Uploaded on Jun 10, 2024
Learn the essential legal requirements for company registration in Dubai, UAE. From choosing a business structure to obtaining necessary licenses, our comprehensive guide simplifies the process for entrepreneurs.
Legal Requirements for Company Registration in Dubai, UAE
Legal Requirements for Company
Registration in Dubai, UAE
An Overview
Dubai, a global business hub, offers numerous opportunities for
entrepreneurs looking to establish their companies. However,
understanding the legal requirements for
company registration in Dubai, UAE is crucial to ensure a smooth
setup process. MPMS is a top business consultancy with a business
setup specialist in Dubai to ensure a smooth and compliant company
registration process. With proper planning and adherence to legal
requirements, you'll be well on your way to establishing a thriving
business in Dubai.
Determine Business Activity
The first step in the registration process is to define the nature of
your business activity. The Department of Economic Development
(DED) in Dubai divides commercial activity into different categories.
The type of business activity will influence the type of license you
need.
Choose a Business Structure
Dubai offers several business structures, including Limited Liability
Company (LLC), Free Zone Company, and Branch Office. Every
structure has advantages and legal requirements of its own. For
instance, an LLC requires a local sponsor who holds 51% of the
shares, while Free Zone companies can be wholly owned by foreign
investors.
Select a Trade Name
Choosing an appropriate trade name is essential. The name must
comply with Dubai’s naming conventions, avoiding any offensive
language or references to religious or political organizations. The
trade name needs to be original and unregistered.
Obtain Initial Approval
Before proceeding with the registration, initial approval from the DED
is necessary. This approval shows that your commercial activity is not
opposed by the government. You will need to submit your business
plan and other required documents.
Draft and Notarize MOA
For most business structures, including LLCs, drafting a Memorandum
of Association (MOA) is mandatory. The MOA outlines the ownership
and management structure of the company. A public notary in Dubai
must notarize this document.
Lease Office Space
A physical address is required for company registration. You must
lease office space and provide the tenancy contract as part of the
documentation. Free Zone companies can use Flexi-desk options
provided by the Free Zone authority.
Obtain Licenses
Getting the required licenses is the last stage. This could be a
commercial, professional, or industrial license, depending on the
nature of your business. Additional approvals from other regulatory
bodies may be required for specific activities.
Thankyou
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