Any investor seeking to start a business in the emirate has to acquire company registration in Dubai municipality and it’s is not mandatory for every business to acquire NOC from Dubai Muncipality, It may or may not be needed depending upon the nature of the business. Dubai is one of the best global destinations for investment due to the encouraging work environment that characterizes it. However, some legal steps and procedures are essential to ensure the process runs smoothly and orderly.
1. Choose the type of company:
This is followed by a decision regarding the company and some of those are mentioned below.
• Limited Liability Company (LLC):
For foreigners looking to register their company in one of the best places in UAE, LLC business setup in Dubai is the most popular option for them.
• Sole Proprietorship:
Sole Proprietorship is the best choice for those working independently on their own.
• Public or private joint stock company:
This form is suitable for large companies intending to trade their market shares.
2. Determine the business activity:
Investors have to declare the business activity which he intends to practice. Dubai Municipality categorizes the commercial activities in various groups. The investor has to select the most suitable group for his activity. Details of the various activities can be found on Dubai Municipality’s website and in its service centers.
3. Preliminary approvals:
Moreover, after the selection of the form of company and type of preferred activity, it needs the permission of the Department of Economic Development to practice the business legally.
Dubai municipality approval process is vital for initial approval to open the company legally. You need to submit the following documents:
• Initial approval request form.
• A copy of the founders’ passport and national ID.
• Articles of Association, in case they are ready.
4. Choose the name of the company:
The name chosen for the Dubai business setup should be appropriate concerning the local laws and regulations. Note that your company’s name should be unique and not previously used by another company in Dubai. The name, if available, can be checked via the Dubai Municipality website. When you officially name your company, the Dubai Municipality has to reserve the name.
5. Preparing the memorandum of association and articles of association:
The memorandum and articles of association of the company have to be prepared according to the requirements of the local laws. A contract mentioning the following should be drawn:
• The organizational structure of the company.
• Rights and obligations of partners.
• Profit and loss sharing ratio.
• A legal advisor may be consulted to prepare the above documents.
6. Document Attestation:
After preparing the Memorandum and Articles of Association, these documents require the attestation of the public notary in Dubai in the presence of all the partners or their representatives.
7. Commercial Office Renting:
The company shall rent a commercial office as its headquarters and it must be within the legally permitted areas. Along with the documents, leasing contracts also have to be submitted needed to register the company.
8. Apply for registration:
The registration application shall be submitted to Dubai Municipality after the approval of necessary papers, such as documents needed for registration and approvals. The application contains the following documents:
• Registration application form
• Notarized Articles of Association and memorandum of association.
• A copy of the partners’ passports and IDs.
• Office rent contract.
• Approvals of competent authorities.
9. Fee payment:
The investor shall pay the legally bound charges for setting up a Dubai mainland company, and the charges vary on the type of the company and according to the business activity.
10. Getting the Commercial License:
After getting the application documents, Dubai Municipality will issue the trade license to pay the fees. This license allows the company to practice in Dubai legally.
11. Registration with other parties:
There could also be a need for registration with other parties, including:
• Department of Economic Development: to obtain a commercial license.
• Dubai Chamber: For getting chamber membership.
• Federal Authority for Identity and Citizenship: for getting work visas.
12. Opening a bank account:
With the license above, the company can open a business bank account at a local bank.
13. Expansion and growth:
Any company, once established, can make efforts to expand and grow with effective marketing strategies by introducing new products and services.
Conclusion:
Company registration in Dubai Municipality involves definite steps and follows the local laws. Following the mandatory procedures and consulting with the right advisors of company formation in Dubai the investors can establish a successful business in this vibrant emirate.
