Registering a company or business in Dubai requires you to keep several things in mind. Possessing a trade license is extremely vital in Dubai for operating any business and permissions needed from organizations, agencies and government bodies may vary, depending on the category of the business in question.
Key things for Company Registration in Dubai
There are various licenses that are given for company registration in Dubai. Here’s looking at the same:
- Commercial License- Commercial licenses are needed for companies who will be engaging in trading activities of any kind.
- Industrial Licenses- These licenses are needed for companies that will be engaged in industrial activities or manufacturing.
- Professional License- Professional licenses are issued to professionals, service providers, artisans or other individuals in specific professions.
The Department of Economic Development holds the responsibility for issuing local company licenses in Dubai.
Steps for Approval of Business Registration
There are a few steps that should be kept in mind for approval of business registrations:
- Licenses issued for banks and financial institutions should have approval from the UAE Central Bank.
- Licenses issued for manufacturing companies should have requisite approvals from the Finance and Industry Ministry.
- Licenses issued for companies in insurance and other relevant firms should have approvals from the Economy and Commerce Ministry in Dubai.
- Licenses for pharmaceutical and medical products should be approved by the Health Ministry.
- Dubai Chamber of Commerce and Industry should be involved closely in business registration processes.
For possessing a valid business licenses in the UAE, each business owner should have at least 51% of shareholding by UAE nationals in the company. Exceptions are made if the company is located at any free zone in Dubai and there is 100% local ownership or even if the company is fully owned by the GCC and enters into a partnership with another company fully owned by UAE nationals.
100% ownership is allowed for entities or GCC nationals in case of specific business activities and registration as a branch office/representative office is compulsory in case of any foreign entities. Foreign ownership can be 100% in case of a professional license although a local national should be the service agent. Businesses can choose from a general partnership, joint venture, private shareholding, public shareholding, share partnership, limited liability or partnership in commendably.
Company Registration Process in Dubai
- Get a sponsor who will be the company’s local partner.
- He/she may help in getting the name on the license, taking care of government formalities and so on.
- Obtain approval for business activity and business name from the DED (Department of Economic Development).
- Choose a suitable location for the office and create the tenancy contract.
- There should be a Memorandum of Association or MOA that should specify the ownership and arrangement amongst partners. This should also be given to the DED.
- The License Application and MOA along with the tenancy contract and all other legal documents should be submitted at the DED.
- Post this particular step, all necessary fees and charges have to be paid.
- After payment, the license will be received within a week’s time.
GCC Filings will help with the company incorporation and registration process in Dubai along with VAT registration, return filing and auditing along with providing other services. Here’s taking a look at the process of registration for companies in Dubai: