In order to be able to open your own company in Dubai or in the United Arab Emirates, there are some conditions that must be applied first. During the paragraphs of today’s article, we will talk about the conditions for opening a company in the Emirates, in addition to some important information about this topic. Continue reading with us to know more details about it.
Conditions for opening a company in the Emirates
The conditions for establishing a company in Dubai or the Emirates differ slightly from one person to another, and also differ for Emiratis and for foreign citizens. This is because these conditions relate to several different factors, the most important of which is the nature of the business of this company. But in general, here is an overview of the most important basic conditions for opening a company in the Emirates, regardless of the nature of its business:
- Determine the type of activity in which this company wants to work.
- A feasibility study for this company’s project, in addition to good planning before its implementation.
- Finding a suitable strategic location for the company before starting it, because the location is considered one of the most important factors that contribute to the success or failure of any company.
- Selecting a suitable work team for the company, that is, employing people with high experience and appropriate skills to work within the scope of the company.
- Completing all paperwork, i.e. the procedures, papers and documents required to open a company in the Emirates.
- Obtaining the commercial license for the business or company.
Steps to open a company in the Emirates
After learning about the conditions necessary to open a company in the Emirates, these are the steps for establishing a company there:
1- Determine the company’s activity
It is the first step in this process, and means selecting and accurately determining the nature of this company’s economic activity. Note that the UAE allows foreigners to practice some businesses within it and prohibits other businesses.
2- Determine the ownership of the company
A foreign investor cannot own 100% of a company in the UAE, unless it is established within the free industrial zone. Otherwise, he needs a partner who holds Emirati citizenship.
3- Drawing the legal form of the company
There are several legal types of companies that are allowed to be established within the territory of the United Arab Emirates. Before you can complete the following steps, you must determine the legal form of your company.
4- Determine capital
This step is not required for all companies established in the Emirates, but for some of them they may be required to specify the minimum capital for the company.
5- Choose the company’s location
This means choosing the place where you want to establish the company, in addition to concluding the company’s articles of incorporation as well.
Opening a company in the free zone
The UAE contains areas known as free industrial zones. If the investor establishes his own company in these areas, he can own 100% of it, in addition to some other additional benefits. Among the most important conditions for opening a company in the industrial free zone, we will mention to you
- Submitting all necessary special papers and documents to the competent administration in the region, which must include a custom declaration for imports of goods that is prepared by the General Authority for Investment, in addition to invoices and a packaging statement.
- Submit an original declaration stating that the company operates under the free zone system, and that all imported goods are of the types necessary and licensed for commercial activity.
- Finalizing all customs procedures, in addition to requesting customs dispatch.
- Determine the type of company activity, in addition to the entities associated with it and its legal form as well.
Choose a suitable trade name for the company.
Opening a sole proprietorship company in the UAE
As for the conditions necessary to open a sole proprietorship in the UAE, they are as follows:
- Securing the company’s initial approval.
- Preparing the papers and documents of the individual company, which includes an original copy of the passport.
- Providing an authorization letter and authorization card, and providing a customized information form for the new company in addition to a signature form.
- Secure a certified commercial agency, which can be obtained from the UAE embassy.
Obtaining important signatures for this company, such as signing the services contract, the company’s articles - of incorporation, in addition to signing the articles of incorporation.
- Complete the declaration form by filling it out, in addition to obtaining the Emirates permit and securing photographs.
- Finally, sign the residence visa application in addition to signing a letter of commitment and a letter of acknowledgment.
Does opening a company in the UAE require a partner?
If the investor wants to own 100% of his company in the Emirates, he must establish it within the industrial free zone. Otherwise, a partner who holds Emirati citizenship must be added, meaning that the foreign investor will not be able to own 100% of the company. For this reason, the process of opening and establishing a company in the Emirates often requires the presence of a partner who holds Emirati citizenship.
Tadabeer company is with you every step
If you are looking for a company to help you facilitate all the procedures related to establishing your company in Dubai, all you have to do is contact us. Tadabeer’s company staff will work to implement the establishment steps in the best and fastest way, and you will start working in your company within the Emirates within a very short time.
Follow us on social media:
