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Opening a commercial register in Dubai – features and procedures

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٢٢ يناير Opening a commercial register in Dubai – features and procedures

Opening a commercial register in Dubai is an essential step for those wishing to establish their businesses in one of the most prominent business centers in the world. Dubai offers an attractive and distinguished investment environment thanks to its advanced infrastructure and laws that facilitate investors to start and expand their projects. Whether you are planning to launch a small company or a branch of an international company, the process of opening a commercial register requires following specific steps to obtain the necessary licenses and practice commercial activity legally. The commercial register is the official identity of the company, guarantees it legal recognition and gives it the right to practice its commercial activities within the local and international market.

Opening a commercial register in Dubai - features and procedures
Opening a commercial register in Dubai – features and procedures

Procedures for opening a commercial register in Dubai

The procedures for opening a commercial register in Dubai require following clear steps to ensure compliance with local laws and regulations. The procedures include the following:

Determining the type of business activity: The first step is to choose the appropriate business activity from among more than 2,000 available activities. This helps determine the type of commercial license required.

Choosing a trade name: A trade name must be chosen that complies with the standards of the Dubai Department of Economic Development (DED). The name must be unique, non-offensive, and consistent with the type of activity.
Submitting a license application: After determining the activity and trade name, an application is submitted to the Department of Economic Development to obtain the appropriate commercial license. The license can be industrial, commercial, professional, or tourism.
Preparing the articles of association: If the business is a partnership, an articles of association must be prepared that defines the rights and responsibilities of the partners, and it must be certified by a notary public.
Determining the business location: A notarized lease contract for the business location must be submitted with approval from Dubai Municipality.
Obtaining the necessary approvals: Some activities may require approvals from other government agencies. For example, health or educational activities require approvals from the competent authorities.
Paying fees and receiving the license: After completing all requirements and approvals, the fees are paid and the commercial license and commercial register are received, enabling the company to start operating legally.
These procedures ensure that the project complies with local regulations and laws, which helps provide a legal and sustainable business environment.

Advantages of opening a commercial register in Dubai

Opening a commercial register in Dubai offers many advantages to investors and entrepreneurs, thanks to the supportive investment environment and flexible legislation followed by the emirate. Here are the most prominent features:

Advanced investment environment: Dubai is a global hub for business and trade, providing tremendous opportunities for expanding businesses and reaching international markets.
Tax exemptions: One of the most important features is the exemption from personal income taxes and corporate taxes in many sectors, in addition to the absence of income taxes.
Facilities for foreign investors: Foreign investors can own 100% of their companies in many free zones and commercial projects, without the need for a local partner.
Ease of procedures: The process of opening a commercial register in Dubai is easy and fast, thanks to the presence of an advanced electronic system that allows for the completion of procedures in a smooth manner.
Excellent infrastructure: Dubai is characterized by the presence of a world-class infrastructure that includes airports, ports and advanced communications, which facilitates export, import and transportation operations.
Economic and political stability: Dubai provides a stable and safe environment for business, which enhances confidence among investors and encourages them to establish their companies in the emirate.
Access to international markets: Thanks to Dubai’s strategic location between Asia, Europe and Africa, it is an excellent starting point for accessing multiple markets.
Opening a commercial register in Dubai is an excellent opportunity to benefit from these advantages and develop businesses in an environment that supports innovation and economic growth.

Can a commercial register be modified after it is opened?
A commercial register in Dubai can be modified after it is opened, which is flexible and easy for business owners who wish to make changes to their data. This service is one of the important services provided by the Department of Economic Development to meet the needs of companies at various stages of their growth. The modifications that can be made include changing the trade name, changing the business activity, adding or deleting a partner, modifying the company address, or even changing the legal structure of the company.

To make any modification, the company owner must submit an official request to the Department of Economic Development, accompanied by the required documents that vary according to the type of modification. For example, to change the trade name, suggestions for new names must be submitted with the necessary approvals. While modifying partners requires submitting a new articles of association certified by a notary public.

Amendments to the commercial register must be made in accordance with legal procedures and are subject to the approval of the relevant authorities, especially in the case of activities that require additional approvals from competent authorities.

