Establishing companies in Dubai in 3 steps

Procedures for establishing companies in Dubai are a major problem facing investors with different sizes of their respective companies’ financing and capital in most countries in the world, as the investor faces many obstacles in the procedures such as lengthy routines, endless required papers, many government departments that must pass before starting to establish the company, and many others. Of obstacles. But the United Arab Emirates gives you the best possible opportunity to establish companies in Dubai in just 3 steps, thus overcoming all obstacles for investors and encouraging them to invest in Dubai.

Establishing companies in Dubai in 3 steps

In the era of globalization and technology, starting companies and expanding businesses is brighter than ever. Among the famous global destinations for establishing companies, Dubai in the United Arab Emirates is one of the most prominent. Dubai is known for its advanced economic environment and its encouragement of national and international business and investments. In this comprehensive guide, we will take a look at how to establish companies in Dubai in 3 steps, while providing the necessary instructions and guidance for investors and entrepreneurs.

How to create a successful business in Dubai

The first step is the trade name and initial approval stage. At this stage, you must choose a trade name that is appropriate to the nature of the activity entrusted to the company that you intend to establish. As for the initial approval, it is an approval of the names of the company’s founding partners and the activities to be practiced through the company, as well as approval. On the nationalities of the people who are partners in the company. You can complete this step through some specific places, such as the website of the Department of Economic Development, offices of strategic partners, law offices, and branches of the Department.

There is a strong relationship between the Department of Economic Development and local and federal departments and bodies in order to facilitate procedures, as the Department has more than 2,000 commercial, professional or industrial activities. Some activities require approvals from parties other than the department, and this depends on the activity that the company to be established is assigned to carry out. The Department of Economic Development has linked all activities to the relevant authorities according to specialization, and they are distributed as follows:

• The entities that have been agreed upon to issue the license, and inform them via the electronic system for the purpose of follow-up later.
• Linking through the system, where the transaction stops until it is approved by the relevant authorities.
• Bring a certificate from the relevant authority, if that entity is not linked with the Department of Economic Development.

Establishing a company in Dubai

It is the stage in which the company’s incorporation contract is concluded. This contract clearly specifies the names of the partners in the company, their nationalities, and the purpose of establishing the company. The name of the company manager must also be specified, and the trade name that has been previously chosen and reserved for the company.

Also, the paid-up capital in establishing the company must be determined in addition to the shares of partners allocated to them. The company founder then heads to the places to authenticate the contract, which are at the notary public in the Dubai Court, the Department of Economic Development, the Department’s branch in Al Barsha, and the Department’s branch in Al Twar. The cycle of starting and establishing companies in Dubai begins as follows:

• Department of Economic Development, whose mission is to issue the license.
• The General Administration of Residency and Foreigners Affairs, whose mission is to obtain the residency of investors after opening a file for the facility and obtaining a temporary license from the Economic Department.
• The Ministry of Labor, whose mission is to open a labor facility file to begin recruiting suitable workers for the company.
• Opening a bank account, renting the company’s headquarters, and doing business.

The third and final step for establishing companies in Dubai is the license issuance stage. At this stage, all transactions are completed at the Department of Economic Development in Dubai. This stage includes the following:

• Linking the trade name and obtaining initial approval from the Department of Economic Development.
• Submit the articles of incorporation and pay the due fees.
• Submitting the lease contract proving the rental of the company’s headquarters to the Department of Economic Development.
• Issuing the company’s commercial register.

Thus, all the transactions and three steps related to establishing and establishing companies in the Emirate of Dubai in the United Arab Emirates have been completed .

Legal forms that a country’s citizen can practice

Citizens of the country may practice all activities in any legal form according to the terms of each activity. They can create:

• Private or public joint stock company.
• Civil works company.
• A limited liability company, a joint liability company, or a simple partnership.
• Individual Foundation.

Legal forms that can be practiced by foreign companies

Companies established outside the United Arab Emirates may practice an activity in one of the legal forms, under the name of a branch of a foreign company. Foreign companies may also open branches in Dubai for some activities, such as commercial execution offices and professional activities, but this requires the presence of a national agent for the company. It is also possible to establish:

• A public or private joint stock company, in which one or more partners are required to be UAE nationals, with their share not less than 51% of the paid-up capital.
• A limited liability company, in which one or more partners are required to be citizens of the state, with their share not less than 51% of the paid-up capital.

Legal forms that can be practiced by citizens of the Gulf Cooperation Council

Citizens of the Gulf Cooperation Council countries may practice most commercial, professional and industrial activities. They may also establish individual institutions. This is done through several steps:

• Determine the trade name of the facility, according to the conditions and laws, and obtain initial approval.
• Submit a request to the department to obtain approval from the service centers or the website.
• Determine the legal form of the facility based on the type of activity required, the number of applicants and their nationalities.
• Ensure that all licensing requirements and conditions are met.
• Renting a business location and ensuring its suitability for carrying out the activity.
• Apply to the department to pay the fees and obtain the final commercial license.
• Delivering the facility’s documents to one of the department’s branches and completing the final procedures.

Legal forms that can be practiced by citizens of other countries

Two people may establish a civil business company for the purpose of practicing a professional activity, but for this to happen, a local service agent who is a citizen of the country must be appointed, or become a partner with them. They have the right to establish:

• Professional sole proprietorship: It is required to appoint a local service agent who is a UAE citizen, taking into account the requirements for each activity.
• Private joint stock company: It is required to have one or more partners who are citizens of the country. They may own 49% of the company, and if it has a Gulf partner, there must be a 51% national partner.

Advantages of establishing companies in Dubai

Frequently asked questions about establishing companies in Dubai