Dubai Mainland Professional Company
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Dubai Mainland Professional Company
A Professional Company formation in Dubai refers to an establishment that relies on the intellectual capabilities of its partners or associates for its operation. A classic example of such an organization is a law firm, which relies heavily on the expertise and educational qualifications of its lawyers. Other instances of professional companies encompass IT consultancy, legal consultancy, accountancy, education, administrative services, and management consultancy, among others.
Dubai has a well-defined set of regulations governing the operations of professional companies. These guidelines encompass the requirement for certified trade licenses to promote professionalism, with specific qualifications and examinations mandated depending on the field’s specialized nature.
Mainland company formation Dubai – The Advantages
Complete Foreign Ownership
A professional license in Dubai provides foreign investors with the invaluable advantage of 100% ownership of their business, allowing them to be the sole proprietors. However, in compliance with legal requirements, it is necessary to designate a UAE national as a local service agent. This service agent’s role is limited to receiving a predetermined annual fee for their services, with no direct involvement in the company’s financial or non-financial matters.
Cost-Effective Option
Acquiring a professional license in Dubai can be remarkably cost-effective, with the potential for fees as low as AED 11,000 (approximately $3,000). It’s important to note that this cost does not encompass additional charges like service fees, company stamps, visa applications, and others.
Diverse Range of Activities
When opting for a professional company formation in Dubai, entrepreneurs have the flexibility to choose from a wide array of activities within the same category. For instance, a single professional license can encompass various activities such as Business Consultancy Services, Marketing Consultancy Services etc.
Minimal Share Capital Requirement
A professional company formation in Dubai is subject to a minimal share capital requirement, which stands at approximately AED 150,000 (around $40,900). This amount is notably lower than the minimum capital required for commercial enterprises in Dubai.
No Additional Income or Corporate Taxes
One of the most appealing features of a mainland company in Dubai is the absence of additional income or corporate taxes on your business profits.
Professional company formation in Dubai: Step-by-Step Guide
- The initial step involves selecting a unique trading name for your professional company. Ensure that the chosen name complies with the regulations and guidelines set forth by the relevant authorities.
- Determine the specific business activity for which you intend to obtain a license. It is crucial to align your chosen activity with the type of professional services you plan to offer.
- Seek initial approval from the Department of Economic Development (DED) in Dubai. This approval is essential to move forward with the licensing process and validates your business concept.
- Gather all the necessary documents as stipulated by the regulatory authorities. These documents typically include legal paperwork, business plans, and other relevant information vital for your business setup.
- Pay the requisite fees associated with obtaining your professional license. These fees cover the administrative costs and are a necessary part of the licensing process.
- Once all the prerequisites have been met, you will receive your professional license, allowing you to legally operate your business in Dubai.
Mainland Company in Dubai: Documentation Required
- Business Plan: A comprehensive plan outlining your business objectives, market analysis, financial projections, and operational strategies.
- Passport Copies: Valid passport copies of all shareholders and managers involved in the setup, with a minimum validity of six months.
- No Objection Certificate (NOC): For foreign investors or employees, an NOC from the current sponsor or employer, indicating no objections to the new venture.
- Memorandum of Association (MOA): A legal document detailing the company’s structure, objectives, activities, and shareholder information, to be notarized.
- Local Service Agent Agreement: Required for specific companies, outlining terms of the sponsorship arrangement with a UAE national or company.
- Tenancy Contract: Proof of a physical business address, valid for at least one year.
- Trade Name Reservation Certificate: Reservation of a unique trade name with the Department of Economic Development (DED).
- Initial Approval Certificate: Confirmation from the DED that the proposed business activity complies with local regulations.
- Shareholder’s Resolution: Document demonstrating shareholder consent for key business setup decisions.
- Business License Application: Application for the appropriate business license type based on the business activity and legal structure.
It’s important to note that documentation may vary slightly depending on the specific nature of your business and any updates or changes in Dubai’s business regulations. Therefore, it is advisable to consult with local authorities or engage with us at LINKS CORPORATE CONSULTANTS who is well-versed in Mainland Company Formation in Dubai procedures to ensure a smooth and compliant process.