Setting up a company in Dubai- Visas,Licensing & Laws
Written By Jahnavi- 11th Dec’22
Over the past few years, Dubai has grown enormously economically. The Emirate changed from its oil dependent economy to one that is powered by innovation, knowledge and business. Dubai is one of the preferred places for entrepreneurs who wish to start their business in the UAE. This is due to the business friendly environment in dubai and availability of free zones. The excellent location and open economy adds to this. Dubai has evolved into a key hub for business opportunities, trade and investment. Import, export, commerce, logistics, event management, tourism, financial services, hospitality, and construction are some activities that take place in the Emirate.
How do I register my company in Dubai?
When registering a company, you have to follow some steps. These steps decide whether you will get the license or not since an error in any of the steps can cause rejection of the application. The steps are as follows-
1. Decide what the legal structure of your company will be
The structure of your company will decide where it can operate and the types of activities it can uptake. There are Commercial companies, Civil companies and Free Zone entities.
a. Commercial companies
- Sole proprietorship- A sole proprietorship can be owned only by a single person. The owner has complete authority and complete ownership when it comes to the company. A sole proprietorship of the professional kind may be held by anybody of any nationality, however only citizens of the UAE or the GCC may possess a sole proprietorship of the industrial or commercial variety.
- General Partnership- A general partnership is created when two or more UAE nationals who are jointly liable for the partnership’s debts come together. A partnership stake may not be transferred without the approval of all partners.
- Limited Liability Company- An LLC may have up to 50 shareholders. Every shareholder is responsible for their shares of the company. The shares are transferred to the heir after his or her death. They must appoint 1-5 managers.
- Representative office- Branch offices are a part of the parent company and have the same name as their parent company. A branch office and a representative office are different entities. Foreign enterprises can open representative offices in the UAE to promote the company, however they cannot do sales in the Emirates.
- Public Joint Stock Company- Public Joint Stock companies include those engaged in banking, insurance, or financial operations. They are appropriate for major operations or projects. The majority of the significant power holders must be nationals of the UAE. Profit distribution is less flexible. 25% or more of the shares must be made available to the general public. A minimum of 10 founding members are required, and a board of directors with a term limit of three years should be in charge of running the organization.
- Private Shareholding Company- A private shareholding company may be formed for any kind of business or industry. Its formation requires the presence of three UAE citizens or citizens of the GCC, or more. They can go public two years or more after their founding. The company must select a manager.
b. Civil companies
- Service Companies
- Speculative Venture Partnership
- Mudaraba Companies
c. Freezone entities
They maybe of 3 types-
- Free Zone Establishment (Single Shareholder)
- Free Zone Company (Multiple Shareholders)
- Branch of a foreign company
2. Registering a trade name for your company
After you have figured out what type of entity you want to establish, find a name for it. The name should not mention any offensive or rude word and ensure that the name is not already taken. The name should also not have any abbreviations.
3. Deciding the location of your business
Decide where you want to do your business. Choose whether you want a freezone, offshore or mainland setup. The area choices may differ depending on the activity you have decided to do. The area you choose decides where you can trade.
4. Collect the documents for submission
- Passport-size photograph
- Application Form
- Passport copies
- Tourist Visa
- Ejari Number ( verification of business space agreement/contract)
- External documents of approvals, if any.
5. Apply for license
Obtain external approvals and approval from concerned authorities. If you want to establish a mainland company then you will need an approval from DED and if it is a freezone company then approval from local authorities will be required. Submit the documents and fill the form.
6. Open a bank account
Open a bank account by selecting a bank that suits the best to your business needs.
Jobs and Visas
You can follow the procedures and obtain the visa you require. The visa depends on a variety of factors including your profession and whether you are in the emirates while applying or not.The applications are processed within 3 to 5 days. But these are done only after approvals from the concerned authorities.
The United Arab Emirates now allows the people to apply for their company setup online. These services allow you to apply for license, NOCs and approval requests.This way you can manage everything at one convenient place.
In order to give every person with a company in Dubai the best chance for success, upholding the Emirate’s laws and regulations is a crucial aspect of the local authorities’ responsibility. Dubai therefore has a strong compliance structure to guarantee that the operations of all the concerned authorities adhere to national and international laws, rules.
How RadiantBiz can help in setting up business in UAE?
Setting up a business in Dubai is a dream for many people. But due to the company setup procedures, many people make mistakes and have to repeat the entire process again. This can be cumbersome. This is where RadiantBiz steps in. We take care of each and every step of your business setup. We take care of the hard work so that you can take care of the more important and interesting parts of your business.
Our experts are experienced in their fields and have worked at some of the top organizations in their fields before joining us. Let us help you. Book and appointment with us today and get started now!