How Can You Incorporate a Company in Dubai?
Written by Ethan M. Stone
The general feeling is that opening a company in Dubai is quite simple, and it is in many ways. However, in recent years, several changes have occurred, and one of the most important is the fact that a foreign investor can now own a mainland business 100% if it operates in one of the 120 sectors available for full foreign ownership. But what exactly does company registration in Dubai imply? There are a few steps that need not be skipped to have a successful entity at the end of the process, and they are explained below.
Name reservation and initial approval
To successfully incorporate a business in Dubai, you first need a valid trading name. You can obtain it by reserving the desired one with the Department of Economic Development. You must pay attention for it to be unique, and to ensure that, you can rely on BridgeWest Dubai, an agency specialized in company formation, as you will also be able to rely on it later in the procedure, if you want to keep things simple.After successfully having the trading name, you will need to obtain an initial approval from the same Department. In this case, you must make sure the activities you want to carry out through your company match the license you apply for. Again, this is a matter where professional consultancy is recommended to avoid misunderstandings.
Documents drafting and filing
This is the step most entrepreneurs fear, as each country has different requirements when it comes to the paperwork for business registration. So, this is what you need to prepare in Dubai:- the application form, available from the Trade Register directly;
- the name approval form;
- the Articles of Association - these are basically the main papers to have drawn up;
- passport copies of all people listed as shareholders, directors, and managers;
- proof of a local registered address (a recent utility bill or lease contract, depending on your arrangements);
- the receipts indicating the payment of the registration and licensing fees.
If you decide on a free zone company, another requirement may be to have drafted a business plan, but it depends on the chosen Dubai free zone.
After having these documents, you need to file them with the Trade Register.
Certificate of Registration and license issuance
In theory, after filing the documents with the Registrar and their verification, you will be issued the company’s Incorporation Certificate and license. Practically, there is another step that follows: tax registration.However, as things are easier in the UAE than in other countries, tax enrolment is completed automatically, as the Economic Development Department will notify the authorities of your enterprise being operational.
Bank account opening
Perhaps one of the steps to take more time to complete is the bank account opening procedure. However, it does not have to do with you, but with the bank you choose and its internal procedure. To speed things up, make sure you have every document in order and reply promptly to any questions bank representatives may have.A useful tip is that you can decide to initiate the opening of the account at the same time as the registration process. You can also leave it after, if you are not in a hurry and can expect up to one month to have it.
These are the main steps to incorporate a company in Dubai. The entire process can span between one and two weeks, depending on how soon the documents are ready. The good part is that after this timeframe, you will be able to start your operations and make profits immediately.
