Opening a commercial register in the UAE is considered an essential and vital step for any investor who wants to establish a business in one of the fastest growing economies in the world. The UAE, thanks to its dynamic economic environment and advanced infrastructure, attracts companies from various sectors to take advantage of the many opportunities it offers.
The process of opening a commercial register in the UAE is characterized by flexibility and efficiency, supported by government policies that encourage foreign investment and business development. This process includes several steps and procedures aimed at regulating business activity and ensuring compliance with local laws.
Among the most prominent advantages offered by opening a commercial register in the Emirates is the ability to benefit from world-class infrastructure, the strategic geographical location that connects the eastern and western markets, as well as the attractive tax environment with the presence of many free zones that offer numerous economic incentives.
The UAE is considered an ideal environment for business thanks to its cultural and social diversity, the availability of skilled workers, and the advanced legal system that protects the rights of investors and ensures transparency and justice. Thanks to the facilities provided in multiple fields such as trade, tourism, financial services, and technology, companies can achieve sustainable growth and global expansion from the UAE.
Opening a commercial register in the Emirates
Advantages of opening a commercial register in the Emirates
Opening a commercial register in the UAE carries many advantages that make it an attractive destination for investors and entrepreneurs from all over the world. Here are some of the most prominent features that make the UAE an ideal place to establish a business:
1. A stable and prosperous economic environment:
The UAE has a stable and diversified economy based on multiple sectors such as oil and gas, trade, tourism, real estate, and financial services. This economic diversification contributes to reducing risks and provides broad opportunities for growth.
2. Strategic geographical location:
The UAE is located in a strategic geographical location linking the East and the West, making it an important commercial center for international trade. World class ports and modern airports in Dubai and Abu Dhabi provide easy access to global markets.
3. Advanced infrastructure:
The UAE is characterized by a world-class infrastructure that includes modern road networks, advanced ports, international airports, and advanced communications networks. This infrastructure facilitates business operations and makes the UAE an ideal place to establish a business.
4. Tax-free free zones:
There are many free zones in the Emirates that provide economic incentives to investors such as full tax exemption for companies and individuals, full ownership by foreigners (100% foreign ownership), and easy transfer of profits and capital.
5. Advanced legal and legislative environment:
The UAE has an advanced legal and legislative system that provides strong protection for investors’ rights. This legal environment includes advanced laws to protect intellectual property, contracts, and businesses, enhancing trust and transparency in the market.
6. Ease of establishing businesses:
The UAE offers simplified and quick procedures for establishing companies and opening the commercial register. The government provides many electronic services that facilitate the process of registering and obtaining the necessary licenses quickly and efficiently.
7. Skilled and diverse workforce:
The UAE attracts a skilled and diverse workforce from all over the world, providing companies with a wide range of talent and competencies. This diversity enhances innovation and creativity in the work environment.
Areas of opening a commercial register in the Emirates
Areas of opening a commercial register in the Emirates
Opening a commercial register in Dubai can be a first step towards entering a wide range of the country’s thriving and diverse economic fields. The UAE provides an ideal environment for establishing businesses in many sectors, supported by modern infrastructure and encouraging economic policies. Here are some of the main areas in which investors can open a commercial register in the UAE:
1. Trade and distribution:
The trade and distribution sector is considered one of the largest economic sectors in the Emirates. Investors can open companies to trade consumer goods, industrial products, clothing, electronic appliances, and foodstuffs. Dubai, for example, is an important international trade center linking eastern and western markets.
2. Financial and banking services:
The UAE is a regional and international financial center thanks to the presence of many international banks and financial companies. Investors can open financial advisory firms, insurance companies, asset management services, or financial technology (fintech) companies.
3. Technology and innovation:
With the trend towards a knowledge economy, the UAE is emerging as one of the pioneers in the technology and innovation sector. Investors can open companies in the areas of software development, technology solutions, e-commerce, artificial intelligence, and biotechnology.
4. Tourism and Hospitality:
The UAE is considered a global tourist destination, which opens the way for many opportunities in the tourism and hospitality sector. Investors can open hotels, resorts, restaurants, tour operators, and travel offices.
5. Real estate and construction: The
real estate and construction sector is one of the vital sectors in the Emirates, as the country is witnessing an ongoing urban renaissance. Investors can open real estate development companies, contracting companies, or engineering and architectural consulting offices.
6. Education and training:
With the increasing demand for higher education and educational quality, investors can open private schools, vocational training institutes, and specialized educational centers. The UAE attracts many international universities and educational institutions, which makes this sector very attractive.
7. Healthcare: The healthcare sector in the UAE is witnessing rapid growth, which provides many opportunities for investors. Hospitals, specialized clinics, medical centers, and companies supplying medical equipment and medicines can be opened.
