Obtaining security approval is a crucial step in the process of setting up a company in Dubai, as it plays a vital role in ensuring that businesses comply with local laws and security. The UAE authorities require all investors wishing to set up a company in Dubai to apply for a security approval as part of the licensing process. This approval aims to ensure that the individuals and companies involved do not pose any threat to national security or public order. The process of obtaining security approval when setting up a company in Dubai usually involves submitting detailed documents about the partners and investors, and may also include background checks and security assessments. This step is not only to ensure public security is protected but also to ensure a safe and stable investment environment.

Obtaining security approval when establishing a company in Dubai

Obtaining security approval when establishing a company in Dubai

Obtaining security approval when establishing a company in Dubai means passing a security verification process aimed at ensuring that there are no potential threats to national security or public order. This approval is an essential part of the licensing procedure and is a vital step in the process of establishing a company. The process of obtaining security approval also includes submitting detailed documents and information about the partners and investors in the company, such as identity data, personal and business information.

It may also include security investigations and background checks to ensure that there are no legal violations or suspicious connections. The aim of these measures is to ensure a safe and stable investment environment, and protect the national economy from any potential threats. It also contributes to enhancing confidence between investors and the authorities, which contributes to attracting more investments to Dubai.

Security approval for company formation in Dubai is a formal process that requires individuals and companies wishing to set up business in Dubai to apply for a security clearance from the relevant authorities. This clearance aims to ensure that there are no threats to national security or public order by applicants. The process of obtaining security clearance includes the following:

1. Submission of documents: Includes personal identification data, legal documents, and business information of partners and investors.
2. Security Check: Background checks and security history checks are conducted on the individuals concerned to ensure that there are no legal issues or suspicious associations.
3. Review and Evaluation: The security authorities review the information provided and assess its suitability and the required security standards. This step is essential to ensure a safe and stable investment environment and enhance confidence in Dubai’s commercial system.

Advantages of obtaining security approval to establish companies in Dubai

Obtaining security approval to establish companies in Dubai provides several key advantages, including:

• Ensuring Security and Stability : Security approval contributes to enhancing national security and stability by ensuring that individuals and companies do not pose any security threats.
• Building trust: Security approval enhances trust between investors and local authorities, which helps attract more investments to Dubai.
• Compliance with Laws: Security approval helps businesses comply with local laws and regulations related to security and safety, reducing the risk of legal problems in the future.
• Stable Investment Environment: Security approval provides a stable and secure investment environment, making Dubai a preferred destination for foreign investors and investors.
• Speed ​​up procedures: Obtaining security approval can help speed up the process of obtaining the licenses and documents necessary to establish the company.
• Enhanced reputation: Companies that pass the security approval process demonstrate their commitment to security standards, which enhances their reputation and increases their chances of success in the market.

How to set up a company in Dubai

Establishing a company in Dubai requires following a set of basic steps to ensure compliance with legal and administrative requirements. Here are the main steps to establish a company in Dubai:

1. Determine the type of company: Choose the type of company that best suits your goals, such as a limited liability company (LLC), a subsidiary, or a wholly foreign-owned company. Each type has different legal and administrative requirements.
2. Select the business activity: Select the business activity that your company will be conducting. The activity must comply with the business activity classification approved by the Department of Economic Development (DED) or the authority concerned with the free zone.
3. Choosing a company name: Choose a company name that complies with Dubai naming laws. The name should be unique and not similar to existing company names, and should avoid offensive or inappropriate names.
4. Apply for security clearance: Security clearance may be required as part of the process, especially if the company will be involved in sensitive activities or activities that have a significant impact on national security.
5. Prepare legal documents: Prepare necessary documents such as articles of incorporation, lease agreement, and identity certificates. You may also need to submit a business plan and financial certificates if required.
6. Company Registration: Apply to register your company with the Department of Economic Development (DED) or the authority responsible for your chosen free zone. You will need to submit the required documents and pay the prescribed fees.
7. Obtaining licenses: After registering, obtain the necessary licenses to practice the business activity. Licenses may include commercial , industrial, or professional, depending on the type of activity.
8. Open a bank account: Open a business bank account in the company’s name to finance its operations and manage financial transactions.
9. Hiring Employees: If you plan to hire employees, make sure to comply with Dubai labor laws and provide the necessary work visas.
10. Tax Compliance: Make sure you understand tax requirements and register your company for VAT (if required).
11. Setting up an office: Rent or purchase an office for your business, making sure that all office requirements are met according to local laws. A professional consulting firm in Dubai, such as Atqan, can help guide you through these steps and make the process easier.

