One Central – Offices No. 4 Dubai | Office: +971 45686046
ITQAN is a company that specializes in business setup and business growth

Open a commercial register in Dubai

٢٠ ديسمبر Open a commercial register in Dubai

Opening a commercial register in Dubai is an essential step for anyone seeking to start a business or develop their activity in this global city that has become a major destination for entrepreneurs and investors. Thanks to its diversified economy and advanced infrastructure, Dubai provides a distinctive environment that supports business growth and provides exceptional opportunities for success and expansion. However, opening a commercial register in Dubai requires a clear understanding of the registration procedures and conditions, as the commercial register is an official document that gives the company legal status and allows it to practice its activities with complete transparency and reliability.

Opening a commercial register goes through several main steps, starting with determining the type of commercial activity that the company wants to practice, whether it is trade, services, industries, or other, as this step helps determine the requirements for the commercial license and its costs. The process also includes choosing a trade name that is in line with the standards of the Department of Economic Development in Dubai and appropriately reflects the nature of the work. After that, comes the role of submitting the necessary documents to obtain initial approval, followed by signing the incorporation agreements and issuing the final commercial license.

Establishing a commercial register in Dubai has many advantages that attract investors, as Dubai provides an encouraging and flexible tax environment, in addition to legal facilities that support and regulate business protection. Thanks to these factors, obtaining a commercial register in Dubai has become a necessary step for anyone seeking to achieve sustainability and success in the local and international market.

In this article, we will review the steps for opening a commercial register in Dubai, the necessary requirements, and the most important benefits that business owners can reap from this process, allowing investors to understand all aspects of this important step with complete clarity.

\"\"

Advantages of opening a commercial register in Dubai

Opening a commercial register in Dubai provides many advantages that make it an ideal destination for investors and entrepreneurs. Here are some of the most prominent of these advantages:

Easy access to global markets: Thanks to its strategic location between Asia, Europe, and Africa, Dubai represents an ideal gateway for commercial expansion and access to diverse global markets.

Attractive tax exemptions: Dubai provides a distinctive tax environment that includes exemptions from taxes on personal profits and income, in addition to reducing taxes on companies in several sectors.
Smooth and fast business establishment procedures: Dubai offers flexible and fast business establishment procedures, enabling investors to open their companies and start their business activities quickly.
Advanced infrastructure: Dubai has a modern infrastructure that includes transportation networks, logistics facilities, and international ports, which enhances the efficiency and ease of business operations.
Full foreign ownership in free zones: Dubai allows foreigners to own their companies 100% in free zones, giving investors complete freedom to manage their businesses.
Protection of intellectual property rights: Dubai pays special attention to protecting intellectual property rights, which enhances investor confidence and encourages them to innovate.
Diversity of economic activities: Investors can choose from a wide range of commercial, industrial, and service activities, which contributes to diversifying opportunities for growth and expansion.
Flexible financial transfers: Companies can transfer profits and capital with complete ease, without financial restrictions, which contributes to the flexibility of financial operations.
Supportive business environment: The Dubai government provides significant support to new businesses by providing various incentive programs and incentives, in addition to support from government agencies such as the Department of Economic Development.
Opportunities for international cooperation and partnerships: Thanks to the international nature of Dubai, companies have opportunities to cooperate and partner with global companies, which enhances the possibilities of expansion and exchange of expertise.

Steps to open a commercial register in Dubai

To open a commercial register in Dubai, certain procedures must be followed. Here are the steps to open a commercial register in Dubai:

Determine the business activity: Determine the business activity you wish to practice and ensure that it complies with the UAE regulations.
Choose the legal form of the company: Decide whether you want to establish a sole proprietorship, partnership, or joint stock company according to your business needs.
Choose the company name: Choose a unique and appropriate name for your business activity, and ensure that it does not conflict with existing company names.
Obtain a company establishment permit: Obtain a permit from the Dubai Department of Economic Development (DED) or a designated free zone.
Submit the required documents: Documents may be required to establish the company such as a passport, personal photos, proof of address documents, and a business plan.
Sign the necessary contracts: Sign the necessary contracts to establish the company and specify the terms and conditions.
Pay the fees: Pay the fees required to establish and register the company.
Open a bank account for the company: Open a bank account in the name of the company and deposit the capital.
Establish a head office: Establish the head office of the company and ensure that all legal requirements are met.
Register with the tax department: Register the company with the local tax department to comply with tax legislation.

