Company incorporation is when the business owner decides to make his/her startup official. It brings plenty of benefits to the company and its future shareholders. While the process can be a little too complicated in some countries, it is a process for which all the effort will definitely pay off. Protecting your personal assets is made possible when you incorporate your business. An incorporation opens your business up to new limited-liability tax options and several corporate benefits. If your company is fully incorporated, you can protect your business from being a limited liability company. Company incorporation in Dubai can be a bit of a tedious procedure, but with proper planning, your company will be incorporated sooner than you expect it to be.
Take your time and decide if your business will be able to benefit from the incorporation. The benefits that you will enjoy in case of incorporation are that you can limit your personal liability and that would make it easy for you to transfer your business to others. Your personal assets such as your home and other personal belongings will be protected from being seized as collateral. It would help you with your long-term goals. When your company is incorporated, it enables you to, legitimise the business, take your company public, limit your personal liability, transfer ownership or shares among members of the corporation, raise investment capital, issue stock options to employees and have your corporation outlive you.
1. Appoint your board of directors
Creating a pre-incorporation agreement is one of the first few steps involved in the process of Dubai company incorporation. The value of your company stock will be determined in this step; these stock shares will have more to do with position than trading. In this agreement, you will decide who will be on your board of directors and in what position.
2. Give your company an official name
You will now have to give your business an official name, and the name must be the same as that of any company that already exists. This is where a thorough research would be of great use. Make sure that your business name does not get rejected, you would have to start all over again if that happens and that’s something you don’t want to happen.
3. Assemble your stockholders
Your stockholders are the ones who are generally called upon to elect the board; they are also the ones who financially support the company. This is done in exchange for holdings in the company, the return they get for this investment is that they have a say in the election of the board. While filing for incorporation of the company, the stockholders are the ones who should be consulted and should agree to the incorporation decisions.
4. Create articles with the assistance of a lawyer
This is the point where you need to get the help of a corporate lawyer. The process of company incorporation in Dubai includes the procedure of creating articles based on the rules and regulations that have been established in the region. After filing these articles you will receive an official certificate of incorporation. You will be a fully recognised corporation the minute you sign the document.
Above mentioned are a few tips that can ease the process of company incorporation in UAE; this process can benefit your business in several ways.