Business Incorporation in Dubai

Are you thinking of business formation in Dubai? This is a good time to go ahead with it given the favourable business environment and policies in the Emirate. Dubai, of late has attracted plenty of entrepreneurs when it comes to setting up a business there while many plan to follow in their footsteps.

In this article, we cover how to incorporate a company in Dubai. Read on to learn about the different jurisdictions, the incorporation process, licenses required and other important details. 

Types of Jurisdictions in Dubai

When looking for business incorporation in Dubai you need to be aware of the jurisdictions that are in place. In the United Arab Emirates (UAE) and other countries located in the Middle East, there are three different jurisdictions. You can choose to establish a business in any of these jurisdictions which are known as mainland, freezone and offshore.

Process of Business Incorporation in Dubai

If you want to set up a business in Dubai, you need to follow a detailed process. Let us look at it:

Step 1 - Choose an appropriate business activity, entity and jurisdiction.

Step 2 - Register the business with the concerned authorities like the Department of Economic Development (DED) and the Ministry of Economy

Step 3 - Apply for the necessary trade license depending on the business activity. 

Step 4 - Avail visas depending on the jurisdiction where the business is incorporated and the number of employees working in the company.

Step 5 - Open a bank account which helps you to keep track of your financial transactions with regards to the business.

Types of Licenses Required for Business Incorporation in Dubai

For setting up any kind of business in Dubai, you need to avail an appropriate license from the relevant authorities. Let us take a look at them in detail:

  1. Commercial license - A commercial license allows companies to trade, import/export products and sell services within the UAE. You will require this license if you carry out business activities like wholesale trading, services related to tourism, real estate, transportation and run storage and warehousing facilities. 
  2. Industrial license - This license permits businesses to engage in manufacturing and production processes. You can carry out business activities like manufacturing of home appliances, metal products and paper.
  3. Professional license - The professional license enables individuals to practice a profession of their choice in Dubai. Certain professional activities you can take up include accounting and auditing, engineering, advertising, and banking among others. 

Documents Required for Company Setup in Dubai

There is a certain set of documents which needs to be submitted to the authorities for company establishment in Dubai. Some of these include: 

  • Title Deed
  • Business Plan
  • Letter of Intent
  • Copy of Registration Certificate
  • Registration Identification Code (RIC) form
  • Specimen signature of the member(s) of the company
  • Passport copies of the company’s shareholder(s) and manager(s).
  • Audited financial reports from the bank for the last 2 years.

When looking to incorporate a business in Dubai, you need to be aware of the regulations put in place by the authorities. Commitbiz business consultants are fully aware of these and are well-equipped to guide you with the business incorporation process. Get in touch with them today!

Frequently Asked Questions (FAQs)

How much time does it take to incorporate a company in Dubai?

Business incorporation in Dubai can be completed within three weeks.

Which factors impact the registration cost for establishing a company in Dubai?

Factors such as business type, license fees, location, and administrative requirements impact the cost of company formation in Dubai.

Do I need a sponsor for company establishment in Dubai?

Having a local sponsor is necessary for companies that deal with specific regulated business activities.