Legal Requirements for Company Establishment in Dubai

Setting up a company in Dubai involves navigating through specific legal requirements and procedures. Whether you’re a local entrepreneur or an international investor looking to establish a business in this thriving metropolis, understanding these legal aspects is crucial for a smooth setup process.

Choose Your Business Structure

The first step in establishing a company in Dubai is deciding on the most suitable business structure. Options include:

• Limited Liability Company (LLC): Suitable for most businesses, requires a local sponsor (UAE national) with a minimum ownership of 51%.
• Free Zone Entity: Allows 100% foreign ownership, but operations are restricted to the respective free zone.
• Branch of a Foreign Company: For existing foreign companies looking to establish a presence in Dubai.

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Select a Trade Name

Choosing a unique and appropriate trade name is essential. It should comply with the guidelines set by the Department of Economic Development (DED) in Dubai. The name should not violate the public morals or the names of well-known organizations.

Draft and Notarize the Memorandum of Association (MOA)

For LLCs, drafting the Memorandum of Association (MOA) is mandatory. This document outlines the company’s shareholding structure, business activities, and operational framework. The MOA must be notarized at the DED or through a public notary in Dubai.

Obtain Initial Approval

Before proceeding further, obtaining initial approval from the DED or the relevant free zone authority is necessary. This approval confirms that your business activities align with Dubai’s legal framework and regulations.

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Lease Office Space

A physical office space is required for most business setups in Dubai. The location and size of the office must comply with the regulations stipulated by the DED or the respective free zone authority.

Submit Documents and Pay Fees

Prepare and submit all required documents, including the MOA, lease agreement, initial approval certificate, passport copies of shareholders and managers, and other specific documents depending on your business type. Pay the applicable fees for registration and licensing.

Obtain Licensing and Approvals

Once your documents are processed and fees paid, you will receive your business license from the DED or the free zone authority. Additional approvals may be required from regulatory bodies depending on your business activities (e.g., healthcare, education).

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Register for VAT and other Taxes

If applicable, register your company for Value Added Tax (VAT) with the Federal Tax Authority (FTA) and other relevant taxes as per UAE tax regulations.

Open a Corporate Bank Account

To operate legally, open a corporate bank account in Dubai. Banks may require specific documents, including your business license and lease agreement.

Visa Processing

Facilitate visa applications for shareholders, employees, and dependents through the General Directorate of Residency and Foreigners Affairs (GDRFA) or the respective free zone authority.

Call +971 4 240 6939 for Company Establishment in Dubai

Establishing a company in Dubai involves navigating through a series of legal steps and requirements. Engaging with business setup consultant or legal advisor can streamline the process and ensure compliance with UAE laws. By adhering to these legal requirements, you can set a solid foundation for your business endeavors in Dubai’s dynamic market.