OPENING A BUSINESS
Once the preliminary details of your future business are ironed out and your funding and initial investment capital is in order, you can begin the formal process of obtaining a trade licence through the Department of Economic Development. Regardless of what business structure you’ve decided on, if you’re an expatriate you are likely need to appoint a local service agent, also known as a sponsor.
Since non-GCC nationals are not permitted to be majority share holders outside of free zones in the UAE, a system of shared ownership has been developed in which UAE nationals formally own 51% of the company and the foreign proprietor owns the remaining 49%; details of profit and loss distribution are then agreed upon in a separate contract. Local sponsors can be individuals or locally-owned businesses. For the most part, a local sponsor will not have any responsibility towards the business but is obliged to assist with all government related procedures such as obtaining permits, trade licences, visas and labour cards. His/her signature will be required on most official forms.
Depending on the legal structure of the business, the Department of Economic Development has certain capital requirements for obtaining a trade licence. Those requirements are detailed in the DED’s official explanation of legal business structures on its website.
Also keep in mind that certain businesses require separate approvals from varying government ministries before the trade application can be completed. When applying for a trade name, be sure to enquire about any external approvals that will be needed for the proposed business activity. Do note that 'Virtual offices' are not allowed by DED which has advised potential investors that any commercial enterprise in Dubai must have a physical address and an actual office.
It is important to do as much preliminary research as possible before applying for your trade licence. This means attending trade shows and exhibitions, networking through Dubai’s various business councils and even meeting with a consultancy firm that specialises in the business set up process.
GETTING INITIAL APPROVALS
Law No. 13 of 2011 states that the Department of Economic Development (DED) will be the body responsible for the regulation of economic activity for all businesses outside the freezones. DED's responsibilities include licensing, classification of economic activity permitted within Dubai, issuing trade permits for marketing activities and setting business work hours. The law also establishes a one-window system with a single portal managed by DED for issuing licenses to businesses and dealing with investors.
In March 2012, DED announced a new instant license that will be launched for investors. The new instant license will allow investors to start their business immediately and complete the rest of the licensing requirements such as approvals from other government authorities within 120 days.
The first official step in obtaining a trade licence is to reserve a trade name and obtain an initial approval from the Department of Economic Development. To reflect its persistent efforts to enhance the UAE’s top rankings in the World Bank’s Doing Business Report and promote the country as a globally-competitive business hub, the Department of Economic Development has expanded its eServices window by offering these services through law firms in Dubai.
Unlike the rest of the official set up process, this step is the same for all business structures. The application for trade name approval can be completed online and a list of trade name restrictions and regulations can be found along with the online application. The costs for obtaining a trade name varies depending on the content and language of the name. The process is relatively straight forward – after filling out the online application or submitting the application in person to the DED, you will be given a date on which you can pick up the approval. All fees must be paid before the trade name approval certificate can be released.
Applicants can usually submit their initial approval applications at the same time as submitting their trade name approval application. The documents needed for this step vary depending on the business structure of the company. At this point you will also need to submit any necessary special approvals from Ministries corresponding to your business.
If you are planning to open your new business within a free zone, keep in mind that the process for registering a trade name is usually taken care of by the free zone authority and each authority has different application processes.
Opening a branch of an existing company requires an added set of documents that verify the legitimacy of the branch and its future managers. A list of necessary documents for licensing a branch or any form of business can be found on the DED website. All new agencies can now register electronically with the Ministry of Economy using the 'New Agency Registration eService' that was launched in March 2011.
New business registration procedures in Dubai - Dubai Economic Department (DED)
Register and apply for new company in Dubai online - DED
Search for trade name in Dubai – DED
Special Licences and Approvals – DED
Dubai to issue investors instant trade licenses - Gulf News
Once the preliminary details of your future business are ironed out and your funding and initial investment capital is in order, you can begin the formal process of obtaining a trade licence through the Department of Economic Development. Regardless of what business structure you’ve decided on, if you’re an expatriate you are likely need to appoint a local service agent, also known as a sponsor.
Since non-GCC nationals are not permitted to be majority share holders outside of free zones in the UAE, a system of shared ownership has been developed in which UAE nationals formally own 51% of the company and the foreign proprietor owns the remaining 49%; details of profit and loss distribution are then agreed upon in a separate contract. Local sponsors can be individuals or locally-owned businesses. For the most part, a local sponsor will not have any responsibility towards the business but is obliged to assist with all government related procedures such as obtaining permits, trade licences, visas and labour cards. His/her signature will be required on most official forms.
Depending on the legal structure of the business, the Department of Economic Development has certain capital requirements for obtaining a trade licence. Those requirements are detailed in the DED’s official explanation of legal business structures on its website.
Also keep in mind that certain businesses require separate approvals from varying government ministries before the trade application can be completed. When applying for a trade name, be sure to enquire about any external approvals that will be needed for the proposed business activity. Do note that 'Virtual offices' are not allowed by DED which has advised potential investors that any commercial enterprise in Dubai must have a physical address and an actual office.
It is important to do as much preliminary research as possible before applying for your trade licence. This means attending trade shows and exhibitions, networking through Dubai’s various business councils and even meeting with a consultancy firm that specialises in the business set up process.
GETTING INITIAL APPROVALS
Law No. 13 of 2011 states that the Department of Economic Development (DED) will be the body responsible for the regulation of economic activity for all businesses outside the freezones. DED's responsibilities include licensing, classification of economic activity permitted within Dubai, issuing trade permits for marketing activities and setting business work hours. The law also establishes a one-window system with a single portal managed by DED for issuing licenses to businesses and dealing with investors.
In March 2012, DED announced a new instant license that will be launched for investors. The new instant license will allow investors to start their business immediately and complete the rest of the licensing requirements such as approvals from other government authorities within 120 days.
The first official step in obtaining a trade licence is to reserve a trade name and obtain an initial approval from the Department of Economic Development. To reflect its persistent efforts to enhance the UAE’s top rankings in the World Bank’s Doing Business Report and promote the country as a globally-competitive business hub, the Department of Economic Development has expanded its eServices window by offering these services through law firms in Dubai.
Unlike the rest of the official set up process, this step is the same for all business structures. The application for trade name approval can be completed online and a list of trade name restrictions and regulations can be found along with the online application. The costs for obtaining a trade name varies depending on the content and language of the name. The process is relatively straight forward – after filling out the online application or submitting the application in person to the DED, you will be given a date on which you can pick up the approval. All fees must be paid before the trade name approval certificate can be released.
Applicants can usually submit their initial approval applications at the same time as submitting their trade name approval application. The documents needed for this step vary depending on the business structure of the company. At this point you will also need to submit any necessary special approvals from Ministries corresponding to your business.
If you are planning to open your new business within a free zone, keep in mind that the process for registering a trade name is usually taken care of by the free zone authority and each authority has different application processes.
Opening a branch of an existing company requires an added set of documents that verify the legitimacy of the branch and its future managers. A list of necessary documents for licensing a branch or any form of business can be found on the DED website. All new agencies can now register electronically with the Ministry of Economy using the 'New Agency Registration eService' that was launched in March 2011.
New business registration procedures in Dubai - Dubai Economic Department (DED)
Register and apply for new company in Dubai online - DED
Search for trade name in Dubai – DED
Special Licences and Approvals – DED
Dubai to issue investors instant trade licenses - Gulf News
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