How to register a company in Dubai
How to register a company in Dubai
Let discuss how to register a company in Dubai if the directors are foreigner and how to register Limited Liability Company, Joint Venture or Branch Office in Dubai. With each passing year more foreign companies are now being attracted into doing business in the UAE. Dubai happens to be one of the largest business hubs in the world with a mix of multi culture, great markets and stunning products. Conducting a business in Dubai however requires one to register their companies with the government. Incorporating a business in Dubai is very easy and by following a few simple steps, the whole registration process can be done quickly. The best thing about doing business in Dubai is that foreign investors are allowed to have 100% control of their companies. They can either register a new business or open up branch offices of their already existing companies. However, they should always ensure that they have a National Service Agent who is from the UAE appointed who will act as their liaison to ensure that their registration is done smoothly.
Documents Required– Before the registration process can start, there are certain documents that the foreign company has to prepare and submit. These documents are most from the parent company of the foreign investor that is currently operating in their own homeland. The list of requirement includes the following:
- 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 be renewed every year.
- A ‘Service Agent’ agreement with a UAE national.
Now in order to register a company in Dubai, preferably a private limited company, there are certain steps that need to be followed. Under the guidance of a Service Agent, these steps should be of minimal hassle. The steps are listed below.
Step One : The first step that the foreign company or investor should do is file for a business license with the Ministry of Economy and Commerce. Along with this application, the foreign entity must also submit a Service Agent Agreement. This agreement should have sufficient information that the agent is either an UAE national or a 100% UAE owned company.
Step Two: Once the application for both the service agent agreement and business license has been filed, the Ministry of Economy and Commerce will be responsible for forwarding the application to the Economic Department. The sole purpose of this is to ensure that the foreign company secures the local government’s approval. It is crucial to have the local government’s approval in order to run a business in Dubai.
Step Three: Once the application for the registration of a private limited company has been forwarded to the Economic Department, it is further forwarded, this time to the Federal Foreign Companies Committee for more approval. During this stage of processing, the application should contain detailed information regarding what kind of business activities the company is planning to do. This information of the business activity should be approved by the Ministry of Economy and Commerce beforehand otherwise the application will not pass any further. Keep in mind that there are certain activities which are prohibited in Dubai. So it is wise to do a thorough check up on what is allowed and what is not permitted before investing in the Emirates.
Step Four: After the application for the registration of the company is approved by the Federal Foreign Companies Committee, the foreign entity will now be needing a Ministerial license. This license is issued by the Ministry of Economy and Commerce. The license shall contain detailed information regarding the activities that has been allowed by the UAE government to the company. In short, it shall state what the company is allowed to do in Dubai.
Step Five-Once all the above mentioned steps are done and fulfilled, the company, whether it is a branch office or a representative office is then officially entered in the Commercial Register of the Economic Department. Over here, the required license is issued.
Step Six: The second last step of registering a company in Dubai involves entering the company in the Ministry of Economy and Commerce’s Foreign Companies Register. This is basically keeping official records of a new foreign company operating in Dubai.
Step Seven: Finally, the last step of incorporating a foreign company in Dubai is at the Dubai Chamber of Commerce and Industry. This is where the foreign company is registered, whether it is the branch office or the representative office. Once it is entered here, the government will issue the foreign entity a Certificate of Registration. This is the proof that the foreign company has been incorporated and can operate without any more fuss in Dubai.
Ques: Why service agent is required to register a company in Dubai?
Ans: Service agent has right to process new company registration filing for the client.