An ancient centre for business and trade, Dubai is a hotspot for business investors from world over, especially from India, Africa and even from European countries.
How to incorporate a company in Dubai?
Incorporation of a company in Dubai is subject to the legalities surrounding a new company formation in the region.
The first and foremost requirement for company formation in Dubai is to apply for the necessary license and the issuance of the same from the authorities.
The legal body that regulates this process in Dubai is the Department of Economic Development. This statutory body is supported by the Dubai Chamber of Commerce & Industry. The purpose of this legal body is to promote the activities of the newly formed industry sectors and guide the progressive growth of trade.
The license categories issued are as follows:
- Industrial License: An industrial license is issued to industrial segments that manufacture products from available raw materials or change semi-finished goods to finished products utilizing the power and other energy sources used in the production, assembling and packaging of these products.
- Trade License: The trade license pertains to general trade or a specific trade which is issued to wholesale or retail trade enterprises, transport, hotels, contractors, storage houses etc.
- Professional License: A professional license is issued to a person who works more with his attained skills rather than a cash capital to pursue a profession. The businesses that come under this license are engineering, consultancy, company formation, auditing and accounting, financial services, medical and educational services, business set up etc.
The common challenges one faces when they embark on forming a company in Dubai are:
- To start off with, you have to be very sure of the company you want to set up in Dubai.
- Applying for a proper license for the same becomes the next challenge.
- Selection of a suitable location for your company is another hurdle to cross.
- Finding a local sponsor for your new company plays an equally important part.
- The preparation of company formation documents and their submission to the respective authorities has to be done on time.
- Professional licenses need the final approval from the authorities after thorough checking of the required qualifications and experience of the applicant.
Dubai offers several industrial areas to foreign investors for the incorporation of their companies. These areas offer excellent amenities like uninterrupted power and water supply, well-planned network of internal roads, error-free telecommunication services etc.
New company formations are greatly encouraged in Dubai, but if you are hassled about the legalities involved you should not hesitate to seek the help of a local company registration agency to incorporate your company in Dubai to get you started in setting up your dream venture.