How to start your business in UAE?
We advise you to read through this guide to fully understand the steps required on how to incorporate a company in Dubai. The process of establishing a company in the UAE involves only a few simple steps, in all seven emirates.
Steps involved in incorporating a business.
Starting a business in ordinary ways involves a series of steps, including:
- Identifying a business activity
- Selecting an appropriate legal form
- Registering the trade name
- Applying for an initial approval
- Drafting a Memorandum of Association and local service agent agreement
- Select a business location
- Get additional government approvals
- Submit documents and pay fees
Identifying the business activity
Business activity is the basis for selecting the legal form and type of licence, whether commercial, industrial or professional, etc. There are six types of licences. They are: industrial, commercial, professional, tourism, agricultural and occupational.
Depending on your business goals and activities, Digits will recommend the most suitable business entity.
Select the legal form
The legal form depends mainly on the business requirements. Moreover, the legal form is basis for identifying applicable laws and regulations. In the UAE, an investor can select one of these legal forms:
- General partnership
- Limited partnership
- Limited liability company (LLC)
- Public joint stock company (PJSC)
- Private joint stock company (PrJSC)
- Civil company
- Local company branch
- GCC company branch
- Foreign company branch
- Free zone company branch
- Sole establishment
- Holding companies.
Register the trade name
A trade name distinguishes one business from another. It also reflects the nature and the form of the business. An investor can apply for the trade name through the economic department in each emirate, through its website or mobile application.
Provisions for selecting the trade name:
The trade name must:
- be followed by the business structure acronym (legal form of the company) such as: LLC, EST, PJSC, PrJSC
- not violate the public morals or the public order of the country
- be compatible with the required type of activity and the legal status of the company or business entity
- not contain names of any religion, or governing authority, nor names or logos of any external bodies
- not have been previously registered
Initial approval
An initial approval is the UAE Government’s ‘no objection’ towards a particular business being established in the country. This approval also allows the investor to proceed with the next steps to set up a business and for the authorities to issue the license. It does not, however, grant the investor permission to run the business or practice the business activity.
MOA and LSA
A Memorandum of Association (MOA) is required if the legal form of the company is a civil company, limited liability company, public shareholding company, or private shareholding company. A local service agent agreement (LSA) is required if it is a sole proprietorship.
Select a business location
All businesses in the UAE must have a physical address to operate from. The company premises and location must comply with requirements specified by the emirate’s Department of Economic Development, as well as zoning policies and regulations of local municipalities or other competent authorities. In Dubai, the tenancy contract for office or warehouse space has to be registered through the Dubai Land Department’s Ejari portal.
Get additional government approvals
In some cases, additional approvals from government entities governing certain business activities are required.
Submit Required Documents
All the above documents including lease agreements need to be submitted after getting attested.
How can Digits help you?
Digits can recommend the most suitable business entity for you Once ready, Digits will proceed to draft and notarize the company’s Memorandum and Articles of Association. Corporate forms and certificates will then be filed with the Dubai Department of Economic Development for approval. To comply with Dubai’s laws, Digits will then assist you to register for employment purposes and obtain a VAT number with the Federal Tax Authority. If you are looking to apply for licenses (trading, commercial, industrial and professional), Digits will further advise on the requirements. We will also assist in securing relevant business licenses and registrations with the Department of Economic Development. You can be confident you are in the best hands when Digits undertakes your Dubai company’s accounting and tax services.
Digits will timely prepare your firm’s financial statements, corporate tax returns and bookkeeping on your behalf. Digits will complete all annual filings and tax returns for your company before the stipulated deadlines set out by the government.
Additionally, Dubai’s Commercial Law also mandates that businesses continually perform audits. If necessary, we will assist you in obtaining a reliable accountant. This is to ensure that you can continue to legally conduct business with your Dubai entity, while staying compliant to regulatory obligations.
Ready to incorporate company in Dubai? Contact us to find out more about how to incorporate a company in UAE.
