With the tremendous economic and commercial development witnessed by Dubai, the city has become one of the most prominent global destinations for business and investment. With its advanced infrastructure and flexible laws, Dubai attracts investors and companies from all over the world. The emirate offers ample opportunities for individuals and companies to establish and operate businesses. We will discover together whether it is possible to establish a company in Dubai by proxy and all the required conditions and costs.

Company formation in Dubai An agency is an exciting and profitable option for many investors, as this type of company has many advantages and benefits. These structures allow for cooperation between two partners, where the partner located in Dubai is responsible for the management and operation of the company in its entirety, while the other partner is not present in the country. This type of partnership provides great flexibility and opportunities for expansion into local, regional and global markets.

With flexible government policies and strong support for the private sector, setting up an agency company in Dubai is an innovative and rewarding process. The emirate’s economic prosperity and increasing focus on investment and business are expected to continue in the near future, making Dubai an ideal destination for setting up an agency company and achieving success and sustainable growth.

Establishing a company in Dubai

Company formation in Dubai It represents an important and exciting step for many, given the thriving business environment and favorable investment climate that the city offers. Dubai has many advantages that make it a preferred destination for businessmen and investors from all over the world.

In Dubai, individuals and businesses can approach a variety of government agencies and institutions to establish their companies, whether local or international. The basic steps to establish a company in Dubai include identifying the appropriate type of company, determining the trade name, submitting the required documents to the relevant authorities, and paying the prescribed fees.

With simple and efficient procedures and flexible tax and labor legislation, startups and medium-sized enterprises in Dubai can start their businesses quickly and easily. With advanced infrastructure and continuous government support, businesses can achieve success and growth in the local, regional and global markets.

In addition, Dubai provides a dynamic and diverse business environment that allows companies the opportunity to explore a wide range of sectors and industries, develop innovations, build networks of clients and partners, and achieve success and leadership in the global business world.

What is a power of attorney?

A power of attorney is a legal document issued by a person called the “principal” to a person called the “agent” and issued by the Notary Public Office, a department of the judiciary charged with authenticating documents required in legal and commercial transactions. Power of attorney can be of two types:

– A general power of attorney, as the name suggests, authorizes the agent to undertake any type of business on behalf of the principal. This type is usually required in the transactions listed below:

Purchase, gift, lease, acquire and manage real estate properties.
Representing the client before ministries, government departments, telecommunications service providers and utilities.
Merger of legal entities.
Buying shares in legal entities.
Signing contracts and other documents.
Buying cars.
Representing the client in legal matters and appointing lawyers.

– A special power of attorney (also known as a specific power of attorney) authorizes the agent to carry out the activities specified therein exclusively. A special power of attorney is required in the transactions listed below:

Real estate sale.
Selling shares in legal entities.
Sell ​​cars.
Inheritance issues.
Property disputes.
Guardian’s approval for marriage.
Consent for a minor child (under 21 years of age) to travel with someone other than the legal guardian.

Basic steps to establish a company in Dubai by proxy

Here are the basic steps. To establish a company in Dubai By proxy:

1. Specify the type of company: Before starting the incorporation process, you must determine the type of company you wish to establish, whether it is a sole proprietorship, a joint stock company, or a limited liability company, according to the needs of the chosen business activity.
2. Choosing a trade name: A trade name must be chosen for the company, and it must be ensured that it has not been used by another company. This is done by checking the trade name database with the relevant authorities.
3. Preparing the required documents: A set of documents required to establish the company must be prepared, such as the investment agreement, a copy of the passport of the partners or shareholders, and the commercial register of the agent.
4. Submission of the application: After preparing the documents, the company establishment application must be submitted to the competent authority, and this is usually done through the body that manages commercial businesses in the Emirate of Dubai.
5. Payment of fees: The fees required to register the company and obtain the necessary licenses and permits to start the business must be paid.
6. Waiting for approval: After submitting the application and paying the fees, you must wait for the official approval to establish the company.
7. Receiving licenses and permits: After approval, the necessary licenses and permits will be issued to the company, after which the business can officially start.

