A&A Associate LLC

How to Start a Business in Dubai?

There are about 2100 commercial activities permitted in Dubai. Not every business activity can be undertaken everywhere. For example, only Limited Liability Company structures are allowed for companies established in free zones. According to the laws of the United Arab Emirates, a Limited Liability Company cannot engage in certain activities like banking / finance / investment. So the first step involved when it comes to business setup in Dubai is to zero in on the right commercial activity / activities.

A business establishment can be engaged in more than one commercial activity. Because a Business License is normally granted only to companies and not individuals (except in the case of freelancers), it becomes important to establish a company. For company formation in Dubai, it is strongly recommended that you enlist the professional assistance of a business setup advisor, who also doubles up as a company formation expert. He/She will tell you that you need to choose a name for your company.

There are certain rules when it comes to company nomenclature. You are not allowed to have any religious terms in the name of your company. The names of cities and countries are not permitted, but nationalities and the names of geographical regions can be used. A first name may be used in the name of the company if it is the name of one of the shareholders. Additionally, the name of a company cannot begin with terms like ‘Global’ or ‘International’.

The business setup consultant will help you draw up the company formation documents, which contain the name of the company, the name(s) of the owner(s), and the purpose for which it is being established. But prior to doing this, he/she will reserve the trade name – the company name you have chosen – so that when you apply for company registration, it will be granted exclusively to you and not anyone else who may apply for the same name before you do.

The company formation documents may be better known in your country as Memorandum of Association in case there is only a single owner for the company, or as Articles of Association if there are multiple owners in the company. A business setup consultant would advise you on the best location for company setup in Dubai. This could be on the mainland, in a designated free zone, or offshore. The mainland is the area in the United Arab Emirates that is not part of a free zone.

The company formation documents need to be notarized by a Notary Public, and a business setup consultant can get this done for you. You also need to lease commercial space for your operations prior to company registration. This is so that when company registration is granted, the official address of your company as per Government records will be the address of the commercial space you have leased. For this, you need to enter into a Lease Agreement with the owner of the premises.

A business setup consultant will submit the company formation documents and the Lease Agreement to the corresponding authority for company registration and grant of a Business License. If everything is in order, you could expect to register your company and receive your Business License in a matter of days – business setup in UAE is a fairly straightforward, uncomplicated affair. Once you receive your business license, you can commence operations at your registered office address immediately.

There is just one more thing you need to do. You also need to open a corporate bank account so that you can make and receive payments with ease. Owing to strict anti-money laundering regulations in the United Arab Emirates, opening a bank account is not as easy as it sounds. But with a good business setup consultant by your side, the process could take as a little as two hours instead of the whole day. Not all business setup consultants provide this service, so you need to select the right one.

A&A Associate LLC is a provider of corporate services that specializes in business setup in Dubai, United Arab Emirates. It has been of professional assistance to clients from 100 countries around the world and has an excellent client satisfaction rate so far. For more information, call +971 56 408 6728 or send an email to sales@aaconsultancy.ae