Company formation in Dubai is easy to do and does not need much of an initial sum of money. Even though many countries have very strict laws when it comes to establishing a business, Dubai legal system permits the same. This means that you can set up your business without having to pay taxes or pay huge fines. These two things are very important for a thriving company since it will be enjoying profit which will eventually lead it to success.
In order to set up your own business, you will need to have the necessary documents for RAK free zone company formation. One of these documents is the Memorandum and Articles of Association. These two pieces of papers are mandatory when it comes to forming a company in Dubai. Therefore, tips for company formation in Dubai include knowing the required documents beforehand.
The next step would be to register the business with the Dubai Ministry of Economic Affairs and the securing of your Shams free zone license. This is the only legal process that is involved when it comes to a company in Dubai. You will also need to submit your capital to the government in order to secure a working environment for your business. The only condition here is that the sum of money should be in cash. Other modes of payment like bank transfers are not permitted here in Dubai.
After this, you will need to register the business with a legal entity. This can either be a company or an individual. If you are going to start a limited liability company, you will have to choose a law firm that specializes in this kind of law. This would be a better option since it will allow you to benefit from tax breaks as well. If you want to do business through a sole proprietorship, there are other formalities that you have to comply with.
Next, you will have to create a Board of Directors. This is the highest authority in your business. It consists of five members including the CEO, CFO and secretary. These people will have to adhere to the rules and regulations set by the government in Dubai. You also have to appoint the managers of the company. Once these things are done, you can already start looking for the capital that you need for your business.