Connect Zone offers product registration in Dubai

product registration in Dubai

Dubai is one of the places that offer the best opportunities to import, distribute, manufacture, and re-export a large number of products. For example, food, cosmetics, hand sanitizers, and many others. This emirate is the center of trade between different markets on an international level, for this reason, the UAE government has tried to make the product registration in Dubai as efficient and easy as possible.

In this article, you will find information about product registration in Dubai, the various products that you can register in this emirate, the benefits that registering these products gives you, and how we can help you with this process.

  1. What is product registration?
  2. How to register a product in Dubai?
  3. Benefits of registering a product
  4. Cosmetic product registration
  5. Food product registration
  6. Health supplement registration
  7. Ministry of Health product registration
  8. How can we help you register your products in the UAE?

1. What is product registration?

Product registration in Dubai is a process carried out by the relevant government authorities to register any manufactured or imported product. Different types of products go through this process. And each of them must be registered before import, promotion, and sale in Dubai. Several authorities, such as the Safety and Health section of Dubai Municipality (DM), the Ministry of Health, and the Food Department, conduct the product registration process.

This process ensures that each product, whether it is a package food product or cosmetic product, has all the necessary information on its label. In this way, it ensures that the customer gets clear information about the products they are going to buy. For cosmetic products, Dubai Municipality is responsible for checking the presence of any substance that may be harmful to humans. The same happens with food products, everything that is not suitable for human consumption cannot be imported into Dubai.

All products registered in this emirate are integrated into a single system. This makes it easy for traders, customers, and the government to get detailed information about all the registered products.

2. How to register a product in Dubai?

2.1 Set up a company

The product registration in Dubai can only be processed through a company in the emirate or in one of the UAE free zone. You must have a valid trade license to be able to operate in the country. Please note that only a local UAE company with the appropriate business activity can register their products with Dubai Municipality.

2.2 Registration of the company with Dubai Municipality

After forming your company in Dubai or in the UAE free zone, the next step is to register it in Dubai Municipality. This requires certain information, for example, the trade license of the company, contact details, email address, etc.

2.3 Submission of the necessary documents

The third step in the product registration in Dubai is the submission of the required documents to apply for the label assessment of the products as per the product category. In addition to this, you must provide a product sample to the CPSS.

When the assessment of the label is done, then the Dubai Municipality will deliver a label assessment report which comprises a product description.

3. Benefits of registering a product

Some of the benefits that you can acquire when registering your products are the following:

  • The product can be imported, sold, and promoted in the Dubai Local Market
  • Except for a few unethical and harmful products, there is a wide variety of products that can be registered in Dubai.
  • Registering your product in Dubai will make it eligible not only in Dubai and the UAE, but you can also launch your product in the whole GCC area.
  • Hassle-free trade in the UAE and internationally.

Note that the product registration in Dubai is valid for 5 years for each registered product.

4. Cosmetic product registration

One of the most important items to import in Dubai is cosmetics. In order to export and import these items, the government of the UAE needs them to register according to international standards:

  • This registration can be only done through local companies that hold a valid trade license in Dubai Mainland or the UAE Free Zones.
  • These products must meet the requirements set by the health and safety departments.
  • Cosmetic product registration is compulsory. In other words, all companies that wish to sell, import or distribute cosmetic products must register those products.

4.1 Important aspects to keep in mind about cosmetic product registration

  • The main functions of cosmetics are to protect, cleanse, change appearances, perfume, correct body odors and keep it in good condition.
  • Those products included in “cosmetics” are those that are intended for the oral cavity, teeth, and external parts (lips, nails, epidermis, hair, etc.) of the body.
  • You cannot sell, manufacture, import, and place in the market any cosmetic before registering it with the relevant authorities and licensing its brand.
  • All the ingredients included in the cosmetic must be safe for the human body. Any prohibited ingredient or unsafe amount of any restrictive item will make it unsuitable for registration in Dubai.
  • There are different authorities for the registration process depending on the cosmetic product. For this reason, the authorities may require specific documents for the licensing and registration process.
  • In the case of importing any cosmetic product in Dubai, these documents must be certified by the UAE Embassy.

4.2 Why is cosmetic product registration compulsory?

The cosmetic products industry is one of the top industries in the world. The UAE has a great market and the cosmetic business is growing every day. The main reason why product registration in Dubai is mandatory is to provide safety to residents of this emirate.

Cosmetics are those constitutes that change the appearance of the face or the texture of the body. Both natural and artificial items are used for the preparation of cosmetic products. This is why the government of the United Arab Emirates is very keen to make sure the quality of such products through comprehensive and modern assessment.

4.3 Benefits of cosmetic product registration

The benefits of registering your cosmetic products are the following:

  • Tax-free or very low tax business opportunities.
  • Access to profitable markets of UAE, Dubai, and other countries of the Gulf.
  • Label protection and brand protection.
  • Right to manufacture, import, and re-export cosmetic products.
  • Complete assistance from the government of Dubai.

4.4 List of cosmetic products

Some of the accepted cosmetics in Dubai are the following:

  • Lotions, gels, creams, and also oils for the skin.
  • After-bath powders, make-up powders, hygienic powders, etc.
  • Shower and bath preparations (foams, salt, oils, gels, etc.)
  • Face mask (with the exception of peeling products)
  • Shaving products (lotions, foams, and also creams)
  • Skin-whitening products
  • Tanning and sunbathing products.
  • Hairdressing products (lotion, brilliantine, and also lacquers)
  • Deodorant soaps, toilet soaps, etc.

5. Food product registration

Dubai is the perfect place for the manufacture and import of food products. To ensure this the government has created a complete procedure for food product registration in Dubai. This process is, generally, quite strict because one of the priorities is to allow only the best food products in Dubai, free from all types of harmful effects.

5.1 Relevant factors about food product registration

  • The first requirement is to register the food product with Dubai Municipality. This entity is responsible for registering all food products on its food import & re-export system (FIRS)
  • You will need to submit certain documents to Dubai Municipality. For example, email, trade license, location in Dubai, fax/telephone number, and name and number of the company’s representative.
  • All products must include the following: Product name, brand name, net weight, expiration/manufacture date. Using incorrect tags or posting false descriptions can result in a fine from AED 10,000 to AED 100,000.
  • In the case of imported products, you must present the following additional documentation: An original health certificate from the country of origin, a packing list, and also a Halal certificate from an approved Islamic organization.
  • For food product label approval in Dubai Municipality, the company must mention the country of origin, shelf life, and also storage condition on the label.
  • The food officer will take a sample of your product, which will be lab-tested in the food department in Jebel Ali for standard checking.
  • You cannot apply for prohibited items, for example, alcohol, poppy seed, and others mentioned by authorities.
  • The name and account of any food product must be unique.

6. Health supplement registration

Dubai is one of the most lucrative places for traders and merchants from around the globe. But it is also one of the strictest regarding the quality of various products. This is the case with health supplements.

6.1 Critical aspects of health supplement registration

Some of the most important requirements that you should take into account are supplement requirements the following:

  • Pharmaceutical companies and other types of companies must market and prepare these products.
  • It is necessary to put on their labels that they are food supplements and not actual food.
  • Health supplements include those products that a person takes to provide additional nutrition to the body apart from food. For example, minerals, herbs, vitamins, etc. They, generally come in the form of tablets, capsules, liquids, powder, etc.
  • Any type of misleading information or contrary to scientifically proven claims will result in the ban of such products.
  • The health supplements cannot contain any flavor, color, or ingredient banned by the government of Dubai.

7. Ministry of Health product registration in Dubai

All pharmaceutical companies must register with the respective department of the Ministry of Health and Prevention. Only after that, companies will be able to register medical and pharmaceutical products, devices, and instruments. Note that health supplement registration in Dubai is a different process.

7.1 Requirements from the Ministry of Health

  • You must submit the documentation and the technical requirements together with the application. The documents and requirements will vary depending on the type of device or product.
  • The local representative or manufacturer must submit the application in the related apartment of the Ministry of Health. This application can be in Arabic or English.
  • After approval, the registration will be valid for five years. After that time, you must renew the registration.
  • Approval from the Ministry of Health may take several months.

7.2. Benefits of Ministry of Health product registration

  • After the registration of certain products, companies can manufacture, import, and also re-export devices and medical products to other countries as well.
  • Due to the adoption of international standards, products registered in the Ministry of Health and Prevention are accepted in GCC and other foreign countries without much hassle.
  • The UAE has a vast market with an affluent and health-conscious population, so there is a large scope for the growth of medical products in Dubai.
  • Medical tourism has increased in recent years, especially in Dubai. Thousands of people come to the emirate to take advantage of world-class medical facilities at a much lower price compared to other advanced countries. This increases the scope of the UAE and Dubai markets.

8. How can we help you register your products in the UAE?

Connect Zone is a business setup consultancy and company formation agency with more than twenty years of experience. Helping new and experienced entrepreneurs build the company of their dreams.

With hundreds of happy customers, Connect Zone is the ideal partner to register products for you, we will take care of all the necessary paperwork, and we will be the communication bridge between your company and the corresponding government entities. Also, we can help you with other types of procedures. For example, we can assist you with your visa application process, and the opening of a bank account.

Do you want to learn more about product registration in Dubai? Do not hesitate to contact us at +971 43 316 688. Alternatively, reach us through the email contact@connectzone.ae. One of our representatives will attend to all your concerns.

For those looking for employment, The Talent Point has all the opportunities you need. Sign up on thetalentpoint.com and begin submitting applications. Also, send your resume to contact@thetalentpoint.com as another way to apply. Change your life now!

How to start a business in the UAE?

start a business in the UAE

Starting a company, whether in the United Arab Emirates or anywhere in the world, is an important decision. It involves research, planning, budgeting, and conceptualization, among other things. In the UAE, you will need to comply with the established regulations and acquire the correct business license for your business. For this reason, in the following lines, we will talk about how to start a business in the UAE.

In this article, you will find information about the process of starting a business in the United Arab Emirates, the advantages of choosing this country for your company formation, and also how we can help you start your business successfully.

  1. Who can start a business in the UAE?
  2. What legal structures does the UAE allow?
  3. How to start a business in the UAE?
  4. Benefits of the formation process of a business in the UAE
  5. How can we help you start a business in the UAE?

1. Who can start a business in the UAE?

Starting a business in the United Arab Emirates is quite easy; actually, anyone can do it. This is because the government of the country has offered different incentives to new and experienced entrepreneurs.

