Make sure of these before Company registration in Dubai

by Zaara 31, Jan 2020

before company registration in dubai

Dubai is quickly becoming the foreign investor’s preferred choice of location for setting up new companies due to its position as a dynamic business hub in the Middle East. One of the most common ways in which investors attempt to set up a business in Dubai is to incorporate a new company in the Emirate, which usually takes the form of a limited liability company. Setting up a limited liability company (LLC) is a relatively straightforward process that includes registering the Company with the Dubai Commercial Register. If you are planning on setting up an LLC in Dubai, here are a few things you must take care of before heading to the Dubai Commercial Register.

1. Register the Company with the Department of Economic Development (DED)

You will have to select a company name and have it approved by the Licensing Department of the Department of Economic Development at this stage. The DED will also require initial approval for registering your business after the company name has been registered.

2. Draft and Notarize the Company’s Constitutional Documents

The next step would be to draw up the Company's constitutional documents, such as the Memorandum and Articles of Association. You would then have to get these documents notarized by a Notary Public in the Dubai Courts.

3. Submit all required documents to the DED

Submit the business license application, initial approval, and the notarized copy of the Company's constitutional documents to the DED.  At this stage, the application is submitted for entry to in the Commercial Register.

4. Registration in the Dubai Commercial Register

Once the DED grants the required approval, the Company will then be entered into the Dubai Commercial Register. The license will then follow, which will be issued by the Department of Economic Development.

Another point to keep in mind before applying for registration of your new Company is that, depending on the type of activity that will be carried out, you may require special approval from the relevant government department. The LLC must also have a minimum of two shareholders and a maximum of fifty shareholders.

When setting up an LLC in mainland of Dubai, foreign investors can only hold up to 49% of the Company. A sponsor of UAE nationality must own at least 51% of the shareholding, so you must find a local sponsor before you apply for registration of the Company.

If you need help setting up an LLC in Dubai, we at Commitbiz can help guide you in all the procedural requirements, including arranging a local sponsor. We have an experienced team here that has helped many small, medium and large-sized enterprises flourish in Dubai. If you are interested in our services and want help starting your business in Dubai, please contact us for more information.


What is a Dubai commercial register?


A commercial register is like a government record where your company details will be stored. Once your business is registered in the Commercial register your business will be given a particular code that will authenticate its existence.

It’s like an ID card for your business to function in Dubai or any part of the UAE.

How can I verify whether a business is registered in UAE or not?

  • If it's about a local company then you can verify it through the Department Of Economic Development (DED) website.

  • If you don’t have any information about the company apart from its name then visit the National Economic Register Website for finding out more information.

  • For Freezone-based companies, you’ll have to visit that particular Freezone’s official website, and you’ll find information about all the licensed companies in that free zone.

What is the minimum information required to be updated in the Commercial Register in Dubai?

  • The legal form of the business entity

  • Contact details of the company and its owners

  • Name, identity proof & the address of the business founders

  • Name, address, and the trading activities of all the business entities

  • Details of the company shareholders

  • Details of the authorized managers or owners of all the business entities

Which are the legal forms of business in UAE?

  • Civil Company

  • Sole Proprietorship

  • Limited Liability company

  • Partnership

  • Public Share Holding Company

  • Private Share Holding Company

  • Branch Of GCC Companies

  • Branch Of Freezone Companies

  • Branch Of UAE Based Companies

  • Branch Of Dubai Based Companies

  • Branch Of Foreign Companies

What is a UAE legal entity?


Any business or company that has been given legal rights by the government for doing business in that particular region, state, or country is known as a legal entity.

In UAE, companies are registered under various legal forms of businesses like civil company, LLC company, Partnership, etc.

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