How to Incorporate a Company in Dubai

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Dubai is one of the most important business hubs in the Middle East, especially since the local government has created a favorable legislative framework for foreign investments. If you can believe it, you can even start a business in mainland Dubai without local sponsorship. Even so, the option of establishing one in one of the free zones still remains attractive. So, if you’ve made up your mind about launching your own enterprise in Dubai, let’s see what the procedure entails.

Choose your destination

Even if the incorporation of a company in Dubai is similar in terms of documents and procedure, no matter if you decide on the Mainland or a free zone, there are, in fact, some important differences when it comes to the operations. Specifically, a free zone entity is limited to operating locally. This is why it is best to use the services of a professional agent, such as BridgeWest Dubai, to help you clear out all the confusion that most foreigners face when trying to register companies on their own.

Establish the activities your business will perform

You probably want to know why this is such an important matter and why it must be addressed at such an early stage. The answer is pretty simple: you need to obtain a specific license in connection with your business’s activities. You can have 3 options:

• the trading or commercial license;
• the industrial license;
• the professional license.

Again, you can use specialized services to help you choose the appropriate business license, so you can jump right into the registration process without going back and forth because of such details.

Obtain an initial approval from the relevant authority

The registration procedure for a company in Dubai starts with obtaining approval from the Trade Register, which goes by the name of Department of Economic Development, if you decide on a mainland business, or the free zone authority, if you will operate a free zone entity.

Documents drafting

Here is a step that is resemblant to that of the incorporation of a business in any other country: the preparation of the documents required by the Trade Register. Here they are in the case of a Dubai company:

• the application form you can find with the Department of Economic Development;
• the trading name reservation form, which you can find with the same Department of Economic Development;
• passport copies for you as a shareholder, and for the director, if you appoint a foreign person – make sure the passports are valid and that also have the required visa, if you need one to enter the country;
• the company’s Articles of Association – you can use the same local agent to have them drafted;
• a business plan in which you share the details of your company’s activities;
• proof of a local address – you can easily acquire a virtual office.

Bear in mind that any foreign-issued document must also be translated into Arabic and authenticated before submission.

Once ready, you can file them with the Registrar and collect the Registration Certificate and business license in a few days.

Tax registration

One last step to start operating in Dubai: apply for a tax identification code and VAT number for your company. The procedure is simple and free of any bureaucracy, as you can it complete online on the Federal Tax Authority’s online portal.

These are the steps to complete to have a Dubai company up and running. Even if the first ones may seem a little more complicated compared to other countries, remember you can always request professional help,so you don’t get confused. The same services can also be used to initiate the procedure remotely, leaving you to complete the parts that cannot be done so when you arrive in the Emirate.