The first thing to know is that for most types of companies (apart from the sole proprietorship) you will need an Emirati partner to own 51% ownership of the company (if you decide to set up on the Mainland). After that, you will need to go through the process of registering and licensing your business. Keep in mind that in some cases you will have to meet the minimum capital requirements.

If you decide to establish your company in a free zone of the country, you will be able to enjoy the many advantages that this zone offers. For example, 0% corporate and personal taxes, exemption from export and import taxes and you will also be able to maintain 100% foreign ownership.

2. What legal structures does the UAE allow?

One of the first things to consider when starting a business is the type of company you want to form. As in any country, the United Arab Emirates has several legal corporate structures. Some of the most common are the following:

2.1 Sole proprietorship

The entrepreneur can maintain 100% ownership of this type of company. For this reason, the person can maintain full control over the profits and operations. Although all nationalities can create a sole proprietorship company, only GCC and UAE Nationals can have an industrial or commercial company.

2.2 Civil company

Professionals such as accountants, lawyers, and doctors can start a civil company in the country. For this type of business, an Emirati partner must own 51% of the shares of the company.

2.3 Limited Liability Company (LLC)

In a Limited Liability Company, there must be between two and fifty shareholders. As such, each one is liable only for their percentage of shares. In addition to this, the profits and losses are divided between all the shareholders depending on their holdings.

In this type of company, once again, 51% of shares must be owned by a UAE national. Furthermore, an LLC with more than seven partners must create a board with at least three shareholders.

2.4 Foreign Company Branch

A foreign company can establish a branch in the country. In this situation, the parent company has 100% ownership. However, all goods must be imported through a local trading firm.

2.5 Free Zone Company

Every company created in a free zone must have two to five stakeholders. While there are a lot of advantages of choosing a free zone for your business, you should know that these companies cannot trade directly with the UAE market. Therefore, there are different requirements to create a business there. For example, some legal entities do not require any minimum capital. However, some others require a minimum capital from AED 1,000 to AED 150,000.

2.6 Freelance work

Working under the freelance modality in the UAE is extremely easy. You must register your business in a free zone with an application form, bank reference, CV, and notarized Registry Identification Code Form. You can also apply for a visa.

3. How to start a business in the UAE?

The steps to create a business in the United Arab Emirates successfully are the following:

3.1 Select a business activity

When selecting the business activity for your company, you must take into account the practicality of the chosen activity in relation to the UAE market. Also, before opening a company in the country, make sure you do a thorough research on the profitability and the feasibility of the activity. Then you can decide  when to start a business in the country.

3.2 Select the jurisdiction

The country’s market is divided into different economic zones: Free zone, Mainland, and Offshore. Each jurisdiction has its own regulations and rules about the business setup. They also cater to different business needs. Selecting the jurisdiction of your company will depend on the requirements and the nature of your business activity.

3.3 Finalize the legal form/company structure

Choosing the legal form for your company is one of the most important decisions when starting a business in the UAE. It sets the tone to manage the profits and losses and how you should organize your assets and resources. It is advisable that you decide on the legal form in the initial stages of planning, this will help provide a layout for your company.

You will not be able to apply for a license until you decide on the legal form. Some of the company structures under which you can register your business in the UAE are the following:

  • GCC company branch
  • Holding company
  • Sole Establishment
  • Limited Liability Company (LLC)
  • Free zone company branch
  • Local company branch
  • Foreign Company Branch

3.4 Get approval for your business activity and the company name

The Department of Economic Development (DED) is the entity in charge of approving the trade name for your company before proceeding with the process of setting up your company in the UAE. Along with your company name, the DED must approve your selected business activity.

Once you receive the approvals, you will need to submit the documents to apply for a trade license and open your company.

3.5 Apply for a trade license

There are several types of licenses in the United Arab Emirates, the main four are the following:

You can apply for any of these licenses if you plan to start a business on the Mainland. If you decide to establish your company in a free zone, the licensing structure is different and depends directly on the business activity of your company.

3.6 Register your company

The registration and licensing process of a company are simultaneous. However, the entire documentation and approval process goes through several stages. At this point, you will need to obtain all approvals from the appropriate government entities as requested by the DED. The required documents are different depending on the type of company and the activity.

3.7 Find a local agent (if required)

To start a business in some areas of the UAE you will need a local partner. This agent must be a UAE National only. Finding a trustworthy local agent can be a tiring process, especially for a new entrepreneur looking to start a business.

A business setup consultant, like Connect Zone, can connect you with companies that offer corporate sponsorship where you can obtain authorization to maintain 100% of the ownership.

3.8 External approvals

The Department of Economic Development may seek approval from other government and non-government agencies, depending on the business activity. For instance, some businesses may be asked to get approvals from specific banks, embassies, the municipality, etc.

3.9 Memorandum of association (MoA)

The Memorandum of Association is one of the most important documents when starting a company in the United Arab Emirates. Therefore, before drafting the MoA make sure you have professionals in the area to advise you. This document must be done in accordance with the regulations of the country.

3.10 Rent an office

Depending on the nature and needs of your company, you can opt for a shared workspace in a business center or an office unit. Office space can also determine the number of visas you can apply to the Department of Economic Development.

3.11 Tenancy contract or Ejari

When you start a business in the UAE, you might need an Ejari. The tenancy contract is the agreement between you and the real estate agency whose shared workspace or office unit you intend to rent. Ejari is an online system managed by the Real Estate Regulatory Agency (RERA). This system ensures transparency and fairness between both parties involved in the tenancy.

You must submit the tenancy contract and a few more documents to activate your Ejari account. This system is of the utmost importance since you need it to renew visas for your employees and family members.

3.12 Initial approval

Before obtaining your license to start operating in the UAE, you must obtain initial approval from the DED. This approval indicates that the government of the country does not object to you starting a business in the UAE. If you do not get this approval, you cannot continue with the application process.

3.13 Collect the trade license

To obtain your trade license, you must submit the following documents:

  • Trade license application
  • Initial approval certificate
  • Tenancy contract
  • Relevant government forms
  • Ejari registration certificate
  • No Objection Certificates for partners (if any)
  • Passport copies of partners
  • External approvals (if any)
  • Other requirements by the Department of Economic Development (if any)
  • Trade name reservation certificate

All these documents must be delivered to the DED along with the necessary government fees.

4. Benefits of the formation process of a business in the UAE

4.1 Business hub

Location-wise there is no other country more attractive than the United Arab Emirates to do business. It is one of the most profitable business hubs in the Middle East and in the world. Due to its geographical location, trade with Africa, Europe, Asia and the East coast of America grows every day.

The ease of accessibility to such huge markets offers you an excellent opportunity to start your business and trade internationally.

4.2 Zero-tax policy

The UAE offers hassle-free business opportunities thanks to the total exemption from all taxes including income, custom, personal and corporate tax. Also, you will be able to enjoy complete export and import tax exemption, zero currency restrictions, and full repatriation of profits and capital, which can benefit your business to grow faster.

The only tax that some companies must pay is 5% value-added tax. It was created in 2018 and is valid only for certain business activities. To keep your business profits without giving any income or business tax to the Emirates government, you must establish your company in a free zone. This will also allow you to give extra liquidity to your company and improve profitability.

4.3 Flourishing economy

The UAE is one of the countries with one of the fastest-growing economies in the world. With an outstanding per capita income and a remarkable annual trade surplus, this country is one of the best economies in the Middle East. The companies established here enjoy highly stable financial situations and financially favorable conditions.

In addition to this, investments in the United Arab Emirates have increased rapidly in recent years. This investment of foreign capital has further strengthened the country’s economy. Thanks to the business-friendly conditions and strong economy, hundreds of companies, conglomerates, and booming startups have moved their facilities to this country to expand internationally.

5. How can we help you start a business in the UAE?

With more than twenty years of experience and more than a thousand satisfied clients, Connect Zone is the right business setup agency to accompany you in the process of forming your company. Our professionals are trained to carry out all kinds of legal and administrative procedures that your company may need.

When forming a company in the UAE, you must comply with the rules and regulations of the UAE. We will take care of fulfilling each one of them. Additionally, we can help you get an office space in one of the best business centers in the country. Our PRO services for your company can do many things for your advantage, and we can as well facilitate the application process for your visa.

Do you want to know more about Connect Zone and the process to start a business in the UAE? You can easily contact us at +971 43 316 688. Send an email at contact@connectzone.ae with all your questions and our team will quickly reach out to you.

Lastly, if you are interested in finding out about new job offers for you, The Talent Point is the platform for you. You can send your CV to many companies, organizations and agencies on thetalentpoint.com. Another way to do so is by sending an email with your resume to contact@thetalentpoint.com.

A complete guide on how to secure a Trade License in Sharjah

Sharjah Trade License

Each emirate has unique advantages and limitations. However, one of the things that all of them have in common are the job opportunities they offer for local and foreign entrepreneurs. In the following lines, we will talk about the Sharjah Trade License and how to acquire one.

In this article, you will find information about what a trade license is, some aspects of the Sharjah Trade License, how the renewal process of this license is, and how we can help you with your application process.

  1. What is a Trade License?
  2. Aspects of the Sharjah Trade License
  3. What are the different types of Sharjah Trade Licenses?
  4. How to get this type of license in Sharjah?
  5. The renewal process of a Sharjah Trade License
  6. How can we help you obtain a Trade License in Sharjah?

1. What is a Trade License?

A trade license is an official document that defines what kind of activities can be carried out in the United Arab Emirates. The government entity in charge of issuing them is the Department of Economic Development of the Emirate where you decide to settle.

This type of license covers different activities, from the production and transformation of products to their export and marketing. Also, any established company, either in a Free Zone or on the Mainland, can get this license.

2. Aspects of the Sharjah Trade License

In recent years, the Sharjah government has taken decisions to boost investment and promote economic diversification, taking into account that Sharjah is known as the regional industrial hub. Both local and foreign companies are granted a unique facility at the time of establishment. However, to comply with the standards of the area, all companies must acquire a Sharjah Trade License.

The Sharjah Trade License helps the government to maintain order regarding the companies that work in the city and to protect the rights of the customers. The government entity in charge of the entire process related to the license (renewals, issuance, etc.) is the Sharjah Economic Development Department.

Note that if you are a business owner in Sharjah, acquiring a trade license is the first formal step in starting your business. You must remember that running a business without a license is not allowed. Also, the possession of a license means that you need to renew it in order to continue your business operations.

3. What are the different types of Sharjah Trade Licenses?

There are three types of Sharjah Trade Licenses:

3.1 Commercial License

A Commercial License is aimed at those businesses whose main activities are related to the commercial sector. Some of these activities are the following:

  • Trading products
  • Importing products
  • Exporting products
  • Brokerage Activities
  • Rental Activities

Note that your company is established in Sharjah and you want to market your products or services outside the United Arab Emirates, you will still need this license to be able to carry out any commercial activity outside the territorial limits of the UAE.

