Entrepreneurs, new-age investors, and market leaders can all find a suitable location for their company in the UAE. Typically, Dubai company formation is determined by your business activities. You might need to secure extra approvals in addition to your Dubai trade license to establish a full-fledged business in the UAE.
You have made the right decision to form a company in the Emirates, thanks to the region’s strategic location and business-friendly policies. All you have to do now is get your UAE trade license and connect with Shuraa’s local business consultants for hassle-free Dubai company formation.
What Is the Procedure for Company Formation in Dubai?
The steps for Dubai company formation are straightforward and don’t consume much time. All you need to do is follow the steps mentioned below:
1. Make a Decision About Your Business Activities
What activities do you want to carry out on a daily basis when you start your business in the UAE? Make a list of all of them (you can choose up to ten, so plan accordingly) and compare them to the DED’s list of allowed activities.
In Dubai, you’ll need to apply for additional approvals in conjunction with your trade license if you want to do anything that your trade license doesn’t allow you to do.
2. Reserve a Business Name
If you don’t have a legitimate business name for your endeavor, you won’t be able to apply for a trade license in the UAE. The name should be one-of-a-kind, reflect your company’s mission, and be free of any negative phrases.
When submitting the trade name reservation form, follow the naming convention laws and avoid using problematic words or expressions that may offend someone’s faith. If you want to use a person’s name as your trademark, you must use their full name.
3. Choose a Business Location
You can choose a mainland general trade license for your firm to take full advantage of Dubai’s local market. It’s regarded as one of the best markets in the world. Conversely, you can apply for a specialized trade license in the UAE and set your business entity in one of the free zones at a low fee.
Businesses that request a mainland trading license are approved by the DED, whereas free zones are governed by their own set of rules. It’s vital to pick the correct location because you don’t want to burden your company with moving expenditures.
4. Submit an Application for a Business License
After you’ve completed the preceding steps, you can apply for a trade license. Note that you’ll have to pay the issuing cost in Dubai if the regulatory authority approves your trade license. It’s a necessity for all applicants, regardless of the type of trade license they’re applying for.
Ensure that all payments are made within the required timeframes. In addition, check that you respond to any requests for resubmission from the relevant departments.
5. Open a Bank Account
The final step for business setup company Dubai is to open a corporate bank account for your firm. Moreover, ensure that you choose a reputable bank that offers long-term benefits and top-notch banking amenities. The legal advisors at Shuraa help you shortlist the best banks for your company.
Various Trade License Types in the UAE
A trade license can be obtained based on your demands and business requirements. The UAE government has clearly specified the requirements for acquiring a certain license, so it’s best to check with legal counsel to figure out which license is ideal for your firm. The following are the most common categories of UAE trade licenses:
Trade License for the Industrial Sector
An industrial license allows you to engage in legal industrial operations in the UAE as an individual or a firm. Manufacturing activities, processing operations, typesetting, lathe workshops, packing, and other activities are all included.
You’ll need to get a physical location because organizations with virtual offices can’t apply for an industrial license. In addition, your company must have a minimum of 10 employees and the shared capital amount must be paid.
License for Commercial Trade
A commercial trade license is required for companies that want to engage in general trading activities, such as import-export of goods. Furthermore, traders who engage in specialized trading, like food and beverage trading or automotive accessories trading must also get a trade license in the UAE.
Apart from these commercial organizations, enterprises in the construction, rental properties, and other related industries are all obliged to register for a commercial trade license.
Professional Trade License
You can file for a professional trade license if you provide professional services such as woodworking, renovation, or beautification. The license holder can enjoy 100 percent ownership of his or her business because this trade license genre in Dubai doesn’t require a local sponsor.
All you need is a local service agent who’ll help you with the legal paperwork and charge you a yearly fee. You can work with Shuraa for a modest cost, and we’ll act as your service agent.
In addition to the licenses listed above, you can also apply for an e-commerce license to conduct business online. Additionally, investors interested in learning more about the tourism industry can apply for a tourism license.
Which Documents are Required for Dubai Company Formation?
- Duly filled application form
- Passport copies of all the business partners
- NOC from the local sponsor/service agent (applicable for expats and foreign investors)
- Payment receipt of trade name reservation
- The lease agreement document to verify the registered address of your business
- A descriptive document of your business plan and associated activities
- Details of shared capital (for industrial trade license)
- A copy of the naturalization book of local partners also called Jinsiya
- A copy of the registry identification form notarized by the concerned council
Open Your Dream Venture in Dubai!
Dubai company formation is hassle-free, cost-effective, and comes with a plethora of benefits. Therefore, investors should look to make the most of this opportunity by getting in touch with Shuraa Business Setup.
We help you manage all the legalities and take care of documentation, banking, licensing, and everything related to company formation in Dubai.