The difference between the two types of agency, private and public

Tax benefits available to companies established by proxy in Dubai

Dubai is known for its business-friendly environment and flexible local legislation that provides some tax benefits to companies. These benefits include:

• No corporate income tax: In Dubai, there is no corporate income tax, meaning that companies established in Dubai by proxy are not subject to income tax on the profits they make.
• No VAT on some sectors: Some sectors in Dubai are exempt from VAT, giving businesses in these sectors additional financial competitiveness.
• No capital tax: In many sectors, there is no capital gains tax in Dubai, making it easier for businesses to expand their business without additional financial burden.
• Bilateral tax agreements: Dubai is a signatory to several bilateral tax agreements with many countries, which sometimes allows for reduced taxes for companies contracting with countries with tax agreements.
• No inheritance and gift tax: Dubai does not impose inheritance and gift tax, which facilitates inheritance and transfer of ownership within the company without additional costs.

Types of companies that can be established in Dubai by proxy

Of course! Here is a table showing the types of companies that can be established by proxy in Dubai:

These are some of the types of companies that can be established by proxy in Dubai, and the conditions and requirements for each type differ, so contractors should study the options carefully before making a decision.

Costs associated with company formation in Dubai by proxy

Company formation costs in Dubai The costs of incorporation in Dubai vary depending on the type of company and local legal and administrative requirements. Here is a list of some of the common costs associated with incorporating a company in Dubai by proxy:

• Registration and licensing fees: These fees include the costs of registering the company and obtaining the necessary licenses to start a business in Dubai.
• Consulting fees: You may need to consult a lawyer, legal advisor or accountant to assist with the company formation process, and therefore these services may involve additional costs.
• Virtual office fees: Sometimes a virtual office is required as a business address for a company, and the costs of this service vary depending on the location and provider.
• Document preparation costs: You may need to pay for the preparation of the necessary documents to establish the company, such as the investment agreement and the necessary contract forms.
• Visa and residence fees: You may need to pay visa and residence fees for employees and partners working for the company.
• Legal and administrative fees: The process may require payment of other legal and administrative fees, such as government service fees and insurance fees.
• Advertising and marketing costs: Once your business is established, you may need to invest in advertising and marketing campaigns to attract customers and build your brand.

Tips for companies wishing to establish an agency in Dubai

Company formation in Dubai By proxy can be a smart investment move given Dubai’s thriving economic environment and flexible legislation. To make this process easier, here are some important tips for companies looking to establish by proxy in Dubai:

1. market study: Before starting your company, study the local market in Dubai and identify the potential opportunities and challenges that your company may face.
2. Consulting lawyers and consultants: Make sure to get legal advice from a local lawyer or legal advisor to understand all local laws and regulations that apply to company formation in Dubai.
3. Identify local partner: You may need a local partner to set up the company in Dubai, so make sure to choose a reliable partner who has experience in the local market.
4. Choosing the right type of company: Determine the appropriate type of company based on business needs, financial expectations, and local legislation.
5. Implementation of financial payment procedures: The incorporation process may require a number of fees and costs, so make sure to allocate an adequate budget to cover these costs.
6. Compliance with tax and legal legislation: Ensure compliance with all local tax and legal legislation, and ensure proper submission of all required documents and procedures.
7. Investment in marketing and advertising: Develop an effective marketing plan to attract customers and build your company’s brand in the local market.
8. Building good relationships: Invest in building strong relationships with potential customers, business partners and suppliers in Dubai to boost your business success.

At the end of our article about Company formation in Dubai By proxy, we find that Dubai is one of the most attractive cities for businessmen and investors in the Middle East and around the world. With flexible legislation and a thriving economic environment, Dubai offers great opportunities for establishing companies by proxy.

With modern laws and supportive government initiatives, investors can take advantage of Dubai’s dynamic business environment to achieve success and sustainability. Choosing from a variety of company types, such as sole proprietorship, joint stock company, and limited liability company, allows investors to choose the structure that best suits their business needs and objectives.

In addition, the UAE government provides support programs and initiatives that facilitate procedures. Company formation in Dubai It enhances their growth and expansion opportunities. Thanks to this encouraging environment, new companies can benefit from available investment opportunities and achieve success and prosperity in the global business market.

The most important frequently asked questions about establishing a company in Dubai by proxy