Establishing companies in Dubai through three stages. Procedures for establishing companies are a big problem facing investors with different sizes of financing of their respective companies and their capital in most countries in the world, where the investor faces many obstacles in the procedures such as lengthy routine, endless required papers, and the many government interests that must pass before Starting the company and many other obstacles. But the United Arab Emirates gives you the best possible opportunity to establish companies in Dubai through only three stages, To remove all obstacles in front of investors and encourage them to invest in Dubai.

The stages of incorporation of companies in Dubai are divided into three different stages, the first stage, It is the trade name and initial approval stage. At this stage, you must choose a trade name commensurate with the nature of the activity entrusted to the company that you intend to establish. As for the initial approval, it is approval of the names of the founding partners of the company and the activities to be practiced through the company, as well as the nationalities of the partners in the company. And you can complete this step through some specific places, Such as the website of the Department of Economic Development and the offices of strategic partners, law offices, and branches of the department.

stakeholders

There is a strong relationship between the Department of Economic Development and the local and federal departments and bodies in order to facilitate procedures, as the department has more than 2000 commercial, professional and industrial activities. Some activities require approvals from entities other than the Department. This is according to the activity entrusted to the company to be established. The Department of Economic Development has also linked all activities to the concerned authorities according to specialization. It is distributed as follows:

• The parties with whom an agreement has been reached to issue the license, And inform it through the electronic system for the purpose of follow-up at a later time.
• system linkage, Where the transaction stops until it is approved by the concerned authorities
• Bring a certificate from the concerned authority. In the event that this entity is not linked with the Department of Economic Development.

As for the second stage, It is the stage in which the company’s incorporation contract is concluded. In this contract, the names of the partners in the company, their nationalities, and the purpose of establishing the company are clearly specified. The name of the company’s manager must also be specified. And the trade name that has been previously chosen and reserved for the company. And also, The paid-up capital must be determined in establishing the company in addition to the shares of the partners allocated to them. The founder of the company then goes to the places of documenting the contract, which are with the notary public in the Dubai Court, the Department of Economic Development, the branch of the department in Al Barsha, and the branch of the department in Al Twar.

Starting and establishing companies in Dubai

The company incorporation process is as follows:

• Department of Economic Development, Its task is to issue the license

• General Directorate of Residency and Foreigners Affairs, Its mission is to obtain the residence of the investors after opening a file for the establishment. Obtaining a temporary license from the Economic Department

• Ministry of Labor, Its mission is to open a labor facility file to start hiring suitable workers for the company.

• Opening a bank account, renting a headquarters for the company, and doing business.

Thus, we come to the third and final stage of establishing companies in Dubai. This is the license issuance stage. At this stage, all transactions are done at the Department of Economic Development in Dubai. This stage includes the following:

• Reserving the trade name and obtaining the initial approval from the Department of Economic Development.

• Pay the due fees.

• Provide the lease contract that proves your rental of the company’s headquarters to the Department of Economic Development.

• Issuance of a commercial register.

Thus, all the transactions and the three stages related to the establishment and incorporation of companies in the Emirate of Dubai in the United Arab Emirates have been completed.

The legal forms that a citizen of the country can practice

Citizens of the country may engage in all activities in any legal form in accordance with the terms of each activity. They can establish the following companies

1- Private or public shareholding.

2- Civil works.

3- Limited liability, joint liability or simple recommendation.

4- Sole proprietorship.

Legal forms that can be exercised by foreign companies

Companies incorporated outside the United Arab Emirates may, Carrying out an activity in one of the legal forms, Under the name of a branch of a foreign company. Foreign companies may also open branches for themselves in Dubai in some activities such as, commercial execution offices, professional activities, However, this requires the presence of a national agent for the company. It is also possible to establish:

public or private joint-stock company, In which it is required to have one or more partners who are UAE nationals. So that their share is not less than 51% of the paid-up capital.

· A limited liability company, In which it is required to have one or more partners who are nationals of the state. So that their share is not less than 51% of the paid-up capital.

Legal forms that can be exercised by citizens of the Gulf Cooperation Council

Citizens of the Gulf Cooperation Council countries may practice most commercial, professional and industrial activities. They may also establish sole proprietorships. This is done through several steps:

• Choosing the business name of the establishment, According to the terms and conditions and obtaining preliminary approval.

• Obtaining the approval of the department from the service centers or the website.

• Determine the legal form of the establishment based on the type of activity required and the number of applicants and their nationalities.

• Provide all licensing requirements and conditions.

Renting a site for carrying out work and ensuring its suitability for carrying out the activity.

Pay the fees and obtain the final commercial license.

Submitting the establishment documents to one of the department’s branches and completing the final procedures.

Legal forms that foreigners can practice

Two persons may establish a civil business company for the purpose of practicing a professional activity. Provided that a local service agent is appointed from among the nationals of the country, or partnering with them. They are entitled to establish:

Professional Sole Proprietorship: It is required to appoint a local service agent from the UAE nationals, taking into account the requirements for each activity.

Private joint stock company: It is required to have one or more local partners. You can own 49% of the company. And if he has a Gulf partner, there must be a 51% citizen partner.

You can seek legal assistance and advice to establish your company and invest in Dubai. For a successful future in the business world.

Do you want to start your own business in Dubai? You can contact our expert team and they will take it from there.

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