3.2 Professional License

The Professional License is a type of license that must be acquired by all companies whose productive activity is related to the offer of products or services based on some skill, talent, or profession of the individual.

If this license suits the nature of your company, then you can make agreements with the government to sell your products in certain areas. Similarly, you will have the opportunity to make lucrative government contracts.

Some of the activities that you can carry out by acquiring a professional license are the following:

3.3 Industrial License

This Sharjah Trade License is aimed at those companies whose productive activities are related to the manufacturing sector of the country. Also, one of the requirements to obtain an industrial license in Sharjah is the physical office space.

Some of the activities that you can carry out with this license are the following:

  • Processing raw material
  • Importing raw material
  • Packaging the final product
  • Selling the final product
  • Exporting the final product

4. How to get this type of license in Sharjah?

The process of obtaining a Sharjah Trade License license will depend on the type of business you want to run. For example:

4.1 Limited Liability Company

The process you must follow to start a Limited Liability Company is the following:

Firstly, the applicant must submit the necessary documents to the Sharjah Department of Economic Development (SEDD) and complete certain obligations. For example, trade names, inspections, and any other legal transactions. Then, a SEDD employee will be in charge of reviewing all the documentation. This can either be endorsed or they can ask you to make amendments to the application or add things to the required documents.

Once your application has been approved, you must make the corresponding payment for the auditing and permission. Lastly, your license will be issued by the SEDD along with the registration certificate.

The list of documents required to start a Limited Liability Company are the following:

  • Brand certificate
  • Trade license form
  • Official approvals, if any
  • Emirates ID and Passport copies
  • Approval from the Ministry of Economy
  • Lease contract certified
  • No objection letter from the applicant
  • Residence visa copy
  • Partnership contract duly certified
  • Approval related to legal affairs
  • Property certificate copy or a map image

4.2 Partnership Company

The process of starting a Partnership Company is the following:

Individuals interested in forming this type of company must submit the necessary documents along with the application form. The SEDD will then be responsible for conducting the review. Once your application is approved, you must pay the corresponding fees, and in a period not exceeding thirty days, you will have your license and your registration certificate.

The documents required for a partnership company are the following:

  • Trade license form
  • Passport copy
  • Civil register applicant
  • Emirates ID
  • Resident ID card of the expat
  • Lease contract certified
  • Official approval, if any
  • Approval of the Ministry of Economy
  • Official technical assessment report
  • Brand certificate
  • Certified partnership contract

4.3 Business Partnership license or Local Service Agent license

The process for obtaining a Local Service Agent License or a Business Partnership License is the following:

The interested parties must be present at the time of approval of the license in the trade name sector. Then, the license parties (or legal representatives) must sign the business partnership contract or local service agent agreement. Next, entrepreneurs must contact the license section of the SEDD after meeting all preliminary requirements. Finally, once your application is approved, you will have to pay the corresponding fees and soon you will have your registration certificate and your license.

The documents you need for this license are as follows:

  • Certificate of business name
  • Certified lease contract
  • License form
  • Passport copy
  • Photocopy of property certificate
  • Emirates ID
  • Civil register abstract (family book)
  • Billboard design
  • Official technical assessment report

4.4 Foreign Company Branch

To start a Foreign Company Branch you must follow these steps:

First, you must apply for a license in the Sharjah Department of Economic Development, then you must get the approval of the company’s BOD (Board of directors). This must include a legal translation and a statement issued by a company representative.

The next step to follow is to submit the authenticated documents from the United Arab Emirates Ministry of Foreign Affairs and the UAE Embassy in a foreign country. Note that translation is necessary.

Then, you must submit your license application with the required documents along with the power of attorney issued in the name of the company’s representative. Lastly, you will need to check the trade name section and contact the Ministry of Economy for approval to open the branch.

The documents required for a Foreign Company Branch are the following:

  • License form
  • Memorandum of Association duly translated or certified
  • Photocopy of the parent’s company statue duly translated and certified
  • Registration certificate duly certified
  • Resolution from the parent company’s board of directors
  • Certified photocopy of agency signed contract between the local agent and the foreign company

4.5 Local Company Branch

To apply for a Sharjah Trade License and open a Local Company Branch, you must follow these steps:

You must complete the application form designated by the Sharjah Department of Economic Development. Then, you should fulfill all the requirements and visit the section of the trade name for approval. Once they approve your name selection you will be able to receive your Sharjah Trade License.

If you want to open a local company branch, you must submit the following documents:

  • Memorandum of Association of the parent company duly certified
  • Certified copy of the registration certificate and the commercial license of the parent company
  • Company’s board consent
  • Parent company’s statued authenticated photocopy (only for private and public shareholder companies)

4.6 GCC Company Branch

To start a GCC Company Branch you must follow these steps:

Complete the application form designated by the Sharjah Department of Economic Development. Next, you must get the consent of the company’s board of directors and the power of authorization.

The documents you need for this process are the following:

  • Copy of the Memorandum of Association duly authenticated
  • Certified copy of the registration certificate and the commercial license of the parent company
  • Consent of the company’s board of directors
  • Parent company’s statue authenticated photocopy (only for private and public shareholder companies)

4.7 Public and private shareholding companies

To acquire a Sharjah Trade License that allows you to manage public and private shareholding companies, you must complete the following steps:

Submit the application to the Ministry of Economy and the Department of Economic Development. The application must comply with the conditions stipulated in the Commercial Registry Act. This must be done before the ministry decides to establish your company.

Then, a committee is made up of a representative from the ministry and a representative from the Department of Economic Development. This committee is in charge of deciding if a company can be established or not, this decision is sent to the head of department (HOD)

Later, the HOD must finalize the decision regarding the establishment of the company. The decision, together with the required documents, will be sent to the Ministry of Economy.

Note that if they approve the establishment of your company, the trade name of your company must be accompanied by the term “public company”. In the same way, for a private  company, the name must be followed by the term “Private Joint-Stock Company”.

These types of companies can start operating after registering in the trade registry by the relevant authority.

The documents necessary for the process of forming this type of company are the following:

  • Two certified copies of the Memorandum of Association and Articles
  • Feasibility study
  • Copy of the certified statue
  • Two certified copies of the board’s member nationality along with their place of birth

5. The renewal process of a Sharjah Trade License

The Sharjah Trade License is only valid for a specific amount of time, when the expiry time approaches, the company must apply for a renewal. Some of the documents you need to renew your license are the following:

  • License renewal form
  • Family book photocopies of UAE citizens
  • No objection letter from the competent authority
  • Attested lease agreement
  • A notary public authenticated copy of the signature verification
  • Passport copies of the UAE Nationals

Keep in mind that the Sharjah Trade License has exceeded the expiration period by three months, then you will need to contact the Inspection Division in the Department of Economic Development. It must be remembered that if the license is for a foreign company branch, your application is submitted to the Ministry of Economy.

6. How can we help you obtain a Trade License in Sharjah?

With more than 20 years of experience, we are your best option regarding formation of companies in the Mainland or in the Free Zone of your choice. Deciding to start a business in a country, whether as a local or a foreigner, is always a long and tedious process if you do not have the ideal partners to carry out your ideas.

For this reason, at Connect Zone, we help you with the entire process of your Sharjah Trade License, we will help you with the application process for visas and Emirates ID and we can even take the role of a local agent if you need it.

Would you like more information about the process of opening a company in the UAE? You can contact us at the following number +971 43 316 688. Also, feel free to email us at contact@connectzone.ae  where one of our advisors will be in charge of answering all your questions.

Finally, The Talent Point is looking for new talents to cover a variety of positions in diverse sectors. Apply now by creating an account on thetalentpoint.com. You can also send your CV through contact@thetalentpoint.com. Do not worry, your information will always be safe, we will not share it or store it.

Learn how to check a Trade License online

how to check a trade license online

Doing business in the UAE can be a very life-changing process. This region offers hundreds of economic opportunities to national and foreign entrepreneurs, both on the Mainland and in the Free Zones. However, when doing business, it is always advisable to be wary of scams. For this reason, in the following lines, we will talk about how to check a trade license online.

In this article, you will find information about what a trade license is, what documents you must submit to acquire one, how to ensure that a company in the UAE is legitimate, how to check a trade license online, and how can we help you in this process.

  1. What is a Trade License?
  2. What types of Trade Licenses can you find in the UAE?
  3. How can you get a Trade License?
  4. Trade license renewal process
  5. Requirements you must submit to obtain the license
  6. How to check a Trade License online?
  7. How can Connect Zone help you check a Trade License online?

1. What is a Trade License?

This license is a document issued by the Department of Economic Development (DED) of the Emirate where you decide to establish your company. This document allows companies to legally operate in the UAE. The Trade License in Dubai is valid for different activities, for example, import and export of services and products, and any other activity related to trade.

Companies that are established in a free zone can acquire one of these licenses. At the same time, professionals related to the industrial sector can also acquire one.

Knowing how to check a trade license online can help you and your company to avoid making unwanted alliances.

2. What types of Trade Licenses can you find in the UAE?

Not all licenses in the United Arab Emirates are the same, there are five main licenses and each one dedicates to a different productive sector.

The five main licenses are the following:

2.1 Professional license

This license is for those individuals who offer a professional service based on some mental or physical ability that allows them to generate profits. An important point of the professional license is that it allows entrepreneurs to maintain 100% ownership of their company.

2.2 Industrial license

The industrial license is an official document addressed to those companies whose activities are related to the collection, production, and transformation of natural resources into materials suitable for industrial use or into finished products.

An industrial company has global access to its customers and requires a large amount of manpower and resources to operate in the country.

2.3 Commercial license

This document is issued by the official authorities of the United Arab Emirates and is aimed at those organizations or companies that carry out activities based on the trade of services and goods. Some companies, for example, retail firms, business enterprises, real estate companies, transport companies, among others, must apply for this license.

Another key point of the commercial license is that, by having it, your company will be able to export and import products inside or outside the country (this will depend on the area where your company is established).

2.4 General license

The general license is perfect for startups that want to do multiple business activities with a single license. Individuals who hold this license can take advantage of business opportunities in the following sectors: Beverages, medical supplies, frozen foods, among others.

2.5 Tourism license

The Tourism trade license is an official document required by those companies whose commercial activity is based on the travel, hospitality, and tourism sector.

Every serious and respectable company must acquire one of these licenses in order to work legally and avoid any conflict with the authorities. Learning how to check a trade license online will prevent scams and you will be able to differentiate which companies you can trust and which you cannot.

