Dubai is the most crucial emirate in the trading network of the UAE. The Emirates is additionally a host to numerous major corporations and organizations that operate in several spheres of the business.
There are uncountable foreign companies that intend to develop their presence in Dubai. Most of these companies have establish a subsidiary company in Dubai. Yes, you have read it right! Dubai is not only home to fresh companies but also has unique places for branches and subsidiary companies.
A subsidiary company in Dubai is a legal entity that is independent from its parents or holding company. The best part of these companies is that they have the potential to be handled from UAE or other countries instead of focusing on the country of establishment.
If you are interested in registering a subsidiary company in Dubai, then you have to give some of your valuable time to this article. In this article, we are going to provide you with an in-depth guide to starting your subsidiary company in Dubai. Furthermore, we will give you some valuable information that will help you to open your subsidiary company in Dubai.
Why should you open your subsidiary company in Dubai?
We are sure that you might be wondering why you should open your Subsidiary company in Dubai instead of other emirates of the UAE and other countries. The primary reason behind this is that you can get uncountable benefits by establish a subsidiary company in Dubai. So, let us explore the top benefits that you can get from starting your subsidiary company in Dubai:
- Dubai is situated at the crossroads of Asia. Europe and Africa provide you with easy access to significant markets and transportation routes.
- Dubai is among the tax-friendly countries for entrepreneurs, with no personal income tax and corporate tax at 9 percent.
- The registration of a subsidiary company in Dubai is super easy and provides total independence.
- Dubai maintains a stable political and economic environment that ensures long-term growth prospects for entrepreneurs.
- Dubai comes with a diverse population that provides you with skilled and experienced professionals from throughout the world.
Apart from these benefits, you can get uncountable other advantages from establish a subsidiary company in Dubai.
Document required to start your subsidiary company in Dubai
In order to start your subsidiary company in Dubai, you should first gather the required documents to avoid any kind of huddle in your journey to run your subsidiary company. Below is the list of the documents needed to registering a subsidiary company in Dubai:
- Parent/holding company’s attested trading license
- Attested Board Resolution
- Passport copies of the owner
- Copy of Residence visa, or tourist visa if you are a non-resident
- Trading license application form
- Business name approval from DED
- Attested Memorandum of Association of the parent or original company
- Articles of Association
If you want any kind of help getting any of these documents, then you should consult Flying Colour.
Steps that you should follow to Open a subsidiary company in Dubai
All kinds of companies in Dubai are required to register their company with the Department of Economic Development (DED). The initial step for registering a subsidiary company in Dubai is to hire a local agent, like Flying Colour, because we can help you handle the registration process.
As per the Dubai Company Law, foreign companies are only allowed to register subsidiary companies in Dubai under the form of limited liabilities company, which is among the most popular business vehicles in the country. The following are the other crucial steps that you should follow in order to start your subsidiary company in this emirate:
- Reserve a company or trade name by submitting the application to the Department of Economic Development (DED) if you are registering the company on the mainland. In contrast, you should submit the application to the respective authority of the free zone or offshore if you register to set up in these jurisdictions.
- After reserving your company or trade name, you have to get approvals for the trading activities to be undertaken.
- It would also be great to draft and notarize the Memorandum and Articles of Association for the subsidiary;
- Now, you have to submit the information about the shareholders of your subsidiary company to the DED.
- At last, you have to register VAT because it is mandatory in order to run a subsidiary company in Dubai.
Once you have completed the registration process of the subsidiary company in Dubai, you are needed to apply for the trading license in Dubai with the Chamber of Commerce and Industry.
How to obtain a trade license to establish a subsidiary company in Dubai
In order to obtain your trade licence to establish a subsidiary company in Dubai, you have to submit a few documents and crucial information to the Dubai Chamber of Commerce and Industry in Dubai. The following is the list of documents and information that you should submit to the Dubai Chamber of Commerce and Industry in Dubai:
- Copies of passports of the shareholders or directors
- Application form of trading license
- The original copies of the articles and memorandum of association for the subsidiary in Dubai
- The approval letter of the subsidiary company that is issued by the Department of Economic Development in Dubai.
- The approval letter of name issued by the Department of Economic Development in Dubai
Permits from the Municipal Building Department of Dubai are also required for the subsidiary.
Dubai tax for subsidiary companies
The UAE, including Dubai, will introduce a new corporate tax regime in July 2023. All companies and businesses, including subsidiaries, are subject to the new tax regime. According to the new regime, the corporate tax rate is fixed as a percentage of profit 9, exceeding AED 375,000*.
How Flying Colour can help you to start your Subsidiary company
The process of setting up a subsidiary company in Dubai is complex and requires one to follow the right path in order to avoid any kind of problem in setting up the company. Flying Colour comes with the ability to provide you with expert advice to make your journey of establish a subsidiary company in Dubai more efficient.
To learn more about Open a Subsidiary Company in Dubai, book a free consultation with one of Flyingcolour team advisors, simply call +971 50 5585305 or send WhatsApp messages to +971 4 4542366. you can also drop an email to info (at) flyingcolour (dot) com.
*Please note that this article has been published on 22/12/2023 in accordance with the federal policies and updates at the time of writing. For the latest info please talk to our consultant.