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Opening a commercial register in Dubai

Establishing a company in Dubai

٠٣ أبريل Opening a commercial register in Dubai

Opening a commercial register in Dubai is a crucial step for individuals and companies wishing to engage in business in the Emirate of Dubai, which is one of the most attractive places for entrepreneurship in the Middle East. Opening a commercial registration in Dubai is the gateway that opens for you to access a dynamic and diverse international market, and represents the beginning of the journey of commercial success in this thriving economic environment.

Dubai provides advanced infrastructure, flexible investment policies, and an incubating business environment for innovation, making it an ideal place to establish businesses. This article will explore how to open a commercial register in Dubai, including the necessary steps, required licenses, and the benefits that can accrue to you from taking this important step.

Opening a commercial register in Dubai requires an understanding of legal and regulatory procedures, in addition to adherence to local and international regulations. In this article, you will find everything you need to start your journey in the world of entrepreneurship in one of the most attractive cities for investors and businessmen around the world.

 

Opening a commercial register in Dubai
Opening a commercial register in Dubai

Basic steps to open a commercial register in Dubai

  1. Choosing the company type: You must select the appropriate company type, such as a sole proprietorship, a limited liability company, a joint-stock company, or a branch of a foreign company. This depends on the type of business activity and the amount of investment available.
  2. Choosing a company name: You must choose a name for the company and ensure that it is not similar to the names of existing companies and complies with local regulations.
  3. Determine the commercial activity: You must determine the commercial activities that the company intends to practice, and ensure that they are compatible with local licenses.
  4. Preparing the necessary documents: Opening a commercial register requires preparing documents such as company contracts, basic agreements, shareholders’ passports, and other required documents.
  5. Submitting an application to the Department of Economic Development: You must submit an application to the Department of Economic Development in Dubai or the entity concerned with business licenses, and wait for the application to be approved.
  6. Obtaining a business license: After approval, an official business license is received from the local authorities, which allows the company to conduct business activity in Dubai.
  7. Registration in the Commercial Registry: The company must be officially registered in the local commercial registry, where details of the company and legal officers are registered.
  8. Opening a bank account: The company is required to open a bank account to manage financial transactions, deposit and maintain the required capital.
  9. Compliance with tax and legal controls: The company must comply with all local and international legal and tax controls applicable in Dubai.
  10. Insurance and additional permits: Additional permits such as building permits or activity-specific permits may be required, depending on the type of company and commercial activity.

Costs of opening a commercial register in Dubai

The costs of opening a commercial register in Dubai vary based on several factors such as the type of business and its location, but it is difficult to provide accurate numbers without specific details. Here’s a general idea of ​​what costs might be typical:

  • Basic registration fees: These include fees for opening a commercial register and registering the company, and they vary based on the type of company (sole proprietorship, joint stock company, etc.).
  • Business license fees: There can be additional fees depending on the type of business you plan to do.
  • Virtual office or workplace fees: If you need an office or space for your business, you will need to pay a rental fee.
  • Legal consultation costs: You may need legal advice to help you prepare the necessary documents and ensure your compliance with local legislation.
  • Municipal Services Fees: You may also need to pay fees to the municipality to secure the necessary permits and approvals.
  • Insurance costs: These can include insurances for property and equipment and also for employees as needed.
  • Tax registration fees: If the company is required to register for value-added tax (VAT) or any other taxes, there can be fees for this.
  • Infrastructure setup costs: such as computers, communications systems, and software necessary for business activities.

Types of businesses I can open in Dubai

In Dubai, you can open several types of companies based on the type of activity and legislative requirements. Here are some common types of businesses you can open in Dubai:

  1. Sole proprietorship: It is a company owned by one individual who is solely responsible for it, and it needs to be registered with the Department of Economic Development or the local municipality.
  2. Limited Liability Company (LLC): It is a company consisting of partners who bear limited responsibility, and requires a financial contribution from the partners and registration with the Department of Economic Development or the competent authority.
  3. Public Joint Stock Company: This is a stock company that may be listed on the stock exchange, and requires large capital and complex legal procedures for establishment.
  4. Private Joint Stock Company: A company that operates on a stock basis but is not listed on the stock exchange, and requires a limited number of partners and appropriate capital to establish.
  5. Branch of a foreign company: A foreign company can open a branch in Dubai. These branches are affiliated with the foreign parent company and are subject to local laws and have relative freedom in the scope of commercial activities.
  6. Free Zone Company: It is a company that operates in one of the free zones in Dubai, and enjoys many advantages, such as benefiting from customs, technical, and tax facilities.
  7. Partnership: It is a company managed by partners who share profits and losses in a specific proportion and requires an official partnership contract and registration with the relevant authorities.

