Are you thinking of starting your business in Dubai? Congratulations, you have chosen one of the best business ecosystems in the world for your new endeavor. Dubai is more than mere a city of architectural marvels- it is one of the most fertile grounds for new businesses. This is just one of the many things that make the commercial capital of UAE the best place to live and work. And as for starting up a business here, there’s no question that there’s a lot of potential to be tapped here in Dubai. So, if you are eager to set up your own enterprise, this article will help explain what you need to know and do to get your company registered and off the ground.
We have equipped this article with necessary links to guide you about the process and documentation required. Take a good look at the below before you kick off the actual process- the good news, though, is that on average, if you are ready with all required documents, it takes less than 10 days to start your company in Dubai. So, let’s start!
But before you start your legal formalities, you need to consider some elements required in the process:
Know your business
The success of a great business venture depends on sound knowledge of the local region, thorough research into the viability and demand for your product or service and a credible business plan that is likely to attract investment partners.
Yes you have a great idea, but is there a demand for what you are offering? What does your competition look like and what puts your business offering a notch above the others?
Select a Location that optimizes suitability, convenience, and costsAnother important step in planning a business startup in Dubai is to determine the most suitable location for the business. Setting up a profit-based enterprise in the city wouldn’t do you much good despite the growing economy if you’re customers or clients can’t reach you.You need to set up your business in an area that is most profitable for your business or most convenient to your business. A location in the right city can be selected for a shop or an office is most known for the type of product or service you are dealing with.
If you are planning a Free Zone company then you must make the selection based upon the criteria of distance, costs and if it is suitable for your product, business model, and trade requirements.
A tenancy contract must be concluded. If you’re aiming to start a small-scale enterprise, then the basic amenities, like telecommunication, storage, and space inside the establishment is the basic concern that must also be satisfied. Other services available in the commercial property can vary greatly.
Once you business is registered, the Ministry of Commerce will require owners to show proof of financial investment. If you are new to the region and have no track record, you must be prepared to find your own financial resources through your bank or by other means rather than relying on local support.
Once you have established the validity of your concept, from a marketability stand point as well as financial viability, you can now look at the steps for turning your idea into a booming business.
UAE Commercial Companies Law and Federal Law define seven basic categories of business organization that can be established in Dubai and the UAE. The requirements for minimum capital levels, shareholders and procedures for incorporation will vary with the type of business structure.
Changes to Foreign Ownership and Visa Rules Announcement
Anyone coming into the UAE as a professional or as an investor is typically granted a residence visa of two years, which is renewable. This has now been changed to a ten-year visa for investors and professionals in highly skilled fields such as engineering, medicine and science. Students will be given a special five-year visa, while those who consistently perform well and earn top grades will be granted a ten-year visa as well.
Another very significant change is in the ownership of companies.Businesses within the UAE are divided into two main categories: mainland businesses and freezone businesses.
At present, mainland businesses can be partially owned by expatriate entrepreneurs, but must have a UAE national as a majority shareholder in the company. Freezone companies, on the other hand, can have full foreign ownership and are subject to separate regulations depending on the freezone.
With the new regulations, every business, whether mainland or freezone, will be able to have 100% foreign ownership without the need for an Emirati partner.
Confirm your Visa eligibility and requirement
For a business startup in the UAE, a visa permitting you and employees to live in UAE is essential to run your business.
Visas are allowed for almost all businesses.
However, their number varies according to a variety of criteria such as the size of the office, nature of the business, the category of the employee or the investor.
Documents Required for LLC
Investor’s passport copy
Local Sponsor’s passport copy
Manager’s Passport copy
Registration application form from Economic Department
Trade name reservation
Initial approval from Economic Department Tenancy contract for the Office/warehouse or showroom attested by planning department and civil defence department of Dubai municipality along with location plan.
Memorandum of Association duly attested from public notary.
Documents Required for Professional firms
Parent Business formation certificate duly attested from the UAE embassy in the home country of the parent organisation.
Board resolution for establishing a branch and to appoint the manager for the same
Attested copy(from UAE Embassy) of organisation memorandum / articles of association
Financial statements for the last two years
Local service agency agreement duly notarised in the UAE courts
Passport copy of the local service agent
Passport copy of the Manager
NOC letter in favour of the Manager from the sponsor, if he is a resident of the UAE
Company Registration in Dubai, UAE
Businesses of any category operating in the UAE must have a license for registering into the business network of the country. Company registration in UAE requires a trade license and permission from different law enforcement agencies and the state government for setting up your business. Company registration in Dubai for businesses like financial services, food, health services, printing and publishing requires a lot more clearance than any other business.
Company registration in UAE falls into following three categories depending on the nature of your business:
Company Registration in Dubai, UAECommercial License – This license is issued to those companies who are just looking for trading business activities.
Industrial License – This license is for those companies who will engage in manufacturing or other industrial activities.
Professional License – This license is issued specifically for different service providers, artisans, craftsmen and other professionals.
For the company registration in Dubai, the Department of Economic Development (DED) of UAE issues the required licenses.
Get a License Notification
There are many complex requirements associated with the issuing of the business license. The company registration in Dubai for financial services must need the approval of the Central Bank of UAE. The license for the manufacturing companies requires approval from Industry ministry of UAE. Similarly, the medical service providers require approval from the Health Ministry of UAE.Once the necessary documents are obtained and formalized, the initial application process will begin at the relevant issuing authority along with registering the company’s formal name. This crucial stage paves the way for clarification of the final fees and the final acceptance of the company’s proposed activities.
Hire a registration agent to take you through the process of business startup
Hiring a business advisory firm to register your business startup may be your best option.
These consultants will not only hold your hand right through the setup process but will also actually register the company for you. And will help with opening your bank account, arrange for an auditor, do your renewals and offer you nominee services.
You may find their expertise in dealing with the local government bureaucracy and with Free Zone Authorities to be of great help in planning and itemize your business startup costs.
In most cases, these firms offer a team of experts to plan out your company registration from scratch – this includes the strategies you need to follow in order to smoothly set up your business, itemizing potential costs, offering licensing and location options, coming up with solutions for potential business hurdles, and so on.
Also, they will take care of all the necessary requirements to help you to have your business registered legally with minimal problems on your end.
If you are looking for trading in any of these industries in Dubai or any other, then we can give you the best advice for your company registration in UAE. For more details visit: http://www.namaccountants.com/ or Contact us: 971-558876440