One way of establishing a business in Dubai is by means of a Limited Liability Company (LLC). An LLC is the most common business form in UAE. It can be established by a minimum of two shareholders and a maximum of fifty shareholders, whose liability is solely to their own business capital. Under the Companies Act of the United Kingdom, an LLC is created by registering the company with the Companies House. However, in Dubai, an LLC company formation is not required. In this article, we will discuss some of the basic requirements for an LLC company formation in Dubai.
Forming an LLC requires two documents. These are a Memorandum and a Public Notary. The Memorandum should be submitted to the Office of the Secretary of State together with the application for registration of the LLC.
The main purpose of submitting the Memorandum is to make known to the officials the name of the company, its objective, objectives, and any relevant activities it will carry out. The information submitted should be true and complete. Before the registration of the company, the document is reviewed by an attorney. If it is found that the document is incorrect or incomplete, the company formation is denied. On the other hand, if the attorney finds the contents true and complete, the registration is approved.
The next step in the process is to apply for the business permits. These are referred to as the initial approvals. Two types of initial approval certificates are available in Dubai: business visas and visitor authorizations. Business visas are required for those intending to start a limited liability company and for those wishing to change their permanent residence. Visitor authorizations are required for people who enter the country for business purposes.
After obtaining the initial approvals, the company registration takes place in Dubai. The company must submit its Articles of Association along with the Memorandum and the register deed, all of which are required to be filed with the Dubai Office of Economic and Business Affairs. The company can then seek permission to open an office in Dubai. The location of the office is decided after consulting the regulations of the Dubai Authority for Foreign Trade. Once all the necessary documents have been received, the office is opened and business operations can begin.
The next step in the process is to choose a trade name. If the name is not available in Dubai, the applicant must apply for a Trademark. A trademark applicant is required to follow the same procedure as for a company registration, including submission of the Memorandum and the application form. If all the required documents are received, the trademark is issued and the new trade name is registered. If necessary, the trademark must be transferred to the applicant’s name, upon completion of the process.
Another important requirement is that the company must submit the necessary documents required for the processing of its company formation. These include the application form, a printed registration document and a proof of identification. An employee visa may also be required for non-business persons who wish to start working in Dubai. To get an employee visa, applicants must submit their passport, application form, company registration certificate and one copy of the employer’s visa. There are many visa sponsorships companies in Dubai that can help facilitate the processing of these applications.
The final procedures for company formation in Dubai are quite lengthy and intricate, but they are nonetheless worth the effort. The Dubai economy is very friendly to foreign investments and the government supports this by offering a plethora of assistance. Setting up a business in Dubai has become easier by taking advantage of the various forms of support that are extended by the government.
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