Documents required to establish companies in Dubai

Establishing a company in Dubai requires submitting a set of basic documents to the relevant authorities, which may vary slightly depending on the type of company and its location (inside or outside a free zone). Generally, the required documents include:

1. Articles of Association: A legal document that specifies the details of the company such as the name, business activity, and addresses of the partners.
2. Identity Certificates: Passports or personal identity cards of all partners or shareholders of the company.
3. Residence Visas: Copies of residence visas of directors or shareholders if they are residents of Dubai.
4. Business Plan: A document that details the business’s activity, goals, and strategies.
5. Lease Contract: A lease contract for the workplace or office from which the company will operate, whether within a free zone or in other areas of Dubai.
6. Security clearance: In some cases, you may need to apply for security clearance from the relevant authorities, especially if the business is sensitive.
7. Copy of previous certificate of incorporation: If the partners have a previous history of incorporating other companies, a copy of previous certificates may be required.
8. Professional Certificates: You may need to provide certificates related to your business, such as licenses for professions or special activities.
9. Financial Support Documents: Financial statements or financial evidence that proves the partners’ ability to finance the company.
10. Trademark Registration Documents: If you have a private label, you may need to submit trademark registration documents.
11. Government Approval: Some business activities may require additional approvals or licenses from government agencies or competent authorities.

Be sure to check the exact requirements with the Department of Economic Development (DED) or the Etqan company in the free zone of your choice, as there may be additional documents depending on the business activity and company location.

Business activities that do not require security approval

In Dubai, there are some businesses that may not require security approval, but this can vary based on the type of business and updates to regulations. In general, businesses that may not require security approval include:

1. Simple commercial activities: such as general purpose retail, and some small commercial activities that do not involve handling sensitive or high-risk materials.
2. Essential service activities: such as non-legal consulting services, design services, or marketing services, provided that the nature of the work is not sensitive or security-related.
3. E-projects: such as e-commerce or software development, if the activities do not involve handling sensitive data or cybersecurity.
4. Educational and training activities: such as training centres and educational courses, if they do not deal with sensitive topics or require special security intervention.
5. Cultural and artistic activities: such as art production companies or art galleries, provided that they do not include materials or content considered sensitive.
6. Non-sensitive healthcare services: such as general dental clinics or medical centers that provide healthcare services not related to research or sensitive medical equipment.
   However, it is always advisable to check the security clearance requirements with the Department of Economic Development (DED) or the relevant authority in the free zone where you intend to establish your company, as requirements may vary based on local regulations and regulatory updates.

In conclusion, obtaining security approval when establishing a company in Dubai is a vital step to ensure compliance with security and legal standards, which aim to protect national security and enhance the investment environment. Through this approval, local authorities ensure that all parties involved in the company are free from any security threats or suspicious associations, which enhances confidence in the commercial system and creates a stable investment environment. Investors and advisors must adhere to these procedures to ensure that the establishment process proceeds smoothly and in accordance with local laws. Adhering to obtaining security approval reflects the seriousness of establishing the business and enhances the company’s reputation in the market, which contributes to its success and sustainable growth in Dubai.

Frequently asked questions about obtaining security approval in Dubai