Opening a commercial register in Dubai is an essential step for anyone seeking to establish a successful business in one of the fastest growing cities in the world. Dubai is a global economic hub that attracts entrepreneurs and investors from all over the world thanks to its flexible investment environment and strategic location that connects the East and the West. Opening a commercial register here is not only limited to obtaining a license that allows you to practice your business activity, but it is also a gateway to enter diverse and promising markets inside and outside the Emirates.

Dubai offers investors a variety of options for registering their businesses, whether they want to set up in free zones that offer full foreign ownership and tax exemptions, or in local markets where they can access a wider customer base. Opening a commercial register in Dubai requires following certain procedures and submitting to the relevant government authorities, but this procedure has become easier and more flexible thanks to the continuous updates in government systems and available electronic services.

In this article, we will review the basic steps to open a commercial register in Dubai , including the required documents, the types of licenses available, and the legal considerations that entrepreneurs should take into account. Whether you are thinking of starting a small business or establishing a large corporation, understanding how to open a commercial register correctly is key to achieving success and taking advantage of the opportunities available in this dynamic market.

 

Requirements for opening a commercial register in Dubai

Opening a commercial register in Dubai requires fulfilling a set of legal requirements and procedures that aim to regulate the process of establishing companies and ensure compliance with local laws. The following are the most important basic requirements for opening a commercial register in Dubai:

1. Choosing the business activity: The investor must determine the type of business activity he intends to practice. This decision affects the type of business license required, whether commercial, industrial, or professional. It must be ensured that the chosen activity complies with Dubai laws.
2. Determining the legal form of the company: There are several types of legal structures for companies in Dubai, such as limited liability company (LLC), public joint stock company, sole proprietorship, and freehold companies. The choice of legal structure depends on the type of business activity and the number of partners.
3. Determine the company name: A trade name must be chosen that is consistent with the business activity and complies with the requirements of the Dubai Department of Economic Development. The trade name must be unique and not similar to the names of other companies.
4. Preparing legal documents: Opening a commercial register requires submitting a set of documents such as the company’s articles of association, bylaws, and copies of the partners’ and investors’ passports. These documents must be notarized and certified by the relevant authorities.
5. Obtaining initial approvals: After submitting the documents, initial approvals must be obtained from the Department of Economic Development and other relevant government agencies, especially if the business activity requires additional approvals.
6. Choosing a Business Location: A business location must be identified and a lease contract approved by Dubai Municipality must be obtained. The location must be suitable for the licensed business activity and meet all legal requirements.
7. Obtaining a commercial license: After completing all the previous steps, an application is submitted to obtain a commercial license from the Department of Economic Development. After approval, the commercial license is issued, which authorizes the company to operate legally.
8. Registering the company with the Chamber of Commerce: As part of the final procedures, the company must be registered with the Dubai Chamber of Commerce and Industry.
9. Opening a bank account: After obtaining the trade license, the company must open a bank account in one of the approved banks in Dubai to manage the company’s financial operations.

Cost of opening a commercial register in Dubai

The cost of opening a commercial register in Dubai includes a set of fees and administrative charges that vary based on the type of business activity, the size of the company, and its location. Here is an overview of the elements that affect the cost of opening a commercial register in Dubai:

1. Registration Fees: Includes application and company registration fees with the relevant authorities in Dubai. These fees depend on the type of activity and licensing requirements.
2. Business License Fees: These are fees for issuing a business license that allows the company to legally practice business. They may vary depending on the type of business and the size of the company.
3. Rental Fees: This includes the rental fees for the office or commercial space that the company will rent. These fees depend on the location and size of the property.
4. Government Service Fees: These may include additional fees related to certain government procedures such as obtaining additional approvals, special permits, or legal procedures.
5. Visa and Residence Fees: Fees for issuing visas and residence permits for employees and investors. May vary depending on the number of people and their purposes.
6. Medical Examination Fees: If there are requirements for medical examinations for founders or employees as part of the incorporation process.
7. Legal or accounting consulting fees: If legal or accounting advice is required, there may be additional fees for these services.
8. Renewal fees: Annual renewal fees for the commercial register and license.
9. Document authentication fees: These may include fees for authenticating and documenting some of the documents required to establish the company.

Documents required to register a company in Dubai

Registering a company in Dubai requires submitting a set of basic documents to ensure that all legal and administrative requirements are met. The required documents vary slightly depending on the type of company and its activity, but in general, the basic documents include the following:

• Company Registration Application: The registration application form that must be filled out and submitted to the relevant authorities in Dubai.
• Passport: Copy of the passport of the founders, directors and shareholders. The passport must be valid.
• Personal Photographs: Recent personal photographs of the founding members and directors, as required by the authorities.
• Articles of Association: The articles of association or partnership agreement, which sets out the details of the establishment of the company, the rights and obligations of the partners or shareholders.
• Naming Certificate: A certificate proving the choice of a company name that complies with the laws and regulations in force in Dubai.
• Business Plan: A detailed business plan that outlines the type of business, goals, marketing strategies, and market analysis.
• Proof of residential address: Documents proving the residential address of the founders and directors, such as a lease or title deed.
• Special Permits and Approvals: Additional permits may be required depending on the type of business, such as health or environmental permits.
• Power of Attorney: A power of attorney for persons authorized to sign on behalf of the company, if there is more than one person in charge.
• Proof of Financial Investment: Evidence of financial investment, such as bank account statements or documents proving funds deposited to establish the company.
• Lease Agreement: The lease agreement for the office or place that the company will rent, which includes details of the location and area.
• Document authentication: Authentication and certification of some documents such as articles of association and passports if required.
• Proof of business activity: Documents that support the business activity the company intends to engage in, such as license certificates from relevant authorities.
• Insurance: Some activities may require the provision of business-related insurance documents.
• Proof of identity: Documents confirming the personal identity of the founders and directors, such as a national identity card or passport.

In conclusion, opening a commercial register in Dubai is an essential step for those wishing to start a business in one of the most dynamic markets in the world. Dubai is not just a city, but a global economic hub that attracts investors and businessmen from all over the world thanks to its attractive investment environment and advanced infrastructure. Opening a commercial register in Dubai is not only the beginning of a business journey, but it is a passport to a wide network of business opportunities.

In this article, we have reviewed the importance of opening a commercial register and the procedures required to achieve this. From choosing the right business activity and determining the legal structure of the company, to submitting the required documents and dealing with government agencies. Each of these steps represents an essential part of establishing a legal business entity that can operate and grow in the thriving Dubai market.

Dubai offers a wide range of options for investors, including free zones that offer multiple benefits such as full foreign ownership and tax exemption. This variety of options allows entrepreneurs to choose the structure that best suits their needs and goals.

Continuous government support and policies geared towards promoting foreign investment also play a major role in making the process of opening a commercial register smoother. With numerous consulting services and offices offering support at every stage of establishment, new investors can easily overcome legal and administrative challenges.

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