How should a Dubai company finalize its business scope?

It is crucial to register a company in Dubai, a hot land of business opportunities, and to finalize the scope of business. The business scope not only determines the business boundary of the enterprise, but also directly affects the subsequent business license application, tax planning and market development direction. A clear and precise business scope is the cornerstone for companies to gain a firm foothold in the Dubai market and achieve sustainable development.

1, understand the Dubai Company Law on the scope of business restrictions:

the Dubai Companies Act provides that international companies may engage in any lawful activity, except for banking, the establishment of insurance or reinsurance companies, and the business of insurance agents or insurance brokers. Some special business activities, such as oil and gas, banking and investment, financial services, insurance, media, transportation, construction, telecommunications, real estate management, construction and engineering consulting, tourism, shipping, civil aviation, legal services, medical services, education, etc., can only be operated with the consent of the federal government or local authorities.

2, according to the company type to choose the business scope:

local companies: suitable for companies that want to cover both local and international markets, with unlimited trade within and outside the UAE. But local companies may need local partners, and foreign ownership is usually no more than 49%.

Free zone companies: suitable for companies seeking 100 per cent foreign ownership, tax exemption and full repatriation of profits. Dubai has a number of free zones, serving different industries such as technology, media and trade. Free zone companies usually do not require local partners, allow 100 percent foreign ownership, and the scope of operations may vary from free zone to free zone. For example, the Dubai Media City Free Trade Zone is dominated by the media industry, and the Dubai Network City Free Trade Zone is dominated by communications and high-tech industries.

Offshore companies: applicable to corporate structure design or global tax planning, but the scope of business is limited to outside the UAE and cannot conduct business locally in Dubai.

3, reference free zone business scope list:

dubai's free zones are relatively independent, with their own registration process, fees, documentation requirements, business scope list and rules and regulations. When choosing a free zone, you should carefully understand the list of the business scope of the free zone to ensure that the selected business scope meets the requirements of the free zone.

4, consider business scope changes:

if the scope of business needs to be changed in the future, the Dubai company can make changes. Changing the business scope requires a shareholders' meeting to discuss and decide, amending the company's articles of association to reflect the new business scope, and may require approval from relevant government departments. After completing all the change procedures, it is also necessary to update the company's business license and notify the relevant parties.

Dubai Company Registration Information

1. Information of shareholders and directors:

including passport copy, residence certificate, contact information, etc. Shareholders can be individuals or legal entities and are not required to be Dubai natives. The nationality of directors is not limited, but they must have certain management experience and legal qualifications.

2. Company certification documents:

including articles of association, business plan, etc. The articles of association shall specify the structure, ownership and equity distribution of the company.

3. Certificate of registered address:

A local registered address is required to receive legal documents and notices related to the company. In most cases, the place of registration can choose the office address of the free trade zone or the local business district.

4. Company Name:

it must comply with the naming rules of Dubai, avoid duplication with existing company names, and cannot contain some prohibited words (such as "Dubai", "government", etc.).

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