Is it possible to establish a company in Dubai by proxy? Dubai is one of the most prominent global destinations for investment and business, making it a preferred choice for many international entrepreneurs and investors. One of the common questions asked by these investors is: “Is it possible to establish a company in Dubai by proxy?” Establishing a company by proxy in Dubai is a concept of particular interest because it reflects legal and procedural trends related to facilitating investment processes. This type of establishment can provide investors with the opportunity to benefit from local expertise and practical experience without the need for a continuous personal presence. In this article, we will review how to establish a company in Dubai by proxy , what are the legal and procedural steps necessary to achieve this successfully, in addition to the advantages and disadvantages of this type of establishment.

Establishing a company in Dubai by proxy

Establishing a company in Dubai by proxy

Company formation in Dubai by proxy is a legal procedure that allows individuals or entities to authorize a competent person or entity to carry out the necessary procedures to establish the company on their behalf. This option is very flexible, as investors who cannot be physically present in Dubai can rely on local agents to complete the incorporation process. This authorization includes steps such as registering the company, obtaining commercial licenses, and dealing with government agencies. To achieve this, investors must choose an accredited and qualified agent who is able to provide professional legal and procedural services. It is important that the agent is familiar with local laws and administrative procedures to avoid any potential complications.

Establishing a proxy company allows investors to access the UAE market faster and more efficiently, while maintaining compliance with all legal requirements. However, investors should be careful and check the agent’s background and ensure that all procedures are in place to ensure their interests are protected. This type of incorporation requires a formal power of attorney and must be done under a legal contract to ensure the process runs smoothly.

Advantages of establishing a company in Dubai by proxy

Establishing a company in Dubai by proxy offers several advantages that attract foreign investors. Here are some of these advantages:

1. Saving time and effort: Establishing a company by proxy allows investors to delegate the incorporation process and legal procedures to a specialized agent, saving the time and effort required to deal with administrative matters.
2. Compliance with local laws: Using an authorized local agent ensures that the company is in compliance with all local laws and regulations, reducing the risk of legal errors that may occur when dealing with procedures directly.
3. Facilitating communication with government agencies: The local agent is familiar with how to deal with government agencies and the procedures related to establishing companies, which facilitates the registration process and obtaining the necessary licenses.
4. Possibility of global presence: Foreign investors who cannot physically be present in Dubai can benefit from establishing a company by proxy, which allows them to enter the UAE market without the need for a personal presence.
5. Flexibility in procedures: This system allows investors to benefit from local expertise in establishment and management, which helps speed up procedures and avoid problems that may arise from investors’ lack of familiarity with local laws.

By using a qualified local agent, investors can achieve their business objectives efficiently and smoothly, while ensuring compliance with all legal requirements.

Requirements for establishing a company in Dubai by proxy

Establishing a company in Dubai by proxy requires taking into account a number of legal and procedural requirements to ensure that the process runs smoothly. Here are the most important requirements:

1. Choosing an Authorized Agent: A local agent who is authorized and qualified and has experience in company formation procedures in Dubai must be appointed. The agent must be registered with the relevant government authorities and be familiar with local laws.
2. Signing the Power of Attorney Contract: A formal power of attorney contract must be prepared and signed between the investor and the agent. The contract specifies the responsibilities and powers granted to the agent, and must be certified by legal authorities if necessary.
3. Submission of personal documents: Establishing a company requires submitting identification documents for the investor, such as a passport, residence visas, and personal photos. Some entities may request additional documents depending on the type of company.
4. Determine the type of business activity: The business activity that the company will practice must be determined, and an application must be submitted to obtain the necessary licenses to practice this activity in Dubai.
5. Choosing a trade name: The company must choose a trade name that complies with local laws and is not already in use by other companies. This requires submitting an application for review and approval of the name by the competent authorities.
6. Submit a business plan: You may need to submit a business plan that outlines the company’s goals, activities, and strategies. This plan helps in obtaining licenses and provides a clear vision of the company’s work.
7. Opening a bank account: A bank account in the company’s name is required to be opened in a local bank as part of the incorporation process.
8. Payment of fees: Payment of fees related to the establishment of the company, such as registration fees, licenses, and any additional fees that may arise.

Once these requirements are met, the agent can start the incorporation procedures and officially register the company according to the local laws in Dubai.

Commercial license for establishing a company in Dubai by proxy

A trade license is one of the basic documents for establishing a company in Dubai, whether the establishment is done directly or through an agency. When establishing a company through an agency, the agent must follow up and complete all the necessary procedures to obtain this license. Here are the basic steps and requirements for obtaining a trade license:

• Determine the type of license: The type of commercial license depends on the activity that the company will carry out. There are different types of commercial licenses, such as the general commercial license, the industrial activities license, and the professional activities license. The type of license appropriate for the company’s activity must be determined.

1. Preparing the required documents: The investor or agent must collect and submit the following documents:
2. Copies of passports of investors and directors: This requires submitting the personal passports of the founding individuals.
3. Power of Attorney: The power of attorney must be signed and notarized.
4. Company Articles of Association: Includes basic information about the company’s structure and activity.
5. Business Plan: Outlines the business activities and future plans of the company.
6. Company Name: The name of the company to be registered must be provided, which must be in accordance with local laws.
7. Applying for a license: The agent submits the application to the Dubai Department of Economic Development or the competent authority for business licensing. This may require visiting the department’s office or submitting the application electronically.

• Payment of fees: The prescribed fees must be paid to obtain a commercial license. The fees vary depending on the type of license and the company’s activity.
• Receiving the license: After reviewing the documents and paying the fees, the commercial license is issued and can be received from the competent authority.

Through these steps, the agent can obtain the commercial license that allows the company to be officially established in Dubai, while ensuring that the company complies with all legal requirements.

In conclusion, establishing a company in Dubai by proxy is an attractive and flexible option for foreign investors looking to enter the UAE market without the need for a permanent physical presence. This model offers many advantages, including saving time and effort, ensuring compliance with local laws, and facilitating communication with government agencies. However, this type of incorporation requires choosing a reliable and qualified agent and signing a precise power of attorney contract to ensure that investors’ interests are protected. It is essential for investors to be aware of all the requirements and procedures for establishing by proxy to ensure that the process runs smoothly and successfully. By leveraging the agent’s local expertise and delegating legal and procedural tasks to him, expansion and growth goals can be achieved in Dubai’s dynamic business environment. By following these steps and fulfilling the requirements, investors can take advantage of the great business opportunities that Dubai offers in a convenient and efficient manner.