The commercial capital of the world, the United Arab Emirates, offers enormous business opportunities and ground-breaking commercial modules for different ventures across the globe. Being economically and politically stable, the UAE has attracted many business investors and entrepreneurs from outside the region thus becoming the trendy choice for investment.
So if you’re now planning to setup a business in the UAE that may be an excellent idea knowing everything about economic returns and tax-exemptions. One can start his/her own business venture with the business-friendly government policies without any hassle.
After reading all this, company formation in Dubai and other Emirates may sound easy and fascinating but there are many things that you must have knowledge of before investing or setting up a business in the region.
Wondering where to start from?
Just scroll down and keep reading…
1. Finalize your business activity beforehand-
The UAE, even after providing the plethora of business opportunities, has certain limitations. NOT every business activity is allowed in the UAE. Therefore, the first and foremost thing one must do is to decide the business activity that best fits the UAE’s business standards.
2. Select the right jurisdiction-
The UAE’s business market is divided into three jurisdictions- Mainland, Free Zone and Offshore Company Formations each of them having their own sets of protocols pertaining to business formation. Therefore, to cater to your business needs and requirements make sure to choose the right jurisdiction for your business activity.
3. Select the Legal Structure for your business-
One of the most important steps when forming a company in Dubai is to choose its company/legal structure. Finalizing the legal structure beforehand helps in providing the layout of the company. Also to apply for the Dubai trade license, you must be ready with your company’s legal form/structure. The different legal structures available are-
- Limited Liability Company (LLC)
- Sole Establishment
- Civil Company
- Local Company Branch
- GCC Company Branch
- Foreign Company Branch
- Free Zone Company Branch
- Holding Companies
4. Find a local sponsor/partner-
If you are planning a mainland company formation in Dubai, UAE, then finding a local partner (UAE national ONLY) is mandatory. As per the commercial law of the UAE, the local partner will hold 51% share of your company. Finding a trustworthy and reliable local partner can thus be a demanding task.
Also if you’re planning to go for a freezone, then your company will require a local service agent who will work for a nominal fee. Thus finding your company a silent partner will turn to be the best option because this will guarantee your complete control on your business.
Still confused? Don’t worry! You can look for the best business setup consultant who will help you with the same.
5. Company Registration-
Company Registration and licensing are two parallel processes. You need to name your company as per the standards mentioned by the Department of Economic Development (DED). You must choose your trade name wisely because it will act as an identity of your business. The registration takes around three to four days and is valid for a period of six months.
6. Apply for the trade license-
To setup a business in Dubai, UAE you need to apply for the trade license. There are four different types of licenses in the UAE-
- Professional License
- Commercial License
- Tourism License
- Industrial License
You must go for any of the above-mentioned licenses according to your business activity.
You may also be asked to submit all/any of the following documents at the time of collecting the license along with the necessary government fees-
- Memorandum of Association (MoA)
- Trade License Application
- Relevant Government Forms
- Trade Name Reservation Certificate
- Initial Approval Certificate
- External Approvals (if any)
- Tenant Contract
- EJARI Certificate
- Passport Copies of Partners
- NOC of partners
- Other required documents by the DED (if any)
7. External Approvals-
The DED may ask for some additional approvals from different governmental or non-governmental agencies like municipalities, banks, embassy, etc. as per your business activity.
8. Rent an office space and get your Tenancy Contract-
You can either rent an office or go for a shared workspace depending on your needs. A tenancy contract is a bond between you and the real estate agency whose workspace you aim to rent. You can submit this contract along with the other documents to activate your Ejari account which is important because it helps to get or renew visas for your family members and/or employees.
Based on the above-mentioned details, it is palpable that Dubai company registration is an extensive and time-consuming course of action. But you can make it quick and cost-effective by appointing a business setup consultant in Dubai whose knowledge and guidance doesn’t waste your time and money. Wish you luck for your business!