Let discuss how to register a company in Dubai if the directors are foreigner. You may know how to register Limited Liability Company, JV or Branch Office in Dubai under FDI Law. Every year foreign companies attracted into doing business in the UAE. Dubai is the largest business hubs in the world with a mix of multi culture. It is great markets and stunning products of middle east. Conducting a business in Dubai need one to register the company with the government. Incorporating a business in Dubai is very easy and by following a few simple steps:
The whole registration process can complete within short period. The best thing about doing business is foreign investors can hold 100% control of own company. They can either register a new business or open up branch offices as need. They should always ensure that they have a National Service Agent own. That agent should be residing of UAE appointed who will act as their liaison. Without local agent registration will not complete.
Documents Required for branch office
Before start registration process, there are certain documents have to prepare and submit. These documents are at most from parent company of their own homeland. The list of requirement includes as follows:
- Certificate of Incorporation in the home country.
- Memorandum and Articles of Association of the parent company.
- Board Resolution.
- Audited Financial Accounts of the parent company for the past two years.
- Power of Attorney (issued in favor of the company-appointed General Manager).
- Bank Guarantee issued in favor of the Minister of Economy and Planning.
- The bank guarantee must show an amount of AED 50,000. This should renew every year upon approval of Ministry of Economy.
- A ‘Service Agent’ agreement with a UAE national.
Steps of Company Registration Dubai
Follow steps to open private limited Company (LLC) in Dubai under FDI Law. Under the guidance of a Service Agent, these steps should be of minimal hassle.
The first step is investor will file for business license to Ministry of Economy & Commerce. Along with this application, the foreign entity must submit a Service Agent Agreement. This agreement should clear data that the agent is either an UAE national or a 100% UAE owned company.
MEC department will forward application to Economic Department for next step. It start working when agreement between agent and business license are make done. The purpose should ensure that the foreign company feel secures the local government’s approval. It is crucial to have the local government’s approval to run a business in Dubai.
Once job complete by Economic Department then again application forward to FFC Committee. During this stage of processing, nature of business confirmed after justification. This business activity need approval by MEC. Keep in mind that there are certain activities prohibited in Dubai. So it is wise to do a thorough check up on what allows and what is not permitted before investing in the Emirates.
After approval by Federal Foreign Companies Committee foreign entity now need Ministerial license. The Ministry of Economy and Commerce issue such license after verify. The license will contain detailed information about valid activities. In short, it will state what the company is permissible to do in Dubai.
Branch office are permitted by the Commercial Register of the Economic Department. Over here, the required license are provided by department of UAE.
The last step of registering a foreign company in Dubai is at the Dubai Chamber of Commerce and Industry. The government will issue the foreign entity a Certificate of Registration. This is the proof that the foreign company has been incorporated. And officially can start the operation without any more fuss in Dubai.
Dubai company registration Fees (AED)
|Particulars of services||Minimum Fees||Maximum Fees|
|Private Limited (Total approximately)||35000||50000|
|Branch Office (total approval)||70000||90000|
|Economic Department Fee||3000||3500|
|Agent Agreement with Notary||300||500|
|Trade License Fees||15000||20000|
|Commercial license fee||700||800|
|Membership of Chamber||1500||3000|
|Local director service||7000||10000|
Company registration Time
|Private Limited||10 days||15 days|
|Branch Office||10 days||30 days|
|Agent Agreement||2 days||3 days|
|Membership of Chamber||3 days||10 days|
|Bank Account||3 days||7 days|
Ownership and type of company
|Type of company||Free Zone||LLC|
How much cost business setup
Approximately AED 35000 to above.
Investors are allowed to hold 100% shares of company, but costly.
It depend, approximately AED 7000 to above.
Contact the agent, expert, consultancy firm to arrange this service.
Yes safe. As most the cases are no issues found. Pay them regularly to keep good relation.