How to Open a Civil Company in Dubai?

by Zaara 22, Aug 2022

civil company in dubai

A civil establishment or a civil company in Dubai is a partnership between two or more individuals to provide professional services like doctors, engineers, lawyers, consultants, and accountants.

Qualified foreign ex-pats can set up a sole proprietorship or a partnership firm (commonly known as a civil company) to carry out professional IT/management/marketing activities in mainland Dubai/UAE.

Unlike a Limited Liability Company (UAE National 51%:49% foreign national), foreign nationals can own 100% of the company and appoint UAE nationals as legal service agents (known as Wakil al-khidmat).

Conditions to Setup a Civil Company in UAE

Some specific rules and regulations come under civil company formation. They are -

  • Partners of any nationality can practice professional activities following DED business regulations
  • There is a restriction to the number of managers that civil establishment or a civil company license in Dubai can be appointed on a civil legal form
  • You require a detailed Civil Agreement between the ex-pat partners of a civil license
  • Appointing a Local Service Agent to the company requires a Service Agent Agreement
  • The trade name should be consistent and in proportion with the commercial activity of the firm
  • A civil company in Dubai can have more than one branch. Each branch may undertake one or all the activities included in the primary business license
  • It is possible to sell a civil company or a branch office in Dubai to any party or company. The owners can also change their legal form according to DED procedures.

Benefits of Getting Included in the Dubai Civil Company List

The advantages of opening a civil company are –

  1. Quick and Simple

The procedure of a Dubai company setup is simple. You just need to apply to the Dubai DED for a license.

With the new initiatives in place, your company could be registered with DED as quickly as 90 minutes, as long as you meet eligibility criteria.

  1. Low-cost

A professional licence application can set you back about AED 17,000 in fees. The good news is that incorporating a new civil corporation does not require upfront share capital.

As a result, you will just pay minor startup charges.

  1. Multiple Visa Application

Civil Company in Dubai is well-known among larger organizations as it allows entrepreneurs to apply for multiple visas. The nice part is that mainland enterprises are not restricted; nevertheless, the more office space you need to rent, the more visas you must apply for.

The standard recommendation is for each visa to have 100 square feet of office space.

  1. Establish a Business with Multiple Shareholders

Another advantage of setting up a civil company in Dubai is that it allows entrepreneurs to open a business with more than one shareholder. A minimum of two shareholders is needed, and the customarily accepted cap is 50, which can either be corporate entities or individuals.

  1. Sponsor Dependents Easily

Apart from effortlessly sponsoring employees for their visas, business incorporation in Dubai allows you to sponsor dependents without hassle. It entails the following procedure:

  • Entry permit
  • Registration of Emirates ID
  • Adjustment of status
  • Medical fitness test
  • Visa stamping.
  1. Open a Corporate Bank Account Smoothly

Upon getting your professional license and effectively establishing your civil company, the next step is to open a bank account in Dubai.

Procedure to Setup One of the Top Civil Companies in Dubai

The steps are as follows:

  1. Decide on the Business Activity

Choose your business activity from the permitted list as per the location.

  1. Register Your Trade Name

Select an appropriate trade name abiding by the rules and regulations of the UAE government.

  1. Get an Initial Approval

You must get the initial approval from the Department of Economic Development, Dubai.

  1. Submit the Documents

The following documents must be submitted:

  • Initial approval application form duly signed by all the foreign partners and legal service agent- UAE National
  • Certificate of Trade Name
  • Passport copies of all the partners (Zinsia copy /Family card of the Local Service Agent)
  • A legal service agreement with UAE national – to be notarized at Notary public
  • Partnership agreement between foreign partners- with capital, shareholding, and profit-sharing details – to be notarized at the Notary public
  • Tenancy Contract of office attested from Land Department
  • Address & Contact nos. for preparing legal service agreement.
  1. Obtain a Civil Company License, Dubai

Pay the respective fees and get your license. You can kick-start your venture once the license is obtained.

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FAQs

1. What is the procedure for sponsoring dependents in UAE?

It entails the following procedure:

  • Entry permit
  • Registration of Emirates ID
  • Adjustment of status
  • Medical fitness test
  • Visa stamping.

2. Can a foreign national have 100% ownership of a civil company in Dubai?

Yes

3. What are the permitted activities for setting up a civil company in UAE?

Activities that can be carried out are professional IT/management/marketing in mainland Dubai/UAE.

4. What is a civil establishment?

A civil establishment or a civil company is a partnership between two or more individuals to provide professional services like doctors, engineers, lawyers, consultants, and accountants.

5. What are the benefits of incorporating a Dubai civil establishment?

The benefits are as follows:

  • Quick and simple
  • Low-cost
  • Multiple visa application
  • Establish a business with multiple shareholders
  • Sponsor dependents easily
  • Open a corporate bank account smoothly.

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