Dubai SubsidiaryReading Time: 3 minutes
Congratulations on your expansion to Dubai! Choosing to set up a company location here can help your business reach new levels, such as hiring talented new team members, securing important business contracts, and offering important products and services in an untapped market.
Despite all the excitement, you still need to focus on how to set up a Dubai subsidiary and stay compliant throughout the process. That’s where Globalization Partners can help. We have subsidiaries all over the world that we can use to help you start working fast without the stress of compliance. When you choose Dubai subsidiary outsourcing with us, you can feel confident knowing that your company is in good hands.
How to Set up a Dubai Subsidiary
Every expansion includes several moving parts. Understanding all the different aspects of how to set up a Dubai subsidiary can help you be successful and avoid fines and delays. We usually recommend starting with your location. Different Emirates in the UAE, such as Dubai, have their own subsidiary laws. Dubai’s subsidiary laws could differ from another Emirates’, so it’s best to work with an expert to find the best location within Dubai.
Then, we recommend looking at different entities to see which is best for your business needs. You can set up your Dubai subsidiary as a limited liability company (LLC), branch office, or representative office. Each option comes with its own Dubai subsidiary laws as well as costs, availability, and more. Those looking to operate in Dubai like a resident company often incorporate as an LLC since it offers the most flexibility.
Setting up your Dubai subsidiary as an LLC includes the following steps:
- Reserving a company name
- Applying for registration at the Department of Economic Development (DED)
- Notarizing a Memorandum of Association at the DED
- Filing company documents with the DED
- Obtaining a trade license and registering for membership with the Dubai Chamber of Commerce and Industry (DCCI)
- Opening a local bank account
- Applying for an establishment card at the Ministry of Labor
- Registering all native workers with the Ministry of Labor
- Registering native workers with the General Authority for Pension and Social Security
Dubai’s Subsidiary Laws
Although LLCs have the most foreign-friendly regulations, you still need to make sure you meet all of Dubai’s subsidiary laws. An LLC cannot have more than 50 partners but must have a minimum of two. Each partner’s liability is limited to how much they contribute in shares.
The UAE previously required LLCs to deposit a minimum share capital of AED 300,000 in Dubai. Now, the DED in Dubai will test for “sufficient capital” and determine the amount based on your subsidiary’s size and planned activities. Keep in mind that Dubai’s subsidiary laws can change if you’re incorporating in a free zone area. While it typically takes two to three months to establish a subsidiary in Dubai, you can set up your Dubai subsidiary in a free zone in about two to three weeks.
Benefits of the Incorporation Process
The biggest benefit of going through the incorporation process is getting to work legally in Dubai. Once your subsidiary is officially registered, you can engage in activities like a resident company. The LLC is the most popular entity because it benefits both the parent company and the subsidiary — your subsidiary can operate independently, and your parent company won’t incur any liability.
Depending on where you incorporate, it could take a few months to complete the Dubai subsidiary setup process. Fortunately, Globalization Partners can cut that time down to a few days through Dubai subsidiary outsourcing. You can use our existing entity to start working in as little as a day. Plus, we’ll act as the Employer of Record to shoulder all compliance instead of you.
Everything You Need to Set up a Subsidiary
If you don’t already have someone in your company who is an expert in Dubai subsidiary laws, you should hire a consultant, lawyer, or accountant. An expert will ensure that you stay compliant and avoid any costly fines or delays that could impact your work in Dubai. We also recommend setting aside the time and money you’ll need to complete the process successfully.
Let Globalization Partners Help With Your Expansion
Globalization Partners has a whole team of global compliance experts ready to assist you. Contact us today to learn more about Dubai subsidiary outsourcing.