Dubai has carved its place amongst the top financial cities of the world and has fast become the most coveted location for entrepreneurs for the set up of their new businesses. Local and foreign investors alike prefer Dubai over other cities because of its position in the Middle Eastern peninsula, which lets the traders interact with the neighboring countries and turn their venture worldwide seamlessly.
One of the most traditional ways in which entrepreneurs attempt to set up a business Dubai is to start a new company simply. Customarily limited liability company is the type of entity that is favored. Forming a limited liability company (LLC) is a comparatively straightforward process that comprises registering the newly-formed company with the Dubai Commercial Register. If you are preparing to set up an LLC in Dubai, here are some things you need to take care of before going to the Dubai Commercial Register.
The formalities that you must fulfill are listed below:
1. Register the Firm with the Department of Economic Development (DED)
You will have to pick a company trade name and get it approved by the Department of Economic Development’s Licensing Department. The primary endorsement for registration of your business will additionally be required from the DED after the company’s trade name has been approved and subsequently registered with the concerned authority.
2. Compose and Notarize the Company’s Legal Documents
The next thing would be to draft the essential legal documents of the company, such as the Memorandum and Articles of Association ( MOA, and AOA). You are then required to get these documents notarized. You can select any reliable and trustworthy Notary public for this purpose. They can be found in the Dubai courts.
3. Submit all of the demanded documents to the DED
Submit the business trade license application and initial approval, together with the notarized copy of the company’s legal documents to the DED. At this stage, the application is submitted for admission to the Dubai Commercial Register.
4. Registration in the Dubai Commercial Register
Once the DED grants the requisite approval, the business will then be registered into the Dubai Commercial Register. The attainment of the business license will then accompany, which will be again issued by the Department of Economic Development.
Other details to bear in mind before applying for registration of your new enterprise is that, depending on the type of business activity that will be carried out, you may need special approval from the related government department. Moreover, the LLC additionally must at least have two shareholders, and at most have fifty shareholders.
When setting up an LLC in the Dubai Mainland, foreign entrepreneurs can only hold up to 49% shares of the company. A local partner or sponsor of UAE nationality must have at least 51% of the company shares. So you need to find a local sponsor before you apply for registration of the company in the Mainland.
If you need guidance while setting up an LLC in Dubai, we at KWS Middle East can guide you in all the business setup procedural obligations, which also includes arranging a local sponsor for you in case of setting up a company in the Mainland. Our experienced business setup consultants have served many small, medium-sized enterprises prosper in Dubai plus have helped several international corporations.