Opening a commercial register in Dubai is a crucial step for anyone seeking to launch a business in one of the most dynamic cities in the world. Dubai, with its strategic location as a global business hub, provides an ideal environment for businesses thanks to its advanced infrastructure, business facilities, and tax advantages that encourage investment and growth.

The process of opening a commercial register in Dubai is essential to ensuring that a business operates legally and efficiently. The main steps of this process include choosing the appropriate type of business entity, defining the business activity, and submitting a registration application to the relevant authorities. By registering the business activity, the investor obtains a legal license that allows him to conduct business freely within the regulated legal framework.

One of the most prominent advantages of opening a commercial register in Dubai is the ability to benefit from the favorable investment environment provided by the city, including tax exemptions, facilities for importing and exporting products, and opportunities to access new markets. The registration process also provides investors with legal protection for their interests and allows them to operate effectively and transparently in the market.

Dubai features simplified and straightforward business registration procedures, making it a preferred destination for entrepreneurs and investors from all over the world. By working with relevant government agencies and local advisors, investors can achieve their goals quickly and efficiently, contributing to the success of their business projects and increasing opportunities for growth and innovation in this evolving market.

How to open a commercial register in Dubai

Basic steps to open a commercial register in Dubai

Opening a commercial register in Dubai requires following some basic steps. Here are general steps to open a commercial register in Dubai:

1. Market study and business activity determination: Conduct a comprehensive market study to understand the field in which you wish to work and determine the type of business activity you wish to engage in.
2. Choosing a name for the company: Choose an appropriate name for the company and make sure it is available and does not conflict with the names of other companies.
3. Determine the type of company: Decide what type of company you want to establish, such as a sole proprietorship, partnership, or joint stock company.
4. Identify shareholders and their shares: In the case of limited liability companies, identify shareholders and determine their shares in the capital.
5. Drafting legal documents: Draft the company’s incorporation contracts and other required documents in Arabic.
6. Obtaining business licenses and permits: Check the licenses and permits necessary for the company’s activity and apply for them.
7. Registration with the Department of Economic Development: Submit a company registration application and pay the required fees with the Department of Economic Development in Dubai.
8. Obtaining a company license: Obtain a company license from the local authorities in Dubai.
9. Opening a bank account for the company: Open a bank account in the name of the company and deposit the necessary capital.
10. Securing the head office: Make sure to secure a head office for the company and ensure compliance with all local requirements.
11. Compliance with tax and legal controls: Ensure compliance with all local corporate tax and legal controls.

Documents required to open a commercial register in Dubai

To open a commercial register in Dubai , a set of documents must be submitted to the Department of Economic Development (DED) or to the competent authority in the event that the company is established in one of the free zones. Required documents usually include:

• Commercial registration application form: You must fill out the commercial registration application form available from the Department of Economic Development or from the website of the concerned authority.
• Passport copy: A copy of the passport of all partners and founders, including visa and residency pages if applicable.
• Copy of Emirates ID: A copy of the Emirates ID for all partners or managers (for UAE residents).
• No Objection Certificate (NOC): If one of the partners or directors is working in another company in the UAE, a NOC from their current employer may be required.
• Articles of Association: The Articles of Association that specify the terms and conditions of the partnership between partners, and must be notarized and certified by a notary.
• Report on commercial activities: A report specifying the commercial activities that the company will engage in. The business must be compatible with activities permitted by the Department of Economic Development.
• Business Plan: A business plan outlining the company’s goals and strategies may be required.
• Lease Contract: A documented lease contract for the office or facility that will be used as the company’s headquarters. The lease contract must be registered with the Department of Economic Development (or the competent authority in free zones).
• Initial approval certificate: You may need to obtain an initial approval certificate from the Department of Economic Development before completing the commercial registration procedures.
• Fees: Payment of the fees required to open a commercial register.
• Approval of competent authorities: For some activities, you may need approval from other government authorities (such as the Ministry of Health if the company operates in the health sector).

