Company Formation includes some basic steps that every businessman should take before starting a business in Dubai.
Your business will be at stake if you don’t get your business licensed and registered in Dubai. No Matter what is the category of your business in Dubai it must have a trade license. We will be discussing all the categories and procedures that are necessary to get your business licensed and registered in Dubai.
There are various government ministries and agencies in Dubai, Depending upon the category of your business, the requirements for business licensing and the permissions vary from each other.
TYPES OF LICENSE :
Three categories of licenses are issued by the Economic Department of Dubai concerning Company formation in Dubai :
- Commercial License – type of license issued to the company who want to engage in any kind of trading activity.
- Industrial License –type of license issued to a company who want to engage in any manufacturing or industrial activity.
- Professional License – type of license issued to professionals, artisans, craftsmen& service providers.
HOW EASY IT IS TO REGISTER A COMPANY IN DUBAI?
Normally Dubai Company Act requires a foreign investor to have a local partner (for owning the majority interest).
The Company registration requirements will be different from case to case, due to the type of company one chooses to open in Dubai. According to the Company Law, the expected companies that the investors may set up in Dubai are:
- limited liability companies,
- Private and public joint stock companies.
- Branch offices.
- Free zone limited liability companies.
- Free zone establishments.
Depending on the type of company you opt for & licensing requirements, the company registration procedure with the Company Registration Office in Dubai will take several days.
COMPANY REGISTRATION PROCEDURE:
One must follow the below steps for the company registration in Dubai.
Decide your local partner i.e. “Sponsor”. This step requires the following things to be taken into consideration:
• What services you expect from the sponsor.
• Would you just want his name on a license or you want him to assist you.
Get approval for name and activity from Department of Economic Development (DED) (done officially).
Look for business property and make a tenancy contract
Create a Memorandum of Association (MOA) with the sponsor then submit it to the Department of Economic Development (DED).
At this step, all Charges & fees must be paid. It involves the Submission of Memorandum of Association and the License application at DED along with the required legal documents and the tenancy contract.
For further help, you can contact our Business Consultants in Dubai.