Any form of business can be successfully launched in Dubai. Many people from all over the world, interested in conducting any sort of business, come to Dubai to take advantage of the city’s booming economy and relaxed laws. The United Arab Emirates (UAE) has seen its economic growth prediction for 2021 raised by the International Monetary Fund (IMF) to 3.1%.
Steps to Be Followed for Setting Up a Business in Dubai
Documents required to start a business in Dubai:
- Application form of the business
- Business plan
- MOA and AOA which is duly notarised by the authority
- Passports of the managers of the business
- Passports of the sponsor to prove that he/she is an UAE national
- NOC from the sponsor
- Bank reference letter for each shareholder
- Certified copy of tenant contract
Identifying Local Sponsor and Deciding the Terms
For set up a business in Dubai, you require a local UAE sponsor and decide the terms with him which include the annual fee charged by the sponsor, sponsor’s responsibilities etc.
Obtaining Memorandum Of Association (MOA)
MOA is the root document of the company, which contains all the basic details about the company. All the shareholders require to sign the MOA.
Obtaining Preliminary Approvals
For set up a business, several preliminary approvals may be required which is depend upon the type of company. For obtaining these approvals, it will be better if you have your own lawyer or business setup consultants who are familiar with the entire process of business set up in Dubai.
Trade Name Registration
You are need to settle on a distinctive brand name for your business, which implies that the chosen name must not be identical to that of any other already-established firm and must not fall under the purview of any name restrictions. You are required to submit an application to the Department of Economic Development to register your business name (DED).
Applying for Trade License
Check whether your business activity or a set of activities are allowed under the available licenses in the UAE. There are 3 types of trade licenses are issued in the UAE:
- Professional licenses
- Commercial licenses
- Industrial licenses
You have to apply for trade license from the above-mentioned licenses.
Lease an Office Space
To start a business in Dubai, you also need to find a suitable office space and get a tenancy contract. You can not obtain a license without a valid office address. In case of the offshore company, the address of the registered agent becomes the company’s official address
Submit the required documents
After completion of above procedures, you need to acquired the required documents and submit it to the Department of Economic Development (DED) and pay the required fees.
Benefits of Setting Up a Business in Dubai Are as Follows:
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Entrepreneurs must fill out an application form that is supplied by the appropriate government agency in charge of company registration. Important information about the company, including its name, legal status, operations, and shareholders, is recorded in this form.
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In most cases, you’ll need a business plan that details your goals, a study of the market, your financial predictions, and your operational plans. In order to convince authorities and possible investors of the business’s potential and viability, this paper is helpful.
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The MOA and the AOA are the governing documents of a company. The organizational structure and internal controls of the company are detailed in these legal documents. They lay out the expectations for the company’s management, shareholders, and board of directors. Notarization of the MOA and AOA is required by the appropriate Dubai government.
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Managers’ Passports: Each manager or important employee of the company is usually expected to provide a copy of their passport. The purpose of these documents is to confirm the identity of the individuals and their eligibility to do business in Dubai.
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Copies of the Sponsor’s Passport: If the company’s sponsor is a citizen of the United Arab Emirates, we need to see their passport. This shows that the sponsor is a UAE national and that they are actively involved in helping the company.
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In most cases, a “No Objection Certificate” (NOC) from the sponsor is necessary if the company is running under a sponsorship arrangement. The entrepreneur’s ability to launch and run the company is officially sanctioned by the sponsor in this document.
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To prove their financial integrity and stability, each shareholder needs a letter from a bank recommending them as a shareholder. The shareholder’s account information, relationship with the bank, and financial status are detailed in this letter.
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In most cases, a verified copy of the lease agreement is necessary if the company is leasing the physical location of its operations. Confirming the legal agreement between the property owner and the business, this document also serves as verification of the business address.
if you are looking for a company that can help you establish a business in Dubai and its surrounding areas, look no further. Please get in touch with KGRN Firms as soon as possible. KGRN is a Full-Service Business Setup Provider Available Throughout the Entire UAE.