Documents required to open a commercial register in Dubai

To open a commercial register in Dubai , the documents required usually include:

  • Registration Application Form: This form must be filled out with personal information and details of the planned business activity.
  • Copy of the passport of the employer and partners if any: You need a copy of the passport for you and any business partners.
  • A copy of the previous license (if available): If you are transferring a license from another emirate in the UAE.
  • Detailed business plan: A breakdown of the business activity you intend to undertake, including administrative organization, financing, and marketing.
  • Summary of the financial plan: includes financial projections, expected costs, and potential funding sources.
  • No objection certificate from the landlord for the commercial activity: If the shop or office is rented, it must obtain the landlord’s approval.
  • Details of the new location: The address of the office or store from which you will manage the business.
  • A copy of the lease agreement: If you intend to rent space for your business.
  • A recent personal photo: Some authorities may request that a recent personal photo be included with the registration application.

Licenses required after opening a commercial register in Dubai

After opening a commercial registry in Dubai , you may need to obtain several licenses and approvals depending on the type of business activity you are doing. Here are some common licenses that may be required:

  1. Business License: Your business must be registered accurately according to the activities permitted by the relevant authority, whether it is the Department of Economic Development, the municipality, or a free zone.
  2. Building License: If you need a license to build or modify buildings that you will use for business, you may need a building permit from Dubai Municipality.
  3. Advertising License: If you intend to use advertising banners or advertising media for your business, you will need a license from Dubai Municipality.
  4. Health and Safety Licensing: Some businesses dealing with food, health or public safety may require specialized licenses from the relevant authorities.
  5. Operating License: Some businesses can require a state license to allow you to start and operate the business legally.
  6. Professional license: If you work as an independent professional, such as a doctor, lawyer, or engineer, you may need a professional license from the relevant authority.
  7. Environmental license: If your activities relate to the environment or require handling hazardous materials, you may need a license from the relevant authority.
  8. Export/Import License: If you intend to import or export goods, you may need a license from Dubai Customs Authority or the relevant authorities.

At the conclusion of this article, which discussed the process of opening a Dubai commercial registry , we find that this step represents a crucial gateway for ambitious individuals and companies seeking to grow and prosper in the prosperous emirate of Dubai. By adhering to legal and regulatory procedures, and consulting with specialized local analysts and advisors, investors can benefit from the advanced infrastructure and favorable economic environment that Dubai offers.

Considering Dubai is one of the most prominent global centers for business and trade, opening a commercial registry in Dubai opens doors to a wide range of business opportunities, whether in traditional sectors such as retail and services, or in emerging and technological sectors such as clean technology and medical innovations.

In conjunction with the desire to expand the business, investors should also take into account their community and environmental commitments, and work to build sustainable relationships with business partners and the local community.

The most important frequently asked questions about opening a commercial register in Dubai

What are the main obstacles you may face when opening a commercial registry in Dubai?

Obstacles you may face can include complexities in licensing procedures, high costs, and local legislation that may be complex for some businesses.

What taxes are applied to companies after opening a commercial register in Dubai?

There may be a value added tax (VAT) that businesses must register and pay according to local tax legislation, in addition to other taxes if applicable.

What electronic services are available to open a commercial register in Dubai?

There are many electronic services provided by the Department of Economic Development in Dubai, which facilitate the process of submitting applications and following up on procedures faster and more effectively.

What language is used in legal documents and procedures to open a commercial register in Dubai?

Arabic is used in many legal documents and procedures in Dubai, but there is also the possibility of providing translations of documents into other languages ​​as needed.

Can a foreigner open a commercial register in Dubai?

Yes, foreigners can do this, but there may be some special restrictions or directives regarding business activity and nationality.

What is the average time it takes to open a commercial registration in Dubai?

Opening a commercial register in Dubai usually requires between two weeks to two months, but this period can vary depending on the complexity of the type of business activity and the completion of all required documents.