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Company registration procedures in Dubai

٠٥ مارس Company registration procedures in Dubai

If you are thinking of an encouraging start for your business that guarantees you a strong investment environment and climate, fortified with effective laws, high-quality infrastructure, and encouraging commercial advantages, then you should immediately go to the Dubai Economic Department to start establishing a company in Dubai at a low cost, as these are advantages that are only available in Dubai.

Not only is Dubai the most popular business destination in the world, it also ranks high in business establishment, but there are several reasons why Dubai is your best choice for starting your business.

Company registration procedures in Dubai

Federal Law No. 2 of 2015 on Commercial Companies aims to encourage and develop the business environment and the country’s economic capabilities by regulating the work of companies in line with global changes, especially those concerned with regulating governance rules. The Commercial Companies Law in the UAE was a strong supporter of the flow of foreign investment through encouraging provisions, simple, low-cost and quick-to-accomplish procedures.

Investment and marketing opportunities at Expo Dubai 

 The UAE has achieved a major historical achievement in the Middle East and Asia after winning the bid to host Expo 2020. The World Expo is a promising opportunity for investors and businessmen to enhance marketing and investment plans, and Dubai provides additional advantages that encourage many entrepreneurs to invest and establish their companies in Dubai.

Many investors have headed to Dubai to invest their money because of the many advantages that Dubai’s geographical location provides, the most important of which is the location of the Emirate of Dubai, which connects the European and Asian markets and the Middle East and Africa markets. Dubai is distinguished by an advanced and multi-modal transportation network of air, sea and land transportation, which has made it in constant commercial activity. This requires the presence of international companies that have made Dubai a main headquarters for conducting their commercial business.

Requirements for establishing a company in Dubai

Establishing companies in Dubai requires complex procedures, but you must know their requirements and how to accomplish them. Establishing a company in Dubai is not complicated, as some steps can be accomplished in one day. All you have to do is know the necessary steps, including:

  • Choosing a distinctive trade name for your company according to the conditions stipulated by the Economic Department is the name that distinguishes your company.
  • Choosing the type of activity and legal form in which you will start the business.
  • Commercial License Registration There are a number of types of commercial, professional, industrial, agricultural, tourism, and other licenses.
  • Pay the fees set by the state according to the commercial activity
  • Complete the required and necessary registration procedures.

Company formation in Dubai

Required to establish a company in Dubai – establishing a company in Dubai – has become easy and fast, as there are two entities in Dubai that grant company licenses and procedures related to establishing companies in them. Perhaps you chose the Department of Economic Development in Dubai, or you wanted to establish your business in the Dubai Free Zone, which provides extensive privileges.

Determine the trade name

Determining the trade name is one of the most important steps that must be taken, as the trade name of your company distinguishes it commercially. The Department of Economic Development in Dubai sets some conditions for registering the trade name so that it does not violate public taste or contain inappropriate phrases that do not take into account traditions or religion.

It must be translated into Arabic and the name must be written in the same pronunciation in both Arabic and English. The name must not refer to the name of God Almighty or an attribute of the symbol of God Almighty. It must not bear the name of a country or government or the emblem or flag of countries and governments. It must be closely linked to the activity and bear the type of activity. The trade name must not be prohibited or belong to a religious sect and not resemble another trade name.

Type of activity and legal form

The UAE law, in Article Nine (9) regarding commercial companies, specified five legal forms for the company, and stipulated that any company that does not take one of these forms is not permitted to practice commercial work and is considered invalid. It specified the types of companies as follows:

  • Solidarity company
  • Simple limited partnership
  • Public Joint Stock Company
  • Private Joint Stock Company
  • Limited Liability Company

Facilitate licensing procedures that determine the type of activity

The Department of Economic Development in Dubai has set an economic strategy, which will be implemented by the Business Registration and Licensing Sector, by facilitating the procedures for obtaining a company license, developing services to encourage the start of commercial activities, and creating more job opportunities through the Economic Activities Guide, which explains the mechanism for conducting business and commercial activities in the Emirate of Dubai.

There are several areas for business licensing in Dubai, but most of them revolve around the following activities:

  • Commercial license: It enables companies to carry out commercial activities, import, export, sale and distribution.
  • Industrial License: This includes industries that are permitted to operate in according to UAE law.
  • Professional license: It includes all activities and fields of professional crafts such as carpentry, blacksmithing, etc.
  • Tourism license: includes hotels, restaurants, resorts, nature reserves, etc.
  • Agricultural license: It includes all agricultural activities.

In addition to the licenses for organizing events, conferences and exhibitions, and the business operation permit, which is a good option for companies wishing to operate in the free zone. The Dubai Economic Activities Guide contains all the information related to licenses, establishing and registering companies in various commercial activities, and legal forms.

Establishing Free Zone Companies in Dubai

The free zone in the Emirate of Dubai is considered a valuable opportunity for entrepreneurs and investors who wish to obtain their own companies. Dubai is distinguished by one of the largest free zones in the world, which is the Jebel Ali Free Zone, which provides you with encouraging advantages without the need for a local sponsor. It is characterized by the ease of company establishment procedures, their speed, and their low costs, as the free zone provides the following:

  • Full ownership of the company without the need for a local service agent
  • 100% is the tax exemption rate
  • Ease of establishment procedures, speed of completion and low costs.
  • Flexible solutions in all areas of business establishment.
  • Benefit from the business community in the free zones and the services of the free zone authorities through technical support, infrastructure support and legal support.

Privileges provided by Dubai for businessmen

In addition to the tax exemption that motivates businessmen and the package of other opportunities that make them willing to invest and establish a company in Dubai, entrepreneurs are also granted a five-year renewable residency privilege in the country for themselves, their families and three employees, provided that the entrepreneur or investor has a previous and successful project in an approved field with a minimum value of AED 500,000, and is authorized to operate from an approved business incubator. The UAE does not impose any taxes on establishing a company in Dubai, as businessmen receive a full exemption from any tax of 100%. Company registration procedures in Dubai