There is no doubt that Dubai is known to be one of the best and most advanced business hubs in the world. This is what makes it a renowned choice among businessmen around the world for company incorporation in Dubai. Moreover, the city also offers various other advantages like a strategic location, smart and advanced technology, world-class infrastructure, and much more.
Incorporating a business in Dubai is no joke. So, If you are one of those entrepreneurs who want to do business in Dubai, make sure to do your research and learn all there is to know about it. Although the government is very supportive and the process is simple, it can be very time-consuming. Furthermore, if you are new to it, you might face trouble with paperwork. It is advised to take help from business incorporation experts in Dubai.
In this blog, you will read about the types of licenses and all the important steps for company incorporation in Dubai.
What are the Types of License Offered By DED for Company incorporation in Dubai?
The DED (Department of Economic Development) is the regulating body for all the businesses in Dubai. The DED offers mainly 4 types of business licenses. They are as follows:
1. Professional License
A professional license is granted to those who want to sell professional services. You can apply for a professional license if you’re an artist, craftsman, freelancer, musician, etc.
2.Commercial License
You can apply for this license if you want to trade in goods and commodities within and outside the country. You will be legally allowed to conduct import and export activities.
3.Industrial License
You can apply for this license if you want to conduct manufacturing or industrial activities in the country. For example, chemical, machinery, raw material manufacturing, etc.
4. Tourism License
Dubai is known for its tourism. Hence, the government decided to roll out a separate license for tourism activities. If you want to start a tourism business or a travel agency in Dubai, you must apply for this license.
What is the process of Company Incorporation in Dubai?
If you are new to the process of the company incorporation in Dubai, you should do your research and take note of all the steps given below. Furthermore, we suggest you take the help of company incorporation experts at Shuraa to help you with the paperwork.
Step 1. Select Business Activities
The very first step is to decide the business activities you want to conduct within the country. The DED offers 2000 plus business activity options to choose from. Moreover, if there is an activity that you want to do, but it’s not on the list, you can apply for external permission.
Step 2. Decide the Legal Structure of Your Company
This is a very crucial step. You should be clear about the legal structure of your company and the activities that can be operated under it. So, you can choose for it to be a private or public partnership company, sole proprietorship, branch of a foreign or a local company. Moreover, you can also go for an LLC or a branch of any GCC company.
Step 3. Select and Reserve a Name for Your Company
The third important step is to decide on a suitable name for your company in Dubai. Make sure it meets all the rules and regulations set by the DED for company names. Moreover, remember that if you want to name your company after a person it should use the full name of the respective person. Once you have decided on the name, register it with DED. If everything seems right, the name will be approved.
Step 4. Select an Office Space
Now, you need to choose an appropriate location and rent an office for your company. To have an official address is very important. You cannot do company incorporation in Dubai without one. Moreover, the official address goes on every business document. Once you have selected a place, rent it and keep all the documents safe. Also, make sure it meets all the dimensions and hygiene-related rules.
Step 5. Register for Tenancy Contract
Once you have rented office space, register it on Ejari to get your tenancy contract. This is a very important step as you will not get your business license without a tenancy contract. Moreover, do not forget to generate your unique Ejari number and save it for future references.
Step 6. Draft and MoA
Partner with an LSA (Local Service Agent) who will help you in drafting a Local service agreement and Memorandum of Association. Once drafted, make sure all the business partners sign it in front of a public notary.
Step 7. Apply for Initial Approval
Now, you must gather all the remaining documents and attach them all with the application form for incorporating a business in Dubai. Also, make sure to double-check all the documents before handing them over to the DED. Now, all you have to do is wait for a day or two and if all the documents are in place, you will get the initial approval.
Step 8. Apply for License
Once you get the initial approval, you can apply for a business license for incorporating a business in Dubai. You can choose to apply for any one of the 4 business licenses according to the business activities you select. Fill out the form, attach the necessary documents and submit it with the DED. The legal authorities will inspect all the documents and if everything is right, you will be notified with an email. Moreover, you can collect your license in print from the DED.
Step 9. Pay the Required Fee to The Government
If your documents are approved, you will receive an email from the DED. It will include a payment link through which you need to pay the license fee to the government. Make sure that you initiate the payment as soon as you can. If you fail to pay the fee within 30 days of receiving the license, it may get canceled.
Incorporate Your Business in Dubai Today!
The paperwork for the company incorporation in Dubai is a crucial task. It can be tedious if you are new to the process. Hence, to avoid any mishaps with the paperwork, we suggest you take help from company formation experts. You can reach out to the company formation experts at Shuraa Business Setup to help you with the paperwork. Furthermore, we will also help you with getting important permissions and approvals and acquiring your business license at a very low cost.
Moreover, get to grow your business with the right advice. You can reach out to our experts at +971 44081900 or drop a WhatsApp message on +971 507775554. For assistance via email, please write to us at [email protected].
