If you are contemplating setting up a new company in Dubai or UAE, this is the right time. As the Dubai World Expo is fast approaching, the event is anticipated to boost the UAE economy to a great extent. The grant event is estimated to bring in a total of 25 million visitors and contribute significantly to the total GDP of the Emirates. The investor-oriented tax and monetary benefits, stable economy, business jurisdictions, helpful business regulations are added advantages. Setting up a company in Dubai is not at all an easy task. It requires the most updated knowledge of myriad business formalities, rules, and regulations and considerable experience in the domain of Business Setup. The UAE government, without an iota of doubt, is investor-friendly and plays a vital role in helping and promoting investors and entrepreneurs across the world. The UAE Federal Government has done its best to keep the formalities simple and straight forward.
Business Set Up Formalities In Dubai, UAE
The business set up formalities that you need to accomplish to set up a business in Dubai or UAE are listed below. We, Kiltons business consultants deal with these on a daily basis in the UAE.
- Determine the most feasible business activity
You should have a clear understanding of the type of business activity that you are willing to pursue in the UAE. Once you have attained a clear picture of the overall scenario, determine the most appropriate business activity that suits your capital and area of expertise. You may even conduct a feasibility study based on the jurisdiction of the business setup.
- Determine the jurisdiction of business activity
A detailed feasibility study will help you determine the jurisdiction of the business setup. There are 3 major jurisdictions in the UAE and they are Mainland, Free zone and Offshore. Selecting business jurisdiction is one of the most vital aspects of business setup in the UAE. The UAE market is classified into these jurisdictions for the purpose of enhancing company formation efficiency. In the process of determining the apt jurisdiction, one has to consider multiple factors like the activity of business and the major requirements.
- Finalize the legal structure of the business
Acquire a clear understanding of the different legal forms of a business setup like Limited Liability, Partnership, Public or Private Shareholding etc. Define the legal structure prior to the licensing stage of your business. You may finalise the legal structure of your business by considering the business activity and jurisdiction of the business.
- Approval of the trade name and business activity
The approval of the trade name and business activity is carried out by the competent authority known as the Department of Economic Development. In this stage, you are required to submit all the necessary documents for the purpose of license issuance.
- Selecting the license
A Business license is issued based on the type of business activity. The major licenses issued in the UAE mainland are Industrial License, Commercial License, Tourism License, and Professional License. Opt for the license that suits your activity. The licenses issued may vary with the type of jurisdiction.
- Accomplishing the registration of your business
Registration is the process of acquiring a series of approvals from the concerned authorities, depending on the type of business and business jurisdiction. The documentation aspect in connection with company registration is complex and these formalities may vary with the business activity and the legal structure of the business.
- Assigning a local sponsor for your business
Another crucial aspect of company formation in the UAE is assigning a local sponsor for our business. The local sponsor is supposed to be a UAE national. Finding a dedicated and trustworthy local sponsor is a must for the efficient and smooth running of your business. Getting a responsible local sponsor can be a difficult task for a first-time investor or a young entrepreneur. Under this circumstance, you may seek the service of an experienced business consultant.
- External approval requirements
Depending upon the type of business, you may have to acquire approvals from various government bodies and other external agencies like banks or municipality.
- Drafting the MOA
Memorandum of Association is one of the most integral documents connected with LLC Incorporation. Seek the help of a legal expert or a business consultancy in the process of drafting the MOA.
- Getting a suitable office space
Find an apt office space that perfectly suits your business requirements and goals. Getting an office is a mandatory prerequisite for acquiring a trade license. You are required to prepare the tenancy contract for the selected office space.
- Acquiring the Initial Approval
The Economic Department issues an Initial Approval before the issuance of the Trade license. This allows you to commence the operations prior to the trade license issuance. The Economic Department issues the Initial Approval only after the submission of documents like trade name reservation document, external approvals and partner’s passport (copy).
- Final Document submission
You are supposed to submit a list of documents to the DED prior to acquiring the trade license and those documents are listed below.
- Certificate of Initial Approval
- Legal structure agreement (attested)
- Application for License issuance
- Initial approval
- Copy of the passport for partners
- Tenancy agreement
- Other documents
- Acquiring your trade license
Pay the required fees after document submission. After verifying all the submitted documents, the Department of Economic Development issues the Business License.
Most of the aforementioned procedures are a bit daunting for the vast majority of businesses. And hence it is always feasible to entrust the business setup in Dubai tasks to an experienced business consultant. Kiltons Business Setup Services LLC is a registered business consultant based in Dubai. We are in the business consultancy scene for the last two decades assisting entrepreneurs and empowering business houses. We cover the A to Z to set up a business in Dubai or UAE with the utmost professionalism and cost-effe. know your requirements ASAP. We’d be glad to assist you.