Dubai is one of the most prominent economic and commercial centers in the Middle East, attracting many investors who seek to open successful businesses in this wonderful emirate. However, before investors can start their business activities in Dubai, they must comply with the conditions for opening a commercial register in the Emirates.

It is a wise move for Etqan, a leading business and legal consultancy firm in Dubai, to cooperate with investors who wish to open a commercial register in the UAE. Etqan has extensive experience in the field of commercial establishment procedures and follows the latest legal developments and regulations in the Emirate of Dubai.

In this article, we will review a set of basic conditions that must be met. toOpen a commercial register in DubaiIn cooperation with Itqan Company, we will focus on the permitted business activity in Dubai, the requirements related to the local partner (sponsor), the required business address, the municipality license, the registered capital, in addition to the documents required to complete the procedures for opening a commercial register.

Open a commercial register in Dubai

Open a commercial register in Dubai It is an essential step for any investor or entrepreneur who wants to establish a business in one of the fastest growing and developing cities in the world. Dubai is considered a global economic hub thanks to its advanced infrastructure, strategic geographical location, and government policies that support investment. The process of opening a commercial register in Dubai involves several steps and procedures aimed at facilitating business and ensuring compliance with local laws.

The first step in opening a commercial register in Dubai is to choose the type of business activity you want to practice. Dubai offers a wide range of options that include commercial, industrial, and service activities. After choosing the appropriate activity, you need to determine the legal structure of the company, whether it is a limited liability company (LLC), a sole proprietorship, a partnership, or a branch of a foreign company. Each type of legal entity has different requirements and procedures.

The next step is to choose a trade name that is in line with the company’s business and the standards of the Dubai Department of Economic Development (DED). The trade name must be unique and not similar to other existing company names. After obtaining the trade name approval, an application for a trade license is submitted to DED, including all the required documents such as a copy of the passport, personal photos, the lease contract for the company’s premises, and the company’s articles of association.

After submitting the application, the Department of Economic Development reviews the documents and ensures that they meet the required conditions. If approved, a trade license is issued that allows the company to start practicing its activity legally. The final steps include opening a bank account in the company’s name, registering the company with other government entities such as the Customs Department and the Dubai Chamber of Commerce, and obtaining the necessary permits to practice the specified business activity.

Opening a commercial register in Dubai provides investors with an ideal business environment with multiple benefits such as tax exemptions, excellent infrastructure, and distinguished government services. Establishing a company in Dubai is a strategic step to grow and prosper in a competitive and innovative global market.

Conditions for opening a company in the Emirates

Conditions for opening a company in the Emirates require compliance with some conditions and requirements that vary slightly from one emirate to another. However, there are some general conditions that most emirates include. Here are some conditions for opening a company in the Emirates:

1. commercial activities: You must define your business activity precisely and specify the industry you wish to operate in. The activity you choose must be in compliance with the regulations and laws issued by the relevant government agencies.
2. Having a local partner (sponsor): In some emirates, such as Dubai, you are required to have a local partner who owns a certain percentage of the company (also known as a “local company”). However, there are exceptions to this requirement in free zones and special economic zones.
3. Business Address: You must have a valid business address in the emirate you wish to establish the company in. The address can be a commercial office, a virtual office or a space in a business centre.
4. Municipal license: A license must be obtained from the local municipality or the relevant authority supervising trade and industry in the emirate. This requires the submission of documents such as completed forms, contracts, business plans, and required fees.
5. Registered capital: The registered capital of the company must be specified, which varies between the Emirates and different business activities. There must be specific amounts of money allocated to the company as part of the capital.
6. Required Documents: The documents required vary depending on the type of company and the emirate you are based in. Basic documents usually include passports, personal photos of shareholders, financial certificates, lease contracts, business plans, and completed forms.

By following the requirements for opening a company in the UAE, entrepreneurs and investors can open a commercial register in the UAE with relative ease, paving the way for starting businesses in a vibrant and advanced economic environment.

How to Company formation in Dubai

Before you start Company formation in Dubai For foreigners or locals, you must follow some procedures that will qualify you to establish a company in Dubai. Here are the steps that must all be followed:

• Select activityThis is the first step to establishing a company in Dubai or establishing a company in Sharjah, where you start by determining what the appropriate activity is, and this will be determined by the place where you will establish the broad base from which you will choose from all economic, professional, commercial, and industrial fields the appropriate field for you.
• Commercial registrationThis is the second step and is linked to the first stage. Your company’s trade name is what distinguishes it commercially from other companies in the same field. There are some conditions for you to obtain the approval of the Department of Economic Development for commercial registration. The conditions for commercial registration are:

1. The trade name you choose should not be contrary to public taste and should not contain inappropriate phrases or words.
2. The legal form of the company must be linked to the trade name.
3. The company name must not be registered by another company.
4. The trade name of the product should also reflect the activity it offers.
5. The trade name must be free of the word “Allah” or “Lord” or any of the beautiful names of God.
6. The trade name must not include any name of government institutions, external or partisan logos.

