The 3 Most Important Rules to Remember when Incorporating Your Company
- Rule #1 - Do Your Research!
- Rule #2 - Don't forget Rule #1
- Rule #3- Your research is only as good as the company you choose to deal with! Choose Well!
First let's familiarize ourselves with the terms we will use regularly
We won't burden you with too many terms at the beginning, but here are the most important ones that you will find being used repeatedly;
- Jurisdiction - A jurisdiction is usually a set of laws that determine how companies can be formed, how they can be run and who is allowed to run them. We say "usually " because most countries have just one "Companies Law." Not so with the U.A.E. The U.A.E. Federal Government has put in place a set of laws which govern how companies can be formed and what they can do. On top of this, each Emirate in the U.A.E. has additional procedures to be followed when incorporating a company. On top of this, each free zone in the U.A.E. also has its unique laws which govern how the free zone is to be run, what companies can operate in the free zone etc.
- Dubai - Dubai is one of the seven Emirates that make up the country called the United Arab Emirates. The other seven emirates are Abu Dhabi, Sharjah, Ajman, Umm Al-Quwain, Ras Al-Khaimah and Fujairah. Each Emirate is ruled by an Emir (a King for a Kingdom - an Emir for an Emirate) who is known locally as a Sheikh. You may have heard of a few famous Sheikhs from the U.A.E. - His Highness Shiekh Khalifa Bin Zayed Al-Nahyan and His Highness Sheikh Mohammed bin Rashid Al-Maktoum are two of the more famous Sheikhs of the U.A.E. Just so you know, "Sheikh" means prince.
- United Arab Emirates - The United Arab Emirates (abbreviated as the U.A.E.) is the country which is made up of the 7 member emirates. The ruler of each Emirate gets one seat on the Supreme Council of the U.A.E. The U.A.E. is headed by a President who is currently His Highness Sheikh Khalifa bin Zayed Al-Nahyan.
- Whats all this "bin" and "Al" stuff in everyone's name? - "Bin" means "son of" ("Bint" means "daughter of") and "Al" roughly translates to the English word "the." Therefore the name Mohammed bin Rashid Al-Maktoum would roughly translate as "Mohammed son of Rashid the Maktoum." The name "Maktoum" here is not really a surname as we know it but it is the name of the tribe from which this person hails from. As you can see, this unique way of naming helps easily establish family relationships, tribal associations and loyalties.
- Will I have to change my name when I come to Dubai? - No you won't have to! This naming system is not just unique to the U.A.E. but also to most of the Arab-speaking world.
What are my options for incorporation?
There are many options for your incorporation. To keep things simple, let's look at the major options available to you;
- An Offshore Company (International Business Company) - Can be incorporated in the British Virgin Islands (BVI), Seychelles, Mauritius, Turks & Caicos Islands, St. Kitts & Nevis, St. Vincent & the Grenadines, Belize etc.
- A Company in Dubai or any other Emirate in the U.A.E. - This could be a Sole Establishment, Limited Liability Company, Civil Partnership or a Branch of a Foreign Company.
- A Free Zone Company - The U.A.E. has many free zones. Generally, free zone company ownership works like this; Free Zone Entity (single owner), Free Zone Company (more than one owner), Free Zone Entity LLC (A single-owner free zone company with limited liability) or a Free Zone Company LLC (A multi-owner company with limited liability).
OK. Now What?
As you can see you are always spoilt for choice in Dubai. However, this comes with one problem - you have to pick the righ jurisdiction and right company structure. If this is your first time, then it is always better for you to leave things to us - at Fortunum, we can easily determine the best jurisdiction and the best company structure for you. To start your incorporation you can either chat online with one of our expert consultants or send us a inquiry by clicking here.