The industrial transformation is leading to fast growth in the commercial sector in Dubai. The business culture in the city has transformed completely because of the steps taken by the government to attract entrepreneurs from all over the world. With the rise in public-private partnerships and government initiatives, civil companies in Dubai are becoming popular. The role of these companies in diversifying the economy is significant, providing local and international investors with great opportunities. Since Dubai is considered a strategic location to start any kind of business, starting a civil company in Dubai can become another opportunity.
This blog will guide you on how you can start a civil company in Dubai and provide you with all the informative things you need to know about the civil company business in Dubai.
What is a Civil Company in Dubai ?
A civil company is a type of business where various services are offered by two or more individuals in the fields where they have expertise. These companies can cover various services including accounting, legal, or medical services. Partners of different nationalities can set up a civil company in Dubai. However, if there is not even one partner from a GCC country, they need to get help from a local service agent to form their company. The local service agent (LSA) provides assistance in dealing with all the processes that are connected with the Department of Economic Development and the Ministry of External Affairs.
Steps to Set Up a Civil Company in Dubai
The main steps that are important to follow to start a civil company in Dubai Include:
- Register Trade Name
Choosing a trade name that aligns with the services you provide is important because it plays an important role in building your brand. To get approval for your trade name, applying for the Department of Economic Development (DED) is important.
- Hire a Local Agent
To make sure your company works under the rules and regulations set up by the government, sponsoring a local agent is important. This step leads to a smooth and hassle-free incorporation of your civil company in Dubai.
- Choose a Location
Learn about business locations in Dubai and compare what location will be most beneficial for your business. For example, in Dubai, businesses need to choose a location to operate in free zone areas or mainland areas. However, both these areas have their own advantages and disadvantages, so choosing the most suitable location is crucial so your business operations don’t face any limitations in the future.
- Initial Approvals for Relevant Authorities
Approvals from the relevant authorities mean, you get the confirmation to operate in Dubai. To get initial approvals, you need to attach some documents including:
- Trade name certificate
- Passport copies of business partners
- Local Service Agent (LSA) agreement
- Memorandum of Association (MoA)
- Service agent agreement to appoint a local agent
Based on your business activities, you might also need some extra approvals. So you need to confirm whether you want additional approvals or not.Â
- Get Your License
Getting a license for your business is the most important step of civil company formation in Dubai. The business license is a permit that proves your eligibility to run the business in Dubai. Follow all the rules set up by DED and pay the visa application fee. You will be provided with your license after it gets approved.
The benefits of Civil Company Incorporation in Dubai
Starting a civil company in Dubai can be very beneficial and the top benefits include:
- Simple Formation Process
Civil company incorporation is not a complicated process. Instead, it is a simple and hassle-free process. You can get over with the process in a very short time, sometimes just 90 minutes approximately.
- Multiple Visa Applications
If you start a civil company in Dubai, you can apply for multiple visas, making it easier for you to get the necessary visas to live or work in a country.
- Low Cost
Applying for a professional license usually costs around AED 17,000. However, when starting a new civil company, you don’t need to provide any upfront share capital. This way civil business partners can benefit from the overall reduced cost while setting up their business.
- Multiple Shareholders
Civil companies in Dubai can have multiple shareholders. The number of maximum shareholders can be 50.
- Work With a Local Service Agent
For starting an LLC Company in Dubai, you’ll need a local partner who will hold 51% shares while you will hold 40% shares. However, hiring a local service agent in civil companies is different. But having a civil company means you can hold 100% ownership of your business but you’ll need to appoint UAE nationals as legal service agents.
Things to Consider Before Setting Up a Civil Company in Dubai
To form civil companies in Dubai, there are some important things that need to be considered.
- You need to hire a local service agent and sign a contract with them. It is an important factor in starting a civil company in Dubai.
- At least two partners are required to start a civil company, and you can have up to fifty.
- If the company faces debts and obligations in the future all partners will be responsible for it.
- Most civil company activities can be fully owned by foreigners. However, if your company is in engineering, the local agent must own 51% of the company.
- By following the rules set by the Department of Economic Development (DED) you can also change your company’s setup.
- You can open multiple branches of your civil company in Dubai. Each branch can do one or more of the activities listed under the main company name.
- The name of your company should clearly reflect the activities your business is engaged in.
Conclusion
However, setting up a civil company in Dubai is a simple process, seeking assistance from Start Any Business can make this process even more easy for you. They are the best Dubai company setup consultations they can provide you guidance regarding civil company formation.
Also Read: A Comprehensive Guide to Trademark Registration in UAE