3. How can you get a Trade License?

To obtain a trade license you need to follow these steps:

3.1 Business name

The first step in getting this license is to select an appropriate name for your company. The business name must adhere to the moral values ​​of the UAE, it cannot refer to any religion or political entity, and it cannot be registered by another organization or company.

3.2 Legal structure

To continue with the application for the trade license, you must choose the legal structure of your company. This structure will define how you must run your business and who is responsible for the company.

3.3 Business activities

When the name of your company and the legal structure is ready, you must determine the business activity you plan to carry out. You must make sure to mark all activities on the license and it must be remembered that each license allows a maximum of ten activities.

3.4 Complete the form

The next step is to fill out the application form, once ready, you must submit it to the Department of Economic Development of the respective Emirate to receive initial approval.

3.5 Additional approvals

Some productive activities require initial approval from other government entities. It is advisable that you do your research before completing the process of applying for your license. Otherwise, the authorities may reject your license.

3.6 Gather required documents

In addition to your application form, you need to gather certain documents to deliver them to the authorities. You must ensure that all necessary signatures are present to avoid any delay or misunderstanding in the process.

3.7 Business location

There are different options of places where you can establish your company if you choose to opt for this license. For example, if you decide to settle in Dubai Mainland, you will necessarily need office space.

Once you have the office space, you will need to create a tenancy contract. The entity in charge of attesting this contract is Ejari and you must submit it to the DED with the rest of the documents.

3.8 Submit your application

With all the documents in hand, the chosen location, and the necessary approvals, you are more than ready to submit your trade license application and receive your license.

3.9 Pay the fee

It must be remembered that applying for a license is not free. You must pay the issuance fee and the license fee itself in order to receive it.

4. Trade License renewal process

Generally, trade licenses have a validity period. Once completed, you must renew your license every year to continue working legally in the United Arab Emirates. Some aspects that you should know to renew your license are the following:

4.1 Approvals

To renew your license, you need to obtain the correct approvals. These approvals will depend on the commercial activity carried out by your company. For example, transport companies need approval from Dubai’s Road and Transport Authority to renew their licenses.

To speed up the process, it is advisable that you obtain these approvals before beginning the rest of the renewal process.

4.2 Documentation

In addition to the written approval of certain government entities, every company must gather documents such as the following:

  • Attested Ejari
  • A tenancy contract
  • Approval and authorization process
  • The complete renewal form
  • Photograph of all business partners
  • The payment number of renewal fees

Every company is required to submit these documents to the DED in order to acquire the renewal.

4.3 Tenancy contract

Before starting the renewal process, you should review your tenancy contract. This cannot have a validity period less than three months from the issuance date, to apply for the renewal of your license.

Learning how to renew and how to check a trade license online will save you time and effort in the long run.

5. Requirements you must submit to obtain the license

Part of the process of acquiring a trade license requires the delivery of certain documents. Each part of this process must be done in an orderly manner to avoid delays and misunderstandings.

Firstly, you will need to fill out the trade license application and all managers will need to sign the document. Secondly, you will need to create a Memorandum of Association (this must be done with the help of a legal representative). Thirdly, be sure to attach the approval of your business name. The DED will send you this approval before accepting the chosen business name.

Then, all shareholders of the company must submit a copy of their passports. Remember that learning how to check an Abu Dhabi trade license online will save you from the submission of documents to illegitimate companies.

6. How to check a Trade License online?

Previously, we have talked about trade licenses and how to get them. However, it is also important to know how to differentiate a legitimate company from possible fraud. Whether you are an experienced entrepreneur or a new one, it is only logical that one of your concerns is to hire reliable and legal companies. For this reason, it is very important to learn how to check a trade license online.

First of all, every business owner can perform their own company verification. By having basic information such as phone number and address, the entrepreneur can:

  • Give a call to the company.
  • Visit the office by himself.

If you ever wondered how to check a trade license online, this is definitely the simplest method. Other ways to verify if a business is properly registered in the UAE are the following:

Every company in the country is required to have a trade license to operate legally in the country. You can ask them to show you a copy of the license or you can check it online with the Department of Economic Development.

Remember that licenses are not confidential documents, they are documents that must be publicly displayed in a store or office. It is one of your rights to ask for this document or to have access to it.

Please know that most illegitimate companies will give you an invalid registration number as proof. This can be easily verified. And in this way, knowing how to check a Dubai Trade License will keep you from entering into an unprofitable and complicated business relationship.

There are certain methods that you can use separately or together to decipher if a company exists or not. Some methods you can use are the following:

6.1 Business License Verification

As shown above, you can request a copy of their business license and check directly on the government platforms if the license is registered or not. If you intend to create a company in the UAE based on partners, then they should provide the necessary documents.

If you feel any reticence, chances are something is wrong. On the other hand, the information exposed in a Trade license is not confidential, there you will find the following:

  • Office address
  • Name of the company
  • Registration number
  • License number
  • Name of manager

Someone who refuses to show you this documentation may mean that their business is illegitimate. Remember that knowing how to check an Abu Dhabi trade license online will prevent you from unnecessary trouble.

6.2 Contact the email

If the company is registered in any Free Zone, you might not be able to verify the license. In this situation, your only other option is to contact the registry by email stating the name of the business and ask if the company is registered in the country and if the license is active (and not canceled).

Another option is to verify the registration directly by visiting the offices in person.

6.3 Certificate of Good Standing

You can ask for a Certificate of Good Standing from the local registration authority. Generally, this certificate indicates that the company has filled reports and fees with the authorities.

This certificate serves as proof that the company exists and is authorized to operate legally in the UAE.

6.4 Social media

Social networks can be very helpful when verifying a business. Seeing that a company has a presence on social media is often a good sign. For example, you can check if they have professional profiles on networks like Facebook or Instagram.

Also, you can find out if their staff or managers have profiles on platforms like LinkedIn.

6.5 Google the company

A good idea is to search for information on Google, such as online forums, testimonials, etc. If the company in question has been involved in any illegal activity or any scams, there is a good chance that you will find this information on the internet.

Lastly, you can check on the free zone portals and the governmental portals to ensure that you are working with serious and responsible people.

7. How can Connect Zone help you check a Trade License online?

With more than 20 years of experience and hundreds of happy clients, our agency is the ideal service agency to accompany you in the process of setting up your company or acquiring your license.

At Connect Zone, we will provide you with all the documentation you need to prove that you are a legitimate and trustworthy company, and we will take care of guiding you in each procedure you carry out.

For example, applying for a visa, opening a bank account, and even obtaining your Emirates ID.

Are you interested in learning more about our services? You can reach us at +97143316688 or you can send us an email to contact@connectzone.ae where one of our representatives will assist you gladly.

Additionally, if you would like to apply for a job in the UAE, you can visit thetalentpoint.com or send your resume to contact@thetalentpoint.com. Remember that your security is a priority for us, your information will not be shared or stored.

Company formation in Dubai Creative Clusters Free Zone

Dubai Creative Clusters Authority

The Free Zones of the United Arab Emirates have gained great popularity among entrepreneurs from different parts of the world due to their almost free tax policies. Aspects such as 100% ownership, no currency restrictions, and zero personal and corporate tax are some of the features that you can enjoy when creating a company in Dubai Creative Clusters Authority.

In this article, you will find information about what is the Dubai Creative Clusters Authority, what types of Free Zones you can find there, why and how to start a company in  one of these zones, and also how we can help you succeed.

  1. What is Dubai Creative Clusters Authority?
  2. Types of Free Zones in DCCA
  3. How to start a company in a free zone?
  4. Benefits of setting up a business in Dubai Creative Clusters Authority
  5. Types of licenses issued by DCCA
  6. Why should you start a company in Dubai Creative Clusters Authority?
  7. How can we help you with the formation of your company?

1. What is Dubai Creative Clusters Authority?

The Dubai Creative Clusters Authority (DCCA), formerly known as the Dubai Technology and Media Free Zone, was established in 2000. It aims to position Dubai as a world center for knowledge, based on certain industries. For example, movie and production, fashion, science and technology, media, IT, among others.

The DCCA is in charge of regulating seven industries of nine Free Zones. It currently has more than 4,500 companies operating in its territory and around 70,000 people working in the Free Zones.

Basically, this authority is responsible for implementing and developing rules and regulations that comply with international standards. In this way, companies can diligently operate in the Free Zones.

These Free Zones are divided into the following four clusters:

  • Education Cluster
  • Science Cluster
  • Media Cluster
  • Information and Communication Cluster

1.1 Types of entities allowed in DCCA

  • Free Zone Limited Liability Company (FZ-LLC): This structure is formed as a separate legal entity and is made up of corporates or individuals. The minimum capital required for its incorporation will depend on the productive activity of your company.
  • Branch of a UAE or Foreign Company: This structure is not a separate legal entity from its parent. On the contrary, it is considered a business space that is legally part of the parent company and that carries out some or all of the company’s inherent operations in this territory. Also, no share capital is required to start a branch company.
  • Freelancer: This structure allows entrepreneurs to obtain a Freelance Permit and carry out this type of work legally. This permit identifies you as a sole practitioner and allows you to run your business under your birth name, instead of a brand name.

2. Types of Free Zones in DCCA

In the DCCA there are many Free Zones, each with a focus on a different economic sector. Some of the activities you can do there are the following:

2.1 Dubai Internet City

It is the largest ITC Hub in the entire Middle East and North Africa (MENA) region. Dubai Internet City is home to some of the world’s largest technology companies. For example, Google, Dell, Cisco, Facebook, Nokia, and Microsoft.

2.2 Dubai Outsource City

Dubai Outsource City dedicates to international and local outsourcing activities. For example, business process outsourcing (BPO), IT Outsourcing, back office, HR Outsourcing, and call center operations.

2.3 Dubai Media City

Dubai Media City is home to thousands of organizations dedicated to various sectors. For example, media and marketing, event management, advertising and communication, media consultancy, event support services, freelancers, new media, associations.

2.4 Dubai Production City

It is the ideal hub for the local and global production industries. Dubai Production City is home to the most qualified business professionals from around the globe. In this area, productive activities related to publishing, packaging, printing, media production, and graphic art are generally carried out.

2.5 Dubai Knowledge Park

Most of this area is dedicated to learning excellence and human resource management. In Dubai Knowledge Park, there are companies whose area of ​​work is to be academic service providers, executive search firms, assessment and testing centers, and also numerous freelancers.

