It can be overwhelming to even think about starting a new business in a foreign country. But, they say, behind every successful business hides a risk-taker. If you believe you would risk everything to establish a business and make it successful, Dubai is the place for you. The country is full of hundreds of success stories. Do you want to be on the list? If so, let’s not beat around the bush and get right to the heart of the matter.
Procedure to establish a company in Dubai
The is in charge of the business establishment procedure in the country.
1.Decide the business activity
Once you decide on the type of business, it will be easier to obtain the necessary license, as ultimately, the license is determined by the kind of business you choose. Also, be aware that not all activities are allowed in the UAE. You must be granted permission by various departments before starting a business in Dubai. Therefore, the first thing to do business is to decide whether your business conforms to Dubai standards.
2.Choose the jurisdiction
Dubai offers business setups on the mainland, free zone business formations and business establishments abroad. Therefore, one should know about these jurisdictions available in Dubai before starting a business. Once you know its advantages and disadvantages, it will be easier for you to select one according to the one that seems feasible for the type of business in which you are going to do business.
3.Choose a business structure
Dubai offers various types of business structures and business setup services Dubai to its business owners. That way, you have many options to choose from after conducting primary research on each type of business entity. We can assist you with establishing a business in Dubai, depending on your location and type of business. There are rules regarding the composition of your business. For example, if you plan a Business Set up in Dubai, this can only be done as a branch or as a separate company. The types of commercial structures that are offered in Dubai are;
Single owner
Joint project
Public Limited Company
Private Stock Company
Limited liability company
General Society
Association in Commendam
Professional company
4.Look for a local sponsor
This step is helpful when you decide when looking for business setup services in Dubai to start a business in the United Arab Emirates. The challenge is to find a reliable and trustworthy business partner in the UAE. It is claimed that the local UAE partner will own 51% of the association, and the remaining 49% may be owned by the entrepreneur. In free zone terms, a business would require a local service agent who would work for a nominal fee.
5.Register your business name with DED
You must choose a company name in this phase. There must be no resemblance to any other company in the UAE. Once you’ve decided on a word, you’ll need to register it with the DED. A business name can be written in as little as three days and is valid for six months.
6.External approvals for the company
There are some external approvals that you may need if your business is restricted following the law. Non-governmental and semi-governmental organizations must acquire these permits.
7.Get initial approval from DED
The initial approval is the consent of the DED to register your company in Dubai. Therefore, before registering the company, you need to make an initial approval by completing an application form, attaching the supporting documents, and submitting it to the authority. You can start your business at this stage and continue with the process of acquiring your business license.
8. Write a Memorandum and Articles of Association or LSA
This step is another important task. The MOA specifies the part of the limitations and freedom that each partner has within the company, while the LSA describes the agent’s role and complies with the compliance to be carried out.
9. Register your business
To complete this step, you must complete a registration request form. Once it is correctly filled out, attach the required documents. Then, submit it to DED for approval. You will receive the approval/disapproval notice within about a week.
10. Submit a request for your business license
Once DED registers the business, the business license will be processed and adequately charged. Business licences are usually issued based on the nature of the business and the company’s jurisdiction. In Dubai, the most common licences for starting a business are a business licence, an industrial licence, and a professional licence. When you receive your initial clearance, it takes around a week or more extended to secure your company licence.
11.Pay fees and collect the license
DED will provide proof of payment once you complete the license form and submit the documents. However, final payment must be made to collect the business license. Once you get your business license, you will become a full-fledged business entity.
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