Establishing a business in any country around the world may not be as easy as you imagine, but the rules of establishment and conditions for opening a company in the Emirates differ from any other country, so if you are an emerging entrepreneur and want to establish a company in Dubai without facing sudden dilemmas, we advise you to read this article in which you will find all the information you need to know, in addition to the steps for establishing a company in Dubai for foreigners and citizens online or in government departments.

One of the most important advantages provided by the United Arab Emirates is that it recently issued a government decision whereby a foreign investor can establish a 100% owned company without the need for a local partner, unlike the previous era of companies.

Create a company online

Entrepreneurs and investors can establish a company online regardless of the investor’s nationality through “Basher” services, which is an integrated electronic platform integrated with local and federal government departments and agencies concerned with licensing economic activities in the UAE in just a few minutes with quick and easy procedures without the investor needing to visit any government agency in person. When submitting the application online, the investor must have the following:

• Effective digital signature in the digital identity account (for limited liability companies).
• Effective Emirati identity.
• Active account in digital identity.

There are also some other required documents, and because of them the investor is given a period of time to provide them after issuing the commercial license, and they are:

• One year to provide the lease contract to the Department of Economic Development in the relevant emirate in which the facility was opened.
• 60 days for the non-citizen partner to do the following:

• Submit a copy of a valid no-objection certificate to the Federal Authority for Identity and Citizenship if the applicant is a government sector employee or a housewife.
• Change his residence type to investor residence.

Another advantage provided by the United Arab Emirates, but only for foreigners, is the Dubai Virtual Commercial Zone (VCC) program, which gives its owner the ability to start a virtual business in Dubai. This advantage is granted to all entrepreneurs around the world, provided that they are foreigners, without requiring residence or work in the UAE. The eligibility requirements for obtaining a virtual business license include the following:

1. To engage in global business activities not subject to location in specific sectors focusing on creative industries, technology and services.
2. The applicant must not be a resident of the United Arab Emirates.
3. To be a citizen or resident subject to tax from a list of 112 countries from around the world.

For citizens and foreign investors wishing to start the process of opening a company in the Emirates through government departments, they must do the following:

Determine the nature of the company’s business or activity

This is the first step in opening a company in the United Arab Emirates, which is to determine the company’s economic activity and the nature of its business. The company’s economic activities are divided into six types, which are:

Commercial / Professional / Industrial / Agricultural / Crafts / Tourist

Determine the legal form

This condition depends mainly on the business requirements and the responsible party. It also determines the laws and regulations that must be adhered to and the activity that is permitted to be carried out, provided that the legal form of the company matches the economic activity carried out by the company. You can also choose one of the different legal forms within the Emirates according to the type of activity of your company.

Trade name reservation and registration

It is the name of the store or company that distinguishes the license from others in order to avoid the customer falling into suspicion between licenses. Several conditions must also be adhered to when choosing the company’s trade name, including:

• Do not use names of government agencies or logos and names of third parties.
• The trade name must be followed by the legal form of the company.
• Never use the name of God, such as “Allah” or “Lord,” or any of the other beautiful names of God.
• The name should not contain inappropriate words, and should not violate public taste.
• The company name should indicate its commercial activity.
• The name must not be duplicated or used by another company.

Initial approval

After completing the previous initial steps to establish your company in the Emirates, you can obtain initial approval. Foreign investors must obtain the approval of the General Administration of Residency and Foreigners Affairs before obtaining initial approval.

There are also some private activities that require obtaining approvals from government agencies related to the activity itself before applying for initial approval, such as:

1. Activities related to security agencies and the Securities and Commodities Authority.
2. Activities related to legal matters.

Articles of Association and Local Service Agent Agreement

It requires drafting and signing the articles of association of your company in the Emirates and in some cases concluding a local service agent or company agent agreement, depending on the legal form of the company.

Establishments and companies wholly owned by non-GCC residents require a local service agent from the United Arab Emirates, pursuant to a service agent contract authenticated by a notary public or court.

Choosing a company headquarters

Then comes the step of choosing the headquarters. All companies must have an actual address in the Emirates, and the entrepreneur must present a lease contract certified by the Real Estate Regulatory Authority in the Emirate to obtain the license.

Approvals of the authorities concerned with the company’s activity

There are various activities for companies that require approvals from the parties concerned with the company’s activity, and inquiries can be made about them at the Department of Economic Development in the country, such as the Ministry of Interior, the Ministry of Economy, and the Ministry of Justice, for example, but not limited to.

Issuance of commercial license

And here is the final stage after fulfilling all the previous conditions and documents. It is the turn to receive the commercial license from the service provision centers affiliated with the state’s economy, provided that some of the following documents are submitted for all commercial licenses:

• Approval of other government agencies for the activity if required
• Duly certified service agent/company agent appointment contract.
• Receipt of initial approval and all previously submitted documents.
• A copy of the lease contract documentation certificate.
• The articles of association duly certified.

Then, pay the company establishment fees upon issuance of the payment receipt within a specific period of time (usually 30 days). We must draw your attention to a very important point, which is that failure to pay leads to the immediate cancellation of the application.