2.6 Dubai International Academic City

It is the largest Free Zone in the world dedicated to the pursuit of intellectual growth and higher education. Dubai International Academic City is home to many international and local universities and colleges. Thus serving hundreds of students around the world.

2.7 Dubai Studio City

Open to TV, film production, music, broadcasting, and entertainment, Dubai Studio City is the house of the largest sound stages in the zone. Also, this area is ideal for production offices, workshops, recording studios, backlots, sets, film studios, and water tanks for underwater film shoots.

2.8 Dubai Science Park

This area was specifically designed for those companies and individuals working in the life sciences. The Dubai Science Park is home to large laboratory spaces and ample offices. Its target audience is entrepreneurs within the science community and the nurture businesses.

2.9 Dubai Design District

Offering a mix of open-plan land for development and office space for lease, Dubai Design District is mainly dedicated to those industries related to fashion and design. It is home to several world-renowned brands, along with fashion houses and also boutique design studios.

3. How to start a company in a free zone?

Firstly, no matter which DCCA’s Free Zone you choose, they will all provide you with a nurturing and buzzing environment, equipped with all the guidance and support to help you make your business a success. If this is the type of business you want to aspire to, the steps to start a company in Dubai Creative Clusters Authority are the following:

3.1 Determine the type of legal activity

The types of companies you can open in DCCA are the following:

  • Branch of a Company
  • Free Zone Limited Liability Company (FZ LLC)

3.2 Choose a trade name

After choosing the legal entity of your company, you need to choose the name. In most cases, it is recommended that you check with the Department of Economic Development (DED) about the names that are allowed and if the intended name has already been registered.

Generally, for the DED to approve the proposal on the chosen name, you must meet the following requirements:

  • It cannot contain foul language
  • No other company can have the same name
  • It must not make any reference to any religion or government authority
  • Lastly, it must be compatible with the activity and legal status of your company.

3.3 Business license

In order to operate legally in the United Arab Emirates, you need to apply for a Trade License. This license will depend on the productive activity of your company. Some examples of licenses are the following:

3.4 Office space

At Dubai Creative Clusters Authority, you can either buy or lease an office space in any of the available business centers. The requirements of the offices will depend on the number of employees and also the type of activity you carry out.

3.5 Get approvals

The companies established in the Free Zones are governed by the rules of the respective zone. To receive the necessary approvals, you must submit certain documents. These documents will vary depending on the productive activity of your company, the legal entity, and also the requirements of the chosen Free Zone.

Some of the documents that you must submit are the following:

  • Business plan
  • Registration Certificate/Copy of existing license (if you are an existing company)
  • Colored passport copies of the shareholders (or the director of the new company)
  • No Objection Letter from current sponsor (for individuals)
  • Letter of intent
  • Reference Letter from a personal bank of the individual shareholder or two years audited financial reports for the corporate entity.
  • Completed application form
  • Unit title deed
  • Registry Identification Code (RIC) (Original and notarized)

Those individuals who work under the freelance modality must submit the following documents:

  • CV
  • Bank reference letter
  • Application for registration
  • Registry Identification Code Form (RIC) (Original and notarized)

3.6 Registration

After receiving initial approval, you will need to pay the license fees and registration fees. To do so, you must deliver the following documentation:

  • Memorandum of Association (MoA) (duly attested)
  • Passport size photo of the director of the company (against a white background)
  • Share Capital information
  • Completed application registration
  • Board Resolution Appointing (duly attested)
  • Power of attorney given to the director of the company (duly attested)

3.7 Visa and licensing process

At this point, the lease contracts will be prepared by the authorities, the licenses will be issued and the visa application process will begin.

Note that certain activities will require the approval of external authorities.

4. Benefits of setting up a business in Dubai Creative Clusters Authority

4.1 Work among the best

The DCCA is home to some of the world’s largest companies. For example, Dubai Internet City has Google, Facebook, and Microsoft. In Dubai Design District, works Christian Louboutin, Chanel, and Adidas, and Dubai Media City is the home to companies such as CNN, Dow Jones, and Bloomberg.

However, even though very important names work in this region, the DCCA is also welcoming to small and medium-sized businesses.

4.2 Straight-forward setup

Firstly, in any of the Dubai Creative Clusters Authority Free Zones, the company formation process is incredibly straightforward. You will only need to submit certain documents; pay the fees and the process will be complete. This process generally lasts a few weeks.

4.3 Corporate bank account

Once you receive your license and have established your company in the Free Zone of your choice, you will be able to open a corporate bank account in one of the UAE financial institutions. The application process for an account is quite easy. Even the Free Zone staff can advise you to choose the bank that best suits your needs.

A company formation specialist, such as Connect Zone, can also guide you through this process.

4.4 Sponsor dependents

Just as it is easy to apply for your own Visa, it is just as easy if you want to sponsor dependents for their residence visa. Whether you decide to sponsor a family member, a driver, or a maid, the process is relatively easy.

The steps are the following:

  • Entry permit
  • Status adjustment
  • Medical fitness test
  • Emirates ID registration
  • And lastly, the visa stamping

As this is an important process, it is recommended that you hire a company formation professional, such as Connect Zone, to ensure that each step is completed successfully.

5. Types of licenses issued by DCCA

Some of the licenses that you can acquire in DCCA are the following:

  • Licenses under the Radio Segments and Broadcasting TV
  • Food Segment License
  • Manufacturing and Productivity Segment License
  • Licenses under the Storage Activities
  • Licenses under the Publishing Segment
  • Higher Education Provider License

6. Why should you start a company in Dubai Creative Clusters Authority?

Committed to creating an environment where industries can flourish, the Dubai Creative Clusters Authority is the ideal entity to establish your company. The United Arab Emirates provides monetary support, develops a creative talent pool, creates forums amongst creative industries, and also provides a platform for creativity, research, and community building.

To emphasize, all these aspects drive the economic growth of your company and the evolution of your brand.

7. How can we help you with the formation of your company?

Entering the business world as a novice entrepreneur can be a difficult process to navigate. For this reason, it is advisable to hire professionals in the area to process your documents and carry out all the procedures required by the law of the United Arab Emirates. This is where our agency can be your best ally.

Here at Connect Zone, we can help you with your visa application and company registration, we will maintain an efficient relationship with the relevant authorities and we can also help you choose a space for your office.

Do you want to know more about our business setup services? You can contact us at the following number +97143316688 or write us an email at contact@connectzone.ae where one of our advisors will assist you immediately.

In addition, if you would like to apply for a wide range of jobs in the UAE or many other countries, you can send your CV to thetalentpoint.com or contact@thetalentpoint.com. Do not worry about the safety of your information, we will not store or share it.

How can business setup consultants assist you in your company’s formation?

Business Setup Consultants

When we detail the evolution of Dubai in recent years, the interest of investors in forming a company in that region is understandable. Dubai is synonymous with economic growth, strategic location, superior connectivity, accessibility to important markets, and a supportive workforce to turn your business idea into an established company. However, creating a company from zero can be a lengthy process. This is where the assistance of Business Setup Consultants becomes important.

In this article, you will learn about what a Business Setup Consultant is, what services they offer, why you need to hire one, and how we can help you with your company formation process.

  1. What are Business Setup Consultants in Dubai?
  2. Positive aspects about Business setup Consultants
  3. Why do you need to hire one in DMCC?
  4. Benefits of getting the services of Business Setup Consultants in Sharjah
  5. Why is it important for your company to hire a Business Consultant?
  6. Responsibilities of Business Setup Consultants in Abu Dhabi
  7. How to open a Consultancy Company?
  8. Why should you select Connect Zone as your Business Setup Consultant?

1. What are Business Setup Consultants in Dubai?

Business Setups Consultants are professionals who are in charge of working with the managers and owners of the companies to improve the efficiency of their operations. Their main objective is to identify, address and overcome obstacles that may arise along the way.

1.1 What is the job of a Business Setup Consultant?

These professionals can assist you with almost any need your company may have. There are Business Consultants specialized in certain areas and there are others with a more general approach.

Although the services may vary, some of the most common services provided by Business Setup Consultants in Dubai are the following:

  • Define if any changes need to be made and implement them efficiently.
  • Identify what obstacles do not allow the growth of the company.
  • Implement new programs.
  • Offers the necessary resources and training to staff and management.
  • Study the company’s budget and make adjustments (if necessary)
  • It is the communication link between the local providers, other partners, and the government.

2. Positive aspects about Business Setup Consultants

Business Setup Consultants in Dubai tend to have a larger area of ​​expertise than the staff of a common corporation, so they can offer quite unique solutions. When deciding to hire a Business Consultant Service, it is a good idea to take into account the strategic advantages of having an expert ally in the creation of companies and the laws and regulations of the United Arab Emirates.

3. Why is it necessary to hire one in DMCC?

Starting a company needs a solid business plan and to carry it out successfully you need a Business Consultant.

Some of the reasons why you need to hire this type of service are the following:

3.1 Define the right business activity

All companies in the United Arab Emirates are classified according to the productive activity they carry out. This qualification determines the permits and regulations required by the Department of Economic Development for your business.

3.2 Choose the economic jurisdiction

Business Setup Consultants in DMCC can help you choose the jurisdiction that best suits the needs of your company. In the United Arab Emirates, there are different jurisdictions and each of them brings with it different rules and benefits. The Offshore, Mainland, and Free Zone jurisdictions are some of the ones you can find.

3.3 Create a business plan

When deciding to create your company, it is highly recommended to understand the process, operation, and legality of the United Arab Emirates market. For this reason, having a guide to accompany you and advise you is a very good investment.

3.4 Define your company structure

In the United Arab Emirates, there are multiple legally implied company structures in Dubai. Each business must choose one before starting the process of registering their company.

Finding Business Setup Consultants in the DMCC can be of great help when choosing which structure best suits the needs of your business.

3.5 Mainland company registration

For a Mainland Company Formation, the presence of a business consultant is more than important.

From doing all the paperwork to renting an office in a business center, a consultant can do it all.

3.6 Manage paperwork with the Department of Economic Development (DED)

A business consultant is someone who knows the laws and regulations in Dubai very well. The Department of Economic Development grants all permits and licenses to operate legally. To obtain your license you need a series of documents. For example, passport copies, the name reservation certificate, and depending on the activities of your company, additional approvals.

However, to make this process as easy as possible, hiring a business consultant is undoubtedly the best option.

3.7 Paperwork for a company formation

Documentation such as the Memorandum of Association is vital to continue the formation process of your company. And a business consultant is an ideal partner to carry it out.

Also, they can help you with the rest of the documentation to ensure that each step is successful. Another duty of a business consultant is to collect licenses from the corresponding departments and obtain the necessary permits from government entities.

