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Now you can start your business online with confidence in 3-easy steps.  You can incorporate your business in Dubai or any of the other six Emirates in the United Arab Emirates (Abu Dhabi, Sharjah, Ajman, Ras Al-Khaimah, Fujairah or Umm Al Quwain).  We provide a total company formation service including document verification, quality check, incorporation, work permits, visas, bank accounts, marketing, family visas, housemaid and domestic help visas.  We have a standard and affordable pricing policy. Most importantly, we are based in Dubai, U.A.E.  Our consultants have extensive experience in helping thousands of businesses incorporate and succeed in the Middle East. We follow transparent procedures to ensure that you are aware of each step of the process.  Welcome and thank you for your confidence in us.

This website if packed full with useful information.  However, if you would rather get in touch with us and let us determine the best way for you to move forward, kindly click here.

 

What does it mean to incorporate?

Incorporation, sometimes referred to as setting up, company formation or forming a company is the process of legally registering your business as a separate entity with the government authorities.  We say "separate" because U.A.E. law requires that all businesses be registered and licensed.

In Dubai or the UAE, incorporation is a 3-step process.

  1. First, we will obtain an Initial Approval Document from the government authorities to start your business. 
  2. The second stage is to prepare the additional documentation requested in the Initial Approval Document.
  3. The third step is to submit all the required documents at which point the government issues the License.

Dubai, UAE, Emirates - What does all this mean?

Please allow us to familiarize you with the various terms used in the U.A.E.  There tends to be a lot of confusion because many incorporation companies use the wrong terms. 

  • Dubai - Dubai is a city-state (called an Emirate in the local lingo) located in the Middle East.  Dubai is part of a federation of 6 other emirates in the region. The six other emirates are, Abu Dhabi, Sharjah, Ajman, Umm Al-Quwain, Ras Al-Khaimah and Fujairah.
  • United Arab Emirates (also called U.A.E.) is the collective name of the federation of 7 emirates.  The federation is the country.  This works like the 50 states of the U.S.A.  Therefore, U.A.E. is the country made up of the 7 emirates.
  • Where to Incorporate? - Dubai is by far the most popular emirate in the U.A.E. for companies looking to incorporate in the region.  Dubai leads the rest of the region when it comes to ease of incorporating a company, securing an office, opening bank accounts etc.  Expatriates prefer to live and work from Dubai as it has all the trappings and comforts of the West like a tolerant culture, over 120 nationalities, a vibrant social life, hotels, bars, entertainment etc., without the drawbacks of the West (violent crime, drugs etc.).  That being said, the other emirates are fast catching up with Dubai.  When it comes time to incorporate, we will look at your requirements and pick the right emirate for you.

How does incorporation work?

When your first come to Fortunum, we study your requirements very closely to determine which of the 3 incorporation options best suits your situation.  We look at both your current situation and your goals for the future.

The 3 incorporation options are;

  1. Incorporate a normal company
  2. Incorporate a free-zone company
  3. Incorporate an offshore company

We come to a decision on which option to pick after carefully scrutinizing every piece of available information including your citizenship, your current tax exposure in your home country and/or your country of citizenship, where you clients are located, where your suppliers are located and a hundred other factors that you may not be aware of.

I have heard the term "Sponsor." What does this mean?

The term "Sponsor" is the most misunderstood term in Dubai.  So many people use it to mean different things that most newcomers to Dubai are immediately confused about what "Sponsor" means. 

U.A.E. law states that any company incorporated in the country by a foreigner MUST have a Sponsor.  It is therefore crucial to understand the role that the Sponsor plays in your company.  The important thing to remember is that depending on the structure of the company, the role that the Sponsor plays in your company can be very different to the role that the Sponsor plays in another company.

Just remember before we proceed, ALL companies incorporated in the U.A.E. by foreigners MUST have a Sponsor.

Who is qualified to be a Sponsor?

According to U.A.E. law a Sponsor must be a Citizen of the U.A.E.  A company registered IN the U.A.E. can also act as a Sponsor provided the company is FULLY-OWNED by U.A.E. Citizens.

Sponsor, Partner, National Service Agent

Now that we have understood that ANY company incorporated by a foreigner MUST have a Sponsor, let us now look at how the Sponsor's role in each company is different based on the structure of the company.

  • If we form a Limited Liability Company (LLC), U.A.E. law states that the Sponsor MUST hold a MINIMUM of 51% of the shares of the Limited Liability Company.  In this case the Sponsor takes on the role of a Partner/Shareholderin the Limited Liability Company.
  • If we form a Sole Establishment, Civil Company or a Branch of a Foreign Company, then the Sponsor DOES NOT OWN any shares in the company.  In this case the Sponsor takes on the role of a National Service Agent whose only duty is to act as a liaison between the company and the U.A.E. Government.

How can I retain 100% Shareholding in my Company?

The only situation where the Sponsor takes on the role of a Partner owning 51% or more of your company is when you pick one of the following license types for your company;

  1. Commerical License
  2. General Trading License, or
  3. Industrial License

U.A.E. law states that a foreigner MUST incorporate a Limited Liability Company if he picks any of the three license types shown above.  A Limited Liability Company means that the Sponsor MUST hold a minimum of 51% shares in your company.

