Known for its innovation, bustling economic environment, and multitude of opportunities, the UAE attracts entrepreneurs from all over the world, including Malaysia. Not only can budding entrepreneurs benefit from the advanced infrastructure, high quality of living, and multi-cultural population of the UAE, but they can also take advantage of the superb geographical location and various tax incentives on offer. Follow our step-by-step guide to see just how easy it can be to register a company in the UAE from Malaysia.
Why UAE is a top choice for Malaysian entrepreneurs
There are many reasons why Malaysians should consider registering a business in the UAE. Let’s examine five of them:
The possibility of full foreign ownership
Thanks to updated laws, 100% foreign ownership is now allowed in the UAE’s free zones. This move by the UAE government is attracting increased interest from foreign investors and negates the need for a local sponsor.
Streamlined business setup
When compared to many other countries across the globe, setting up a business in the UAE is both fast and simple. Free zones are especially appealing, offering tax exemptions and complete business setup in as quick as two days.
Attractive visa options
Malaysian business owners can apply for residency visas for themselves and their families. They can also sponsor employee visas for any team members they would like to relocate from Malaysia.
Taxes are lower than in Malaysia
Corporate tax in Malaysia is calculated at 17% for profits up to MYR 600,000 and 24% for anything above that. In the UAE, mainland businesses pay only 9% corporate tax and only if annual earnings exceed MYR 480,000. In many free zones, no personal and corporate tax is levied.
Better banking
Banks in the UAE provide foreign business owners a wide range of offerings to choose from including digital banking, multi-currency accounts, and unrestricted international transactions.
How to register a company in UAE from Malaysia: Step-by-step
Starting a business in the UAE as a Malaysian is not nearly as complicated as it may sound. Here are the steps to follow for an easy setup.
1. Reserve your trade name
Choosing a name for your business is exciting. It is, however, important to keep a few things in mind like making sure your name is relevant and unique. It also has to comply with the DED’s guidelines and be free of abbreviations, religious terms, and offensive words.
2. Select your business activity
One of the most important steps in setting up your business in the UAE entails selecting your business activity. There are more than 2,000 activities listed by the DED and choosing the wrong one could delay approval. Start by identifying whether your business falls under commercial, professional, industrial or tourism. The activity you choose will directly impact the legal structure and license type of your business.
3. Organize and submit your documents
Choosing your business name and deciding on its structure is a very important part of the business setup process. Once this is done, you can apply for initial approval. You have to organize the required documents and submit them for approval. Where you locate your business and how you set it up will determine the exact documents to submit although it typically includes:
• Basic company details
- Passport copies
• Proof of business name approval
• Memorandum of Association (MoA)/Articles of Association (AoA) if required
4. Apply for your trade license
After initial approval is granted, you can apply for your business license. The nature of your business will determine what type of business you apply for. Approval will only be granted if all forms are filled out and all outstanding documents are submitted. Your trade license will allow you to legally operate your business in the UAE.
5. Apply for your visa & Emirates ID
If you want to live and run a business in the UAE as a Malaysian entrepreneur, you need to be in possession of the relevant visas. Start by arranging your own visas before applying for visas for your family and employees. When applying for a visa, you will more than likely be required to take a medical test, register for your Emirates ID, and have your passport stamped.
6. Open a corporate bank account
You can’t operate your business in the UAE without a corporate bank account, which you can apply for as soon as you receive your trade licence. There are many reputable banks in the UAE, each with their own requirements and offerings. Choose a bank that offers the services you require as a Malaysian business owner and make sure you have all the documents ready to submit with your application.
Types of business structures available to Malaysians
There are three business structures to consider when starting a business in the UAE:
Mainland company
Setting up a mainland company will allow you to legally trade anywhere in the UAEi. You will also be able to establish a physical office anywhere in the UAE and apply for attractive government contracts. While all mainland companies previously required a local sponsor, 100% foreign ownership is now allowed across most sectors.
Free zone company
As a Malaysian entrepreneur, establishing a company in a free zone might be a very good option. Dubai, for example, is currently home to more than thirty different free zones that cater to a variety of industries. Some of the benefits that can save you both time and money include 100% foreign ownership, simplified business setup, complete profit repatriation, and a range of tax incentives.
Offshore company
If you want to own a business in the UAE without having a physical presence in the UAE, you can consider starting an offshore company. Although you will be able to trade internationally from Malaysia and will have full control over your business, you can’t trade within the UAE.
There are quite a few things you need to consider before choosing your jurisdiction. This includes your business goals, the access you require to local and international markets, and the various approval and compliance costs.
