Dubai is undoubtedly one of the best places in the MENA region which provides an excellent environment for company formation. The country has been encouraging different businesses across various major industries and has diversified the economy quite well. While the prospect of setting up a business in Dubai seems quite exciting, it requires quite a lot of planning.
To set up a business in Dubai or anywhere in the UAE, you need to apply for company registration. Although company registration or licensing is not a complex process, applying for the right license is highly important. Your business operations depend upon the type of license you have for your company.
The need for company registration in Dubai
Registering your company and getting the right license will ensure that your organization is a recognized legal entity. The license certifies your company to conduct the business as mentioned in your company’s business plan. The business license you get through company registration identifies you and your business as contributors to the regional/global economy. Further, the license allows your business to operate and stay accountable for all commercial proceedings, as authorized by the government entities.
Depending upon the essence of your business activity, the Department of Economic Development (DED) will issue you the right license on registering your company. These licenses are broadly classified into three:
- Professional licenses are issued to individuals who are into the service industry. Professionals, artisans, craftsmen and labourers require this particular license to work.
- Industrial license is issued to business enterprises engaged in manufacturing, production and other industrial activities.
- Commercial licenses are usually issued to businesses that take part in trading activities. This includes wholesale and retail services.
Apart from these three types of licences, there is a special Tourism license that’s specific to the travel and tourism industry. Although the basic classification is simple, each business will require different licenses depending upon the number of activities they cover. The license also depends upon the area where the company is set up. This is why, before company registration, it is recommended to consult with a business consultant in Dubai.
Company registration and licensing procedure
The various jurisdictions within Dubai have a different company registration and licensing requirements. For instance, mainland licensing is slightly different from free zone licensing as they both fall under different jurisdictions. Here are some of the common requirements needed for company registration in Dubai:
- Ascertain the business activity, company structure and legal necessities before registering the company.
- To register the company, at least one of the business partners must be present.
- Passport and residency visa copies of business partners and managers.
- For mainland companies, a NOC from the sponsor is necessary for expat company owners.
- Approval from the concerned authority like DED or Free Zone Authority as well as tenancy contract and Ejari for mainland companies.
On submitting these documents to the concerned authorities, along with the registration fee, the required license is issued. All business licenses are renewed annually and must be completed before the due date to avoid penalization.
To set up and register your company in Dubai without any hassle, consult us today. Contact us at +9714 311 6547 or email at email@example.com for more information.