In the rapidly evolving global market, relocating a business can offer numerous strategic advantages. For Italy-based companies, setting up a company in the UAE stands out as a prime destination due to its favorable business environment, advanced infrastructure, robust regulatory framework, and tax benefits. This blog provides a step-by-step guide on how to open a new company in the UAE to move your business from Italy to Dubai, highlighting key benefits and practical considerations.
Time Taken to Set Up Your Company in the UAE and Worldwide
● 10 Days - In high-income countries, according to the World Bank
● 4 Days - In the UAE through the Department of Economic Development
Steps to Open a Company in Dubai
1. Determine the Nature of Your Business Activity
UAE free zones offer several types of business licenses to investors and entrepreneurs based on the nature of the business. Some of them include:
● Commercial Trade
● Consultancy Services
● Industrial
● Educational
● Media
● eCommerce
● Offshore
● Freelancer
● Warehousing
● Manufacturing
● Innovation
2. Determine Your Company’s Legal Structure
The legal structure of a company depends on the nature and requirements of the business. It defines the laws and regulations to which companies have to adhere. There are three legal forms of businesses in UAE free zones:
● Free Zone Limited Liability Company (FZ LLC)
● Free Zone Company (FZ Co.)
● Free Zone Establishment (FZE)
3. Register the Trade Name
The trade name refers to the name of the company. It must be unique and must not be similar to the name of any other registered companies.
4. Select Business Space and Location
There are more than 40 UAE free zones. To set up a new company, you can choose one that matches the nature of your business activity. Choose a business space for your company:
Free zones in the UAE give you several options to own or rent an office or buy land to set up your factory or office building.
If you want to obtain an independent/professional license, you can rent an office or register with a virtual office. The office space will depend on the number of employees and the type of commercial activity of your company.
Office spaces in free zones come either fully equipped or partially furnished and can be rented or purchased after a commercial license is issued. In most cases, it is the free zone authority that issues rental contracts.
5. Obtaining the Initial Approval
You must complete all requirements and submit the necessary documents to obtain the initial approval to open a new company. Some activities, such as tourism, travel, and health, will require additional government approvals from the relevant authorities.
Documents commonly required for companies:
● Completed application form
● Business plan
● Copy of existing trade license/registration certificate (if applicable)
● Passport copies of the company’s shareholders and appointed manager
● Registry Identification Code Form (RIC) for appointed manager (original and notarized)
● Specimen signatures of the company’s shareholders and appointed manager
● Title deeds (if applicable)
● A brief letter clarifying the investment idea and the investor's plan (Letter of Intent)
● 2 years audited financial reports or a certificate of reference from a bank (as required)
● Documents commonly required for freelancers/professionals:
● Application for registration
● Curriculum vitae or profile
● Reference letter from a bank
● Registry Identification Form (RIC) for Director (original and notarized document)
6. Registration and Payment of Fees
Pay fees and secure a company license. Fees include the company license issuance fee, which depends on the type of license.
Documents most commonly required:
● Completed application form for registration
● Board Resolution appointing Manager/Director (notarized and attested)
● Power of Attorney given to Manager/Director (notarized and attested)
● Memorandum and Articles of Association (notarized and attested)
● Specimen signature of Manager/Director (notarized and attested)
● Passport-size photos of Manager/Director
● Share capital information
Benefits of Setting Up a Company in UAE
Strategic Location: Dubai's geographical position provides excellent connectivity to Europe, Asia, and Africa, making it an ideal hub for international business.
Favorable Tax Environment: UAE corporate tax rate is 9% exceeding profits of AED 375000 and no personal income tax, providing significant financial advantages.
Business-Friendly Policies: The UAE government supports business setup with streamlined processes and incentives in free zones.
Are you ready to take your business to the next level by relocating to the UAE? Our team of experts is dedicated to helping you navigate the tax landscape in the UAE, ensuring you take full advantage of the region's favorable tax policies.
Let Finanshels guide you to a more prosperous future. Contact us today to learn how we can help your business benefit from the UAE's tax advantages. Reach out for a consultation and take the first step towards a brighter financial horizon.