Establishing a company in Dubai
Itqan provides you with all the requirements to establish your company in Dubai. Your residence and commercial registration in Dubai in only three steps
Following the amendments to the UAE Companies Law (wholly owned by Mainland Dubai) which entered into force on June 1, It is no longer obligatory for foreign entrepreneurs to have local partners to set up a company in the UAE. Whereas, Minister of Economy Abdullah bin Tok Al-Marri stated that doubling the benefit from the competitive atmosphere that characterizes it is the main goal of the UAE government encouraging commercial activities. And in the past year, The UAE has announced a law allowing 100% foreign ownership of companies. This was one of many measures aimed at attracting investment and foreigners who have been hit hard by the coronavirus outbreak. As foreigners can already own up to 100 percent in “free zones,” Under previous laws that were first passed in 2018.”
Previously, the general rule for foreigners wishing to set up a business in the UAE was that 51 percent of the shares had to be held by Emiratis (or companies wholly owned by Emiratis). The UAE Companies Law includes this requirement. Despite the prevailing impression that the economic power of international and local shareholders can be modified to some extent when it comes to ownership and decision-making in the company, There are still many questions and inquiries regarding the feasibility of these arrangements.
Previously, the general rule for foreigners wishing to set up a business in the UAE was that 51 percent of the shares had to be held by Emiratis (or companies wholly owned by Emiratis). The UAE Companies Law includes this requirement. Despite the prevailing impression that the economic power of international and local shareholders can be modified to some extent when it comes to ownership and decision-making in the company, There are still many questions and inquiries regarding the feasibility of these arrangements.
The most prominent provisions of the new law and in line with the newly issued laws, Some of the following major amendments have been introduced to the activities of investors and shareholders:
- For commercial registration in Dubai, UAE companies no longer need to own majority shares of shareholders and local representatives in the Emirates.
- According to the policy of the United Arab Emirates formulated in the form of a decision of the Council of Ministers.
- Allowing foreign capital to own commercial organizations affiliated with the Emirates, Any companies in the country.
- Initial Public Offerings (IPO) allow companies listed on the stock exchange to sell 70% of their shares. Previously, this percentage did not exceed 30%.
- If the company takes through its directors or a partner, actions that have caused loss of revenue, The owner of the company shall have the right to sue the company included in the list before the court.
- Local governments are allowed to recognize the capitalization and percentage of ownership and the necessary approval for business on the land in accordance with the guidelines of the Cabinet decision. Previously, these powers were limited to the Ministry of Economy or the economic sector of each emirate.
- Presiding over meetings is no longer confined to Emiratis; It may be headed by foreigners.
- Likewise, The ban on foreigners serving as members of the board of directors has also been lifted.
- Because of the global pandemic, The general meeting of shareholders will also hold an automatic vote.
- The possibility of removing a board member or the company’s president from his position due to abuse of power.
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• Why was the 100% ownership law applied to internal companies in Dubai?
The UAE is trying to enhance its popularity with global buyers, entrepreneurs, start-ups and the best talent markets around the world. It strives to facilitate business creation by removing existing barriers and opening up the economy, And push the country into a stronger position as it prepares for the next 50 years.
• How does outright ownership law affect startups?
And speaking of flexibility in setting up a business, New investors in the UAE market have a strategic advantage. Non-Emiratis of all nationalities can now fully own their businesses under the new legislation. As long as they work in one of the permitted industries.
• How property law will affect existing businesses?
The registration of an existing limited liability company can be renewed by selling the shares of UAE nationals to foreigners and making them the sole owner of the company.According to the amendment, Existing companies are required to “relocate” by January 2, 2022. To bring the quorum, notice, and meeting specifications in line with the amendment, Local office liaison materials may need to be modified.
• How property law will affect existing businesses
The registration of an existing limited liability company can be renewed by selling the shares of UAE nationals to foreigners and making them the sole owner of the company.According to the amendment, Existing companies are required to “relocate” by January 2, 2022. To bring the quorum, notice, and meeting specifications in line with the amendment, Local office liaison materials may need to be modified.
• How Mastery can help you
At Etqan, we seek to clarify all standards and business requirements so that we can provide professional and reliable professional advice on current laws and regulations. informing our customers of all their rights, Providing cost effective solutions that fit their needs and budget.
Establishing a company in Dubai
In a few years, Dubai has succeeded in becoming a destination for entrepreneurs and startups, not only in the region, but in the world, And it became referred to as an incubator for the establishment of companies, Where it was able, through a strategy and unlimited government support, to transform innovative ideas into giant entities valued at billions of dollars. To become a fertile environment for the birth of emerging companies rising to the top, And inspiring talents, entrepreneurs and youth in the world.
Experts in establishing a company in Dubai emphasized that the support of the UAE government for startups, Create an unprecedented awareness among Arab youth of the many opportunities it holds for their future and the possibility of repeating the wonderful success stories achieved by companies established in Dubai and in the rest of the regional markets.
Experts in establishing a company in Dubai emphasized that the support of the UAE government for startups, Create an unprecedented awareness among Arab youth of the many opportunities it holds for their future and the possibility of repeating the wonderful success stories achieved by companies established in Dubai and in the rest of the regional markets.
Steps to establish a company in Dubai
Establishing a company in Dubai requires following a set of steps and approvals required by the Department of Economic Development. And other concerned parties to officially register the facility. In the beginning, you must specify the type of activity that you want to engage in, and this, in turn, will determine the parties involved in the activity and the permitted legal forms.
We will now review the complete and necessary steps to establish a company in Dubai:
- Determine the business activity of the company.
- Determine the legal form and the parties.
- Determine and reserve the trade name.
- Applying for a certificate of principle approval.
- Preparing articles of incorporation and service agent agreement.
- Choose the company’s location and document the lease.
- Obtaining the approvals of the organizing authorities for the activity.
- Receipt of the trade license.
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Our team will provide you with all the support and implement all the steps mentioned above, starting from determining the type of activity, choosing the trade name, obtaining security approvals, and then preparing all the documents required to complete the steps of establishing the company in Dubai in a few days.
All you have to do is set a time to meet our experts to discuss the details of the activity of the company you would like to establish and provide all the required personal documents to them, and then we will, on your behalf, complete all the steps with the various government agencies in order to obtain a business license in Dubai in the shortest possible time.
The period required to obtain a license to practice business is closely related to the type of activity or activities that you wish to practice in addition to the legal form of the company. There are commercial activities that require approvals from more than one government or federal agency, but the Dubai government always guarantees to all investors the provision of unparalleled services and facilities in order to make Dubai the ideal destination for establishing business. for commercial.
