Conditions and procedures for company registration in the UAE

Conditions and procedures for company registration in the UAE

The registration of companies is a prerequisite for starting their business, as it is not possible to start practicing any activity without issuing the necessary licenses for it, and the types of licenses differ according to the nature of the activity of each company and its legal form, and in Dubai you can register your company in more than one easy and convenient way made available by the Dubai government, and in In the next lines, we will discuss with you in detail everything related to the issue of company registration procedures  in Dubai. 

What are the conditions for company registration in the UAE?

In order to obtain approval from the Department of Economic Development for the trade name and complete the company registration procedures, you must fulfill all the conditions for registering companies in the Emirates, the most important of which are:

  1.  It should not be contrary to public taste, and it should not contain words or phrases.
  2.  That the name of the company be related to what indicates the legal form of the company.
  3. The name is not already registered by another company.
  4. The trade name should indicate the activity it is carrying out.
  5. It is stipulated that the trade name does not contain any of the names of God or the word “God” or the word “Lord”.
  6. It should not contain any external logos or names of government institutions.

You can also add a license to the current activity to complete the company registration procedures, but after the fulfillment of some basic conditions, which are:

  1. The partner in the new company must be one of the shareholders or owners of the already existing company.
  2. The number of licenses owned by one citizen should not exceed 10 for the same site.
  3. The area of ​​each license location shall not be less than 200 square feet.
  4. Obtaining approvals from the competent authorities of the facility.
  5. Issuing a trade license in Dubai.
  6.  Collect all the documents that you made in the previous stages and submit them to the Department of Economic Development.

What are the licenses required to register a company in Dubai?

In order to start any activity in Dubai, you are required to complete all company registration and business licensing procedures, including obtaining the required licenses to register a company in Dubai, so you cannot start practicing your activity until after obtaining the necessary licenses, and you should know that there are three types Of the licenses required to register companies, they are:

  1. Professional License: It is a license commensurate with personal property.
  2. Industrial license: Every person who wants to start manufacturing will obtain an industrial license.
  3. Commercial license: It is a license that can be obtained by investors wishing to start a commercial activity in the UAE, such as selling, importing and exporting activities. For more information, read in detail the steps  to open a commercial license in Dubai .

Types of companies that can be registered in Dubai?

  • Sole Proprietorships:

Sole proprietorships are a type of company that is 100% owned by only one person, and for this reason that person has complete control over all business and profits, and although it is possible for all nationalities to establish a company with ownership and then take the procedures for registering companies, but Owning industrial or commercial companies

  • Civil companies:

Professionals such as doctors, engineers, accountants and lawyers can establish civil companies within the United Arab Emirates

  • Limited liability companies:

In limited liability companies, the number of shareholders ranges between 2 and 50 as follows: Each shareholder is responsible only for his percentage in the shares, and in addition to this, profits or losses are divided among the shareholders according to the percentage of their shares, and the LCC must Which has a board of directors consisting of 3 shareholders as a minimum in order to accept the procedures for registering companies and obtaining the required licenses.

  • Offshore companies:

They are commercial or industrial companies. Foreign investors  establish offshore companies  in the UAE and they are wholly owned by foreign investors. They appoint a service agent for them from the UAE to be able to conduct their business within the country.

  • Foreign company branch:

Foreign companies can open branches for themselves in the United Arab Emirates, and in this case the company is fully owned by the parent company, and despite this, they must import any required goods through a local trading company.

  • Free zone companies:

There are many advantages and incentives for establishing companies in the free zones in the United Arab Emirates, knowing that these companies cannot trade directly with the UAE market.

Registering a private joint stock company:

In order to be able to register and establish a  private joint-stock company, a set of documents and papers required for registration must be provided, which are as follows:

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