In recent years, the United Arab Emirates has become one of the most important investment destinations ever, especially the emirate of Dubai. This is due to many different reasons, the most important of which are the facilities provided by the state to investors, in addition to the development of the economic situation in the country. During the following paragraphs, we will mention to you the conditions for establishing a company in Dubai for foreigners. Continue reading with us in order to learn about these conditions and be able to invest in Dubai or the Emirates correctly.
About the city of Dubai
The city of Dubai is located on the southeastern coast of the Arabian Gulf, and is considered one of the densest cities in the Emirates in terms of population. Dubai is considered one of the seven emirates in the United Arab Emirates, and one of the most prominent regions in the country in general. Due to its rapid development, Dubai has recently gained popularity at the global level. It is currently considered one of the most important investment and commercial centers in the Middle East at all.
For these combined reasons, many people seek to invest in Dubai. Whether that is by establishing companies, or by cooperating with companies in the region. In all cases, due to the diversity of commercial and industrial activities in the city, it opens many different investment doors for the investor.
Conditions for establishing a company in Dubai for foreigners
The conditions for establishing a company in Dubai for foreigners do not differ significantly from the conditions necessary for Emirati citizens, and this is due to the country’s laws that facilitate investment operations for foreigners. Where the conditions are as follows:
1- Determine the economic activity of the company
The first and most important step in the process of establishing any business or company is selecting its commercial and economic activity. For this reason, the first and most important condition in the process of establishing a company in Dubai is to choose and determine the nature of the economic activity of this company. Dubai allows foreigners to engage in many different economic activities, but it also prohibits some of them.
2- Drawing the legal form of the company
The second condition in this process is to determine or draw the legal form of the company to be established. The foreign investor must accurately determine the legal form of his company, so that he can complete the procedures for establishing another company without any problems.
3- Choosing and registering the trade name
Regarding the process of choosing a trade name for a company in Dubai, there are some conditions that must be followed. For example, it is not possible to choose a trade name that already exists in Dubai city records, nor can it choose some specific words or phrases that could be bad. Apart from that, the investor must also choose a name that is compatible with the nature of his company’s activity as well.
4- Obtaining initial approval
After completing the previous steps, the foreign investor must obtain initial approval. It is a document that allows him to complete the procedures for establishing your company in Dubai. Note that in order for the investor to be able to obtain this approval, he must fully and correctly fulfill the previous conditions.
5- Concluding the articles of incorporation
One of the most important conditions for establishing a company in Dubai for foreigners is the conclusion of its articles of incorporation. Knowing that this contract is often concluded after selecting the appropriate location to establish the company, and it may vary slightly from one company to another depending on the nature of its activity.
6- Obtaining the commercial license
After fulfilling the previous conditions and steps completely and correctly, the foreign investor here can apply for his commercial license. After obtaining and activating this license, he can begin practicing his own business in Dubai.
Is there a necessity to have an Emirati partner?
In order for any foreign investor to establish his own company in Dubai, you must have a partner who holds Emirati citizenship. However, this condition can be dispensed with in the case of seeking assistance from approved service offices, or for some relevant activities that do not require the presence of this partner to work on them.
Commercial and economic activities for foreigners in Dubai
We previously mentioned to you that a foreign investor can engage in some economic activities in Dubai, but there are some prohibited activities as well. Among the permitted activities we mention to you:
- Working in real estate fields in general, such as trade and ownership.
- Most types and operations of air transportation.
- Providing consultations to companies in the Emirates.
As for the prohibited activities, they are:
- Mining-related activities, such as oil, gold, etc.
- Establishing, managing or providing consultations to advertising agencies in the Emirates
- Various activities related to aviation in the Emirates
- Dealing in aviation stocks in the UAE
Tadabeer company for establishing companies in Dubai
Tadabeer Company seeks to facilitate all necessary procedures for establishing a company in Dubai and investing in Dubai in general. Do not hesitate to contact us to facilitate all the necessary steps for you to start working in Dubai.
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