Starting a business in Dubai is very easy when you have the right and required paperwork. However, the documents required, the languages of the documents and the process of acquiring them can be yet long and sometimes tricky, therefore; if you are not familiar with UAE’s rules and preferred language, you might find the formation process difficult. At Global Link, we facilitate the business formation process and save you the hassle
1- Having a Local Sponsor
If you are willing to start up your business in the mainland then, according to UAE law, you need to have a local sponsor. A local sponsor is to own 51% of the company and you will own 49% of the company. The local sponsor will only have an annual fee; however, will not share any of the company’s profit. However, having a local sponsor facilitates the business formation process.
Global Link can provide a special service of Corporate Local Nominee partner to act as the majority shareholder on any newly establishing or existing onshore license
Global link solution for the corporate sponsor (51%) being held by the company:
Risk Mitigation Agreements (RMA) under which control and profit entitlement are diverted away from the UAE Corporate Shareholder to the foreign investor(s).
The main difference from a structural perspective as to why people prefer the Globallink corporate sponsorship solution rather than using a local Emirati individual is the protection and security it gives.
There are a number of advantages for using the corporate sponsor instead of a UAE individual such as:
- Control of the company rests with the client
- The fee charged will not be increased arbitrarily
- Client has flexibility to change the sponsor at any time
- Risk Agreements protect both parties
- Avoidance of uncertainty over sharia law
- A company doesn’t die so no issues with probate if death occurs
- Globallink is licensed and regulated; an individual is not
- Globallink is insured against loss
- Full Power of attorney will be passed onto the manager of the company for day-to-day activities
- A Globallink representative is always available for signatures (no need to chase the Emirati national and wait if they are out of the country)
It is worth noting that yes this is available for any newly incorporating company but also this is more geared towards already existing companies who wish to remove their existing local sponsor and replace them with a much more secure vehicle.
2- Choosing a Free-Zone Area
If you do not want to have a local sponsor, then it is better to set up your business in the free-zone area, where you will enjoy 100% ownership of your business. Also, in a free-zone you do not have to pay any taxes, the process of the company formation is a lot easier and faster.
3- Issuing License
There are different types of licenses to be obtained, and each depends on the type of business you are in. A license is a permission to set up and run your business in Dubai.
4- Visa Requirements
All foreign employees must obtain visas in order to start working in the UAE. Each type of business is allowed a certain number of visas and depends on the office space, as it calculated per sqm per employee. Obtaining a visa is very easy when you know the right procedures to follow and we can definitely assist you with it.
Global Link PRO Services will assist you with every legal step related to setting up your
company in the UAE. We will take care of the whole process from
submitting the required documents to the government, creating your legal documents,
getting approvals, and any other related tasks. We want you to focus on building your
business while we take care of the legal procedures.