Setting up a business is a complex process which requires thorough knowledge of different spheres and time. Business registration is one of the final but very important steps that must be taken seriously. All kinds of companies are required to have a “trade” license. Depending on the type of company you are setting up, the requirements of trade license and permissions from different agencies and ministries can vary. Getting a license is mandatory for a registration process. Among the license requirements there are also requirements for ownership. As you see this is a complex and complicated process so you might need a professional to guide you through this way and make this process smooth and stress free for you. You should choose a reliable company which has experienced and professional business consultants. In this blog we are going to talk about the business registration in Dubai.
Let’s start with licenses. In Dubai a government agency which is responsible on issuing licenses is the Department of Economic Development. They have branches on different locations all over Dubai to deliver their licensing services. There are 3 categories of licenses: 1) Commercial- for companies which will get involved in trading activities; 2) Industrial- for companies that will engage in manufacturing activities and 3) Professional License- for artisans, service providers, craftsmen and etc. issuance of each of these licenses must have an approval from different ministries. As for ownership requirements, every company except those who have a professional license are required to have at least 51% shareholding by UAE nationals. There are exceptions to this rule for example: those who have a business in Free Zones around Dubai, foreign companies that are registering branches and etc. Another thing that must be taken into consideration during the registration process is the choice of a business structure. There are 7 legal structures according to the federal law: 1. General Partnership 2. Partnership in Commendams 3. Public Shareholding 4. Private Shareholding 5. Joint Venture 6. Share Partnership 7. Limited Liability.
When it comes to registration process there are a few steps you need to take. The first and very important one is a choice of a sponsor. You need to decide which services you want to get and also find a reliable local partner like AYS Consultancy in Dubai. We will become your sponsor and take care of licenses and all the government procedures. After that, you should get a name and activity approval from DED and start looking for business premises. In Dubai, it is required to have business premises that are evidenced by tenancy contracts. You will also be asked to make a MOA with your sponsor, in order to specify ownership percentage among the partners and submit this memorandum to DED. The final step is paying all fees and charges and waiting for an approval.
AYS Consultancy is ready to help you with registration procedures as well as setting up a business in Dubai. We are an experienced and trustworthy company with the best company formation consultants in Dubai who are highly skilled and motivated to bring success to your business.