Dubai company registration includes step by step procedure which a businessman must take before starting his business in Dubai. Business of any category must have a trade license in Dubai. Requirements for trade license from different agencies and government ministries matters alot depends upon business category. Which means business like financial services, health services, printing and publishing, food trading require more clearances more than general trading business.There are three major categories of licenses issued in Dubai for company registration:
Commercial License: (To be issued to a company that will engage in any kind of trading activity)
Industrial License: ( To be issued to a company that will engage in manufacturing or any industrial activity)
Professional License:(To be issued to service providers, professionals artisans, and craftsmen)
Department of Economic Development in Dubai is the government agency which is responsible for issuing local Dubai company licenses. This department operates from various locations to deliver licensing services. Main office is located near clock tower Dubai where businessman go for comprehensive range of services .Requirement for business licensing to register company in dubai are as following:
Issuance of licenses for banks and other financial institutions must have approval of the UAE Central Bank.
Issuance of licenses for manufacturing companies must have the approval of the Finance and Industry Ministry.
Issuance of licenses for companies engaged in insurance and other relevant firms must have the approval of the Economy and Commerce Ministry.
Issuance of licenses for medical and pharmaceutical products must have the approval of the Health Ministry.
For companies engaged in gas or oil production, additional endorsements and approvals from other government agencies may be needed
In addition, business registration must also have the involvement of the Dubai Chamber of Commerce and Industry.
Requirements of Business Ownership!
Every company, other than those with a professional license, set up in Dubai or any where else in the United Arab Emirates [UAE] is required to have no less than fifty-one percent (51%) shareholding by UAE nationals. Basic
Requirement conditions are as following:
Company is established at any of the Free Zones in Dubai.
In cases where the law requires 100% local ownership.
Where a company wholly owned by the Gulf Cooperation Council (GCC) enters into a partnership with another company wholly owned by UAE nationals.
In certain activities, 100% ownership for GCC nationals or entities is permitted.
In artisan or professional companies in which total foreign ownership is allowed.
In the case of a foreign entity registering a representative or branch office in the UAE.
In the case where a professional license is being applied for such professions such as architect, doctor, artist etc. The foreign ownership can be 100%. However a local national must be taken as service agent.
Legal Business Structures:
A major consideration in business registration in Dubai and the other Emirates is the choice of business structure.Federal Law defines the seven legal structures of business organization, as follows:
- 1.General Partnership
- Partnership in Commends
- Public Shareholding
- Private Shareholding
- Joint Venture
- Share Partnership
- Limited Liability
Dubai Registration Procedure:
1. Decide who will be your local partner (Sponsor)
- Get a name and activity approval from Department of Economic Development.
- Look for business premises and make a tenancy contract.
- Make a Memorandum of Association (MOA) with the sponsor and submit to DED.
- Submit the MOA and the License application at DED along with the required legal documents and the tenancy contract.