Saturday, February 4, 2023

What are the Legal Steps for setting up a company in Dubai?

Want to register as a Company in Dubai but don't know where to start? Well, you can start with Registrationwala. We are one of the leading Legal Service Providers in all of the Middle East. Our Seasoned Professionals and Incorporation Experts can make you sail through the company registration procedure in Dubai with the UAE Authority. All you have to do is register your basic details with us at our official portal, and we will connect with you in no time.

If you are a Foreign National or an Investor and want to know the legal procedure for starting a Company in Dubai as per the UAE Authority, then you can follow the article to know every aspect of the concerned legal procedure.

How to set up a Company in Dubai?

Every Company Registration aspirant, and a native of India, the US, or Canada, must conform to the following procedure detailed in the enlisted steps. Let us look at them one by one.

 

Choosing the right Business Structure for your proposed Company

The Company registration aspirant must decide the appropriate corporate structure for itself. He can adopt any of the following legal structures as per the UAE Laws:

  • Limited Liability Companies (LLCs)
  • Branch Offices
  • Joint Stock Companies (JSCs)
  • Free Zone Companies (FZCs)
  • Trade Representative Offices (TROs)

Some of the factors on which selecting a suitable business structure depends are the following:

  • Shareholders Capacity
  • To-be- undertaken Commercial Activities
  • Capital Requirements as per the UAE Laws

 

Choosing a unique Business Name for the proposed Company

The next step for CompanyRegistration in Dubai is reserving a business name under which the proposed Company will undertake its activities. Firstly, the applicant must confirm the name's availability with the Department of Economic Affairs of the UAE Corporate Authority.

For Free Zone areas, the concerned Free Zone Authority must be consulted by the applicant. He must ensure that the chosen name is in accordance with the relevant jurisdictional law. Other registered companies must not take the same name.

UAE Guidelines for naming your Company

The chosen name for the Company must not do any of the following:

  • Violate the public morale or disturb the peace within a society, community, or nation
  • Per the Legal Form of the Company
  • Previously registered with the UAE's RoC
  • In accordance with the activities undertaken by the applicant
  • The chosen name must not title any of the following:
    • Religion/Faith/Cult
    • Administrative Authorities
    • External Body Logos
  • Result in controversies or is derogatory or insulting to someone
  • Non-reflective to the person's name but their nickname if they choose the entrepreneur's name as the Company's title

 

Applying for the Company's License with the UAE Authority

After name reservation, the aspirant must apply for the Company License per the activities he wishes to undertake in the City. The Company License is a legal permit authorizing its holders to conduct their business operations as per its licensing certificate.

Types of Company Licenses

The UAE's Registrar of Companies issues the following Company Licenses for business registration in Dubai:

  • Commercial Business License is issued to entities wishing to engage in commodity/service trading within the Gulf City
  • Industrial Business License is issued to entities wishing to engage in the activities of production/industrial operations
  • Professional Business License is issued to entities wishing to offer professional services, such as technicians or artisans


Registering the Official Premises for the Company in Dubai

In Dubai, your office location can be a game-changer for your business growth. Therefore, you must choose your office space strategically. The applicant can buy or lease the office space from the landowner. In Dubai, you can select an office space depending on the following factors:

  • Commercial Activity undertaken
  • Employee Strength
  • Budget for purchasing/renting Office Space

Different Free Zones of Dubai offer sizes of office locations ranging from 20-30 sq. to 2000 sq. m. It can also go beyond. So, according to his requirements, the applicant must take his pick.

 

Obtaining the Business Licenses to run the Company

The jurisdictional laws govern the new Companies at a designated place. Accordingly, the new incorporations must apply with the appropriate documents to obtain the required licenses and permits from the concerned Dubain Authorities, like:

  • Business Pre-Approvals
  • Corporate Registrations
  • Appropriate Licenses

The required documentation for business permit registration depends on the following:

  • Business Activities
  • Office Location
  • Internal Structure of the Company
  • Corporate Bank Account for the registered Company

Once the required approvals have been obtained, the new incorporation must register for and maintain a Corporate Bank Account. The Account must be in its reserved tradename. It will be further used for receiving/sending funds in furtherance of the new Company's affairs.

For more on Company Registration, connect with the Incorporation Experts at Registrationwala.


Also read: Company Registration in Canada: Why must you opt for it?

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