Opening a commercial register in Dubai is an essential step for anyone looking to start a business in this vibrant city. Dubai has a dynamic business environment and offers many investment opportunities, making it a preferred destination for investors from all over the world. To ensure that your business is legally and effectively started, you must follow specific steps to open a commercial register. In this article, we will walk you through the steps to open a commercial register in Dubai , starting from obtaining the required licenses, all the way to the final registration in the commercial register. This guide will provide you with a comprehensive overview of how to navigate the bureaucratic procedures and ensure that your project achieves the desired success in Dubai’s distinguished market.
Steps to open a commercial register in Dubai
Steps to open a commercial register in Dubai
To open a commercial register in Dubai , you must follow specific steps to ensure compliance with local laws and establish your business legally. Here are the main steps:
- Select the type of business activity: Choose the business activity you wish to practice, as this choice affects the type of license required.
- Choosing a business name: Choose a trade name that complies with the Dubai Department of Economic Development standards and reflects your business activity. Make sure not to duplicate the name or use inappropriate names.
- Obtaining approvals: If your activity requires special approvals, such as medical or educational activities, obtain these approvals from the relevant authorities.
- Prepare the required documents: Prepare all the necessary documents, such as passport, residence visas, and the lease contract for the workplace.
- Submitting the application: Submit your application for a commercial registration to the Department of Economic Development in Dubai. You can do this online or through the Department’s branches.
- Receiving the license: After reviewing the application and submitting the required documents, the Department of Economic Development will issue the commercial license that authorizes you to practice your commercial activity.
- Register with other entities: You may need to register your business with other entities such as the Federal Tax Authority if your activity requires it.
- Open a bank account: Open a business bank account in your company’s name to facilitate managing funds and collecting revenue. By following these steps, you can successfully open a commercial register in Dubai and start your business in a thriving and encouraging business environment.
Advantages of opening a commercial register in Dubai
Opening a commercial register in Dubai comes with many advantages that make it an attractive destination for investors. Here are some of these advantages:
- Flexible business environment: Dubai offers an investor-friendly business environment, with flexible laws that allow for easy company formation.
- Tax Exemptions: Companies in free zones enjoy complete tax exemptions, which contributes to increased profits.
- Full ownership: Foreigners can own 100% of the company’s shares in the free zones, without the need for a local partner.
- Ease of procedures: Company establishment procedures are quick and efficient, saving time and effort for investors.
- Advanced infrastructure: Dubai offers an advanced infrastructure including transportation, communications, and logistics services.
- Access to global markets: Dubai’s strategic location facilitates access to the markets of the Middle East, Asia and Africa.
- Multiple business options: There is a wide range of business activities to choose from, from trade to services.
- Government Support: The government provides significant support to investors, including incentive programs and facilities.
- Cultural Diversity: Dubai is a multicultural city, which contributes to an environment rich in innovation and collaboration.
- Diverse investment opportunities: Dubai offers investment opportunities in various sectors, such as tourism, real estate, and technology.
These features make Dubai an ideal destination for anyone looking to establish a successful business.
Opening a commercial register in Dubai requires compliance with a number of conditions and features. Here are the details:
- Choosing a business activity: You must determine the type of business activity you wish to practice, as each activity requires a specific type of license.
- Submitting the required documents: Valid passport for investors. Personal photo. Documents proving the existence of a business location (lease contract, for example).
- Determine the legal form: The legal form of the company must be chosen, such as a limited liability company or a branch of a foreign company.
- Trade Name Registration: Choose a trade name that complies with local laws, and do not use reserved or offensive names.
- Obtaining the necessary approvals: Some activities require additional approvals from the competent authorities.
- Submitting a license application: After completing all documents, an application must be submitted for a commercial license.
Factors in the cost of opening a commercial register in Dubai
Opening a commercial register in Dubai involves several factors that affect the cost. Here are some of the main factors:
- Type of Business: The cost of a license depends on the type of business you wish to engage in. Different activities may require additional permits or special licenses.
- Free Zone or Commercial Zones: If you choose to register in a specific free zone or commercial zone, fees may vary depending on the location and services offered.
- Number of partners and shareholders: In some cases, the number of partners or shareholders can affect the cost of licenses and procedures.
- Required license: There are different types of licenses (commercial, industrial, professional), and each type has its own fees.
- Other establishment costs: such as registration fees, labor office costs, accommodation costs, and insurance.
- Legal Consulting Services: If you use the services of legal consulting firms such as “Atqan”, additional fees may be added for their services in obtaining the license and facilitating the procedures. Hiring a consulting firm can help simplify the process and ensure that all legal and procedural requirements are met.
Documents required to open a commercial register in Dubai
To open a commercial register in Dubai, there are a set of papers and documents that must be submitted to ensure that the process runs smoothly and in accordance with legal requirements. These papers include:
- Passport copy: for all partners and shareholders of the company, including a copy of the visa page if they are residents of the UAE.
- A copy of the Emirates ID card: If one of the partners or shareholders is a UAE citizen or resident in the UAE.
- Business Plan: A business plan must be submitted that outlines the type of business activity that will be conducted, and the future goals of the company.
- Lease Agreement: A certified lease agreement for the company’s headquarters or office that will be used as the company’s official address.
- Commercial Registration Application Form: An official form to be completed and submitted to the Department of Economic Development (DED) or to the competent authority in the relevant free zone.
- Articles of Association: The company’s articles of association specify the partners and their ownership percentages. This must be notarized by a Dubai Notary Public.
- Approval from the competent authorities: Sometimes, the business activity may require special approvals from certain government authorities such as the municipality, the Ministry of Health, or the Roads and Transport Authority. These papers form the basis for opening a commercial register in Dubai and are a crucial step to start doing business legally within the city.
Can I open a commercial register in Dubai as a foreign investor?
Yes, you can open a commercial register in Dubai as a foreign investor. Because Dubai is known for providing a suitable environment for all foreign investors, in addition to allowing them to own 100% of their companies’ shares in all free zones. Here are some important points:
- Free Zones: In many free zones , you can set up a company without the need for a local partner.
- Easy procedures: The registration process is simple and quick, with government support available to investors.
- Types of companies: You can choose different types of companies, such as limited liability companies or branches.
- Tax Exemptions: Companies in free zones enjoy tax exemptions, which boosts returns.
- Government Support: There are support programs and incentives for foreign investors. So, if you are thinking of opening a commercial register in Dubai, the environment is suitable and provides many opportunities.
In conclusion, opening a commercial register in Dubai is a strategic move for foreign investors looking to enter a dynamic and growing market. Dubai offers a flexible and tax-free business environment, making it easier for entrepreneurs to achieve their goals. With advanced infrastructure, effective government support, and a variety of business activities, Dubai remains an attractive investment destination. Adhering to the necessary conditions and easy procedures makes it possible for any investor to successfully start their business. So, if you are thinking of expanding your business or starting a new project, Dubai offers you the perfect opportunity to do so.
