Steps to establish a company in Dubai
Itqan provides you with all the requirements to establish your company in Dubai. Your residence and commercial registration in Dubai in only three steps
The company in Dubai is a legal entity registered with the Department of Economic Development in Dubai (now the Dubai Department of Economy and Tourism). It is governed by the UAE Commercial Companies Law (Federal Law No. 2 of 2015).
It offers the investor many advantages. Whatever the size of your business, whether it is a large, medium or small company, you need to follow the steps to establish a company in Dubai and complete several procedures.
Itqan helps you find all the information you need to start your own business setup in Dubai, such as the necessary procedures for establishing a project in Dubai, investment opportunities in Dubai and many other details…
What are the steps to establish a company in Dubai?
- Determine the nature of the business or the company’s activity
- Initial approval
- Choosing a company headquarters
- Statements of the authorities concerned with the activity of the establishment
- Trade name registration.
- Obtaining the license
Let’s move on to the details…
Steps to establish a company in Dubai
The UAE government offers many privileges and facilities to help investors when establishing an investment activity on its lands. However, the steps to establish a company in Dubai must be followed carefully to start your project correctly.
These procedures are divided into several stages, and companies are divided according to their commercial activity into 3 types: commercial, professional and industrial.
Determining the company’s activity is the first of the steps to establish a company in Dubai. It helps you identify the type of company, its legal form, and the parties from which approval must be obtained. If you prefer a free zone, read our IFZA company setup guide.
The following are the legal forms of companies and the activities that are permitted to be practiced in the UAE:
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• Determine the legal form of the company
You must determine the legal form of your company in order to register your commercial activity with the concerned authorities, such as the Economic Development Authority. Choosing the legal form is one of the most important steps to establish a company in Dubai.
Companies are divided according to their legal form into five types:
- A limited liability company
- Solidarity company
- Public shareholding company
- Civil works company
- A private joint stock company
Initial approval
You can obtain the initial approval after completing the first steps in the process of establishing a company in Dubai. It helps you follow up to obtain the approval of all the authorities related to the activity when necessary.
However, foreign investors must obtain the approval of the General Directorate of Residency and Foreigners Affairs before obtaining the initial approval. Learn more about company formation in Dubai without a sponsor.
• Choosing a company headquarters
Choosing the right location is a key part of the steps to establish a company in Dubai.
There are several other things to consider when choosing a location: The new license owner or local partner must be the same owner or partner in the existing license on the site The total number of licenses owned by a citizen should not exceed 10 licenses subject to the system of multiple licenses on the same site. The area of the company’s site should not be less than 200 square feet• The approvals of the authorities concerned with the activity of the establishment
Getting the required approvals is one of the essential steps to establish a company in Dubai.
The various activities of the company require approvals from the authorities concerned with the company’s activity. which you can inquire about at the Department of Economic Development, including:The Ministry of Economy for insurance activities
The Ministry of the Interior for transportation-related works
The Ministry of Justice for the activities concerned with providing legal advice
Civil Defense for the activity of selling firefighting equipment
• Trade name registration
Registering a trade name is another of the main steps to establish a company in Dubai.
The company’s trade name plays a key role in determining the type of license granted to it. When choosing a trade name, there are several criteria and conditions that must be adhered to. The most important of them:- The name should not contain inappropriate words. Not to violate public morals
- The name should not be repeated or used by another company
- The name of the company should reflect its commercial activity
• Obtaining the license
Obtaining the trade license completes the core steps to establish a company in Dubai.
Attach the documents required for the previous steps and submit them to the Department of Economic Development Pay the trade license fee• Membership registration in the Chamber of Commerce
To register membership in the Dubai Chamber of Commerce, the following requirements must be submitted. This is the last of the steps to establish a company in Dubai:
- A copy of the license issued by the competent authority in the Emirate of Dubai.
- Authorized signatures in the delegated signatures card, provided that the cards of the signatories are obtained from any of the branches of the Dubai Chamber, with passport photos of all authorized signatories. (Delegation is accepted after the conclusion of a notarized agreement or power of attorney.)
- A copy of the memorandum of association (foundation agreement). This applies to limited liability companies and branches of foreign companies.
- A copy of the incorporation certificate (this applies to companies operating in the free zone).
- Pay the fees (if not paid along with the license issuance fees at the Department of Economic Development).
After registration, remember to complete your VAT registration in Dubai if your business qualifies.
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Now that you have joined as a member of the Dubai Chamber of Commerce, you can launch your project and start practicing your commercial activity. Follow the Itqan blog, through which we aim to provide all the information you need in this regard.
How mastery can help you
If you encounter any difficulties at any stage of establishing your company, or have any legal or commercial inquiries, do not hesitate to contact us, as we are ready to provide advice at any time.