Many Arab and foreign investors want to establish their own companies in the Emirates, especially in the Emirate of Dubai. For this reason, in today’s article, we will focus on the most important and prominent conditions for opening a company in the Emirates, with regard to the different types of companies that can be established there. Continue reading with us to know more details about this topic.
Determine the conditions for opening a company in the Emirates
There are many factors involved in the process of opening or establishing a company in the UAE. The UAE law stipulates some specific conditions that every company must comply with. These conditions vary according to the region in which the company is established, in addition to the nature of the company’s work. The conditions may also vary according to the legal form of this company, and according to the nationality of the person who wishes to establish it.
Conditions for opening a company in the Emirates | General Conditions
For most types of companies, the conditions necessary to open or establish them in the UAE are as follows:
- Determine the type of activity in which this company wants to work.
- A feasibility study for this company’s project, in addition to good planning before its implementation.
- Finding a suitable strategic location for the company before starting it, because the location is considered one of the most important factors that contribute to the success or failure of any company.
- Selecting a suitable work team for the company, that is, employing people with high experience and appropriate skills to work within the scope of the company.
- Completing all paperwork, i.e. the procedures, papers and documents required to open a company in the Emirates.
- Obtaining the commercial license for the business or company.
- It is preferable that you seek advice from experts and specialists in this field first, because these tips can help greatly.
Conditions for opening a company in the Emirates | the free zone
Regarding the process of opening a company in a free zone within the Emirates, its conditions are as follows:
- Submitting all necessary special papers and documents to the competent administration in the region, which must include a custom declaration for imports of goods that is prepared by the General Authority for Investment, in addition to invoices and a packaging statement.
- Submit an original declaration stating that the company operates under the free zone system, and that all imported goods are of the types necessary and licensed for commercial activity.
- Finalizing all customs procedures, in addition to requesting customs dispatch.
- Determine the type of company activity, in addition to the entities associated with it and its legal form as well.
- Choose a suitable trade name for the company.
Conditions for opening a company in the Emirates | Contracting company
As for the process of opening a contracting company in the Emirates, its conditions are as follows:
- Choosing the appropriate trade name for the company, in addition to registering this name officially with the competent authorities.
- Choosing the company’s work location appropriately, and this is considered one of the most important conditions for opening a contracting company in the Emirates.
- Obtaining the appropriate commercial license for the company as soon as possible, so that the company can operate within the UAE.
- Obtaining some additional approvals for contracting companies, such as approvals from the Water and Electricity Authority, approval from the UAE Building Department, and others.
Conditions for opening a company in the Emirates | Sole proprietorship
The conditions necessary to open a company in the Emirates differ slightly from the previous conditions, and are as follows:
- Securing the company’s initial approval.
- Preparing the papers and documents of the individual company, which includes an original copy of the passport.
- Providing an authorization letter and authorization card, and providing a customized information form for the new company in addition to a signature form.
- Secure a certified commercial agency, which can be obtained from the UAE embassy.
- Obtaining important signatures for this company, such as signing the services contract, the company’s articles of incorporation, in addition to signing the articles of incorporation.
- Complete the declaration form by filling it out, in addition to obtaining the Emirates permit and securing photographs.
- Finally, sign the residence visa application in addition to signing a letter of commitment and a letter of acknowledgment.
Steps to open a company in the Emirates
After you learned all the conditions necessary to open any type of company in the Emirates, here are the most important steps necessary to establish a company in Dubai. Knowing that these steps do not differ for local citizens and for foreign citizens:
1- Determine the nature of the company’s work
The most important step here is choosing the nature of the business for this company. Knowing that the UAE allows local and foreign investors to engage in more than 2,000 different economic activities. But it prevents the practice of some activities, such as mining and others.
2- Company ownership
A foreign investor cannot own 100% of his company in the UAE, and for this reason an Emirati partner must be used. But if the company is established within the free zones in the country, he is allowed to own the company completely.
3- Drawing the legal form of the company
The process of choosing the legal form of the company depends on several different factors, the most important of which is the nature of the expected activity of this company. In general, the investor must determine the legal form of his company before completing the next steps in the establishment process.
4- Determine the health of capital
Certain companies may have to determine their own minimum capital before completing the next steps in the process. Knowing that this step is not necessary for all companies, and for this reason the investor must ensure that it is necessary to implement it or skip it.
5- Choosing the company’s location and concluding the articles of incorporation
The next step here is to choose the appropriate place to establish this company, and this step depends entirely on the investor. After choosing the location, he must also conclude the company’s articles of incorporation as well.
6- Obtaining the commercial license
The final step in this process is obtaining the appropriate commercial license for this company to operate within the country legally. Knowing that the UAE offers several different types of commercial licenses, the appropriate commercial license must be chosen for each company.
Tadabeer Company for Corporate Services in the Emirates
Tadabeer Company will implement all the necessary procedures for you to start your own investment business or company in Dubai or the Emirates. Do not hesitate to contact us to benefit from our services to start your business in the shortest possible time and at the lowest costs.
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