3.8 Cost-effective process

Hiring a business setup consultant in time to apply for DED approval is not only easy but cost-effective as well. Moreover, getting offices or warehouses to rent and even getting the company’s contracts certified becomes very cost-effective since there are fewer chances of making a mistake and applying for unnecessary paperwork.

4. Benefits of getting the services of Business Setup Consultants in Sharjah

Every entrepreneur who decides to start a new chapter in their life as a company owner should hire a business setup consultant. A good business consultant will be in charge of offering strategies, valuable recommendations, and a business plan to make your company grow.

Some of the advantages that you can acquire when hiring Business Setup Consultants in Sharjah are the following:

4.1 Transparency in every procedure

During the process of forming your company, there are some legal formalities that you must complete.This includes various registration and licensing processes.

Generally, the Business Setup Consultant in Sharjah knows each of these processes. Then, when you hire them, they will ensure the successful resolution of each of them.

A Business Consultant will help process and resolve any risk (in legal matters) that your company may face.

4.2 Estimated cost analysis

These professionals will help you carry out a study on the estimated cost of your company. The Business Setup Consultants in Sharjah will advise you on all cost-related topics including when you should invest and when you should save.

4.3 Expert business knowledge

Having an experienced consultant who has a clear business vision is very helpful when positioning your company as one of the best. These professionals stay up-to-date with the various trends, methods, and practices to help your business achieve its full potential.

At the same time, a business consultant must be honest at all times, to avoid unnecessary risks and complications.

4.4 Save time, effort, and money

These professionals will ensure that your company complies with all the legal and financial rules and regulations of the United Arab Emirates. This will save you time and you will not have to do the paperwork yourself, allowing you to concentrate on other tasks related to your company.

Instead of learning from zero what the formation process of your company is like, what the necessary approvals are, which forms you must fill out, etc. A business consultant will present all the options that fit your business. In this way, you reduce the risk of making mistakes and causing delays for your company.

5. Why is it important for your company to hire a Business Consultant?

Choosing an experienced business consultant will make your company formation process much easier. Business Consultancies offer added value to the companies that assist and create an environment oriented to the growth and development of strategies and project management.

One of the most important aspects of creating a company is that they are not usually committed to a single firm. This allows the exercise of different activities and experiences. Also, these professionals can offer innovative ideas and solutions to create and maintain your business in the long term.

Here is the importance of choosing to work together with a business consultant.

6.  Responsibilities of Business Setup Consultants in Abu Dhabi

The most important role of Business Setup Consultants in Abu Dhabi is to prevent entrepreneurs from going through the entire company formation process alone. Their work facilitates and simplifies every step, method, and aspect of this process in the United Arab Emirates.

Some of the most important tasks that these professionals carry out are the following:

6.1 Following the national laws

One of the many tasks carried out by government entities is to ensure that companies in the United Arab Emirates comply with the provisions of their laws. Business consultants will be in charge of confirming that your business does not face any legal problems at the beginning or during the operations of your company.

A consultant will also advise you according to the activities you do and your needs.

6.2 Registration and business license

Your company registration may vary if your business is established in a Free Zone or Mainland. Business Setup Consultants have extensive knowledge of each area and can help you choose which one best suits your business model. At the same time, they will take care of carrying out all the forms and will deliver them on your behalf.

7. How to open a Consultancy Company?

So far, it has been mentioned why it is important that you hire a Business Consultant for your company. However, if, on the other hand, you want to start a Consultancy Company in the United Arab Emirates, the options to enter the local market and form this type of company are the following:

  • You can register as a freelancer and offer consultancy services in an Emirate of your choice. To do this you will need to gather the necessary documents, certify your qualifications and obtain a license.
  • You can register a company (onshore) in the free zone of your choice. If this is the case, you can hire employees (even foreigners) in the territory of the United Arab Emirates.
  • You can open a representative office of a distant company within the United Arab Emirates. If you decide to do this, keep in mind that the “parent company” must successfully exist at the place of registration for several years.

Note that each Free Zone is managed with different limitations and conditions at the time of registering your company. However, the formation process remains intact.

You must gather the necessary documents, request the approval of the corresponding entities, go through the verification process, rent an office, open a bank account and lastly, acquire a license

8. Why should you select Connect Zone as your Business Setup Consultant?

With more than 22 years of experience in the market, our firm has the ideal Business Setup Consultancy service for your business. Over the years we have perfected a host of services and options from all different Emirates, along with the aspects and prices that you should take into consideration. This includes visa packages, multi-year deals, and general special discounts.

Here at Connect Zone, we will accompany you at every step of the formation of your company and we will assist you in any way you need. Due to our years of experience, we have learned what entrepreneurs need. Our goal is the success of your business.

Among the services we can offer you are the following: Local partner services, Opening of bank accounts, visa application, etc.

Would you like to learn more about how to set up your business in one of the seven Emirates? You can contact the following number +97143316688 or send us an email to contact@connectzone.ae where one of our advisors will gladly assist you.

Additionally, if you want to send us your job application, please send your CV to thetalentpoint.com or you can send it to the following email contact@thetalentpoint.com. Remember that you have nothing to worry about, your information is safe with us. We are not going to share it or store it in our database.

 

Get complete insight on how to start an online business in Dubai and the UAE

Online Business in Dubai

Over the years, business models have evolved. Today, making transactions, attracting new customers and closing deals can be done completely online. With the outbreak of the Covid-19 and the beginning of the pandemic, the new entrepreneurs saw an opportunity to continue generating profits with the formation of an Online Business in Dubai.

In this article, you will find information about what an online business is, what the steps for the formation of an Online Business in the UAE are, what type of licenses you can acquire when creating this type of company and how we can help you become the successful owner of an Online Business in the UAE.

  1. What is an Online Business in Dubai
  2. How to start an Online Business in Dubai?
  3. Dubai Online Business Models
  4. E-commerce licenses in the UAE’S Mainland
  5. Benefits of having an Online Business in the UAE
  6. How can we help you start an Online Business in Dubai?

1. What is an Online Business in Dubai?

A Dubai Online Business, as its name indicates, is a commercial model in which money is earned online, either by offering services or selling products online. Online businesses can cover different areas; they can range from an online food store to private jet booking.

Whether you work for a multinational company or are a freelancer, maintaining a good online presence is necessary for the success of your business.

2. How to start an Online Business in Dubai?

Once you decide that a Dubai Online Business is the right option for you, you must follow these steps:

2.1 Select a product

Firstly, if you are a new entrepreneur, choosing a product or service to offer can be the most difficult step. Before choosing, you should think about:

  • What kind of products your target audience needs or is attracted to?
  • How profitable it is?
  • How well it will fit into the market niche?

Because your business is online, there are certain costs that you must take into account, for example, shipping fees, advertising costs, labor, etc. You must select products that can generate a profit of at least 50%.

2.2 Manufacturing

Once you have chosen the product or service that you are going to offer, you must start thinking about how you are going to source it. Searching for local suppliers and manufacturers, as well as connecting with their communication networks, is the first step when you need a supplier.

The market for Online Businesses in the UAE is quite competitive. Each company strives to deliver a quality product that meets consumer expectations. For this reason, you must make sure to associate with suppliers and manufacturers that will raise your name and meet the standards of your company and your customers.

2.3 Choose a brand name

When choosing a name for your company you should take into account the following aspects:

  • The name of your company cannot contradict the productive activity to which you are going to dedicate yourself. In other words, the name of your company must show the essence of it.
  • When you choose the name you must make sure that it has not been previously registered and that it is not protected by copyright by another business in the UAE.
  • The chosen name cannot be related to God, nor divine attributions in English, Arabic, etc.
  • Make sure your company name does not contain indecent or obscene words, and cannot offend the general public.

2.4 Choose the right location

When choosing the location of your Online Business in Dubai, you have the following options:

2.4.1. Mainland

Companies operating in the Mainland can freely conduct business across the UAE and in international markets. These types of companies receive their licenses from the Department of Economic Development (DED) and have the advantage of not having a visa limit for their employees, depending on the size of the offices. Also, they can carry out projects for the UAE government.

If you choose to establish your company on the Mainland, you will need a local agent. It is important to realize that our Online Business in the UAE cannot be registered as a Limited Liability Company (LLC)

2.4.2. Free zone:

On the other hand, companies established in the Free Zones can enjoy their low taxes for trading within the limitations of the Free Zone. Low taxes drive the export and import of products. These areas are characterized by the variety of activities that can be carried out in them.

If you choose to establish your company in a Free Zone you will not need a local agent.     And you will be able to register your business as a Limited Liability Company. Deciding between both options will depend on the nature of your Online Business and your public target.

2.5 Initial Approval

After choosing the desired jurisdiction, you must apply to the corresponding government entities, the following documents:

  • Colored passport photos
  • Passport copy
  • Application form

2.6 Start the process of your E-commerce trade license

Once the formation process of your E-commerce Business in Dubai is ready, you can apply for an E-commerce trade license. This license will depend on the nature of your company, the productive activities you carry out, and the chosen jurisdiction.

The Dubai authorities will be in charge of delivering your Trade License and the process will last approximately 7 business days. Also, you must renew this license every year.

During the license application process, you will also need to provide all social media related to your business. Keep in mind that if you decide to establish your online business in the Mainland, you must submit a Memorandum of Association (MoA) as part of the requirements to obtain your E-commerce Trade License.

2.7 Acquire visas

Having an E-commerce Business in Dubai gives you the opportunity to not need a physical office or be physically present in the United Arab Emirates. However, you will need a legal address to be able to operate in the UAE, according to the laws of the country. If you do not want to have an office in Dubai, you and your employees will need to have a visa.

The formation of an E-commerce Business in the UAE allows you to have a Visa valid for 3 years. It must then be renewed every year. The number of Visas you can acquire will depend on the size of your business and where your company is located.

2.8 Opening a bank account

Lastly, once you get your license and establish your company, you will be able to open a corporate bank account. To open an account at the bank of your choice, you must submit the following documents:

  • Visa copy
  • Business license
  • Passport copy
  • Emirates ID

3. Dubai Online Business models

There is a wide variety of Online Business Models and you can choose the one that is most related to the nature of your business. Some models are the following:

3.1 Business-to-consumer

It is the most common model for Online Businesses and includes the following:

  • Direct selling: In this model, customers buy products from online retailers.
  • Community-based: Social networks like Facebook create communities with common interests and help marketers and advertisers to sell their products directly to customers.
  • Subscription: Some companies charge customers a fee to access their content.

3.2 Business-to-business

In this model a business sells to another business directly, most of the time, the buyer resells a product to a customer.

