17 Jul Establishing a contracting company in Dubai
Establishing a contracting company in Dubai, Dubai is a city rich in resources and factors that encourage investors to invest in several areas active in the city, including real estate investment.
The government also supports contracting companies with all modern facilities and continuously developing infrastructure, office services, electronic support means, and other facilities and regulations that regulate the process of establishing a contracting company in Dubai.
In the following lines, we discuss ways of government support for contracting companies and the advantages that the investor obtains when establishing a contracting company in Dubai, in addition to the steps and some important tips before entering the market.
Advantages of establishing a contracting company in Dubai
Government authorities in Dubai provide all support to investors to facilitate the process of establishing a contracting company in Dubai through the following support points:
- Establishment of free zones in Dubai, in which there are facilities and tax exemptions for investors, the right to full foreign ownership, freedom to dispose of capital and profits, and other advantages that investors seize.
- Establishing a contracting company in Dubai, including accommodation and providing shared offices to work for low fees and costs.
- Providing electronic platforms for establishing a contracting company in Dubai and providing many electronic payment methods in order to save time and effort on the investor.
- Providing the necessary facilities and services to establish a contracting company in Dubai and providing various office spaces and all the needs for this type of company to provide an ideal work environment.
Steps to establish a contracting company in Dubai
- Determine the nature of the activity
The first step in establishing a contracting company in Dubai is to determine the nature of the company’s activity, which is an important step on the basis of which the rest of the steps and procedures are determined.
- Trade name reservation
The second step in establishing a contracting company in Dubai is choosing the trade name for the contracting company. This is because the company’s trade name is what distinguishes a commercial license from another trade license, and the trade name is registered with the Department of Economic Development in Dubai. The regulations and laws stipulate conditions for choosing the trade name of the contracting company as follows:
- Choosing a trade name for the contracting company based on the nature of the company’s activity.
- The trade name should not include the name of a government agency or include the word “Majesty” or “The Most Beautiful Names of God”.
- The trade name of the contracting company should not be similar to the name of another company.
- The trade name should be followed by an abbreviation of the legal form of the company.
- Determine the legal form
The third step in establishing a contracting company in Dubai is determining the legal form that expresses the contracting company. There is a condition for determining the legal form of the company, which is that it is compatible with the company’s activity, as the legal form of the company determines the laws 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
The fourth step to establishing a contracting company in Dubai is to obtain the initial approval from the competent authorities after selecting a trade name, determining the activity in which the company will operate, and determining the legal form.
- Memorandum of Association and business agent agreement
The fifth step to establishing a contracting company in Dubai is to sign the Memorandum of Association and often requires the conclusion of a local service agent or company agent agreement according to the legal form of the company. For these 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
The sixth step to establishing a contracting company in Dubai is choosing a business location for a company through purchase or rent. One of the conditions of the regulations is to submit a contract notarized by the Real Estate Regulatory Authority in Dubai.
- Obtaining additional approvals
The seventh step for establishing a contracting company in Dubai is to obtain additional approvals, 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
The eighth step to establishing a contracting company in Dubai is obtaining the trade license that will be used after paying all the fees related to the license and then receiving it from the service centers in Dubai to start officially flagging and registering with the UAE Chamber of Commerce as a member.
Tips for establishing a contracting company in Dubai
- Establishing a contracting company in one of the free zones in Dubai to take advantage of the facilities and exemptions there.
- Buying an old company that already existed in the past for easy procedures.
- Avoid partnership with a local citizen in order to avoid complications and problems, unless you are financially incapable of all the costs. In this case, it is preferable to partner with a local partner who has influence and connections.
- In the case of a partnership with a local Emirati partner, contracts must be signed that include that you are the owner of the company to guarantee your rights because the local partner will receive 51% of the company’s shares and clarify that this partnership is for a monthly or annual fee.
- Deposit the minimum amount of capital in a bank in Dubai and obtain an account statement to be submitted to the Ministry of Commerce to prove your financial ability to establish a contracting company in Dubai.
- Hire a service agent in Dubai to handle all procedures and transactions with government agencies and provide integrated solutions to all problems that may occur.
- If you want to change the company’s activity, you must go to one of the branches of the Department of Economic Development and change the company’s data.
Establishing a contracting company in Dubai
Do not think too much, as you are in the right place to seek assistance in establishing a contracting company in Dubai, through the comprehensive and integrated services that we provide in our company with the help of the strongest team working in the field of establishing companies and investment consulting.
We are one of the largest companies that provide investment services in Dubai and provide all means of support to our clients. This is because we are distinguished by:
- We have many years of experience establishing different types and sizes of companies in Dubai.
- Our company’s team is trained in legal procedures and transactions with the competent authorities in Dubai.
- Specialized in extracting and renewing all commercial licenses for various activities.
- We are distinguished by quality and clearing all procedures in the fastest time and at the lowest costs.
- Offices, warehouses and stores available for rent at the best prices in Dubai.
- Comprehensive support plan to solve problems and answer questions 24 hours a day, seven days a week.
- Legal advice through the most qualified legal consultants in the field of investment in Dubai.
In this article, we talked about the advantages of establishing a contracting company in Dubai and got acquainted with the steps of the incorporation process, which are 8 legal steps that end with obtaining the trade license necessary to conduct work and establish a contracting company in Dubai legally to benefit from the many investment advantages, We also offered you several tips before thinking about establishing a company in Dubai.
For more information about establishing a contracting company in Dubai, and to request assistance in obtaining commercial licenses and dealing with government agencies to complete all procedures and papers, contact our team now and book your consultation with us.
Contact us today and get a free consultation to implement all your business plans!