In the last few decades investing in Dubai has shown to be a lucrative venture for numerous business owners. Dubai has reliable infrastructure, economic connections, and an international environment. These features make Dubai one of the best areas in the world to do business. The DED (Department of Economic Development) is the Government Department that is in control for issuing company formation in Dubai for either corporate or individual entity that wishes to start a business in Dubai.
Three types of licenses for company formation Dubai in Mainland
The founding of the entities formed under the UAE Civil Code which is regulated in undertaking ‘non-commercial’ or civil activities. The UAE Civil Code entities may be singular or a Civil Works Company. These include the promotion of services, skills, and expertise of the entities and the business they want to conduct. Other related practices may also be involved in the use of investment of intellectual faculties.
Companies of single entities or bigger corporations may be 100% foreign owned. However, a Local Service Agent is needed to be appointed.
In compliance with the guidelines of the UAE laws, the Local Service Agent will not have any Authority in the management or any financial obligation. They would only act on the entities on behalf to facilitate the trade license and visa processes required to finish the business license. The Local Service Agent will be agreed on in the contract to legalize the affiliation between the two parties.
Subjective of the business venture, this can be an LCC (Limited Liability Company) referring to 51% of the ownership is given to the Local UAE National or Company. In a company situation and some business ventures, the shareholders of the UAE Company need to meet the same criteria as its foreign partner/s.
Existing companies can only invest in a new Civil Company if they reflect the same business activity as the parent company.
Commercial license is to provide physical products and services in the UAE. This license is extensively utilized for businesses with foreign ownership wanting to start a businesses and trade in the UAE. Under the UAE Companies Law, a minimum of 51% ownership must be owned by a UAE National, known as a Local Partner. The foreign shareholder will have 49% ownership. However, the law allows the issuance of legal documents for an LLC in Dubai or UAE to cover requirements designed to protect the interests of the different minority shareholder. We provide the services to act as your local partner.
The manufacturing enterprises and industrial companies are required to have an industrial/manufacturing license to operate in the UAE. The Dubai Economic Development is responsible for issuing an Industry Trade License along with approvals from various and other jurisdictions. These Industrial Licenses are valid for a particular time. They are subject to compliance with the conditions mentioned while processing the license. Companies under the Industrial License need to register their license in the Dubai Chambers of Commerce and Industry. The organizations that convert natural resources or alter raw materials are the only ones that can have an industrial license. However, they need to hire a warehouse inside the UAE before they can get the permit. Contact us for more information.
Branch or Representative Office:
Setting up a branch is classified under the UAE Companies Law and allows 100% foreign ownership. This is allowed under the condition that a local service agent is needed. A Branch office is an extension of the parent company in the UAE and is permitted to make contracts and carry business. The activities of the Representative Office will be the same as the mother company which requires approval from the UAE Ministry of Economy. The branch can carry the product and services of the parent company. This includes any trading activity, however, allowing only up to four employees per company.
Requirements for Company Formation Dubai in the Main land
Company setup in Dubai has never been easier. When meeting our consultants, we will support you in decisions on the type of business you are willing to start. Whatever you are looking for a Main land company or Dubai free zone company formation Excellent Setup will guide our clients throughout the entire requirements needs to be organized by the customer’s side and substantial work that will be done by Excellent setup for company formation Dubai.
1 –Trade name booking is the first step into starting your business in Dubai which is a one-time fee and valid for six months.
2- Initial approval is the second phase for your license, and our company will do that.
3- Lease agreement is a must to start a business in Dubai. The prices will vary depending on the space and area that you choose to run your business. Our staff will be able to give you informed advice on the best location and best space that will suit your company’s activities.
4 -Notarized and attested Power of Attorney that will be done by Excellent Setup. We will also provide you with the template so we can act on your behalf and the shareholders.
5 –Passport copy and resume for the manager of the company.
6- Passport copies for the shareholders.
7 -Some activities need additional approval from different authorities like the Civil Defense, Municipality, Ministry of Labor, Immigration Department, Sports Council, KHDA Department, RTA department, and the Notary Republic.
8- Personal information about the managers and the shareholders that Excellent Setup will provide the template for that.
Additional Documents required for a corporate shareholder for setting up business in Dubai
1- An attested and notarized Memorandum MOA of Association that should be done from the UAE embassy at the place of Origin.
2 A Board determination to be determined by the panel of managements for your current company/entity at the location of origin stating the intent of launching a new setup abroad. Must be attested and notarized by the United Arab Embassy.
3-Documentation of registering (if applicable) for your current company entity, license or certificate of incorporation of your existing enterprise/ to be attested and notarized by the United Arab Emirates Embassy.
Local Sponsor for company formation Dubai in Mainland
When setting up an LCC in UAE, the Law of the expatriate shareholders are necessary to name a Local Sponsor or Local Agent depending on the type of the business you want to start.
Excellent setup is leading business setup consultants in Dubai We offer affordable prices for the service charge of our Local Sponsor for Mainland company formation in Dubai.The fee starts at 10,000 AED per year for all the information.
Five Steps Requirements for Mainland company formation Dubai without Approvals
The schedule for getting a license in the Dubai Economic Department for General trade and commercial license that does not require any external approvals.
First Step →Day 1: signs service agreement between the client and the Excellent Setup company and submit all the requirements with the payment for our company service charges.
Second Step →Day 2: Excellent Setup will present the Application for the Initial Approval for business activity.
Third Step →Day 3: Trade Name Reservation will be Acquired.
Fourth Step →Day 4: The client have to provide the Ejari certificate to Excellent Setup and sign Memorandum of Association, Local Service Agent Agreement, and Civil Works Agreement. Before going to the Notary public in Dubai the expatriate shareholders/s are needed to be required personally as well as Local Partner /Local Service Agent, or it is representative to sign the incorporation documents.
Fifth Step → Day 5: final submissions of the documentation along with the Issuance payment voucher to acquire the trade License.
Please note the Exact Payment Voucher Fees depends on the type of commercial activity as well as the cost of your yearly rent office. (The Market Fee is 5%). Please contact us for all the costs of your chosen license.
The cost for Name booking is 600AED, and this is a one-time government payment. In case the selected name of the company is foreign (not in Arabic) there will be additional fees of 2000Aed.
The cost of Initial Approval is 160 AED, and this is a one-time government payment.
The Sponsorship fee might change depending on the commercial activities and the needs of Clients. In case the number of employees will be more the 100 the cost of the sponsorship will increase as well as if an LLC company wants to credit facilities on the MOA.
The cost of the Memorandum of Association/Local Service Agent Agreement/Civil Works Agreement drafting and notarizing is a one-time fee which will be approximately 1925 AED (based on two shareholders that have 100,000 AED share capital calculation).
The price of a File Opening in Immigration (Establishment card) is 860AED; this is a one-time government payment fee.
The cost of a File Opening- Ministry of Labor (Establishment Card) is 2,053AED, this is a one-time government payment fee.
The price of an E-Signature Card – Ministry of Labor 1,000AED, this is a one-time government payment fee.
The Government fees for General Trading License will be approximately AED 25,000 – AED 30,000.