Most common businesses Malaysians launch in the UAE
More and more entrepreneurial Malaysians are setting up businesses in the UAE. Here are some of the most common businesses they launch:
Restaurants & fast-food chains
The UAE has a buzzing foodie scene, which is why restaurants, cafés, fast-food outlets, and mini supermarkets (known as baqalas) are such a popular business choice. Although some Malaysian-owned restaurants do offer local or Western cuisine, many do provide a more traditional Malaysian experience.
Bakeries & confectioneries
Bakery and confectionery-related businesses are also a popular choice among many Malaysians. Many of these aspiring entrepreneurs are inspired by T.K. Khaleel, who started Bakemart in Dubai in 2023. Originally just a small bakery, Bakemart now supplies a range of gourmet frozen baked goods to upmarket hotels in Dubai.
E-commerce & trading
The UAE’s superb geographical location, coupled with its free zones make it a sought-after international trade destination. Import/export ventures, online shops, dropshipping companies, and trading businesses are all relatively quick and easy to set up in the UAE.
Education & training
Malaysians in the UAE have shown increased interest in establishing education and training-related businesses over recent years. This includes skill development centers, language training, and e-learning courses.
Wellness & Beauty
Malaysian beauty products have steadily increased in popularity in various parts of the world, including the UAE. Entrepreneurs have established wellness centers, training services, and skincare and cosmetic outlets across the country.
Visa options for Malaysian business owners
Malaysian entrepreneurs can apply for a variety of visas when registering a business in the UAE. The type of visa is determined by the type of business you are opening.
Investor visa
Investor visas are best-suited to Malaysians who want to start a business in the UAE or invest in one. Investor visas are valid for up to ten years and can be renewed as long as the business is still operational. There are many benefits to applying for an investor visa including UAE residency and the ability to sponsor visas for your family members and workers.
Golden Visa
Malaysian entrepreneurs, investors, and other high-net-worth individuals can apply for a golden visa which offers a ten year residency and the ability to sponsor family members and employees. Golden visas can automatically be renewed and offer a lot more stability than a regular investor visa.
Freelancer visa
Malaysians who want to work independently in the UAE can apply for a freelancer visa. Approval is subject to certain requirements which include two years relevant experience and a minimum income. Freelancer visas are ideal for professionals who offer their services on a freelance basis in tech-related, consulting, and creative industries.
Things Malaysians should know before registering
The process of registering a business in Malaysia can be simplified by taking note of the following things:
1. Your business setup choices are important
Do not rush into making any decisions regarding your business structure. Making the wrong choice can delay your approval and also result in fines. Take some time to research the options available to you and if you are still uncertain, enlist the services of business setup professionals like Set Hub.
2. Licensing is determined by your industry
You need a trade license if you want to operate legally in the UAE. Whether you need a commercial, professional, tourism, or industrial licence depends on the activity you chose from the DED list.
3. Budget beyond the initial setup fees
Malaysian entrepreneurs need to familiarize themselves with the ongoing expenses associated with a new business. Apart from the standard setup fees, it is very important to also budget for ongoing expenses like office space rental, renewals, compliance costs, and employee wages.
Frequently asked questions
Can I register a company in Dubai without living there?
Yes, you can register a company in Dubai while living in Malaysia. You can set up your business in one of Dubai’s free zones or make use of the remote incorporation services of a reputable business setup consultant.
Can a foreigner register a company in the UAE?
Yes, a foreigner can register a company in the UAE. Both the mainland and various free zones are great choices. Depending on the chosen activity, Malaysian entrepreneurs may qualify for 100% foreign ownership.
How much does it cost to register a company in the UAE?
Starting a mainland business in the UAE can cost anywhere from AED 15,000 to AED 50,000. The total cost can be influenced by the license type, business structure, the size and location of your office space, and any additional approvals you might require.
The setup cost of a free zone company ranges from approximately AED 10,000 to AED 50,000. This cost can also be impacted by many factors including the chosen free zone, business activity and trade licence type, and individual visa requirements.
About Set Hub
Registering a business in the UAE is a big milestone for many Malaysian entrepreneurs. If you’ve ever wondered how to register a company in UAE from Malaysia step-by-step, Set Hub has been helping entrepreneurs just like you get their businesses up and running for more than a decade. Our dedicated team will guide you every step of the way, helping you navigate everything from choosing your business activity to applying for the necessary visas. Contact us today to find out how we can help you make a success of your new UAE business.