The steps for obtaining a Dubai commercial license are elaborated in the subsequent paragraphs. It may be noted that some steps have to be pursued simultaneously. And the sequence may vary depending upon the amendments in procedure from time to time. Meticulous compliance of formalities is vital for the smooth functioning of your business entity. The federal laws of the land are stringent for preventing illegal activities and unauthorized business activities. Follow the procedure judiciously, submit all the documents and get the commercial license without any delay.
Kiltons will help you to gain a uae commercial license without any complications and will aid you in setting up of business. The official formalities for a commercial license are appended below.
Step 1. Confirm the Business Activity
Choose the type and product of business you want to start in the UAE. Additional approvals may be necessary according to the type of business activity.
Step 2. Obtaining Initial Approval
The Dubai Economic Department (DED) issues initial approval for commercial license. Apply for initial approval along with the requisite documents.
Step 3. Find a Reliable Local Sponsor
The federal laws stipulate that you must have an Emirati as your local sponsor for establishing a business in Dubai Mainland and obtaining a commercial license. The local sponsor will be holding 51% of the shares in the company. The ex-pats and the shareholders are authorized for the remaining 49%. The legal formalities and commercial approvals will be on the name of the sponsor. Therefore, you must get a reliable sponsor to support your firm. Kiltons can help you get a trustworthy local sponsor. We also provide exclusive Royal sponsorship for premium business set-ups.
Step 4. Formulation of Legal Structure
Article of Association (AOA) and Memorandum of Association (MOA) is called the constitution of a business entity. The documents will lay out the rules, regulations and policies to be followed by the company, the management board and employees. The documents have to be prepared both in English and Arabic.
Step 5. Application for Approval for Trade Name
The trade name you select must be according to the specific norms promulgated by the authorities. Else, the name will be rejected. The trade name should neither be similar to any of the existing firms. Neither should it have more stakeholders. Religious and political references are strictly prohibited.
Step 6. Hire an Office Space
Rent an office space in Dubai. However, a few types of business firms can have virtual office or flexi-desks. You must complete the registration at Ejari if you are renting or leasing an office space.
Step 7. Rent or Lease a Commercial Space
The authorities have stipulated specific dimensions for the commercial space. You must rent a commercial space for the business. The officials will inspect the commercial space for confirming the dimensions and completeness of legal formalities. Ejari formalities also must be completed for the space you are hiring.
Step 8. Obtain Approvals from Ministries and Departments
The additional approval may not be required urgently. You can commence the business and obtain the approvals in due course.