19 Feb Establishing a contracting company in Dubai
Establishing a contracting company in Dubai is one of the most profitable investments. Dubai is a city rich in resources and services that encourage investors to establish various businesses in several profitable fields in the city, including real estate investment.
The government supports contracting companies in Dubai with all possible services, facilities, and advanced infrastructure, on an ongoing basis, in addition to office services and modern electronic support means. And a lot of facilities and regulations that support the establishment of a contracting company in Dubai.
In the following lines of this article about establishing a contracting company in Dubai, we shed light on the ways in which the government supports contracting companies in Dubai. In addition to the necessary steps, features, and some important tips for investors and contractors before entering the market.
Procedures for establishing a contracting company in Dubai
- Determine what is the economic activity of the company?
What is the economic activity of the company?
To establish a contracting company in Dubai, the nature of the appropriate activity for the company must be determined. It is an essential procedure in order to complete the rest of the legal procedures for establishing the company.
Every company in Dubai has an appropriate activity that reflects it and the way the authorities deal with it and defines the regulations and laws that will regulate it.
- How to choose and reserve the company’s trade name?
How to choose and reserve the company’s trade name?
To establish a contracting company in Dubai, the trade name of the contracting company must be chosen. The company’s trade name is what distinguishes the company’s trade license.
Trade name registration is through the Department of Economic Development in Dubai. Here are the conditions for selecting and reserving a trade name in accordance with the by-laws of the contracting company as follows:
- Choosing an appropriate trade name for the contracting company reflects the nature of the company’s activity.
- The commercial name of the contracting company should not include the name of a government agency, the word “Majesty” or the Most Beautiful Names of God.
- The trade name chosen for the contracting company should not be similar to the name of another company.
- The trade name of the contracting company should be followed by an abbreviation of the legal form of the company.
- Determine what is the legal form of the company?
Determine what is the legal form of the company?
to establish a contracting company in Dubai, The legal form expressing the contracting company in Dubai must be determined. To determine the legal form of the company, there are several conditions, namely that it is compatible with the company’s activity. Where the legal form determines the regulations under which the contracting company will operate in Dubai, There are many legal forms for companies as follows:
- Solidarity companies in Dubai.
- Simple Recommendation Companies.
- Limited liability companies.
- Public joint stock companies.
- Private joint stock companies.
- Commercial representation offices.
- Civil works companies.
- A branch of a local company.
- A branch of a foreign company.
- Free Zone Company Branch.
- Individual Foundation.
- holding company.
- Obtaining the initial approval
To establish a contracting company in Dubai, A prerequisite is obtaining the initial approval in Dubai from the competent authorities. This is done after selecting a trade name, defining the activity, and determining the legal form.
- Memorandum of Association and business agent agreement
to establish a contracting company in Dubai, The signature of the Memorandum of Association must be submitted and often a local service agent or company agent agreement must be concluded in accordance with the legal form of the company, And for those legal forms:
- Civil works company.
- One person company.
- A limited liability company.
- Simple recommendation company.
- Public joint stock company.
- Solidarity Company.
- Private joint stock company.
- Determine the business location of the company
to establish a contracting company in Dubai, The contracting company must have a business location in Dubai by purchase or lease, A contract notarized by the Dubai Real Estate Regulatory Authority is required.
- Obtaining additional approvals
to establish a contracting company in Dubai, Additional approvals are required. This is because some activities require obtaining additional approvals from the authorities concerned with the nature of the establishment. Such as:
- Ministry of Foreign Affairs.
- Ministry of Civil Defense.
- Ministry of Justice.
- The Ministry of Economy.
- Dubai municipality.
- communication activities.
- Engineering and architecture activities.
- Dubai Health Authority.
- Supreme Petroleum Council.
- Obtaining a trade license
to establish a contracting company in Dubai, It is required to obtain a trade license from one of the service centers in Dubai. And after paying all the fees required for the license, To start the flag officially, you must register with the UAE Chamber of Commerce as a member.
Tips for establishing a contracting company in Dubai
- We recommend establishing a contracting company in a suitable free zone in Dubai. To take advantage of the facilities and tax exemptions there.
- There is an option to buy an old company that existed previously, In order to facilitate the procedures followed for incorporation.
- Avoid partnering with a local Emirati, In order to avoid complications, except in the event of financial stumbling, in this case it is preferable to partner with a local partner who has influence and connections.
- In the event of a partnership with an Emirati partner, it is required to sign contracts guaranteeing that you are the owner of the company to guarantee your rights. Because the local partner will get 51% of the company’s shares, And make it clear that this partnership is for a monthly or annual fee.
- Deposit the minimum capital in a bank in Dubai, Submit an account statement to the Ministry of Commerce to prove your financial ability to establish a contracting company in Dubai.
- It is better to use one of the service agents in Dubai. To take over legal procedures and transactions with government agencies in Dubai, Providing comprehensive solutions to all problems that may arise.
- If you want to replace the company’s activity with another, you must go to one of the branches of the Department of Economic Development to change the company’s data.
Pros of establishing a contracting company in Dubai
In Dubai, the government authorities provide the required support to investors to facilitate the procedures for establishing a contracting company in Dubai. This is through services in the following points:
- Developing investment free zones in Dubai, which offer several facilities, tax breaks for investors, the right to full foreign ownership, Freedom to dispose of capital, profits and other advantages that investors benefit from.
- Providing co-working offices for very low fees and costs for establishing a contracting company in Dubai, including accommodation.
- Providing electronic platforms to facilitate the establishment of a contracting company in Dubai, in addition to providing many electronic payment methods in order to save time and effort.
- Providing the facilities and services necessary to establish a contracting company in Dubai, Providing different office spaces and all the needs for this type of company to provide an ideal work environment.
In this article, we talked about how to establish a contracting company in Dubai and dealt with 8 legal procedures that end with the trade license necessary to conduct business and establish a contracting company in Dubai legally to take advantage of the many investment advantages, We learned about the advantages of establishing a contracting company. We also offered a number of tips before starting to establish a company in Dubai .
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