshore jurisdictions such as the British Virgin Islands, Cayman Islands, and RAKICC in the UAE.
They are not eligible to open office space or conduct business within UAE. Nor they can apply for a UAE residence visa.
Setting Up an Onshore Company in Dubai?
Setting up an onshore company in Dubai is advisable to carry out through an expert Business Consultant. There are a few procedures for setting up an onshore company in Dubai.
Establishing an onshore company in Dubai offers numerous advantages, including reduced taxation, superior infrastructure, and enhanced business opportunities, among others.
Also, Dubai is a perfect destination to grow business and connect with a diverse market. There are immense business opportunities in Dubai for investors.
Steps in Setting Up an Onshore Company in Dubai
Establishing an onshore company in Dubai is akin to setting up a Free Zone or Mainland Company. Investors can adhere to the following steps to ensure the proper setup of their onshore company. Entrepreneurs have the option to either establish an onshore company in Dubai as a branch of a foreign company or as a new entity in the city.
- Choose the desired business activity, business license types, and the business jurisdiction – mainland or Free Zone
- Keep 3 alternatives for the company name. The Free Zone or DED, Dubai will approve the Trade Name based on availability.
- Choose the shareholding pattern between the shareholders, prepare the application form and submit the supporting documents
- Submit one photograph (white background) and passport copy of the shareholder,
- Remit the required company formation fee to the Free Zone or Mainland authority depending on the chosen business jurisdiction.
- Prepare the tenancy contract for the office space. Depending on the business activity, investor’s choice, and visa quota requirements, the investor must choose the right office size. Pravo Management team will guide the investors with the ideal options for office space and setting up the onshore company.
- The investor will be provided with the trade license along with company documents including the Memorandum of Association, share certificate, any necessary special approvals, tenancy contract, office keys, company stamp, and more.
Right Free Zones for Setting Up an Onshore Company in Dubai
There are more than 40 Free Trade Zones in UAE and each Free Zone offers unique company formation packages. Also, the business support services the Free zones in Dubai offer are unmatched.
For foreign investors, to set up an onshore company in Dubai following are a few Free Zone to focus on.
1. Dubai China Center Free Zone – Dubai Digital Park
Dubai China Center Free Zone is a recently established Free Trade Zone in the UAE, providing a wide range of business licenses. This Free Zone presents investors with a valuable opportunity, as it offers a trade license and 3 visa quotas at a competitive price of AED 20,000 in Dubai.
The cost-effective company setup with the availability of a wide variety of business activities makes it the perfect choice for foreign investors. The strategic location, world-class amenities, and networking opportunities are highlights of the China Center Freezone.
2. Dubai Silicon Oasis – IFZA
Dubai Silicon Oasis-IFZA serves as a thriving startup hub in the UAE, making it an ideal destination to establish an offshore company in Dubai. This dynamic Free Zone offers an array of top-notch business amenities, including conference halls, workspaces, and more, ensuring an optimal environment for entrepreneurial success.
There is a wide range of business activities available in the Free Zones across trading, consultancy, and software business categories. IFZA has various company setup choices with multiple visa quotas and office space facilities that are ideal for specific business activities.
3. Dubai Airport Free Zone
Dubai Airport Free Zone is one of the most prestigious Free Trade Zones in Dubai. It is situated next to the Dubai International Airport making it a perfect option for international businesses to set up their headquarters.
DAFZA offers tailor-made office spaces suitable for a diverse range of business activities. It is the perfect choice for companies in trading, consulting, aircraft maintenance, and IT-related fields. Experience the ideal environment for your business needs.
Establishing an onshore company in Dubai Airport Free Zone provides investors with the opportunity to join a distinguished community of entrepreneurs. Renowned and widely recognized, this Free Zone stands as one of the most prestigious and sought-after business destinations in the UAE.
4. Dubai Commerce City
Dubai CommerCity is one of the latest additions to the Free Zone community. It is a new Free Zone that provides specialized onshore company setup packages for eCommerce, media, trading, consulting, etc.
Located close to the Dubai International Airport, it is an ideal free zone for companies that have logistics involved in their daily business operations.
To know more read: DubaiCommerCity
5. Dubai Multi-Commodities Center
Dubai Multi-Commodities Center (DMCC) is one of the world’s largest Free Trade Zone with more than 10,000 companies operating in various towers of the Jumeirah Lakes Towers (JLT) and Tecom Area.
DMCC Free Zone is a perfect location for networking, startups, IT professionals, marketing, etc., to collaborate and work together. There are various cost-effective company setup packages for investors to opt for in DMCC.
Hence, in a nutshell, there are various options available for foreign investors in UAE to set up an onshore company in the region.
Similar to setting up the onshore company in the Free Zones of Dubai, the investor can also apply for a limited liability company or a professional civil work company. A single shareholder professional license can be applied from the Department of Economic Development (DED) Dubai.
Pravo will guide you with the right company formation package and business support for easily setting up an onshore company in UAE.
To know more about Setting up a Free Zone Company in Dubai, talk to our expert Business Consultants right away!