Setting up a business is a conscious decision by entrepreneurs for earning profit. For starting a business in Dubai it is important to first choose the legal structure of the business entity. Decide whether it will be a Partnerships, Limited Liability Company in Dubai (LLC), a Private and Public Joint Stock Companies, a Branch office, a Subsidiary, a Free Zone Limited Liability Company, a Free Zone Establishment or a Sole Proprietorship firm in Dubai. Here, the Partnership Firm Registration – Premium is the topic of discussion.
What is a Partnership Firm?
A Partnership is a business formation where two or more individuals are in control of a business as per the objectives and terms mentioned in the Deed of Partnership executed by all the partners. The liability of the partners is unlimited in a General Partnership they are liable for the business debts personally.
However, the establishment of a Partnership in the UAE is possible only with a local partner as a partner holding a minimum of 51% ownership in the business but in the Dubai Freezones, 100% ownership is permitted to be held by foreign investors. A partnership business in Dubai Mainland calls for establishing a Limited Liability Partnership entity, LLP.
Once the consensus among the partners, to start a business in Dubai, has been built it is time to thoroughly research every aspect on how to begin. Frame up the business activity to be undertaken and ensure compliance with all the licensing requirements.
Obtain a trade license from the Economic Development Department; it is mandatory for setting up any commercial activity in Dubai. Types of Trade Licenses are as follows:
- Commercial Licenses: for companies that are engaged in trading activities.
- Industrial Licenses: for companies engaged in manufacturing.
- Professional Licenses: for companies providing professional services, service providers, craftsmen and artisans.
Steps in Partnership Firm Registration
It is advisable to get a partnership firm registered. This gives the business a legal entity. Registration can be done online with a few documents, following a few simple steps for registering in the Dubai Mainland:
- Reserve a Trade Name for the partnership business for setting up in the Dubai Mainland
- Get the Trade Name approval
- Select a local business partner
- Register the Partnership Firm with the Department of Economic Development (DED)
- Submit documents with DED
- Obtain Trade License as per the nature of business activity from the authority having jurisdiction over the area in which the partnership business is to be set up
- Subscribe to membership of the Dubai Chamber of Commerce and Industry (DCCI)
- Apply with the Ministry of Labor for getting establishment card
- Register employees, if any, with the Ministry of Labor
- For Office space rent or take on lease
Registration can be done online with a few documents, following a few simple steps for registering in the Dubai Freezones:
- Select the Freezone that meets your business activity requirements
- In the Freezone, the authority there provides all approval through a single window
- Authorities at the Freezone are guided by the set of local guidelines
- Submit attested passport and visa to initiate the process of Partnership registration in the Freezone
The following documents will be required:
- Copies of Passport and valid IDs of partners and managers
- Certificate of initial approval from the DED
- Name registration certificate of the Company
- NOC signed by all the partners
- Document showing the Official address of the company
Contact GCC Filings for Company Incorporation in the UAE. Once the Partnership Firm Registration is complete there will be financial and legal compliances to be made for operating in the UAE. GCC Filings also provides professional services in Accounting, Tax Audit, UAE Tax Consulting; Filing and Return Submission and VAT Registration in the UAE.