• Initial approval is required: This is the third step after determining the activity, commercial registration, and choosing the name of the activity. Before the initial approval to establish a company in Dubai for foreigners, you must obtain the approval of the General Directorate of Residency and Foreigners Affairs.
• Select company headquarters: All companies in the UAE must have a fixed address in the UAE. Whether establishing a company in the Dubai Free Zone, such as establishing a company in Jebel Ali, or outside it, you will be required to provide a lease contract certified by the Real Estate Regulatory Authority in Dubai. You can add a license to your current activity, but taking into account the following conditions:

1. The partner in the new company must be one of the shareholders or owners in the existing company.
2. The number of licenses owned by one citizen shall not exceed 10 licenses for the same location.
3. The area of ​​each license site shall not be less than 200 square feet.

• Obtaining approvals from the relevant authorities of the facility: Such as legal consulting, insurance and transportation activities.
• Obtaining a commercial license in Dubai: To obtain a commercial license in Dubai there are two steps:

1. Payment of commercial license fees.
2. Collect all the documents you have completed in the previous stages and submit them to the Department of Economic Development.

An urgent application can be submitted to obtain an instant license in Dubai and the fees for it can be paid.

Advantages of establishing a company in Dubai

When you think about Investing in Dubai Establishing a company has many advantages that you must know in order to achieve a successful investment and also in order to choose the best field for investment in Dubai. Among these advantages are:

• You can invest in establishing any company of any type in any field (commercial, industrial, service, etc.)
• You can also add up to five other companies and also get a residence visa.
• You can hire employees for your company from other countries where you can obtain visas for them.
• Dubai Investment Authority exempts 100 percent from taxes.
• The law allows you to own 100 percent so you don’t need local investors.
• One of the great features is that you can move your company between GCC countries, meaning you are not restricted to a specific geographical location.
• The law allows you to eventually transfer your money, and all of your capital, out of the country.

Best field for investment in UAE

There are many areas that can be invested in the Emirates, as the Emirates is distinguished by its open free trade zones, and many Arab, foreign and local investors want to invest in it. You cannot determine what is the best area, but we will show you some of the best areas for investment in the Emirates:

Real estate investment: This distinguished field is considered one of the best investment fields in Dubai, given the tremendous development in the rate of construction of new buildings in the country, and also that the Emirates has recently achieved a great boom in this field and there are many examples of this success such as Dubai Silicon Oasis, which was considered a very short time ago just a barren desert, but now thanks to the urban expansion in Dubai it has become a huge and prosperous residential complex full of modern and wonderfully designed buildings. It is smart to invest in real estate as the total rental amount in the Emirates is sufficient for them to obtain a residential plot of ownership and you can rent it and benefit from that in buying a new plot or converting the rent into a regular income or starting a commercial project on the plot.

Investment costs in Dubai

Costs are considered Investing in Dubai Variable according to your choices and the spaces specified for the project, as well as the place you will choose to establish the company and know the spaces in which its projects will be established. The place must also be chosen according to the type of activity. There are also free zones in which the prices of companies and projects are more different, as establishing a company in Sharjah differs from opening a company in Dubai and so on. There are several points to know the costs of establishing a company in the Emirates, which are:

• Paying the price of the land or the pre-specified site for building the company on which it is to be established or paying its rental value.
• Payment of commercial registration fees.
• Payment of fees to the investment agencies concerned with the project.
• Pay all bank dues in case of taking loans to operate the business in its free zone.
• Determine the value of profits and conduct a complete feasibility study for the project and know the average profit rates in order to reach the best results and determine the margin of taxes and financial dues to the state.
• Pay the cost of a commercial license in the Dubai Free Zone.
• Pay the value of the instant license in Dubai if the place of investment is in Dubai.
• You must adhere to everything that has been introduced by the UAE legal authority and apply all fees that the state may impose, such as customs duties on products that you may import, noting that there is significant support for products imported from the Gulf Cooperation Council countries based on the laws shared between them.

Open a commercial register in Dubai It is an important step for investors seeking to succeed in the business world in the Emirates. In the conditions for opening a company in the Emirates, in cooperation with Itqan Company, you will find the necessary guidance and assistance to make this process smooth and successful.

By cooperating with Itqan Company, you will be able to benefit from its extensive experience and knowledge in the field of opening a commercial register in Dubai and its requirements in Dubai. The company will provide you with the necessary guidance and advice to achieve compliance with the legal requirements and local regulations regarding opening a commercial register in Dubai.

The most important frequently asked questions about opening a commercial register in Dubai