Small Business 101: Legal Requirements in Setting up a Business in UAE
As a place to do business, and as a center of the region and beyond, the United Arab Emirates (UAE) continues to attract more businessmen from around the world. If you are planning for a business setup in Dubai or any part of the UAE, there are some procedures and legal documentation needed. The UAE is strict when it comes to company/business registration, especially regarding legal requirements. Fortunately, there is now an easier process for a business setup in Dubai. A PRO team can save you the stress of licensing, registration, up to the setup process. Austria Business Center is trusted when it comes to providing PRO services. Its professional staff ensures that your business is fully legalized, saving you from too much stress and instead let’s you focus on growing your business.
1. Identify Legal Form and Activity
The primary step in applying for a business license is determining the type of activity / activities to be practiced in the type of business you are planning to start. In addition to that, the exact nature of the business has to be determined; as an establishment, a branch of a foreign company or a limited liability company.
Also, the rules, conditions, requirements and fees of starting a business in UAE vary based on the type and nature of activity.
After identifying the activity and legal status, a unique trade name must be chosen for the business in order to differentiate it from other entities. Keep in mind that the title of the trade name must reflect the nature of the activity and its legal status.
In general, the trade name registration is subject to the following conditions:
• Trade name should not have been previously used or currently registered in the same business industry.
• It should be well-matched with the required type of activity and legal status.
• It must not violate any public law and order.
• It must not be the same to any local or international trade name registered with the Ministry of Economy.
• It must not be misleading to the consumer/clients.
• The Department of Economic Development (DED) has the right to cancel a trade name if it finds out that the name is the same to an existing trade name or did not meet the terms and conditions set by the department.
3. Getting Approval
After registering a trade name and obtaining a certificate, a preliminary approval from the DED is needed in order to enable procurement of all other approvals with ease and speed. Businessmen must keep in mind that the preliminary approval is only valid for 3 months from the date of issuance. If it expires, business owners must obtain a new certificate before continuing to the next step.
After acquiring all necessary approvals, collecting the business license is the next. The required documents in obtaining a business license depend on the economic and legal status of the business. Take note that for foreign documents, it should be translated into Arabic by a legal translator and attested by the ministry of Justice.
A business setup in Dubai and other parts of the UAE is not easy; one has to go through a long process in completing all the legal requirements. Luckily, there are business services in Dubai and other places in the UAE to make the process much easier.
Aside from being acknowledged in providing flexible office space rentals, Austria Business Center is also well-known in offering business setup services in Dubai including business licensing, sponsoring, partner outsourcing services, processing all the legal paperwork, handling and assisting in free-zone and non-free zone licenses. With years of experience and strong relationships with the relevant government authorities, Austria Business Center can have your business ready to operate very quickly.