Establishing a business in any country around the world may be a task that is not as easy as you can imagine. However, the incorporation rules and conditions for opening a company in the UAE differ from any other country. So if you are one of the emerging entrepreneurs 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 to establish a company in Dubai for foreigners and citizens via the Internet or in government departments.

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

Create an online company

Entrepreneurs and investors can set up a company online Regardless of the nationality of the investor through “Basher” services, which is an integrated electronic platform integrated with the local and federal government departments and agencies concerned with licensing economic activities in the UAE within a few minutes only with quick and easy procedures without the investor having to visit any government agency in person. And when applying online, The investor must have the following:

• An effective digital signature in the digital identity account (for limited liability companies).
• An active Emirates ID.
• An active account in the 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, which are:

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

• Submit a copy of the no-objection certificate, provided that it is valid, to the Federal Authority for Identity and Citizenship, if he is a government sector employee or a housewife.
• Changing the type of residency to an investor residency.

And there is another advantage provided by the United Arab Emirates, but only for foreigners, is the Dubai Virtual Commercial Zone (VCC) program, and it gives the owner the possibility to start a virtual commercial company in Dubai, and this advantage is granted to all entrepreneurs around the world, provided that they are foreigners, Without the requirement to reside or work in the UAE, The conditions for eligibility to obtain a virtual trading company license include the following:

1. To carry out global commercial activities that are not subject to a specific location in specific sectors that focus on creative industries, technology and services.
2. The applicant should 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 initiate 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

And 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 :

Commercial/professional/industrial/agricultural/craft/tourist

Determine the legal form

And this condition depends mainly on the requirements of the business and the responsible party. It also specifies the laws and regulations that are required to 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 that the company carries out. You can also choose one of the different legal forms within the UAE, depending on the type of your company’s activity.

Reservation and registration of the trade name

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 the licenses. Several conditions must also be adhered to when choosing the trade name of the company, Among them we mention:

• Not to use names of government agencies or logos and names of third parties.
• The trade name should be followed by the legal form of the company.
• Absolutely not using the word “Allah” or “the Lord”, for example, or other names of God.
• The name does not contain inappropriate words. And not to contradict public taste.
• The name of the company indicates its commercial activity.
• The name should not be repeated or used by another company.

Initial approval

After completing the previous first steps to establish your company in the Emirates You can get preliminary approval, It is necessary for foreign investors to obtain the approval of the General Directorate of Residency and Foreigners Affairs before obtaining the initial approval.

In addition, there are some special activities that require obtaining approvals from government agencies related to the same activity before applying for the initial approval. Such as :

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

Memorandum of Association and local service agent agreement

This requires drafting and signing the Memorandum of Association for your company in the Emirates, and in some cases the conclusion of an agreement for a local service agent or a company agent. This is based on the legal form of the company.

Institutions and companies wholly owned by non-GCC residents require a local service agent from the United Arab Emirates. This is under a service agent contract documented by the notary public or the court.

Choosing a company headquarters

Then comes the step of choosing the headquarters, and all companies must have a physical address in the Emirates, The entrepreneur must present a lease contract attested by the Real Estate Regulatory Authority in the Emirate of the Emirate to obtain the license.

The approvals of the authorities concerned with the company’s activity

There are various activities of companies that require approvals from the authorities concerned with the company’s activity. You can inquire about it in the Department of Economic Development in the country, such as the Ministry of the Interior. The Ministry of Economy , The Ministry of Justice, for example.

Issuance of the trade license

And here is the last stage, after fulfilling all the previous conditions and documents, it is the turn of receiving the trade license from the service centers of the state’s economy. Provided that some of the following documents are submitted for all commercial licenses:

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

Then, pay the company incorporation fees upon issuance of the payment receipt within a certain period of time (usually 30 days). We should draw your attention to a very important point, which is that non-payment leads to the cancellation of the application directly.