Looking for company formation in Dubai? The first and the foremost thing that you require is to select the type of business you want to set up. If you already are in a possession of a great business idea, then your first step should be the selection of the place from where you want to start your business. The legal procedures and other formalities differ from the place to place in Dubai. Each country has its own rules and procedures that need to be followed in the process of company formation. Company formation in Dubai also incorporates the rules and regulations that are supposed to be followed while starting the company in Dubai. If you are looking for starting your business in the business hub of Middle East, then read on the steps of company formation in Dubai:
1. Selection of a local sponsor:
For starting a company in Dubai or elsewhere in the UAE, the business is required to have no less than fifty-one percent (51%) shareholding of UAE nationals. But there are some exception to the above
- The company is set up at any of the Free Zones in Dubai.
- Where the law essentially requires 100% local ownership.
- In certain cases where 100% ownership for nationals of GCC is authorized or permitted.
- In case of professional or artisan companies where total foreign ownership is permitted.
- In the case of foreign companies registering branches or representative office in the UAE.
- The company completely owned by the GCC enters into a partnership with another company that is wholly owned by the UAE nationals.
- The foreign ownership can be 100% where a professional license is being applied for crafts like artist, doctor, and architect etc. However,in such case a UAE national must have to be taken as a service agent.
You need to decide on the local sponsor and before getting into partnership many things need to be considered. The issues and the expectations regarding the assistance in getting various approval, registration and payments must be resolved first. It is indeed a very crucial step of business to get a supportive sponsor.
2. Select a company/trade name:
The next step is to select a name for your brand or company and it requires approvals from the Department of Economic Development. For obtaining the name approval of your company, applicant is required to fill a standard application and submit at Department of Economic Development.
3. Selection of Business premises:
The next step is to look for the appropriate premises for your company and make a tenancy contract. In order to get your business registered, applicant need to present the tenancy contract of the business premises.
4. Draft MOA and local service agent agreement:
The next step is to Make a Memorandum of Association with your sponsor and submit to Department of Economic Development. The MOA can be typed out by any legal firm specifying the special arrangements and percentage of ownership of all partners.
5. Submission of MOA and license application:
All the legal documents that comprise of MOA, License application, tenancy contract should be submitted atto Department of Economic Development.
After 5th step, license will be issued in 5 weeks’ time on an average.
Also read our blog on company registration in Dubai.