Dubai is known as the commercial hub of the middle east. Tourists across the world visit this place for exploration purposes because Dubai has a vast range of tourist place, luxurious hotels, and shopping malls. World’s tallest building Burj Khalifa drives millions of visitors every year. Because of the enormous resources, many businesspersons are eagerly waiting for the opportunity to incorporate their business in Dubai. Dubai is also called the “city of gold” because of the trending technology and innovative ideas for the commercial hub.
There are certain rules and regulation for the foreigners who want to set up their business venture. In Dubai. Initially, it can be a troublesome process for the investors to understand and analyze the procedures for setting up but once they get acquainted with the laws and legal procedures they can easily pursue their business.
For successful business setup in Dubai, following are the steps you should consider
1. Determination of Goal
When you have decided to set your business in Dubai, you have to set your goals and targets accordingly. That's the first step of your business's initialization. And after that, you need to know that there can be certain limitations. Various permissions are required before you start your business in Dubai. Not all business activities are allowed in the UAE!. Thus, the main you should consider for doing business is to decide whether your business fits in as per the Dubai standards.
2. Choose the feasible jurisdiction
Business jurisdictions in Dubai are separated zonally to increase the productivity and competence of a business. Dubai offers various kinds of administration according to your business, such as free zone company incorporation, mainland business setups, and offshore business formation. Picking up the right jurisdiction depends on the business activity and the nature of the business you would like to incorporate.
3. Shareholding structures in Dubai
Selecting a shareholding structure is the main component for the Company setup in Dubai. The shareholding structure must be linked to your business administration and preferred jurisdiction. This will also show the legal structure of your business. Here are the shareholding structures that you could opt for:
- Limited Liability Company
- Public Shareholding
- Private Shareholding
- Sole Proprietorship
- General Partnership
- Shared Partnership
- Joint Venture
- Limited Partnership
- SME License
- Representative Offices
- Branch Offices
4. Trade Name Registration
For setting up a business, your company must be registered with a trading name, and the DED should verify that. You need to allot a name to your company or organization as per the standards mentioned by the Department of Economic Development (DED). The trade name represents the identity of your business, which helps to protect your company from imitation of any other organization. DED emphasizes on associating the name as per the license type. Generally, it takes around three days to register and verify a trading name, and it is valid for six months.
5. Drafting of MOA/LSA for your Business
Drafting the Local Service Agent (LSA) or Memorandum of Association (MOA) is a significant task. The LSA describes the role of the business agents and fulfills the compliance that will be performed in the company. The MOA specifies the share of liberty and limitations of every partner that has associated with the company or the organization. MOA/LSA are legal documents and must be drafted with the help of any legal consultant or advisor. They also need to be translated into the Arabic language.
6. Company registration and licensing procedures for incorporation in Dubai
Company registration and business licensing are some of the mandatory systems. Once DED registers the company, the business license will begin to process and could be done duly. Business licenses are provided by the authority mainly depending on the nature of the business activity, administration, and the jurisdiction of the business. Registration and licensing can be a troublesome process for the newcomer, so our company is all set to assist you in getting all the registration and licensing procedures. The essential licenses for business setup in Dubai are industrial license, commercial license, and professional license. The business licensing mainly depends on business activity and legal documentation. The following are the general list of documents and certifications that one required for setting up a business in Dubai.
- License Application
- Governmental forms
- Name reservation certificate
- Attested LLC agreement
- Initial approval certificate
- approval from the external departments
- Tenancy contract
- EJARI registration certificate
- Passport copies partners and NOC for partners (if any)
- Dubai Chamber of Commerce and Industry Registration
- Endorsements from Governmental Agencies (For Gas and Oil Companies)
- Finance and Industry Ministry Certification (For Manufacturing firms)
- UAE Central Bank License and Approval and (For Financial Institutions)
- Economy and Commerce Ministry Certification (For Insurance Companies)
- Health Ministry Certification (For Medical & Pharmaceutical industries)
For a successful business, you need to follow the above instructions. We at Commitbiz provide every kind of assistance in the process of registration, licensing, and all the business consultancy procedures for business incorporation. Contact us to get all the information regarding our company's services.