Shelf Companies in Dubai: A Quick and Easy Way to Start Your Business
Dubai, known for its rapid growth, business-friendly environment, and tax advantages, has become a
hotspot for entrepreneurs looking to set up a company in the United Arab Emirates (UAE). However,
setting up a business in Dubai can sometimes be a lengthy and complex process. This is where shelf
companies come into play .A shelf company in Dubai is essentially a pre-registered company that has
been set up but has not conducted any business. These companies are usually available for purchase
and can provide entrepreneurs with a fast-track route to start doing business in Dubai without going
through the lengthy registration and setup process. In this article, we will delve into what shelf
companies are, the benefits they offer, and how to use them to your advantage when starting a
business in Dubai.
What is a Shelf Company?
A shelf company is a legal entity that has been incorporated but remains inactive, meaning it has not yet
carried out any business activities. These companies are typically set up by service providers, such as
business consultants or law firms, and are "put on a shelf" until someone buys them.
The main appeal of a shelf company is that it is already registered with the relevant authorities, which
means it has a legal existence and can begin trading immediately. It has a company name, registration
number, and may even have a corporate bank account and tax identification number (TIN), depending
on the service provider.
How Shelf Companies Work in Dubai
In Dubai, shelf companies are often registered in one of the many free zones or on the mainland. Free
zones in Dubai, such as the Dubai Multi Commodities Centre (DMCC) or the Dubai International Financial
Centre (DIFC), are popular for business setup due to their simplified administrative procedures and tax
incentives.
Once you acquire a shelf company, you simply need to update the necessary documentation to reflect
the new ownership and business activities. This includes:
1. Ownership Transfer: The original shareholders or owners of the shelf company transfer the
ownership to the new buyer.
2. Business Activities: You will need to amend the company’s activities to reflect your own
business operations, whether it’s trading, consulting, technology, or manufacturing.
3. Corporate Structure Changes: If you wish to change the directors, shareholders, or any other
details in the company structure, this can be done quickly.
4. Licensing and Permits: You may need to apply for new licenses or permits depending on the
type of business you plan to operate.
This relatively simple transfer process saves entrepreneurs the time and effort involved in creating a
new company from scratch. Shelf companies are available for a variety of business types, including those
in the retail, import/export, real estate, consulting, and tech sectors.
The Benefits of Shelf Companies in Dubai
1. Speed: The primary advantage of buying a shelf company in Dubai is the speed with which you
can start your business. Since the company is already incorporated and ready to go, you can
bypass the lengthy setup process that usually takes several weeks to months. In some cases, you
could be up and running in just a few days.
2. Immediate Legitimacy: Shelf companies are already registered with the authorities, making
them a legitimate and established entity. This can be especially useful if you need to show a
track record or prove your business’s credibility to clients, suppliers, or financial institutions.
3. Access to Business Licenses: In certain free zones, shelf companies may already hold a business
license, making it easier to begin operations without needing to go through the process of
obtaining a new license.
4. No Business History: While having a business history can be advantageous for securing loans or
gaining credibility, there may be times when you want to start a new business without any
existing debts or obligations. A shelf company offers a clean slate with no business history.
5. Banking Facilities: Shelf companies in Dubai often have corporate bank accounts set up in
advance, making it quicker to open a business account. This can significantly speed up the
process of accessing banking services for your business.
6. Confidentiality: If you prefer to remain anonymous in your business dealings, purchasing a shelf
company can help maintain a level of privacy. The original owners are not involved in the
business after the transfer of ownership, which can protect the new owner’s identity.
7. Investment Appeal: Shelf companies can be a useful option for foreign investors looking to
invest in Dubai. By purchasing an already-established company, they can bypass bureaucratic
hurdles and take advantage of Dubai’s thriving business environment.
The Considerations to Keep in Mind
While shelf companies offer numerous benefits, it’s important to be aware of potential drawbacks:
1. Additional Costs: Purchasing a shelf company comes with a price tag. The cost of a shelf
company can vary depending on factors such as the company’s age, its registration status, and
its licensing. While it may save time, it could be more expensive than setting up a new company
from scratch.
2. Limited Customization: A shelf company may have already been registered with a specific
business name, industry type, or business activities. If the name or structure does not fit your
vision, it might require additional changes, which could lead to unforeseen expenses.
3. Compliance Issues: Despite being registered, shelf companies are not exempt from ongoing
compliance. New owners will still need to adhere to Dubai's legal and financial requirements,
including audits, filing annual returns, and maintaining the corporate structure.
4. Not Always Available: Shelf companies are often in high demand, so the availability of a shelf
company that suits your specific needs may be limited. Depending on the market, it might be
hard to find one with all the desired features.
Conclusion
Shelf companies in Dubai provide a unique and efficient solution for entrepreneurs looking to establish a
business quickly. Whether you're a seasoned investor or a startup owner, these pre-registered entities
allow you to bypass the lengthy registration processes and start trading immediately. While they come
with several benefits, including speed, legitimacy, and access to licenses, there are also considerations,
such as additional costs and limited customization.
Ultimately, purchasing a shelf company in Dubai can be a smart and strategic move for those who are
looking to capitalize on the business opportunities the city has to offer while saving time and effort in
setting up a company.
Web:- https://dubai.houseofcompanies.in/shelf-company-dubai/
#StartaDubaibusiness #BusinessregistrationDubai #DubaiLLC #ShelfcompanyDubai
1
/
3
100%
