The company registration in Dubai may get complex and confusing if not conducted with proper guidelines and consultations. This article is dedicated to this very particular topic and shows step-by-step process at a simplest form to give you a brief idea about company setup in Dubai. The ultimate aim here is to provide an investor the most linear path of establishment of a company in different areas of the UAE and across the country.
Types of legal business entities in Dubai
There are two types of company zones where one can establish their business in Dubai.
- Free zone
- No free zone
In order to set a legal business in this country you have to choose either one of them and move forward with your next company setup process. Following are the two legal business entities which an investor can conduct in Dubai.
- Free Zone Company (FZ Company) also known as Free Zone Limited Liability Company (FZ LLC)
- Establishment of Free Zone
The difference in these companies mentioned above are mainly depend on the number of shareholders and the types of shareholders are various attributes they possess. All free zones in Dubai cannot register both types of companies. You need to search for types of companies’ availability that is registered through the individual Free Zone Authority. Once you have determined the spot where you want to establish your company, the next steps are straight forward. You need to complete some stages of company registration process and validate you company in this nation accordingly.
Requirements for Business Ownership
The United Arab Emirates (UAE) must own a 50% (51%) stake in a company established in Dubai or anywhere else in the United Arab Emirates (UAE) with a professional license. An exception to this requirement is one of the following 7 conditions:
- The company was established in Dubai Free Zone.
- 100% local ownership is required by law.
- A company owned by the Gulf Coast Cooperation Council (GCC) is involved in an alliance with another company owned by the UAE nationals.
- GCC citizens or corporations may have 100% ownership in certain activities.
- Artisan or professional company with total foreign ownership allowed
- Problems of registering foreign representative or branch office in the United Arab Emirates.
- Foreign ownership can be 100% if professional licenses for occupations such as architects, doctors, and artists are implemented. However, the local country must be considered a “service agent”.
Stages of business registration in Dubai
Company registration in Dubai demands some government demands which need to be kept under consideration. Following are those mandatory stages:
Select business niche
At the very beginning of company setup process in Dubai, you must determine a particular business niche you want to work on. In other words, this is going to be your core business activities. You can consult experienced business advisors and consultants in Dubai to get appropriate business activities of your type. These consultations will also guide you to determine cost and paperwork evaluations when setting up your business visa requirements.
Select a business name
Choose a unique trade name. Propose more than one name at the beginning during registration of the company process. You can take assistance from your business advisor when naming your company.
Complete all related enrollment process
At this stage you have to clear out all annualization, Finish the registration process by submitting name and registration form before proceeding with the government licensing process.
Claim your business license
You have to apply for the appropriate business license. When applied accordingly, you will receive notification of your license. Once your company license is issued, you are pretty much done with your company setup process. Mean that time you will receive your registration certificate as well.
Create a new business bank account
Opening a bank account will be your next necessary thing to do. By this time, you suppose to have all the documents for opening a business bank account. You can make this process much more convenient by asking your local bank or an international bank, or by starting with an expert advisor at the main bank.
Apply for Immigration cards and visa processing
Apply for your Business Immigration Card. There are various packages available for acquiring this card in Dubai. If you choose the Visa Trade License package, the immigration authorities will apply for your immigration card. Another compulsory item you need to possess is your visa. A foreign investor needs to have a proper visa if want to do business.
In Dubai, all business outside the free zone is controlled by Dubai Economic Development (“DED”). The DED is a government agency responsible for granting licenses to people wishing to do business in Dubai. To manage Free zone Facilities new laws has been enacted for the open areas of Dubai. This has been done to keep the businesses conducted in Dubai under proper monitorization and governance. Which ultimately makes company registration in Dubai much more transparent and convenient in long run.