Company Formation in Dubai
Posted: Aug 26, 2019
Starting a business in Dubai is not a difficult matter, and the whole process can be completed within a week. For company set up in Dubai, a few legal formalities are needed to be followed. For that, the company owners should keep a few things in mind. It is important to be prepared with proper knowledge, as that will ensure seamlessness in the process of company formation. Having proper knowledge about the steps for company incorporation in Dubai will make the business formation easier and accurate. In the following section, the steps for business formation are discussed.
1. Choose the Type of Business
When it comes to business setup in Dubai, you need to have a clear perception of the type of business that you want to start. The type of business will be regarded as a crucial factor for the procurement of the trading license. For example, there are commercial, industrial and professional licenses for the businesses. Special approval is required in case of a few businesses. Such businesses include legal consultancy, food processing, jewelry trading, etc. For the convenience of business owners, the Department of Economic Development (DED) in Dubai comes with a list of more than 2100 possible business activities. You can choose the suitable type for your company. If you cannot match your business type with the list, you need to contact DED and enlist your business type through an application.
2. Ownership of the Business
Both domestic and foreign nationals can apply for the full ownership of the business. For the ownership, the business owner has to apply for the trading license. There are more than 45 free zones in the UAE and all these free zones for business have different rules for business owners. In Dubai, the ownership process is simplified through a simple license procurement process.
3. Legal Structure of a Business
For company formation in Dubai, understanding the legal structure is essential. Depending upon your type of business, you need to follow the legal steps. For example, to open a legal consultancy firm you need to open a standalone company or you can form the company as a branch of an existing company. A sole proprietor will not be legally allowed to open up a legal consultancy firm if the aforementioned conditions are not followed.
4. Choosing the Trade Name
Before you start the process of company registration in Dubai, you need to choose a suitable trade name. This is essential, as, without a trading name, the registration process would not happen. The company name must indicate the type of business. At the website of DED, further rules and regulations regarding the selection of trade name can be found.
5. Share Capital of a Company
In a Memorandum of Association, the details of the minimum share capital have to be declared by the company owner. During the company formation, the company owner has to pay a minimum capital amount.
These are the steps for the process of formation of a company in Dubai. The process of offshore company formation in dubai is more or less the same.
Sumit Grover is a legal consultant for company formation in Dubai and India. He has more than 20 years of experience in company formation. He is a writer and author also.