Types of commercial records in the Emirates
The UAE offers many types of commercial registrations to meet the needs of different companies and commercial activities. These records vary depending on the type of company, legal structure, and activities it undertakes. Here’s a look at the main types of commercial registrations in the UAE:
| Type of commercial registration | the description |
|---|---|
| Limited Liability Company (LLC) | A company in which the partners are liable only for their shares in the capital. It can include one or more partners up to 50 partners. |
| Individual companies | A company owned and managed by one person who bears full responsibility for all financial and legal obligations. |
| General partnership | A partnership in which ownership and management are shared between two or more partners, and where all partners are personally and fully responsible for the obligations of the company. |
| Limited partnership | A partnership that includes two types of partners: joint partners who manage the company and bear full responsibility, and limited partners who contribute capital without participating in management and whose responsibility is limited to their shares. |
| Public Joint Stock Company (PJSC) | A company whose capital is divided into shares tradable on financial markets, requires a minimum number of shareholders and requires a public subscription for a portion of the shares. |
| Private Joint Stock Company (PrJSC) | It is similar to a publicly traded company, but its shares are not traded on the financial markets. Shares can be traded privately among shareholders. |
| Branches of foreign companies | Foreign companies can open branches in the Emirates, which are part of the parent company and operate in the same commercial activities, and need a local service agent. |
| Commercial representation offices | Representative offices of foreign companies, whose activities are limited to marketing and commercial representation of the parent company without engaging in direct commercial activities. |
| Free Zone Companies | Companies enjoying full foreign ownership and tax exemptions, located in free zones such as Jebel Ali Free Zone, Dubai South, and Ras Al Khaimah Economic Zone. |
| Civil companies | They are used by professionals such as doctors, lawyers and engineers to provide their professional services, where the partners’ liability is generally unlimited. |
Steps to open a commercial register in the Emirates
Opening a commercial register in Dubai is an essential step to establishing a legal business in one of the fastest growing economies in the world. This process requires specific steps to be followed to ensure compliance with local laws and regulations. Here are the steps to open a commercial register in the UAE:
1. Determine the type of business activity
The first step is to determine the type of business activity you want to practice. There are more than 2,000 commercial activities registered with the Department of Economic Development in the Emirates, and the activity that suits the nature of the planned business must be chosen.
2. Choosing the legal form of the company
You must choose the appropriate legal form for your company, such as:
- Limited Liability Company (LLC)
- Public Joint Stock Company (PJSC)
- Private Joint Stock Company (PrJSC)
- Branch of a foreign company
- A company in a free zone
3. Choosing a trade name:
An appropriate trade name must be chosen that adheres to local conditions and laws, which include:
- To reflect the nature of business activity
- It does not contain prohibited or inappropriate words
- It must be unique and not used by another company
4. Obtaining initial approvals
Obtaining initial approvals is a crucial step in the process of opening a commercial register in the UAE. This step includes submitting a request to the Department of Economic Development or the competent authority in the chosen free zone, to obtain the initial approvals necessary to practice the proposed commercial activity.
5. Prepare the Articles of Incorporation and Partners Agreement
If you are forming an LLC or any other type of company that requires an Articles of Incorporation, you must prepare and legally document the Articles of Incorporation and Partners Agreement. All partners must sign these documents in front of a notary.
6. Choosing a location for the company:
You must select a location for the company and obtain a certified lease from the local authorities. The location must be suitable for the specific business activity.
7. Submitting an application for a commercial license.
An application for a commercial license is submitted with all required documents, including initial approvals, the lease contract, the articles of incorporation, and the partners’ agreement. The application is submitted to the Department of Economic Development or the competent authority in the selected free zone.
Our company’s role in opening a commercial register in the Emirates
Opening a commercial register in the UAE is an important strategic step for any investor seeking to benefit from the broad opportunities offered by the dynamic economic environment in the country. In this context, cooperation with a specialized consulting company such as Itqan plays a crucial role in facilitating and accelerating the company establishment process and ensuring compliance with legal and administrative standards.
Itqan provides a comprehensive range of services that include legal advice and assistance in choosing the best legal structure for the company, whether it is a limited liability company, an individual company, or others. The company also provides assistance in preparing and submitting the necessary documents for registration, including articles of incorporation and partner agreements, and provides advice on the approvals required from various government agencies.
In addition, Itqan provides continuous support throughout the administrative procedures process, ensuring a smooth flow of the process from submitting applications to obtaining the necessary licenses and licences. This contributes to reducing the time and effort required from the investor, and allows him to focus more on the growth and development of his business in the UAE market.
In short, opening a commercial register in the Emirates in cooperation with Itqan is not just a legal procedure, but rather a strategic investment that ensures investors comply with legal standards and obtain the necessary support to successfully achieve their business goals in this prosperous and developed economic environment.
Frequently asked questions about opening a commercial register in the Emirates
What is the cost of opening a commercial register in the UAE?
The cost of opening a commercial register varies based on several factors such as the type of business activity, the location of the company, and government fees. Costs can range from a few thousand to tens of thousands of dirhams. It is necessary to contact the relevant authorities or a consulting company to obtain accurate estimates.
Can foreigners open a company in the UAE?
Yes, foreigners can open a company in the UAE. There are multiple options such as free zones that allow full foreign ownership, and limited liability companies that can include local and foreign partners.
What are free zones and what are their benefits?
Free zones are special economic zones that allow full foreign ownership and offer tax exemptions and other incentives such as easy repatriation of profits and no currency restrictions. Some of the popular free zones include Jebel Ali Free Zone (JAFZA), Dubai South Zone, and Ras Al Khaimah Economic Zone (RAKEZ).
How long does it take to open a commercial register in the UAE?
Opening a commercial register in the UAE can take from several days to several weeks, depending on the type of company and the procedures required. Working with a consulting firm can help speed up this process.
Does opening a commercial register require a local partner?
In some types of companies such as limited liability companies (LLC), the law requires a local partner to own a certain percentage of the capital. However, in free zones ownership can be entirely foreign without the need for a local partner.