There is a way out of this problem.  We can incorporate your company as a Branch of a Foreign Company and still apply for a Commercial, General Trading or Industrial License.  In such a case, the Sponsor will take on the role of a National Service Agent who does not own any portion of your company.  There are additional expenses to incorporating a Branch of a Foreign Company, but it does give you the peace of mind that comes along with 100% ownership in your company.

I don't know any Sponsors. Can Fortunum help?

Certainly!  In fact, we recommend that you use only our Sponsors for the following reasons;

  1. All our Sponsors have been known to us for over 10 years.  This allows us to understand each sponsor on a personal level.  We are therefore able to match the best sponsor to our clients' requirements.
  2. All our sponsors are professional businessmen who can help your business establish itself in Dubai.
  3. Fortunum can guarantee the reliability and trust-worthiness of each of its sponsors.  Each sponsor has given Fortunum 100% Power of Attorney to act on their behalf, which means that Fortunum can take close personal care of each of our clients.

What is a Free Zone?

A Free Zone is usually a unique organization set up by the government where businesses are allowed to register with special concessions and advantages.  For example, a dominant theme of all the free zones in the U.A.E. is that a company incorporated in the free zone does not have to appoint a sponsor.

In reality the free zone acts as the sponsor for the company without taking any shares or ownership in the company.

Sounds too good to be true! Are there any restrictions imposed on Free Zone Companies?

Yes, there are restrictions placed on companies incorporated in the free zones.  For example, a company incorporated in the free zone CANNOT SELL its goods or services to customers based in the U.A.E.  In order to sell to customers based in the U.A.E., a free zone company must first appoint a Distributor in the U.A.E. and the local sale of goods or services must take place through this Distributor.

Are there any other disadvantages to setting up in a Free Zone?

Yes, there are other restrictions.  Visas tend to be generally more expensive in a free zone.  So are rents.  Free Zones can charge whatever rent they want as you are restricted to maintaining an office inside the free zone.  Also the number of visas you can obtain is based on the area of the office you rent from the free zone.  There are no such restrictions for companies outside the free zone.

When should I set up in a Free Zone Company?

When we first analyze your situation, your business goals and your future goals, we will recommend that you incorporate in a free zone ONLY IF YOUR MEET ALL of the following conditions;

  1. You will not be selling any of your goods or services in the U.A.E.
  2. When a Free Zone company incorporation turns out to be cheaper than setting up a normal company.
  3. You will not require more than two visas for the next 5 years.

What is an Offshore Company?

Offshore Company is the term used to describe companies formed in certain countries which allow a type of company called an "International Business Company" or IBC. These are countries such as the British Virgin Islands (BVI), The Cayman Islands, The Turks & Caicos Islands (TCI), Panama, etc.

An Inernational Business Company is not allowed to conduct business within the country of incorporation, but is allowed to do business anywhere else in the world. For example, a British Virgin Islands (BVI) based International Business Company cannot conduct business within the BVI, but is allowed to carry on business anywhere else in the world.

When should I set up an Offshore Company?

Opening a Bank Account helps SAVE money.  Setting up an Offshore Company helps MAKE money.

A hundred years ago, only the rich and well-to-do people had bank accounts.  The rest hid their money under a mattress or buried their money in the back garden. Today, most parents open a bank account for their children a few days after the children are born.

It is our experience that setting up a company at a young age focuses the individual to earn money, just like how a bank account focuses your attention on saving money.  Here are the two biggest reasons you should set up your own company as soon as your parents start giving you pocket money or at least as soon as you land your first job;

  1. All your earnings from a very young age or even your first job can be shown as income in your company.  After some time, this income adds up and shows impressive figures.  Imagine being able to show your prospective employer your company's balance sheet as proof of your ability in business!
  2. An offshore company can act as the central anchor for all your future endeavours.  Even if you move countries and relocate, your offshore company will always act as your head-office.

Offshore Company or Dubai Company?

If you are plannig to live and work in Dubai or the U.A.E. then it is a MUST that you set up a Dubai Company.  If you are living in another country then you can start with setting up an offshore company.  We can set one up for you withing 1 week and open your bank account in Dubai about one week after that.

Remember, just like how a bank account helps you SAVE money, an Offshore Company helps you to MAKE money.

OK. I am ready. I want to INCORPORATE NOW!

You could be an individual entrepreneur, a startup company or a multinational looking to set up your operations in the U.A.E.  Fortunum can help you no matter what your size or investment.  We provide a personalized and caring service.  We are passionate about the companies we incorporate.  Each company is like a baby that we help deliver.  Our job is NOT COMPLETE after the company has been formed.  We would like to see the companies we incorporate to succeeed and grow and become famous and rich.

To start your incorporation process, please click here.  If we are not helping other customers, you can chat directly with us.  If not, please send us a query telling us a little about the business you want to set up and we will be delighted to help you.

Thank you for your business and the confidence you have shown by getting in touch with us!

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