DubaiUltimate Guide: How to do New Company Setup in Dubai- 10 Essential Steps for Success

March 29, 2024by Tetra Consultants0
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  • Embarking on a new company setup in Dubai presents a promising venture amidst the city’s flourishing economy, evidenced by its impressive 7.6% real GDP growth in 2022. With the UAE ranking 10th in the GlobalData Country Risk Index, Dubai offers a stable and investor-friendly environment.  
  • The process to register company in Dubai is straightforward, particularly within its free zones, which provide enticing benefits such as low taxation and streamlined operations. Navigating this process effectively involves selecting the appropriate trade license tailored to your business needs. By leveraging Dubai’s supportive regulations and strategic location, entrepreneurs can establish a foothold in the dynamic landscape of the Middle East. 
  • Let’s discover key essential steps needed to be taken for new company setup in Dubai. Throughout the journey Tetra Consultants can facilitate you with various business services making your entire journey seamless and an efficient journey for you. 

Essential steps for new company setup in Dubai 

Step 1: Select the business activity 

  • Tetra Consultants will assess the viability of the selected business activity within the Dubai market before proceeding with the registration of the company in Dubai. Thorough research into the feasibility and potential profitability of the chosen venture is essential for making informed decisions. This evaluation will help Tetra Consultants determine the most suitable timing for initiating business operations in Dubai, UAE. By aligning strategic planning with the market realities, Tetra Consultants can enhance the likelihood of success and sustainability in Dubai’s dynamic business environment. 

Step 2: Finalize the company structure 

  • Tetra Consultants emphasize the significance of selecting the appropriate legal form for your company when initiating business activities in the Dubai. This decision not only establishes the framework for managing profits and losses but also guides resource allocation and asset organization. It is imperative to determine the legal form or company structure early in the planning stages as it forms the basis of your company’s layout.  
  • Tetra Consultants aid throughout the incorporation process for various business activities. Moreover, our comprehensive service package includes offshore company incorporation, further enhancing our range of business services. Without deciding on your company’s legal form, you cannot proceed with applying for your business license. Various options such as Limited Liability Company (LLC), Sole establishment, civil company, local company branch, GCC company branch, foreign company branch, free zone company branch, and holding company are available for registration in Dubai. 

Step 3: comply with the requirements of the business structure 

  • For new company formation, as mentioned above there are various entities available in Dubai. Thus, each entity has its own requirements which are required to be fulfilled in order to have a lawful incorporation of company in Dubai. For LLC setup in Dubai there are various requirements which are as follows: 
  • Minimum of 1 director without residency requirements. 
  • Minimum of 2 shareholders without residency requirements. 
  • One registered office in Dubai 
  • Minimum share capital of AED 300,000 
  • Minimum 1 local service agent, who must be a UAE national and must hold a minority share of the company and assist with local administrative procedures. 
  • LLC needs to ensure that they align with permitted activities defined by the Department of Economic Development (DED). 

Step 4: Get approvals from Department of Economic Development (DED) 

  • Tetra Consultants will then proceed to obtain approval from the Department of Economic Development (DED) for the trade name of your company, a prerequisite before advancing with the company setup process in the Dubai. In addition to securing approval for your company name, Tetra Consultants will also ensure that your chosen business activity undergoes the necessary approval during this stage. Upon receiving the necessary approvals, Tetra Consultants will assist you in submitting the required documents to apply for your UAE trade license, marking the commencement of the company opening process in Dubai. As part of our comprehensive services, Tetra Consultants provide name reservation services to streamline this crucial aspect of company setup. 

Step 5: Apply for trade licenses 

  • Dubai offers 4 distinct trade licenses, also referred to as business licenses, for businesses which includes: 
  • Commercial license 
  • Professional license 
  • Industrial license 
  • Tourism license 
  • These licenses are applicable for businesses planning to operate in the Dubai mainland. However, the licensing framework within Dubai free zones varies and is contingent upon the specific business activity chosen by your company. 
  • In addition to these trade licenses, Tetra Consultants provide offshore financial licenses along with trade licenses and business permits, catering to a wide spectrum of business needs and aspirations. 

Step 6: Register your company 

  • Tetra Consultants will proceed with the simultaneous process of company registration and licensing, which involves multiple stages of documentation and approvals. During this phase, obtaining approvals from pertinent government authorities as per the Department of Economic Development’s requirements is essential. Furthermore, the specific documents needed vary depending on the type of company and its activities. Tetra Consultants will navigate through these stages efficiently to ensure a smooth and timely registration and licensing process for your company. 

Step 7: Find the local agent (if required) 

  • Initiating a business in Dubai necessitated the compulsory engagement of a local partner. This local agent or partner had to be a UAE national exclusively. The quest for a reliable local agent can be daunting, particularly for ambitious entrepreneurs endeavoring to establish a business startup in Dubai. Tetra Consultants offer a solution by facilitating connections with companies providing corporate sponsorship. Through this service, entrepreneurs gain documented authority and full ownership of their businesses. Additionally, Tetra Consultants can also provide local agent services, ensuring a seamless and trustworthy process for setting up your business in Dubai. 

Step 8: Prepare your Memorandum of Association 

  • Understanding the intricacies of a Memorandum of Association (MoA) is crucial for initiating a business in Dubai. The MoA must align with the mandates set by the UAE government and should reflect your business interests comprehensively. Tetra Consultants recognize the significance of this process and offer legal drafting services for the necessary documents. With our assistance, your MoA will be meticulously crafted to ensure compliance with regulations and alignment with your business objectives before embarking on new company setup in Dubai. 

Step 9: Rent an office 

  • Depending on your business requirements, you have the flexibility to either lease an individual office unit or select a shared workspace within a business center. Your choice of office space can also influence the number of visas you can apply for through the Department of Economic Development (DED). 

Step 10: Get the tenancy contact & Ejari 

  • When launching your business in Dubai, obtaining an ejari might be necessary. This tenancy contract serves as the official agreement between you and the real estate agency from which you plan to rent office space or a shared workspace. Managed by the Real Estate Regulatory Agency (RERA), the ejari system promotes fairness and transparency in the tenancy process. Activation of your Ejari account requires submission of your tenancy contract along with additional documents. An ejari is essential for obtaining or renewing visas for your family members and/or employees, underscoring its importance in the business setup process. 

Conclusion 

  • Tetra Consultants offer comprehensive support for new company setup in Dubai, ensuring a seamless process from inception to execution. Our services encompass everything from legal documentation to facilitating office space arrangements and obtaining necessary permits. With Tetra Consultants, entrepreneurs can confidently navigate the complexities of starting a business in Dubai and embark on a successful journey in the vibrant UAE market. 
  • Contact us to know more about how to do new company setup in Dubai and essential steps to foolow for successful incorporation of new company. Our team will revert back in 24 hours. 

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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