Dubai is one of the largest cities in the Middle East, offering a multitude of business opportunities to allow foreign investors to set up different kinds of businesses. This city has expanded its opportunities to ensure that there is constant development of trade and business in the area. Apart from this, Dubai has diversified its economy in such a manner that oil production comprises less than 1% of its entire economy.
Dubai has accelerated the pace of its diversification and sustainable economic growth. The city issued 45,653 new business licenses in the first half of 2022, which is significantly higher than the licenses issued in the previous year (2021), i.e. 36,647, which shows a 25 % growth in the Forex trading company registration. The main reason for the growth is the business-friendly government policies and programmes, tax regimes, and infrastructure, to name a few.
From the above discussion, it is evident that Dubai is an excellent place to start a business, and registering a company in this city can be quite beneficial for business owners, especially foreign investors.
Benefits of Forex trading company registration in Dubai
Following are the benefits of Forex trading company registration in Dubai:
The government of Dubai has rapidly adopted technology for starting a business in Dubai. The Forex trading company registration process is very easy and completed in a few days. There is less paperwork, and the steps are easy to follow.
Certain amendments have been introduced in the Commercial Companies Law of UAE in 2021, allowing foreign investors to have 100% ownership of their businesses in UAE. This allows more than half of the total economic activities in Dubai, where foreign investors have been allowed to hold 100% foreign ownership.
The investors have the option to set up their companies in the Mainland area and Free Zones. Dubai provides more than 30 Free Zones for entrepreneurs and investors to choose from. Setting up a business in Free Zone allows the investor to enjoy 100% ownership of the company. It also allows 100% repatriation of profits earned and the capital invested. It further gives an opportunity to the investor to collaborate with the other players in the same industry.
One of the major benefits of Forex trading company registration in Dubai is that the company does not need to pay taxes. There are no corporate or personal taxes applicable in Dubai. Though, a few companies are liable to pay GCC VAT at a mere 5% on certain business activities.
Dubai has a strategic and advantageous location as it sits on the crossroads connecting north, south, east and west. It is one of the biggest re-export hub in the world. It has one of the most active and busiest airports and seaports in the world, with one of the most efficient logistics infrastructures. It also boasts as one of the greatest tourist hubs in the world.
Dubai is one of the most developed cities in Central Asia, possessing one of the world's best infrastructure. Its infrastructure is ever-evolving and offers excellent public transportation, telecommunication, terminals, etc. Dubai also hosted Dubai Expo 2020, where significant advancements have been made in Dubai's overall infrastructure.
Regulatory Authority/ Body for Forex trading company registration in Dubai
The main regulatory authority for company formation in Dubai is the Registrar of Companies. It is the authority where the new applications for Forex trading company registrations are filed. It is the place where the companies have to file their compliances and registrations.
Eligible Business Structures under Forex trading company registration in Dubai
An applicant going through the process of Forex trading company registration in Dubai would have to choose a relevant business structure. Following are the business structures present in Dubai that the entrepreneurs can adopt:
In this type of business structure, the shareholders have limited liability towards the company up to the extent of their contributions made towards the share capital. To set up a forex trading LLC in Dubai, the applicant needs sponsorship from a UAE national or a wholly owned UAE-owned company to act as a national agent/ sponsor.
There is no minimum limit on the capital requirement. The generally accepted practice is that an LLC should have AED 100,000. There is no income tax on corporates unless the company is involved in high economic activities such as oil, gas etc. Physical office space is required for its Registration. A minimum of 1 director/Manager is required. There is no constraints on the repatriation of funds. However, the company needs to maintain a legal reserve of 10% of the LLC's net profits.
Abranch office in Dubai is an extension of the parent company, which is not a separate legal entity. Any local or foreign company can set up a branch office both on the Mainland and most of the Free Zones across Dubai.
A Forex trading company as Joint Stock Company in Dubai has capital divided into negotiable shares of equal value, and a partner of the company is liable only to the extent of its contribution to the company's share capital. There are two types of Joint Stock companies in Dubai, viz. Private Joint Stock Company and Public Joint Stock Company.
A JSC in Dubai should have a minimum of 2-15 directors that are elected for 3 years. The majority of the board, including the chairman, must be UAE nationals. A public joint stock company should have a minimum share capital of AED 10,000,000, and a minimum of 10 founders are required for its incorporation. On the other hand, a private joint stock company requires a minimum share capital of AED 2,000,000 and a minimum of 3 founders for its incorporation.
The Free Zone companies are situated in a Free Zone where special laws related to customs, taxation, ownership etc., are followed, distinct from mainland Dubai. Two types of companies are established in a Free Zone area, viz. Free Zone forex trading company and Free Zone Establishment.
Free Zone forex trading company/LLC: A Free Zone LLC has multiple shareholders, up to 5. Both natural and legal persons can incorporate such a company. The legal requirements required for incorporation are the rules and regulations framed by the respective Free Zone.
Free Zone Establishment: On the other hand, a Forex trading free Zone company has a single shareholder with limited liability. Both natural and legal persons can incorporate such a company. The legal requirements required for incorporation are the rules and regulations framed by the respective Free Zone.
A dual license branch office is an extension of a Free Zone forex trading company in the mainland area. These offices hold an additional license in addition to the free zone license, which reduces their cost and duration to incorporate a separate company.
The mainland office is a branch office of the Free Zone forex trading company and not it's subsidiary. Therefore, it is not required to appoint a local sponsor. This office cannot be registered with the UAE Ministry of Labor and hence is not eligible to issue labor cards or permits. Their staffs are holders of free zone resident visas.
