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Conditions for establishing a company in Dubai for foreigners

Conditions for establishing a company in Dubai for foreigners

8 Jul Conditions for establishing a company in Dubai for foreigners

The conditions for establishing a company in Dubai for foreigners are indisputable basic conditions for the investor or entrepreneur to be able to work legally in Dubai. In this article, we discuss the conditions for establishing a company in Dubai for foreigners, in addition to the documents required in accordance with the regulations and laws stipulated by the Department of Economic Development in Dubai.

And if you are looking for assistance in establishing an investment activity in Dubai, you can contact our team, and we will take care of all the necessary procedures and conditions for establishing a company in Dubai for foreigners and obtaining a trade license, and we will provide you with the necessary legal advice through the most skilled consultants in Dubai.

 

Conditions for establishing a company in Dubai for foreigners


Conditions for establishing a company in Dubai for foreigners

The city of Dubai has become the destination for every investor because of the investment privileges it offers and support for various types of commercial, industrial, service and other activities. The laws and regulations for establishing businesses and companies in Dubai require a set of legal steps and conditions for establishing a company in Dubai for foreigners to be followed, in order to organize the investment process on a legal basis that guarantees the rights and duties of all parties.
In the following lines, we learn about the conditions for establishing a company in Dubai for foreigners, as stipulated by the Department of Economic Development in Dubai and the competent UAE authorities, as follows:

  1. Choosing a trade name that reflects the nature of the company’s activity and that it does not violate the following conditions:
      • It does not include extraneous phrases or contradict public taste.
      • It does not contain the name of a government agency or is similar to the name of another company.
      • It does not contain one of the names of God.
  1. Obtaining the necessary UAE work visa for investment and business establishment in Dubai.
  2. Receive the commercial license according to the nature of the commercial activity, pay all related fees, and then register with the UAE Chamber of Commerce.
  3. Completion of all required legal documents and procedures within the terms of establishing a company in Dubai for foreigners.
  4. Determine the appropriate area in which the company will be established and that it is suitable for the nature of the activity that the company will practice.
  5. The presence of a team of employees and workers available at the company’s headquarters in Dubai.

Documents required within the terms of establishing a company in Dubai for foreigners

There are several documents required in order to obtain an investor visa in Dubai , which is one of the conditions for establishing a company in Dubai for foreigners, as follows:

  • A personal photo with a white background.
  • passport copy.
  • The original and copy of the company’s Memorandum of Association or the service agent’s contract.
  • A copy of the company’s incorporation card in Dubai.
  • Possession of a valid commercial license in Dubai .
  • Company bank statement for the last three months.
  • In the case of partners, an appendix shall be attached with the names of the partners.

Obtaining an investor visa in one of the free zones in Dubai has many advantages that the investor enjoys over other areas in Dubai, such as:

  • Tax exemptions on corporate and personal income for individuals.
  • Exemption from import and export taxes.
  • Foreign ownership of the company without the need for an Emirati partner.
  • The company’s incorporation and operating costs are lower than other regions.
  • Availability of well-equipped office space and warehouses at the lowest costs.
  • There is no currency limitation.
  • The right to recover the capital and the freedom to dispose of the profits.

The cost of obtaining a visa for investment in free zones differs from other areas in Dubai, and the cost of obtaining a visa varies according to the nature of economic activity.

 


Procedures for establishing a company in Dubai according to the conditions

The conditions for establishing a company in Dubai for foreigners include legal procedures that the owner of the company must undertake and obtain approvals from the relevant government agencies regarding the conditions for establishing a company in Dubai for foreigners and obtaining a trade license in order to start work legally.
In the following points, we discuss 7 necessary procedures required to establish a company in Dubai in accordance with the UAE laws and conditions as follows:

  • nature of economic activity

The first procedure according to the conditions for establishing a company in Dubai for foreigners set by the Department of Economic Development in Dubai is to determine the nature of the economic activity in which the company will operate.
The economic activities in Dubai vary, including:

        • Commercial activities.
        • Industrial activities.
        • Service activities.
        • Tourist activities.

  • Legal form

The second procedure according to the conditions for establishing a company in Dubai for foreigners is to determine the legal form of the company and its importance is due to it determining the laws that will govern the company later.
Examples of legal forms for companies in Dubai:

        • Solidarity Company.
        • Simple Recommendation Company.
        • A limited liability company.
        • Public contribution.
        • private contribution.
        • Commercial representative office.
        • Civil works company.
        • A branch of a local company.
        • A branch of a Gulf company.
        • A branch of a foreign company.
        • Free Zone Company Branch.
        • Individual Foundation.
        • holding company.

  • Trade Name

The third procedure in accordance with the conditions for establishing a company in Dubai for foreigners and the laws of the Department of Economic Development is to choose a trade name for the company that is appropriate to the nature of the company’s activity and expresses it, just as the trade name is what differentiates one trade license from another. Therefore, it is an important procedure within the terms of establishing a company in Dubai for foreigners, and it takes place according to several conditions as follows:

  • The company’s trade name must express the nature of the company’s activity.
  • The trade name should not include inappropriate phrases and not violate public taste.
  • The trade name must not be previously registered or similar to another company.
  • The company’s trade name must abbreviate the legal form of the company.
  • It does not contain the word majesty or the beautiful names of God.
  • It does not include the name of a government agency or political slogan.

One of the conditions for establishing a company in Dubai for foreigners is to register the trade name with the competent authority, “Department of Economic Development in Dubai,” in order for the owner of the company to receive the payment authorization and the transaction number, as a document to be used as a reference when paying.

  • Initial approval

The fourth procedure according to the conditions for establishing a company in Dubai for foreigners is to obtain the initial approval from the concerned authorities to approve the trade name, the nature of the activity and the legal form of the company. After obtaining the approval, the rest of the procedures are completed properly.

  • work location

The fifth procedure in accordance with the conditions for establishing a company in Dubai for foreigners is to choose the workplace for the company, and the address of the company’s headquarters is recorded in the company’s documents and that it conforms to the conditions so that the location must be actual and exist on the ground and that a lease contract is available for the company’s headquarters certified by the concerned authorities.

  • additional approvals

The sixth procedure according to the conditions for establishing a company in Dubai for foreigners is to obtain additional approval. Because some economic activities require obtaining additional approvals from the authorities regulating them. Such as the following:

        • Ministry of Interior Affairs.
        • Ministry of Justice.
        • Municipality Department in Dubai.
        • The Telecommunications Regulatory Authority.
        • executive board.
        • The Ministry of Economy.
        • Dubai Health Authority.
        • Supreme Petroleum Council.

  • Commercial license

The last procedure in accordance with the conditions for establishing a company in Dubai for foreigners is to obtain a trade license according to the nature of the company’s activity, after paying the license fees, then registering with the UAE Chamber of Commerce as a member thereof.

For more information about the conditions for establishing a company in Dubai for foreigners and to seek assistance from an expert to undertake the procedures for establishing businesses and companies in Dubai and obtaining a trade license, Contact our team now.

 

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