This flexibility in modifying the commercial register is a great advantage for business owners, as it allows them to adapt to market changes and the needs of the company without having to re-establish the business activity again. This enhances the ability of companies to continue and innovate in Dubai’s dynamic business environment.

Documents required to open a commercial register in Dubai

To open a commercial register in Dubai, a set of required documents must be submitted to ensure compliance with local legislation. Documents vary depending on the type of business activity and company, but the basic documents include:

A copy of the passport: for all partners and shareholders in the company. Passports must be valid.
A copy of the Emirates ID: for residents of the UAE.
A personal photo: for investors or partners (in some cases).
A license application form: A commercial license application form is submitted, which contains all information related to the proposed business activity.
A company’s articles of association: If the company is multi-partner, the articles of association must be submitted specifying the rights and responsibilities of the partners, and it must be certified by a notary public.
A certificate of initial approval: This is submitted after obtaining initial approval from the Department of Economic Development to practice the business activity.
A notarized lease contract: A legal lease contract for the company’s headquarters must be provided, certified by Dubai Municipality.
Government approvals: Some activities require additional approvals from other government agencies, such as medical, educational or tourism activities.
No Objection Certificate: If the investor is currently employed by another company in the UAE, he may be required to submit a No Objection Certificate from his current employer.

Providing these documents correctly will help speed up the process of obtaining the commercial registration and license required to practice commercial activity in Dubai.

The importance of the commercial registration for establishing companies in Dubai

The commercial registration is an essential element for establishing a company in Dubai, as it represents the legal identity of any commercial activity and provides companies with the official framework to conduct their business inside and outside the emirate. Its importance lies in the fact that it ensures the recognition of the company by government and legal authorities, allowing it to benefit from the many privileges offered by Dubai, such as legal protection, banking facilities, and commercial contracts. Moreover, the commercial registration is a prerequisite for obtaining the commercial licenses required to practice the activity. Without the registration, companies cannot conduct legal commercial transactions, such as concluding contracts, importing and exporting goods, or even advertising their services in local and international markets.

The commercial registration also contributes to enhancing trust between companies and customers, as it is considered official evidence that the company operates within a legal framework and under the supervision of the competent authorities. This enhances the company’s credibility and contributes to building reliable business relationships with partners and investors. In addition, the commercial register allows companies to benefit from Dubai’s advanced infrastructure that supports commercial growth, such as ports, airports, and free zones. Thanks to this strong infrastructure, companies can expand their business and reach new markets. In general, the commercial register is the cornerstone of establishing companies in Dubai, providing the legal security and commercial credibility necessary for success and growth.

The specific period for opening a commercial register in Dubai

Opening a commercial register in Dubai usually takes some time, as the period can vary depending on the type of activity and the entity concerned. Here is an overview of the required period:

Registration procedures: The commercial register registration process usually takes 1 to 3 working days if the documents are complete.

Required documents: The required documents must be submitted completely and correctly to avoid any delays.

Additional approvals: If the activity requires special approvals (such as health or educational activities), you may need additional time ranging from one to several weeks.
Renewal of the commercial register: The commercial register must be renewed annually, and this can usually be done within 1 to 2 working days if the documents are ready.

In conclusion, opening a commercial register in Dubai is a crucial step for investors and entrepreneurs looking to enter a growing global market that offers endless opportunities. With its attractive investment environment, advanced infrastructure, and fast and flexible procedures, Dubai allows small and large businesses alike to grow and thrive. Whether you are looking to start a new project or expand your business, opening a commercial register in Dubai is the first key to achieving commercial success in one of the most innovative and advanced cities in the world.

Frequently Asked Questions About Opening a Commercial Register in Dubai

What are the types of commercial licenses available in Dubai?
There are several types of commercial licenses, such as: commercial, industrial, professional, and tourism. The type of activity determines the type of license required.

Can foreigners open a commercial register in Dubai?
Yes, foreigners can open a commercial register in Dubai, and they can own 100% of their companies in free zones. In other areas, a local partner may be required.

Does opening a commercial register require a company headquarters?
Yes, opening a commercial register in Dubai requires a physical headquarters for the company. A tenancy contract certified by Dubai Municipality must be submitted as part of the process.