MSZ Consultancy - Frequently Asked Questions

Frequently Asked Questions

What does a company need to do after getting a trade license in Dubai?

  1. Apply for an establishment card
  2. Register native workers with the Labor Ministry
  3. Register native workers with the General Authority of Pension and Social Security

Can I get a trade license in Dubai if I am a foreigner?

Yes, foreign investors are allowed to get a trade license if they register a company in Dubai.

Can I change a trade license into another type of permit?

Yes, a company is allowed to change its business license.

How fast can I get a trade license in Dubai?

It usually takes five working days.

What exactly is a local sponsor, and do I need one?

A local sponsor is a UAE national that will own at least 51% of your business. They will also help with any government requirements for setting up your business. If you’re a foreign investor, then a sponsor is required.

What are the key benefits of working with a local sponsor?

One of the main benefits of using a local sponsor is that you’ll be able to trade locally within the UAE. Companies with a local sponsor also have the advantage of opening limitless branches throughout the UAE. Also, when you form a business with a local partner, you are given investor status in the UAE, which allows you to get residence visas for yourself and your family.

What business activities require a local sponsor?

A local sponsor, corporate sponsor, or corporate nominee are required for a commercial, professional, and industrial license.

How to renew your trademark registration in the UAE?

You will have to submit an application form to renew your trademark on the Ministry of Economy’s website. Then you’ll have to pay a renewal fee. The process usually takes 30 days.

Make sure to start the renewal process as soon as possible. If you don’t renew your trademark within three months after it expires, then you will have to pay a fine of AED 1,000 for each month you delay the renewal.

Trademark registration costs in the UAE?

The trademark registration cost in UAE is AED 8,700. You will also have to pay AED 1,000 for publishing the trademark in the official journal. Other fees like translators, legal help, and publishing the information in the newspaper may also be required.

Trademark validity in the UAE?

Trademark registration in UAE is good for 10 years.

What are the trademark restrictions in the UAE?

Trademark Registration in the UAE can’t be anything that is offensive towards public morals and religions. A trademark can’t be a public symbol, names or titles of third parties, or translations of other well-known trademarks.

What are the benefits of RAK offshore company?

There are several benefits of an Offshore company including 100% repatriation of profits and capital and exemption from import duties.

What are the benefits of company formation in RAK?

  1. A strategic location
  2. Ample storage space
  3. Close to major transport hubs
  4. Low costs for renting
  5. No currency restrictions

How to start a business in Ras Al Khaimah?

First, decide on the business activity and apply for your business license, finalize your corporate structure, get initial approval from authorities, and submit your business application and other documents to the correct authorities.

How can I form my company in UAE?

To form a company in the UAE, you’ll have to start by finding a local sponsor and choosing a company type. Then you’ll have to decide on a company name, get a business license and a location for the business, and hire employees.

What is the corporate income tax in the UAE?

There is no corporate income tax. In addition, the Emirates allows full repatriation of capital and profits.

What is the difference between Mainland, Free Zone, and Offshore?

The Mainland is on land in one of the UAE cities. You will have to have a physical office space for a Mainland business. On the Mainland, you can do business in the local market as well as outside the UAE without any restrictions.

In the UAE Free Zone, you can’t do business outside of its area. A Free Zone business can be run with or without a physical office.

In an Offshore company, entrepreneurs get full ownership of a company. A physical office is not allowed, and you can also do business outside of the emirates.

Is a local sponsor mandatory for setting up a business in the UAE?

You have to have a local sponsor to setup a business on the Mainland. However, a local sponsor is not required for business in a Free Zone.

What is the corporate income tax in the UAE?

There is no corporate tax rate in the UAE.

Is it mandatory to have a local office to set up a business in the UAE?

Yes, a physical office is required for a company to be set up in the UAE on the Mainland.

How can I setup my business in UAE?

Find a local sponsor, choose your business activity, submit applications to the DED, apply for a trade license, get the company’s Memorandum of Association notarized, register the trade name, apply for the establishment card, get initial approval, get the MOA and lease agreement notarized, secure a location, get documents processed, receive your trade license, and hire employees.

How can I register my online business in the UAE?

To register your online business, you will first have to decide on a legal structure for your business. Then you will have to choose a location and a name for your company. Next, you’ll need to apply for a license and for an initial approval certificate. After you draft a Memorandum of Association (MOA), you’ll have to get the final approval of your license. Then, you’ll have to make sure you have all the import/export requirements complete for your area. The final step will be to open a corporate bank account.

Why is a local sponsor mandatory for business setup in Mainland Dubai?

You will have to have a local sponsor on the Mainland to serve as a representative for dealings with the Ministries and the Government for getting paperwork completed.

What is the cost of setting up a business in Dubai?

The cost of setting up a business in Dubai will largely depend on the type of company you have and the location in Dubai that you plan to have it setup in.

How can I get a trade license in Dubai?

First, you will have to choose a business name and the legal structure for your company. Then, you’ll have to decide in the business activities that will be included in the business license. Then, you’ll have to complete and submit the permit for approval.

How can I get residency in Dubai?

You can get citizenship in Dubai if an employer provides sponsorship. You can also get citizenship in Dubai by buying property.

Which business is best in Dubai?

Retail is one of the most popular and established businesses to setup in Dubai. Financial services, tourism, schooling, and healthcare are also considered one of the best businesses to start in Dubai.

What is the difference between Mainland, Free Zone, and Offshore companies in Dubai?

For a Mainland business, a local sponsor must be appointed who will own a majority of shares. The cost to setup business on the Mainland is usually high.

In a Free Zone, a foreigner can have complete ownership of their business and don’t require the need for a local sponsor. The cost to setup a business in a Free Zone is usually cheaper than on the Mainland.

It costs the least to setup business in the Offshore of Dubai. Full ownership is granted only if they have a business outside the UAE. There is no need for an office space, so a visa is not granted.

How can I start a business in Dubai?

First, determine the name and type of business you want to start. Then, choose a location for your business. Next, draft a Memorandum of Association (MOA) and submit all the required paperwork.

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