20 Oct Things You Need to Know About Civil Company Formation in Dubai
Are you gearing up to take advantage of all the great things that Expo 2020 has in store? Well, venturing into a business setup in Dubai is the only way to do that. A civil company is one of the most ideal options that you can consider as it will enable you to carve a name for yourself and your field of specialization in the region.
Who is eligible for Civil Company Formation in Dubai?
If you are a qualified and licensed professional in specialist sectors including law, accountancy, medicine, engineering, and more, you can apply for civil company formation. It allows 100% ownership and offers access to the local market, but entails unlimited liability. A civil company is also required to be set up as a partner of the business owners who hold professional qualifications in their respective fields of specialization.
The Role of a Local Service Agent in Dubai
However, even if it allows for 100% foreign ownership, working with a Local Service Agent in the country is still a prerequisite in order to legally trade from the mainland. Keep in mind that unlike local sponsors, an agent will not be allowed to hold a stake in your business. His role is simply to coordinate with government departments and provide assistance with work permit, visa applications, license approvals, and the like. Through this, they are paid either a percentage of your company’s profits or an agreed fee.
What Does It Mean by 100% Liability
Take note that a Limited Liability Company (LLC) is not held liable for any debts incurred by the company and it is the complete opposite for a civil company. Unlimited liability implies that creditors could probably go after your possessions or assets in the event of worst-case scenarios.
Benefits of Setting Up a Civil Company
- Quick and Simple – Believe it or not, the process of a Dubai company setup is straightforward and extremely easy. All you need to do is apply to the Department of Economic Development (DED) for a license. With the new initiatives in place, your business could be registered with DED in as quick as 90 minutes provided that you meet the criteria for eligibility.
- Low-cost – The cost in applying for professional license for a Dubai company setup is approximately AED 17,000. Plus, the good news is that there is no need for upfront share capital when venturing into a new civil company. Hence, you will enjoy nothing but low startup costs.
- Multiple Visa Application – Civil company in Dubai is particularly well-known among larger organizations as it enables entrepreneurs to apply for multiple visas. The great thing is that there is no limit for mainland companies, but the more visas you apply for, the more office space you are required to acquire. It is a general rule of thumb to have 100 sq. ft. of office spare per visa.
- Establish a Business with Multiple Shareholders – Another benefit of setting up a civil company in Dubai is that it enables entrepreneurs to establish a business with more than one shareholders. A minimum of two shareholders is required and the normally accepted cap is 50, which can either be corporate entities or individuals.
- Sponsor Dependents Easily – Apart from being able to easily sponsor employees for their visas, a business setup in Dubai will also enable you to sponsor dependents without hassle. It entails the following processes:
- Entry permit
- Adjustment of status
- Medical fitness test
- Registration of Emirates ID
- Visa stamping
- Set up a Corporate Bank Account with Ease – Upon receiving your professional license and successfully establishing your civil company, the next step is to open a bank account. By seeking the help of an expert, you will advice on the best bank that will meet your needs and requirements.
These are just some of the things you need to know about venturing into a business setup in Dubai particularly a civil company. To ensure a glitch-free process, it pays to consult a business setup service provider that can guide you in every step of the way.