The Govt. of Dubai has passed legislation, the Dubai Company Act, which allows the foreign companies to  Setup a subsidiary in Dubai, given the companies abide by all the rules. If you’re a foreign investor to Setup a subsidiary of your foreign company in Dubai, read the following steps to get started

 

A tip to get you started: If you’re a foreigner looking to establish a subsidiary in Dubai then consider partnering with a business consultancy firm. Teaming up with a business consultancy as ALREETAL will assure you a smooth company formation process as the consultancy will take care of every detail – from registering the right license to applying visas for your employee.

 

How to Open Subsidiary of a Foreign Company in Dubai?

 

Packed with all the glitz and glam, Dubai is not only a prime spot for tourism but also one of the world’s most business-friendly cities offering great business incentives. While the residents are actively utilizing the city’s business-friendly nature, investors and entrepreneurs from all over the world come to Dubai for business and consider it as an ideal investment spot.

 

When starting a business in Dubai, choosing the right business form is extremely crucial. If you’re a foreign investor looking to expand to Dubai, you can either open a branch or a subsidiary of your foreign company here in UAE. Each of the options comes with its own advantages but if you’re looking for more freedom then opening a subsidiary is the way to go. A branch company is an extension of the parent company and isn’t considered a separate legal entity while a subsidiary is considered a separate legal entity and also gives control over its board of directors.

 

The Major Steps to Register a Subsidiary Company in Dubai:

 

According to the regulations of the Dubai Government, all the companies in Dubai must register with the Department of Economic Development (DED).

 

• Your company name must be reserved and should be unique.

• Approval must be taken from the Department of Economic Development (DED) to carry out the trading activities.

• Notarization and drafting of Memorandum and Articles of Association by the Department of Economic Development (DED).

• Submission of all the relevant information of shareholders or directors to the Department of Economic Development (DED).

 

 

Once the registration is completed, you’re required to apply for a trade license with the Chamber of Commerce and Industry.

 

 

Benefits of Subsidiary Company Setup in Dubai:

 

Company formation in UAE has multiple benefits and the same can be said for opening a Dubai subsidiary. Following are some major benefits that a Dubai subsidiary company will reap:

 

1. Those who wish to start a subsidiary company in UAE can be assured of a great lifestyle as UAE offers high-quality infrastructure and a wide range of shopping, hoteling and entertainment options to make living and doing business in UAE easier and interesting.

2. Registering a subsidiary in Dubai offers complete flexibility and freedom. A subsidiary is treated as a separate entity to the level of freedom it offers is significant, as compared to a branch company.

3. You can also opt for any free zone to register a subsidiary company in Dubai.

4. Another benefit that comes with opening a subsidiary is the credibility it offers to the business, particularly with banks, service providers and customers.

5. A subsidiary gives its owners the ability to offset profits and losses of one part of a business with another on

6. There are no currency restrictions, so organizations can invest and do business with the currency that best suits their needs.

7. Those who opt for a business startup in Dubai enjoy 100% tax exemption on Corporate and personal income and all imports and exports.