If you are planning to set up a company in UAE then you will be required to get it registered and licensed. The need for trade license and permits for trade with government agencies in UAE depends upon what kind of company you are will to build. Businesses like health services, food, financial services, printing and publishing require more clearances than other businesses.
There are three kinds of licenses required in UAE for registering a business.
- Commercial License
- Industrial License
- Professional License
The Procedure for Registering Business in the UAE
- You will have to decide who is going to be your local partner called the “Sponsor”. In this step, you have to carefully consider what services you want from your Sponsor. Would you want them to help you resolve Government issues with the procedures? Or you only want the name on the license. Here you have to decide what fees you are willing to pay every year. Having a good understanding of your Sponsor will help you prevent a lot of issues.
- Next, you have to apply for a name and activity approval in a standard application form at the Department of Economic Development (DED)
- Then you have to get a place of business and get a tenancy contract done. For registering a company in UAE it is mandatory to have a place with a legal tenancy contract.
- Next, you have to make a Memorandum of Association (MOA) with your sponsor from a legal firm and this too will be submitted with the DED. The MOA should have all details like percentage of ownership among all the partners and other special arrangements.
- Finally, you will have to submit all documents including license application, MOA, tenancy contract and other legal documents with the DED. You will also have to pay all the charges now and your license shall arrive within 7 days of submission of all documents.
Process of Approval for Company/Business in the UAE
- There must be approval from the UAE Central Bank for issuance of licenses for banks and other financial firms.
- Finance and Industry Ministry should approve the license issue for manufacturing companies.
- There must be an approved license issued by the Economy and Commerce Ministry for companies dealing with insurance and other related services.
- Companies dealing with Medical and Pharmaceutical products must have approval for issuance of a license from the Health Ministry.
- Companies that deal with oil or gas production will need other endorsements and approval from other Government agencies.
In UAE a representative office or branch office is allowed to be owned 100% by foreign owners. This is a special privilege that is given only on the condition that a local agent is involved. This agent has to a national of UAE or a company that is totally i.e. 100% owned by nationals of UAE.
Starting up a representative company or setup branch office in UAE may be worth considering when a foreign entity is involved. Commercial Companies Law looks after the business registration of such companies.
The process of registering a private company in the UAE is simple and hassle-free if you carefully follow each step. In case you have any problem understanding any step, you can cross-check it on the internet and continue doing it. Have all your legal documents ready when you plan to register your business with the DED in UAE. Company incorporation is one of the numerous services offered by GCC Filings that you can avail of along with VAT registration, return filing, auditing, accounting and more.