Company formation refers to the procedure of getting a business registered as a limited company at the Companies House. This makes the business a distinctive legal unit. The process is also known as company registration or company incorporation.
Incorporating a limited company makes it become an ‘individual’ in the legal sense. They are absolutely separate from the owners with regards to contractual agreements, assets and property ownership, liabilities, and finances. This is not what happens with unincorporated businesses, which are not seen as distinctive legal units. So, in that case, there’s no difference between the owner and a sole trader in terms of liabilities, assets, and finances.
Registration & Licensing
Registration and licensing are important for authenticating a company and giving it a legal stamp of being reliable. There are a number of businesses that need the owner to buy a license, right from restaurants, hotels, salons, taxi companies, to childcare services, and more. A registered and licensed business not only protects itself from lawsuits but also offers protection to its customers and employees.
For instance, you can offer financial cover to the employees in case they fall sick or get injured. Your customers also get the assurance that the business goes through regular checks and inspections, and they will get the best services.
Freezone Company Setup
The free trade zones of UAE are the financial areas where services and goods are traded at preferential customs and tax rates. The aim of these zones is to increase international business transactions by offering things like complete foreign company ownership. 45 free zones exist across UAE at present.
To set up a business here, you will have to select a trade name and register it on the government portal. Apply for business license and select your office space beforehand. After you are registered and your business is pre-approved, you can running your company here. It takes two to four weeks for the process to complete.
Offshore Company Formation
An offshore company is the one that is registered outside the country from where its key operations are carried out. These businesses are engaged in transaction with the partners who are based outside the country of incorporation. For setting up such an offshore company, the important documents and details of the company has to be submitted to the jurisdiction of the country and at its national bank. This starts the process of registration for the business and it can take anywhere around four to six weeks. After the business is registered, you can start your transactions as usual.