Documents required to open a commercial register in Dubai

To open a commercial register in Dubai, there are a set of documents that must be submitted to the competent authorities to ensure the successful completion of the procedures. These documents include the following:

Registration application form: Fill out the commercial registration application form correctly and submit it to the relevant authority.
Passport copy: Provide a clear copy of the passport of the owner or partners in the company, and in some cases a copy of the residency page may also be requested.
Personal photos: Recent personal photos of the owner or partners, used for commercial register purposes.
Lease contract or office allocation certificate: A lease contract for the commercial office or a certificate proving the allocation of an office, to ensure the existence of an actual headquarters for the company.
Approval of the competent authorities: Some activities require prior approval from certain authorities, such as obtaining approvals from the Department of Economic Development or bodies specific to the activity.
Memorandum of Association or Partnership Agreement: If the company includes more than one partner, the memorandum of association or partnership agreement must be submitted to determine the rights and obligations of each partner.
Business plan: Provide a summary of the company\’s business plan, especially if the activity requires it, as this summary explains the type of activity and the company\’s objectives.
Proof of payment of fees: A receipt proving payment of the fees required to obtain the commercial register.
Company Director Details: Some activities require detailed information about the company’s responsible director, including his/her experience and contact details.
License to practice a specific activity (if applicable): If the activity requires a specific professional license, such as medical or legal licenses, a copy of it must be provided.

In conclusion, opening a commercial register in Dubai is a pivotal step for any investor wishing to enter the UAE market and launch their business within a dynamic and developing economic environment. The commercial register contributes to providing a legal framework that enables investors to operate their activities in accordance with local laws, preserve their rights, support the growth of their businesses, and enhance the confidence of customers and business partners, opening up broader horizons for growth and innovation.

With the diversity of economic activities and investment fields offered by Dubai, it has become easy to find suitable opportunities for small and large projects alike. The Dubai government’s facilities, such as tax exemptions and advanced infrastructure, make obtaining a commercial register attractive and encouraging for many entrepreneurs, as they can exploit these advantages to achieve their business goals smoothly and efficiently.

However, the success of any project begins with good planning, including understanding the requirements for opening a commercial register, preparing the necessary documents, and choosing the appropriate structure for the company. Commitment to periodic updates and regular renewal of the commercial register is also essential to maintain legitimacy and avoid any legal obstacles that may affect the workflow.

Accordingly, opening a commercial register in Dubai is not only a practical start for the company, but it is the cornerstone of a sustainable and successful commercial project. Thanks to Dubai\’s attractive business environment, investors from all over the world can achieve great success in various sectors. With its strategic location, available resources, and supportive environment, Dubai remains the ideal destination for those seeking to transform their ideas into successful projects that bring them rewarding material and moral returns.

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

What types of business activities can be practiced in Dubai?
Dubai offers a wide range of commercial, industrial, and service activities, which vary according to the needs of investors, in addition to the presence of free activities that can be practiced within the free zones.

Can foreigners own a company 100% in Dubai?
Yes, foreigners can own 100% of their companies in free zones and some specific activities within Dubai, while some other activities require a partnership with an Emirati citizen.

How long does it take to open a commercial register in Dubai?
A commercial register can be opened within a few days if all documents and procedures are met, and it may take longer if special approvals are required.

Can a commercial register be renewed online?
Yes, a commercial register can be renewed electronically via the Dubai e-commerce platform or through authorized service offices.