22 February, 2021
Things You Should Remember For Your LLC Company Formation In Dubai
The UAE and Dubai in particular, continue to be a preferred destination for individuals and businesses alike. Dubai has been ranked consistently well in all indices of business, society, technology, safety and individual aspects. It is in fact no surprise that the preferred mechanism for growing a business is to first register a company in Dubai. LLC Company formation in Dubai is typically a tedious process, but it can be eased by the involvement of an expert. Such experts are termed “business setup advisors” and have extensive experience in the new company established in Dubai. In short, business setup advisors ease work for entrepreneurs in the process of company formation in Dubai. The starting point for a successful company registration process is the appointment of the right business setup advisor for you.
What Should Be the Type of My Company Formation In Dubai?
Success starts from the first step. And the first step is in deciding which legal framework your business belongs to. It is not easy to determine this overnight, as it requires the right assistance and legal expertise to provide the right guidance for your company registration process. The jurisdiction is a very important strategic decision in the LLC company formation in Dubai. Jurisdiction simply means the legal limits or framework within which your company can operate.
In many cases, in spite of a formal company registration process having been completed, a company may not be able to execute its business fully. It is important to study the jurisdictions available for a business before getting into an LLC company formation in Dubai. The main difference is between a free zone company registration in Dubai and a mainland business setup.
Here are the available options for a legal framework in a new company establishment in Dubai:
Refers to a single owner company where the liabilities of the company and those of the owner are not differentiated. This depends on factors such as
- Your business activities
- The type of license you obtain
Limited Liability Company
Refers to a company in which a business partner (either UAE individual or UAE entity) will be owning 51%. The right legal structure is always the first step in a strong company registration process.
How Will I Get A Trade License When I Register A Company In Dubai?
Obtaining a trade license is the most important milestone in your new company establishment in Dubai. It is the main document that uniquely identifies your business and gives it the required legal standing to operate the activities. The main steps in getting a trade license are:-
Identify Your Local Business Partner / Service Agent
For your business, it is important to know if you require a local business partner or a service agent. The business activity (and type of license) will determine this requirement in your company registration process.
Ensure the Initial Approval Is Obtained For Your License
This is the most challenging part and requires the furnishing of all critical documents such as passport copies, among others. As mentioned earlier, the business advisor will be helpful in obtaining this for you.
Get The Required External Approvals
Depending on the complexity of your business activities, you will need the approvals to be obtained from external bodies. This may involve federal bodies (such as the Ministry of Climate, Ministry of Economy, etc) or local bodies (SIRA, Dubai Municipality, etc.)
Register Your Office To Host The License
The office registration or “Ejari” is a very important document to complete the trade license process. Any company registration in Dubai will require this document to be furnished even before you get your trade license.
Prepare and Notarize the Memorandum of Association
The process of notarization is a very important process in the trade license process. The notarization involves the legal registration of the entity with the courts to ensure that all matters mentioned in the memorandum have legally complied with and the company proceeds in accordance with the company law.
Submit for Final Approval
The final submission of all notarized and newly obtained documents, in addition to the initial approval, is the final approval stage. This process leads to a successful new company establishment or business setup in Dubai, and you would obtain your trade license.