3.3 Consumer to business

This business model applies to independent workers and freelancers who do work for companies or organizations. In this E-commerce model, the use of a website is very important, as it allows customers to post the work they need to be done.

3.4 Consumer-to-Consumer

This model works through an online marketplace that connects customers to negotiate goods or services. They earn money by making transactions or listing fees.

3.5 Dropshipping

In this model, the stores do not carry the stock of the products they sell.  Instead, they buy their products from a third seller and he is in charge of delivering the products directly. In this way, the seller does not have to deal with the products.

4. E-commerce licenses in the UAE’S Mainland

When starting the formation of an E-commerce Business in the UAE, you have to apply for a license in the DED, in the respective Emirate. All E-commerce trade licenses must have approval of the Telecommunications and Digital Government Regulatory Authority, which is in charge of regulating everything related to E-commerce Business. Some of the licenses issued by the UAE’S Mainland are the following:

4.1 The E-commerce License (Tajer Abu Dhabi)

This license is issued by the Abu Dhabi Department of Economics (ADDED) and allows online traders to add their virtual transactions to their existing licenses. Or they can also acquire a new license to conduct business through social networks and web pages.

Entrepreneurs who have this license can use their E-commerce mark (ETajer) and serial number to promote their products.

4.2 Dubai CommerCity (DCC) Free Zone

Dubai CommerCity is a free zone that seeks to promote E-Trade in the Middle East and North Africa (MENA). This area offers a unique opportunity for E-Commerce in that region and to promote small, medium, and large companies.

4.3 Etimad Domestic License from Sharjah

The Sharjah Department of Economic Development (SEDD) grants the Etimad license for businesses established in the home and for those virtual businesses through social networks.

Anyone over the age of 18 is eligible for this license, however, it is restricted to UAE Nationals residing in the Emirate of Sharjah.

Important to realize: This license does not allow the recruitment of staff.

4.4 Virtual Merchant License from Ras Al Khaimah

The Department of Economic Development (DED) in Ras Al Khaimah issues the E-Trader License to promote those businesses that are managed through Social Networks, smartphone applications, and web pages. Some activities to carry out under this license are the following:

  • Electronic Retail Business
  • Commercial and Real Estate Brokerage
  • Advisory
  • Information technology and computers

5. Benefits of having an Online Business in the UAE

Deciding to form an E-commerce Business in Dubai brings with it multiple benefits, some of which are the following:

  • Ownership of a Business: The different areas of the United Arab Emirates allow new entrepreneurs to maintain 100% ownership of their company, depending on the productive activity to which they are engaged.
  • No personal tax
  • Full profit repatriation: Companies can send all profits to their country of origin. This allows entrepreneurs to transfer 100% of their capital without any obstacles.
  • Bank account assistant
  • Residence Visa granted for 3 years
  • Low costs in the setup of the company
  • Easy and efficient trade license process

6.  How can we help you start an Online Business in Dubai?

Over the years, the United Arab Emirates has proven to be a world of possibilities for every area you are interested in. From forming a physical company in a Free Zone or deciding to undertake through social networks, the United Arab Emirates supports, assists, and encourages new entrepreneurs to invest in the country.

The process of forming an E-Commerce Business in Dubai can be tedious and even long-lasting if you do not know the laws of the United Arab Emirates.

Here at Connect Zone, we are your trusted agents, we will be the communication bridge between the corresponding government authorities and your company, we will take care of being your local agent (if you need it), we will accompany you in each step of the process of forming your company and we can even open a bank account for you.

Are you interested in learning more about starting an online business in Dubai & the UAE? You can contact us at the following email address: info@connectzone.ae where one of our advisors will answer all your questions.

Lastly, if you want to apply for one of many job vacancies or obtain a job in our agency, you can send your CV to thetalentpoint.com or you can contact the following email contact@thetalentpoint.com. Do not worry, we will not share or store your information in our database.

Company Formation: How to open a fashion store in Dubai?

fashion store in Dubai

When it comes to the fashion industry, Dubai has positioned itself as a world leader. Multiple well-known brands have decided to establish themselves in Dubai to meet the demand for quality clothing and accessories. At the same time, many new entrepreneurs decide to take the risk and become the owners of a fashion store in Dubai.

In this article, you will find information about the fashion business, what are the steps to a fashion store business setup in Dubai, what benefits can you get by opening this type of store, how to start an online fashion store and how we can help you meet your goals.

  1. The fashion business in Dubai
  2. How to start a fashion store in Dubai?
  3. Benefits of a fashion store company formation in Dubai
  4. Why should you open a fashion store in Dubai?
  5. How to start an online fashion store?
  6. How can we help you open a fashion store in Dubai?

1. The fashion business in Dubai

In recent years, the fashion industry has reached a large part of the UAE market, due to the numerous strategies implemented.

According to Dubai Chamber Research, the fashion industry has contributed an amount of AED 44 billion, with an annual growth of 4.8 percent. Also, the industry is expected to grow the most between 2019 and 2023.

The UAE fashion industry has done a great job of attracting the attention of worldwide investors. Some of the most striking products are bags, footwear, accessories, and apparel.

In essence, Dubai is the perfect place for almost any company, its different areas allow economic flourishing for new entrepreneurs. In the case of the fashion industry, Dubai Design District is the perfect place to start your company.

1.1 Dubai Design District

Since its foundation in 2013, Dubai Design District has been characterized as an area full of opportunities for creative minds and entrepreneurs interested in the fashion industry. This area had a global value of AED 3 billion in 2019 and its sales continue to increase.

2. How to start a fashion store in Dubai?

To open a fashion store in Dubai you must take into consideration the following steps:

2.1 Market research

The first task you must perform is market research. You must understand the population and your target audience, know their preferences and tastes to satisfy their needs.

Analyzing the competition, understanding the demands of the public, and learning what strategies work in the market will be essential for the success of your company.

2.2 Clear your products and your target audience

Once the market study has been carried out, you need to clarify what products you will sell and to whom it is directed. Also, you need to have a clear idea of ​​the supply and demand for your products and form an active network around them.

2.3 Strategic location

It is well known that the United Arab Emirates offers flexibility when choosing a location for your company. Choosing a favorable location is vital to the success of your business.

2.4 Required documents

To complete the process of registering your company, you need to submit the necessary documents to the Department of Economic Development. The necessary documents are the following:

  • Passport and visa copies of the shareholder
  • No Objection Certificate for initial and name approval
  • The application form filled out
  • Memorandum and Articles of Association (MoA/AoA)
  • A well-structured business plan

2.5 Approval and license

After the submission of the documents, you need to obtain the approval of the corresponding government entities. Once the approval is received, you will be able to withdraw your specific business license. This license will serve as permission to operate in Dubai.

2.6 Accounting and bookkeeping

From the beginning of your company, you must be very clear about the income and expenses generated. Keeping an accounting and bookkeeping record will help you with the organization of your company.

2.7 Product marketing

The reputation of a fashion store in Dubai is of paramount importance if you want to be successful. For this reason, you should focus on making your brand and products known, investing in marketing strategies, and promoting your services in the local area.

2.8 Online presence

To extend your reach in the market, it is necessary to create an online presence that fits the dynamics of your company and the business environment. In addition to this, creating a web page where you show your products will help you reach a local and international audience.

If you want to enter the fashion industry, there are different types of companies that you can choose from. For example:

  • Opening a fashion boutique
  • Manufacturing business
  • Online fashion business
  • Wholesaler

The fashion industry in Dubai is a sector full of possibilities for new entrepreneurs, and if approached with the correct strategies, it can result in a very profitable business.

3. Benefits of a fashion store company formation in Dubai

Among the many benefits of starting a fashion store in Dubai, there are the following:

  • Free zone benefits
  • No restrictions on trading locations
  • Low import duty
  • First-class infrastructure
  • No minimum capital requirement
  • Work along with government bodies
  • Tax benefits
  • No restriction in currency limitation
  • More options for business activities
  • No limitations to the number of visas

4. Why should you open a fashion store in Dubai?

Entering a market that is full of big brands in the fashion industry can be challenging. However, the fact that these brands exist only shows the demand for high-quality clothes and apparel.

This presents opportunities for small and medium-sized businesses to offer services that the big brands cannot. (Boutique fashion, homegrown, etc.) If you think you have the necessary skills to succeed in this world, check the following considerations:

4.1 Huge potential in the market

While the prestigious, international brands fill the need for hot couture clothing, there is still interest from the UAE locals for other types of clothing. The modest, homegrown, and UAE fashion houses are just flourishing and it is a turning point for new entrepreneurs.

In 2021, UAE locals have spent millions on clothing, footwear, and accessories of this kind, with the big brands just watching from afar. It is important to point out that this gap in the market can be considered an opportunity for those entrepreneurs who wish to create a fashion company in Dubai.

4.2 Set up in a Free Zone or in Mainland

Depending on the nature of your company, you can establish your business in a Free Zone or the Mainland. If what you are looking for is to have a retail outlet, then a Mainland Setup is the best option for you.

On the other hand, if you decide to start an e-commerce fashion company, you will notice that the benefits of the Free Zones are more adapted to your needs.

For example, no corporate and personal tax, 100% ownership, and full export and import tax exemption.

4.3 Easy setup

To start a fashion company, either in a Free Zone or in the Mainland, no additional licenses are needed. The process of establishing this type of business is incredibly easy, if you decide to open your company in the Mainland, go to the Department of Economic Development, the process will not take more than 90 minutes.

If you decide to open your company in a Free Zone, all you have to do is go to the authorities of the corresponding zone. Licenses are normally delivered within a couple of days.

The only thing you need to start trading is a license. However, if you wish to establish a brand, you must apply for a trademark, and this can only be requested through the Ministry of Economy.

Whether you decide to settle in the Mainland or a Free Zone, you will find it favorable to hire a specialized company formation services provider, such as our agency, to ensure that the process is carried out successfully.

4.4 Multiple shareholders

Although you have the option to work alone and create the company on your own, you can also establish your company with multiple shareholders in the Mainland or a Free Zone. These shareholders can be corporate entities or individuals.

4.5 Multiple visas

When setting up your fashion company, you will come across many visa options. If you decide to settle in a Free Zone, you will have a limit of visas for which you can apply, and this limit will be directly related to the office space you have. In contrast, for the formation of a company in the Mainland, there is no limit on visas.

However, this is also directly related to your premises. The general rule is one visa for every 100 sq. ft. of office space.

