# Company formation in Dubai or UAE



## ExpatFR (Dec 14, 2014)

Hello,

I will arrive tomorrow at Dubai to incorporate my business in a free zone but i still have some questions. My budget is limited and i don't have any educational degree.

I'm French. My actual company is in Hong Kong, it's internet based, advertiser network.

I'm considering Fujairah as a "cheap" option, i will first require one residency permit for me and maybe 2 more for employees in the near future.

My first plan was to open in internet city but the fees are very high and the mandatory office is too expensive for my small business. I also heard that most of the free zones require educational degrees but i don't have any.

What would be the best solution for me ? I would like to live and work in Dubai, Fujairah is quite far from Dubai. Also, would it be possible to rent an office in Dubai with a company in Fujairah ? My future employees would prefer Dubai than Furaijah to work.

Thank you for your answers.
Johan


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## Emirabiz (Dec 16, 2014)

Hello Johan! Thank you for your questions. Let me explain to you how things work in Fujairah. 

First of all, they do not require any educational degree for an IT company. Secondly, even having a service license from Fuhairah, you still can provide your services in Dubai. You can also reside in Dubai. 

The only restriction is that you won't be able to rent an office in Dubai with a non-Dubai license. However, it is possible to find a space in one of the numerous business centers. Initially, you may be interested to rent a meeting room only on hourly basis in order to meet your clients there. 

Most of professional start-ups launch in this way - it's low risk and economical.


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## ExpatFR (Dec 14, 2014)

Thank you for your reply. Actually i need a small office space. Im then considering jumeirah lake towers. Any advice ? Thanks.


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## carranmore (Dec 16, 2014)

ExpatFR said:


> Thank you for your reply. Actually i need a small office space. Im then considering jumeirah lake towers. Any advice ? Thanks.


Hi, apologies for previous post - to be very clear, it is illegal in Dubai to transact without a valid trade license - any trade license for a free zone only allows to to transact within that free zone (not all free zones). That's the reason that they are cheaper to set up in. The fact that a lot of companies set up like that doesn't really help (like a lot of cars speed, but that's also illegal).

The risk of getting caught/fined is low (though increasing, through the use of IT), the risk of not getting paid for any work you do without a valid trade license is higher.

There are a number of companies that would be able to advise you, a quick websearch would find them, or ask on forums for a reputable recommendation. The cost difference to be legal and appropriate is not that much and it makes business a great deal easier if you want to get finance or sell your business if you are set up correctly in the first place.


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## Emirabiz (Dec 16, 2014)

If you would like to have office in JLT then you have 2 ways to arrange it: 
1. You can establish a company in Fujairah Creative City and rent some office space in business centres in JLT. License cost is 25000 AED + serviced office in JLT starting from 50000 AED per year
2. You can establish a company in DMCC (ex. JLT) and rent a serviced office. In this case you will to have pay: License - 20000 AED (yearly) + 11000 (Registration fee + MOA) + 50000 AED for the office.

Do you need an office right away? Initially, you may even work from home. In this case Fujairah Creative City license is the best way to start your business in UAE.


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