Joint Venture Company Formation in Dubai

Dubai, a major business hub, attracts many entrepreneurs like you from around the world. Setting a joint venture in Dubai is a popular choice to establish your business in the Emirate. 

This business structure requires you to collaborate with a local business to expand your company. It also allows you to learn about the business environment. Read on to learn about joint venture company formation in Dubai.

What is a Joint Venture Company?

A joint venture company is a business structure formed when a foreign company seeks the support of a local company to start its operations in Dubai. This type of business venture is ideal for those who wish to collaborate with other businesses to work on related projects. In order to make your collaboration successful, you will need to sign a commercial agreement. 

Features of a Joint Venture Company in Dubai

A joint venture company has certain features. Let us take a look at them.

1. In a joint venture company, the local company must own a majority of the company shares.
2. Profit and loss distribution is based on the terms decided upon by the partners. 
3. The original partner's license (local company) is sufficient for the execution of the project. 
4. The foreign partner deals with third parties under the name of the local sponsor.
    

How to Set up a Joint Venture Company in Dubai?

For successful joint venture company formation in Dubai, you need to follow the steps mentioned below -

1. Decide on the business activity and trade name. 
2. Find an appropriate location to establish your business.
3. The parties involved must register a Joint Venture Partnership agreement with the Dubai Department of Economic Development (DED).
4. All parties must sign a form issued by the relevant authority in front of a public notary. 
5. Apply for initial approval from the relevant authorities after obtaining the contract.
6. Submit the necessary documents and pay the required fees.
7. Lease an office space to conduct your business operations. 
    

Documents Required to Establish a Joint Venture Company in Dubai

You must submit certain documents to the DED at the time of incorporation of a joint venture company in Dubai. These include the trade name certificate, passport copies and Emirates ID of all the applicants, no objection certificate issued by the local sponsor, certificate of approval of your business activity, and residence permit (for foreign applicants only), among others.

Many entrepreneurs like you, who wish to expand their reach tend to rely on the formation of joint ventures in Dubai. By finding the right partner, both businesses can seize the opportunity to grow.

Joining hands with a local company gives you a competitive edge in achieving growth for your business. To learn more about what the Emirate offers for joint venture company formation, reach out to the team of business consultants at Commitbiz LLC.