The UAE is a safe place to establish a successful and secure foreign investment, as more than half of its population is made up of expatriates. Not only are the resources available, but there is also an excellent business climate in general, resulting from the stability of the country’s political atmosphere.
The UAE is also working to provide a rich investment environment at the regional and international levels. According to the World Bank’s Doing Business Report 2019, the UAE topped Arab countries in ease of doing business, and ranked 11th globally.
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ToggleProcedures for establishing a company in Jebel Ali Free Zone
- The Free Zone Administration will examine the submitted offer once these documents are received.
- Get initial approval.
- Filling out the forms and documents shown in the license application form appendix, which are necessary to obtain the legal status of the company.
- Arrangements are being made for a meeting to discuss and finalize the project details.
- The Free Zone Authority will issue conditional approval for the project.
- The Free Zone Management will prepare a lease agreement; the Management will prepare a personal guarantee agreement for the company to sign.
- At the time of signing, the applicant must provide the insurance certificates required in the agreement and pay the rent and license fees before receiving the license.
- The company must submit entry sign permit applications as soon as the license is issued to it if it wishes the Free Zone Administration to sponsor the employees on behalf of the company.
- Providing the bank guarantees required in the personal guarantee agreement along with the entry visa expenses.
- If the project requires the construction of a building, a detailed plan must be submitted after signing the lease.
- When the building plan is agreed upon, a building permit will be issued.
- Administrative work related to importing equipment and assigning workers to install equipment may be undertaken during the construction process; however, applications for permits to enter the work, which will be handled by the Free Zone Administration, will not normally be accepted until a certificate of completion of the construction process has been issued.
Steps to establish a company in Dubai Jebel Ali
- Determine the economic activity of the establishment:
Determining the activity is the first step in the process of issuing a commercial license. Through the activity, the parties associated with this activity and the legal forms permitted for the activity are determined. There are more than 2,100 economic activities available in the Emirate of Dubai, where these activities are divided into different groups: commercial activities, industrial activities, professional activities and tourism activities.
The type of license is linked to the type of activity. If the activity of the license is professional, the type of license will be (professional). If more than one type of activity is combined in the license, we take the largest activity and consider the industrial activity to be the largest, followed by commercial, and then professional.
Industrial, commercial and professional activities can be combined provided that the activities are homogeneous or a permit is issued for the activity to be added. For example: If commercial and professional activities are combined in one license, the license type will be commercial because the commercial activity is the largest activity (this does not apply to tourism activities).
There are 3 types of licenses that can be obtained within the Dubai South Free Zone:
- Industrial license for light industrial activities
- Logistics License: Issued only in the logistics services zone, to carry out logistics services.
- General Trading and Trading License: To import, export, distribute and store the products specified in the license, and sell the products within the UAE market through a local distributor.
Now, starting a business in Dubai is faster and easier than ever, in line with the vision of the Dubai Department of Economic Development to help business owners launch and expand their businesses without the need for lengthy processes and procedures.
There are also two entities in Dubai for licensing companies:
- The Department of Economic Development is the only destination for registering establishments and companies within Dubai on the one hand.
- And more than 20 free zones on the other hand.
Both entities within Dubai and in the free zones provide different advantages to business owners depending on the type of business and its activities.
If the client wishes to establish an economic establishment (institution or company) in the Emirate of Dubai, he must register with the Department of Economic Development, which is responsible for registering and licensing institutions and companies in the Emirate of Dubai. If there are any inquiries at any stage of obtaining a commercial license, please contact us so that we can provide support and advice.
The UAE has over 50 free zones covering all major business sectors. Whether your business is in manufacturing, trading, consulting, education, healthcare, technology or more, the UAE’s free zones are ideal locations to set up your business. Dubai is the business capital of the UAE, with free zones specifically established to serve a wide range of business sectors.
In their quest to follow Dubai’s vision, other emirates have also developed their own free zones, offering flexible rates to compete in the UAE market.
Free zones for limited liability companies provide a flexible structure for companies and individuals alike, and provide a very easy process to establish and operate companies within just a few days, as this process can be completed remotely, and foreign investors are not required to be physically present in the UAE to establish a new company.
Permitted investments in Dubai:
Activities of the Department:
- These are activities that cannot be limited to LLC.
- It takes a legal form as a sole proprietorship, a civil business company, a branch of a Gulf company, or a branch of a foreign company.
- The director or license holder must be enrolled in the consultant qualification program at the American University in Dubai.
- The manager of foreign companies wishing to engage in consulting activities must join the consultant qualification program at the American University in Dubai.
Engineering activities of Dubai Municipality:
- These are activities related to the engineering field only.
- These are activities that cannot be limited to LLC.
- It takes legal form as a sole proprietorship or a civil business company only.
- The parties to the license, whether owner/partner/manager, must have a university degree in the same field of the desired engineering activity.
- No service agent is required for engineering activities.
- Foreign engineering consulting offices can open branches without the need to appoint a company agent.
Legal consulting activities:
- The approval of the Legal Affairs Department must be obtained before obtaining the initial approval and trade name from the Department.
- Foreign legal consulting offices can open branches without the need to appoint a company agent.
General Trading Activities:
- Many types of commercial activities that do not require the approval of other parties can be practiced through this activity and in one place. It does not include activities that require the approval of external parties except after obtaining a no-objection from those parties. Example: jewelry trade, newspaper and magazine trade.
- General trading activity can include all direct commercial activities if approved by other relevant authorities. Example: General trading activity can include the activity of trading in wired and wireless communication devices upon obtaining the approval of the Telecommunications Regulatory Authority.
- A fee of AED 15,000 is collected for general trade activity in the following cases:
- Upon issuance of the license
- Change activity by general trade
- Upon license renewal, an amount of 3,000 UAE dirhams is collected annually.
Investment activities:
- The company cannot take the legal form of a “sole proprietorship”.
- Branches can be opened with all types of professional, commercial, industrial and tourism licenses, provided that they are branches of the parent company.
- It is not permitted to practice any economic activity through this activity, but rather to own shares in other companies or open branches.
- The word group or holding may be used for the trade name of this activity.
- A fee of AED 15,000 is collected for all types of investment activity in the following cases:
- Upon issuance of the license
- Change of activity for investment of all kinds
- Upon license renewal, an amount of 3,000 UAE dirhams is collected annually.
Corporate and Institutional Management Activities:
- This activity allows the management of any company or institution affiliated with one person, provided that it has no less than 3 licenses.
- It is not permitted to manage companies or institutions affiliated with others.
- The word group can be used in the trade name, example: BNP Group.
- The activity of managing companies and institutions is exclusive to citizens of the United Arab Emirates.