Dubai is the UAE’s most significant trading spot and home to the number of organizations working in all ventures. The legislation here permits free and easy trade which is the reason it is presumably one of the UAE’s most appealing cities for foreign-based investors. Let’s talk about some benefits of opening a subsidiary in Dubai.

Advantages of Establishing a Subsidiary in the UAE

  • Dubai government has allowed 100% ownership to foreign investors
  • When it comes to tax, there is zero corporate/income tax in Dubai.
  • You will easily get a UAE Resident Visa and corporate/personal bank account.
  • The import duty is quite low in the UAE mainland.
  • You can set up a subsidiary of your company in multiple business sectors.
  • Separate bookkeeping, auditing and decentralize global offices for better management

Steps for registration to open a subsidiary in Dubai 

All organizations working in Dubai are needed to enrol with the Department of Economic Development (DED). The initial move towards setting up a subsidiary in Dubai is to choose an accounting agent to deal with the registration strategy. 

As per the Dubai Company Law, foreign-based investors are permitted to enrol subsidiaries under the type of limited liability firms which is quite possibly the most mainstream business structure in the country. The accompanying steps should be followed to enrol a subsidiary in Dubai: 

  • having a name of your company 
  • getting permission from the DED for the trading 
  • drafting and notarizing the Memorandum and Articles of Association for the subsidiary;
  • submitting data about the investors with the DED; 
  • Registration for VAT is additionally obligatory when opening a subsidiary. 

When the enrollment is finished, the Dubai subsidiary will be needed to apply for a Trading License with the Chamber of Commerce and Industry.

How to obtain a Trading License? 

You must submit the below-mentioned documents to the registrar of the Dubai Chamber of Commerce and Industry to get a trading license.

  • The  original and copy of Articles and Memorandum of Association of the Dubai subsidiary
  • A completely filled application form with the right details
  • A letter issued by the DED for name approval
  • A letter issued by the DED for company approval
  • Shareholders’ passports copies.

The subsidiary should likewise obtain a clearance of a municipality building department to open an office in the Emirate. 

Setting up a subsidiary company in a Dubai free zone 

The formation of a subsidiary company in a Dubai free zone suggests the enrollment of the selected business structure with the Dubai free zone authority in which the business will work. The fundamental benefit of building up a subsidiary in a Dubai free zone is that no local partner is needed, as complete autonomy is permitted here.

The required registration steps are exactly like an onshore company but with regards to the registered office of the organization, this should be situated in that free zone. You must know, all Dubai free zones have a great foundation for obliging the necessities of SMBs and even big organizations. 

You should contact a local expert who has the required qualifications and knowledge to help you open a subsidiary in the UAE. 

Tax-related work for subsidiaries in Dubai 

As per the laws pertinent in Dubai, the subsidiary will be taxed. Now, there is no corporate tax applied to Dubai organizations, aside from those working in the oil and gas, and banking areas. 

You will be liable to pay Value-added tax (VAT) and excise tax. With regards to the bookkeeping and other necessities of Dubai subsidiaries, the parent organization is needed to document yearly audited accounts. 

How can Zyla Accountants help? 

Zyla Accountants is a Dubai based firm of Chartered Accountants powered by MMC Books based in India. We offer multiple accounting and bookkeeping services to local and foreign-based companies working in Dubai, including for subsidiary organizations set up in the UAE. 

From Bookkeeping & VAT, Year End Accounts, Management Accounts, Xero Training to CFO, our accounting professionals offer reliable, personalised and 24*7 quality accounting services. Using collaborative tools such as Xero, Slack, Asana and Google to deliver our transactional accounting services. Moreover, Data is shared via practice management software, Accountancy Manager, to make sure your personal data is completely secure as per GDPR. 

For a free, one-hour introductory consultation, get in touch with our experts!

+971 58 535 6176 or

+971 04 871 6770 

[email protected]

 

Open chat
Close Bitnami banner
Bitnami