Entrepreneurs from all over the world are excited about setting up a business in Dubai.
Due to its strategic location, favorable tax laws, and improved infrastructure, Dubai has emerged as the global hub for the startup community.
At the same time, when establishing a startup in Dubai, certain factors still exist to consider.
In light of this, this thorough guide examines the necessary paperwork for business formation in Dubai.
1. Passport copies and personal verification
Personal verification is one of the first steps in setting up a company in Dubai. Each partner involved in the company must have visited Dubai at least once and provide a copy of their passport.
Registering a company online through the Invest Dubai platform requires a photo of the individual holding their passport, which helps ensure the documents’ authenticity.
Why is personal verification important?
Personal verification helps maintain the integrity and security of the business environment in Dubai.
It ensures all partners are legitimate and have a clear and verifiable identity, preventing fraudulent activities.
2. Trade Name Registration
Choosing a unique business name is crucial in forming a company in Dubai. The selected name must be approved and registered with the Department of Economic Development (DED). Once approved, a Trade Name Certificate is issued, which is necessary for proceeding with other licensing requirements.
How do I choose a business name?
- The name should reflect the nature of the business.
- It must not include any offensive or blasphemous terms.
- It should not duplicate an existing trade name.
3. Ejari (Tenancy Contract)
An Ejari, or tenancy contract, is a vital document in the licensing process. It proves that the company has a physical address in Dubai. The Ejari must be registered with the Real Estate Regulatory Agency (RERA).
Instant Licence Option
For Limited Liability Companies (LLCs), there is an option to get an instant license, which can waive the Ejari requirement for the first year. However, it is advisable to obtain an Ejari to avoid future complications, especially when dealing with banks.
4. Residency Visa
While a residency visa is not required to open a company, it is necessary for carrying out operational functions such as:
- Opening a Bank Account: Most banks in Dubai require business owners to have a residency visa.
- VAT Registration: Companies with a certain turnover must register for VAT, which requires the owners to have a residency visa.
- Corporate Registration: A residency visa is essential for a complete corporate setup, including labour and immigration services.
5. Business Activity and Licensing
Choosing the appropriate business activity is critical, as it determines the type of license required. The DED provides a comprehensive list of permitted activities, and selecting the right one is crucial for compliance and operational success.
Types of licences
- Commercial Licence: For trading activities.
- Professional Licence: For service-oriented businesses.
- Industrial Licence: For manufacturing and industrial activities.
6. Contact Details
Providing contact details, including a phone number and email address, is mandatory. The contact number can be international, making it convenient for foreign investors to maintain communication.
7. Consultation with a Business Setup Consultant
Given the complexities involved in setting up a business in Dubai, consulting with a business setup consultant is highly recommended. These experts can provide invaluable advice and assistance in several ways:
- Navigating Legalities: Ensuring all legal requirements are met to avoid penalties.
- Selecting Business Activity: Helping choose the most suitable business activity for licensing.
- Streamlining the Process: Making the entire process more efficient and less time-consuming.
Benefits of Expert Advice
Expert advice can help foresee potential obstacles and provide solutions to overcome them. This ensures a smooth business setup, allowing entrepreneurs to focus on growing their businesses.
Final Thoughts
Setting up a business in Dubai involves several stages. These span translating your idea into a product/service, acquiring the necessary funds, and, most importantly, obtaining the necessary legal documents.
It is paramount to ensure you have all the requirements before filling out your application for company registration in Dubai. It is highly advisable to reach out to a qualified business consultant with extensive knowledge of the Dubai business landscape.
One can count on Syed Aadil to assist in setting up business in Dubai smoothly and effortlessly. Aadil is a professional with field experience. He will walk you through every step, solve all legal issues, and avoid future difficulties. Talk to Aadil today to do it fast and right.
