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Dubai has become one of the world’s most sought-after business destinations for investors. The city offers a supportive business environment, tax benefits, and excellent infrastructure. However, setting up a business in Dubai requires certain legal documentation, which can be confusing and time-consuming. In this article, we will explore the essential documents you need before you open a company in Dubai.
12 Essential Documents Before Setting Up a Business in Dubai
When setting up a business in Dubai, it is important to ensure that all the necessary documentation is in order. Here are 12 essential documents to prepare:
1. Trade License
A Dubai trade license is a legal document that allows a business to operate in Dubai. A trade license is issued by the Department of Economic Development (DED). The trade license contains information such as the type of business activity, the business name, and the legal structure of the company. Without a trade license, it is illegal to conduct business activities in Dubai.
2. Memorandum of Association (MOA)
A Memorandum of Association (MOA) is a legal document that outlines the rules and regulations governing a company’s operations. The MOA specifies the company’s objectives, share capital, and the number of shareholders. It also outlines the roles and responsibilities of the shareholders, directors, and managers. The MOA is a crucial document for company formation in UAE, and it must be notarized by a legal practitioner in the UAE.
3. Articles of Association (AOA)
The Articles of Association (AOA) is a legal document that outlines the company’s internal rules and regulations. The AOA specifies the company’s management structure, the process of appointment and removal of directors, shareholders’ rights and obligations, and the distribution of profits. The AOA is a binding document that must be followed by all the company’s stakeholders.
4. Shareholders Agreement
A shareholders’ agreement is a legal document that outlines the rights and obligations of the shareholders in a company. The agreement specifies how the shares will be allocated, the transfer of shares, the appointment of directors, and the distribution of dividends. A shareholders’ agreement is not a mandatory document in Dubai, but it is recommended for companies with multiple shareholders to avoid future disputes.
5. Commercial Lease Agreement
A commercial lease agreement is a legal document that outlines the terms and conditions of a commercial property lease. The agreement specifies the rent, the duration of the lease, and the responsibilities of the landlord and tenant. In Dubai, it is mandatory to have a commercial lease agreement to register a business with the DED.
6. Memorandum of Understanding (MOU)
A Memorandum of Understanding (MOU) is a legal document that outlines the intent of two or more parties to cooperate on a specific project or venture. The MOU specifies the terms and conditions of the collaboration, the responsibilities of each party, and the duration of the collaboration. An MOU is not a mandatory document in Dubai, but it is recommended for companies looking to collaborate with other businesses.
7. Power of Attorney (POA)
A Power of Attorney (POA) is a legal document that grants a person or an organization the authority to act on behalf of another person or organization. In Dubai, a POA is required when registering a business with the DED. The POA authorizes the authorized signatory to carry out all legal and financial transactions on behalf of the company.
8. Bank Statement
A bank statement is a document issued by a bank that shows the financial transactions of a particular account over a specified period. A bank statement is required when registering a business with the DED. The statement should show that the company has the necessary funds to start and operate the business.
9. Passport and Visa
A passport is a legal document issued by a government that certifies the holder’s identity and nationality. A visa is a legal document issued by a government that grants the holder permission to enter a country for a specific period and also can be be verified through UAE visa check by Passport Number. In Dubai, both a passport and a visa are essential documents when setting up a business. The passport serves as the identification document for the business owner, and the visa grants the business owner permission to live and work in Dubai. There are different types of visas available in Dubai, such as the investor visa, which is granted to business owners and their families.
10. Emirates ID
An Emirates ID is a mandatory identification document for residents and citizens of the United Arab Emirates (UAE). The Emirates ID contains personal information such as name, date of birth, and photograph. In Dubai, an Emirates ID is required when registering a business with the DED which is also can be verified through ICP Smart Service.
11. Tax Registration Certificate
A Tax Registration Certificate is a legal document that certifies that a business is registered with the Federal Tax Authority (FTA) in the UAE. The certificate is issued by the FTA after the business has been registered for Value Added Tax (VAT). In Dubai, businesses with an annual turnover of AED 375,000 or more are required to register for VAT.
12. Commercial Registration Certificate
A Commercial Registration Certificate is a legal document issued by the DED that certifies that a business is registered to operate in Dubai. The certificate contains information such as the business name, the type of activity, and the date of registration. The Commercial Registration Certificate is required when opening a bank account or applying for visas for employees.
Right Documents For Business Setup in Dubai
Setting up a business in Dubai requires various legal documents that must be in order before registering with the DED. The above-mentioned documents are essential for any business looking to operate in Dubai and should be obtained on time to avoid any delays or legal complications. It is essential to seek the guidance of a legal practitioner or a reputed provider of business consultancy services in Dubai like A&A Associates when setting up a business in Dubai to ensure that all the necessary documents are in order and to comply with local laws and regulations.