Costs associated with opening a commercial register in Dubai

Opening a commercial register in Dubai requires covering a set of costs that vary based on the type of business activity, the size of the company, and the chosen location (either within Dubai or in one of the free zones). Below is an overview of the costs associated with opening a commercial register in Dubai without reference to specific numbers:

1. Commercial registration fees: Fees for registering the company name and obtaining initial approval from the Department of Economic Development (DED) or from the competent authority in free zones.
2. Costs of issuing a commercial license: The cost of issuing a commercial license that allows the practice of the specific commercial activity.
3. Trade name reservation fees: Fees for reserving the required trade name, which must be compatible with the rules and conditions specified by government agencies.
4. Memorandum of Association and Notarization Fees: Costs of notarizing the Memorandum of Association and Partnership at a notary, in addition to fees for preparing and notarizing the required legal documents.
5. Lease contract costs: Fees for registering an office or commercial facility lease contract, which may include additional costs such as registration fees with the relevant government agencies.
6. Approvals and permits issuance fees: Some commercial activities require obtaining special approvals and permits from certain government agencies, and this may include additional fees.
7. Chamber of Commerce Membership Fees: Fees for registering as a member of the Dubai Chamber of Commerce and Industry, which is a mandatory requirement for some types of business activities.
8. Costs of opening a file with the Ministry of Labor: Fees for opening a file for your company with the Ministry of Labor to facilitate the processes of hiring employees and issuing work permits.
9. Additional services fees: If additional services are required, such as legal or accounting consultations or translation services, additional costs may apply.
10. Insurance costs: Business insurance, employee health insurance, and property insurance are some of the basic costs that must be taken into consideration.

Advantages of opening a commercial register in Dubai

It offers many advantages to investors and entrepreneurs, making it an attractive destination for establishing and expanding businesses. Here are the most prominent advantages:

• Distinctive investment environment: Dubai is a global economic center characterized by political and economic stability, which provides a safe and suitable environment for investment and business.
• Ease of procedures and speed of implementation: The process of registering companies in Dubai is known for its ease and speed, with the availability of electronic services to facilitate procedures and reduce time and effort.
• Tax exemptions: Dubai provides generous tax exemptions, such as not imposing taxes on personal income or business profits in most sectors, which increases investment attractiveness.
• Full foreign ownership: In free zones, foreign investors can fully own 100% of their companies, providing them with complete freedom to manage and operate their businesses.
• Global infrastructure: Dubai has an advanced infrastructure that includes global transportation networks, airports, ports, and logistical facilities, which facilitates trade and shipping operations.
• Strategic location: Dubai’s strategic location between Europe, Asia, and Africa makes it a global logistics and trade center, allowing quick access to diverse markets.
• Diversity of markets and sectors: Dubai offers opportunities in a wide range of sectors such as real estate, tourism, trade, technology, and financial services, allowing multiple investment options.
• Flexible laws and legislation: Dubai has a flexible legal system that provides a competitive and encouraging business environment, while protecting the rights of investors and enhancing the business climate.
• Special incentives in free zones: Free zones in Dubai offer additional benefits such as exemption from customs duties, facilities in transferring profits and capital, and no currency restrictions.
• Easy access to talent: Thanks to Dubai’s cultural diversity, companies have access to a wide range of talents and skills from different nationalities.
• Continuous government support: The UAE government provides ongoing support to investors by introducing new economic initiatives, facilitating procedures, and promoting innovation and technology.

In conclusion, opening a commercial register in Dubai is an important step towards establishing a successful business in one of the most attractive business environments in the world. The process of opening a commercial register provides companies with the ability to benefit from the unique advantages offered by the city, including its strategic location, advanced infrastructure, and tax exemptions.

By following the appropriate steps, such as choosing the appropriate type of business activity, preparing the required documents, and registering with the competent authorities, investors can achieve a strong start for their business. It is also essential to understand the legal requirements and comply with regulations to ensure the process runs smoothly.

Procedures for opening a commercial register in Dubai contribute to facilitating commercial operations and reducing the challenges that new companies may face. Thanks to an effective and transparent management system, companies can exploit available opportunities and achieve success and growth. Dubai also provides an encouraging and supportive business environment for various types of businesses, which enhances the ability of companies to innovate and expand into new markets.

Taking deliberate steps and good planning can have a significant impact on the success of the project. By taking advantage of the advantages that Dubai offers and the regulated procedures for opening a commercial registry, companies can achieve their business goals and lay strong foundations for sustainable growth.

The most important frequently asked questions about opening a commercial register in Dubai