Company Establishment in Dubai
Dubai is a very attractive location to establish a company due to the advantages it offers to foreign investors. The most important of these advantages is the absence of any corporate tax or customs tax applied to companies within the borders of the United Arab Emirates. At the same time, no income tax is collected for personal income. However, since Dubai has a Double Taxation Agreement with Turkey, Turkish citizens who open a company in Dubai must pay income tax to Turkey. There are two competent authorities for company establishment in Dubai. These:
1. Dubai mainland companies and
2. They are "free zone" companies located in more than 20 free trade zones
Mainland and Free Zone companies offer different advantages depending on their business and commercial activity areas. If you want to start a business and open a company in Dubai mainland, it is necessary to register the company with Dubai Economic Development (DED). The following steps must be followed to establish a company in Dubai:
1. Selection of business activity,
2. Selection of the legal structure of your company,
3. Selection of trade name,
4. Making the first approval application,
5. Preparation of the company's articles of association or local service representation agreement,
6. Determining the business location,
7. Obtaining the necessary approvals,
8. Receipt of the license.
A company can also be established online in Dubai. To set up an online company in Dubai, investors need to register on the Basher platform, which enables them to set up their business in Dubai within 15 minutes through a unified online platform.
Our company EXPERT PROPERTY will also assist you in establishing a company in Dubai.
1. Selection of Business Activity
The business to be selected should be determined first, as it plays an important role in determining the company's legal structure and license type. There are more than 2100 business activities in Dubai and they are divided into classes. Languages in general; It is classified into 3 categories: industrial license, trade license and service/professional license. Industrial, trade and service license groups can be gathered under a single company legal entity, but cannot be gathered under a single license. An example of this is Industry and Tourism LTD.ŞTİ. In such a case, it is necessary to apply for each license separately.
2. Selection of the Legal Structure of the Business
The following section lists the most preferred legal structures that Turkish Citizens can establish in Dubai as foreign investors:
A Sole Proprietorship is a type of business owned by a real person. This person manages the entire business 100% alone. Profit and loss belong entirely to this person. Industrial or Commercial licensed sole proprietorships can only be established by UAE citizens or GCC (Gulf countries) citizens.
Civil Company is a business and commercial partnership established in professionally defined fields. As an example of this group; doctors, lawyers etc. can be shown. Turkish citizens can establish a Civil Company in Dubai only with their professional license and activities. However, they must sign a Local Service Agent Agreement with a UAE citizen for residence, visa and work permit issues.
It is a type of business that combines partnership and corporate structure. LLC companies, which are the most used company type in Dubai, can be established with 2-50 partners. Each partner is liable only in proportion to his share. LLC companies can be established with industrial, commercial or service/professional licenses. For Turkish citizens, it is mandatory to have at least 51% UAE national partners in LLC companies.
Dubai professional company; It is a type of company that can be established by 2 or more people, gives the founders the advantage of owning the entire company, and can be opened by skilled professionals in fields such as consultancy, law, accounting and medicine.
Free Zone Company
In Dubai, a free zone is a type of company where the entrepreneur is exempt from VAT. Operating expenses of a free zone company in Dubai are minimal for entrepreneurs, and all payments for the use of office space, facilities and public services are paid in advance annually.
Opening a Branch
Companies established in Turkey can open branches in Dubai. This branch can only operate in Dubai in all or some of the activities of the parent company.
Our company, EXPERT PROPERTY, will assist you with your questions and consultation regarding company establishment.