 4.6 Sponsor your dependents

While you must apply for the necessary visas for you and your employees, you can also sponsor your dependents for their visa application. Whether you need a visa for a child, spouse, driver, etc. The process is the following:

  • Entry permits
  • Status adjustment
  • Medical fitness test
  • Emirates ID registration and visa stamping

4.7 Open a corporate bank account easily

Once you have applied for your license and established your company, you will be able to opt for a bank account. The process to acquire one is very simple, if you decide to open your company in a Free Zone, your staff can advise you on which bank best suits your interests.

On the contrary, if you decide to open your company in the Mainland, an agency specialized in company formation can carry out this process for you. Also, if you prefer, you can go to a local or international bank yourself.

5. How to start an online fashion store in Dubai?

Firstly, online global retailers are a millionaire business and by far one of the most attractive e-commerce areas. Secondly, with revenues exceeding AED 50 billion annually, the online fashion industry is a world of opportunity for new entrepreneurs.

If you are interested in forming an online store in Dubai, check out the following steps:

5.1 Trade license

The main thing to form an online fashion store in Dubai is to legitimize it. Dubai offers a variety of e-commerce licenses that will allow you to operate both in the Mainland and in the Free Zones.

5.2 Cost

The cost of forming an e-commerce company can vary from one area to another. For example, an e-commerce trade license in Dubai Media City can cost AED 40,000 and is divided into:

  • Registration: AED 9,020
  • Initial application: AED 1,015
  • Establishment card: AED 1,800
  • License: AED 20,285
  • Memorandum of Association (MoA): AED 2,020
  • Residence visa: AED 3,330
  • Visa deposit: AED 3,000

5.3 Documents

For the approval of the e-commerce trade license, you must submit the following documents:

  • Copy of investor’s passport
  • Business plan for online clothing store
  • Proof of residential address in the country of residence
  • Filled and attested online application form
  • The lease agreement of office space in DMCC

5.4 Online payments

Including an online payment system allows the entrepreneur to generate profits through the online store. To do this, you will need to have two bank accounts, a commercial bank account, and a merchant bank account.

The commercial bank account is managed by the business, while the merchant bank account is managed by the investor and will handle all of the buyer’s online transactions.

5.5 Logistics support

It is essential for a fashion company to partner with shipping companies that are capable of delivering products on time and safely. Shipping companies in Dubai offer corporate packages to e-commerce companies, depending on the needs of your company.

6. How can we help you open a fashion store in Dubai?

Connect Zone is an agency dedicated to advising our clients to meet their goals as entrepreneurs in Dubai. We are known for working quickly and efficiently and we place your interests as a priority.

We can help you with the request and application of your trade license, we can act as your Public Relations Officer, and also we can accompany you in each step of the formation of your business.

Do you want to know more about our business setup services? You can contact us through the following email address: info@connectzone.ae where you will speak with one of our representatives, who will answer all your questions.

Lastly, if you are interested in working with us, you can go to thetalentpoint.com and send an application. Also, you can send your CV to contact@thetalentpoint.com. We do not share or store your information.

Do you know how to set up an Industrial Company in Dubai?

Industrial Company

An Industrial Company or manufacturing company is the company in charge of extracting the raw material and transforming it into products or goods to be marketed to the final consumer.

In recent years, there has been a boom in the creation of this type of company in Dubai, due to the various opportunities for economic growth that have been created in the Arab Emirate.

In this article, you will learn how to start an Industrial Company in Dubai, the various benefits that this kind of company brings, and also the cost of forming such companies.

1. How to set up an Industrial Company in Dubai?

2. Which activities fall under the Industrial License?

3. What is the cost of the Industrial License?

4. What is the cost of forming an Industrial Company in Dubai?

5. Benefits of forming an Industrial Company in Dubai

6. Why is Dubai the perfect place for your Industrial Company?

7. How to set up an Industrial Company in Dubai Industrial City?

8. In which way we can help you with the setup of your Industrial Company in Dubai?

1. How to set up an Industrial company in Dubai?

1.1 Choose an activity corresponding to the manufacturing sector

The first step for the creation of an Industrial Company is to choose the good or product you want to manufacture, in this way the legal form and the corresponding license (commercial, industrial or professional) are determined. Also, you could open a Textile Company, a printing or publishing company, a parts factory, etc.

Keep in mind that a company in Dubai can be engaged in more than one activity at a time and that the United Arab Emirates offers more than 2,000 productive activities to choose from.

1.2 Select a local partner

To carry out the process of forming an Industrial Company in Dubai, you need the support of a local agent, a national representative who will accompany you throughout the process and who will take care of all the paperwork.

1.3 Select the legal form

The legal form will depend directly on the product or the good that you are going to make and is the basis for applying the laws and regulations of your company. The investor can choose between the following legal forms:

  • Limited liability company (LLC)
  • Public joint-stock company (PJSC)
  • Private joint-stock company (PrJSC)
  • Civil company
  • Local company branch
  • General partnership
  • Limited partnership
  • Foreign company branch
  • Free zone company branch
  • Sole establishment
  • Holding companies.

Important to realize: The legal form must coincide with the chosen productive activity

1.4 Choose a name for your Industrial Company

Firstly, every Industrial Company in Dubai must have a trade name that distinguishes your business from another, and in turn, must reflect its essence. This must be directly related to the chosen activity, cannot allude to any religion or political ideology, cannot be previously registered, and must respect the moral values ​​and laws of the United Arab Emirates.

Throughout the trade name selection process, you will be given a payment voucher or transaction number that you will need as a reference when paying.

Must be remembered: Trade names certificates are renewable and are registered by the department of economic development. While the trademark is registered by the Ministry of Economy.

1.5 Send the corresponding documents

After choosing your trade name, the legal form, and having chosen a local agent, you must register your company with the DED (Department of economic development) to obtain initial approval and other types of approvals.

1.6 Initial Approval

Afterward, your documents have been reviewed and processed, the UAE government will notify you if your application has been approved.

Receiving this approval means that the government of the United Arab Emirates accepts the creation of your Industrial Company and you can continue with the next steps of the formation process, however, it does not (yet) grant you the authority to start working.

Also, foreign investors who decide to set up an Industrial Company in Dubai must first obtain approval from the General Directorate of Residency and Foreign Affairs.

1.7 Memorandum of association

Once the first part of the formation process of an Industrial Company is completed, you must file a Memorandum of Association (MOA) signed by all the shareholders.

1.8 Submit to the Ministry of Economy

Once the Memorandum of Association has been signed, you must submit the corresponding documents to the Ministry of Economy, where you will receive authorization to continue with the formation of your manufacturing company.

1.9 Find a location

According to the laws of the United Arab Emirates, every company must have an infrastructure, a physical address where the company is located. For this reason, you should rent an office or Business Center in a beneficial location for your necessities.

Additionally, as a requirement, you must provide the official rental agreement and in Dubai, this agreement must be registered by Ejari.

1.10 Dubai Municipality

Afterward, to continue the process of forming an Industrial Company you must obtain the approval and permission of the Dubai Municipality’s planning department to obtain the Industrial license. Once the approval is received, you must complete the documentation and submit it to the environment department to obtain authorization to continue the process.

1.11 Civil defense

After obtaining permission from the Dubai Municipality, you must apply for a NOC (No Objection Certificate) from the Civil Defense, to continue with the process of forming your manufacturing company.

1.12 External Approval

In addition to the approvals shown above, some manufacturing industries in the United Arab Emirates need approval from other government departments. It is important to note that this will depend on the objects or goods that your company produces. For example: If you produce food, you need a food control permit. In the same fashion, if you decide to produce any chemical material, you need permission from the Narcotics Department.

1.13 Trade License

After receiving all the relevant approvals and necessary permits, you can submit the final documents to the Department of economic development to receive your industrial trade license. At last, make the payments of the corresponding fees and your trade industrial license will be delivered to you.

2. Which activities fall under the Industrial License?

Industrial licenses work for a large number of activities and many of them are directly related to manufacturing. For example:

  • Food & beverage manufacturing
  • Helicopter repair & maintenance
  • Metal products coating
  • Multi-dimensional images
  • Sculptors
  • Textile manufacturing
  • Adhesive & paper slitting
  • Bookbinding
  • Saddle & animal, bird training requirements making
  • Safety harness manufacturing
  • Casting of metals
  • Cards & envelopes printing
  • Lathe workshop
  • Magnetic technology equipment trading

To clarify, this is a general list of some activities that need the Industrial license.

Note that if your company does production, fabrication, preparation, or manufacturing of products, then you will need an industrial license as well.

3. What is the cost of the Industrial License?

Firstly, the cost of the application for an Industrial license will depend directly on the area in which you want to establish your company.

As shown above, to apply for a license, you need to comply with certain documents, obtain certain approvals from government entities and pay the corresponding fees.

In general, an Industrial License can cost between 10,000 – 25,000 AED, these prices may be different if you decide to set up your Industrial Company in a Free Zone.

4. What is the cost of an Industrial Company Formation?

Due to the growing popularity of the financial benefits that can come from investing in the United Arab Emirates, the costs to set up a manufacturing company are relatively low. As following:

  • Initial Approval: AED220
  • Trade name approval: 720 AED
  • MOA preparation: 600 AED
  • Notarization of MOA: 1800 AED
  • Sponsorship Fee: AED10,000
  • License: 10,000 – 25,000
  • Market fee: 5% of the rent
  • Environment Impact Assessment Report: 10,000

5. Benefits of forming an Industrial Company in Dubai

The exponential growth that has occurred in the United Arab Emirates in recent years has brought multiple benefits to new investors, encouraging the creation of new companies every day.

The government of the United Arab Emirates, over the years, has tried to diversify its investments to attract new entrepreneurs and position itself as the leading region when it comes to economic growth.

Due to the new regulations, investors have 100% ownership of their companies and can trade without any restrictions.

Among the benefits of an Industrial Company Formation in Dubai, we find the following:

  • Business supportive regime
  • Optimal chances for business growth
  • Maintaining business privacy
  • World-class infrastructure
  • Exemplary standard of living
  • Strategic location
  • Excellent connectivity

6. Why is Dubai the perfect place for your new Industrial Company?

In essence, Dubai is one of the most economically attractive areas for old and new investors. It has an open environment and full support for small, medium, and large companies that allow the growth of the region’s economy.

Free-market policy, fair competition, and low taxes have been another key point to receiving multiple foreign investments each year.

Dubai is the perfect place to invest for the following reasons:

  • It has a strategic geographical location, it is located in the heart of MENASA (Middle East, North Africa, and South Africa). Also, it allows trade with these regions of the world.
  • It has a very stable financial and banking system
  • The taxes in this region are the lowest in the world
  • The economy is proactive and constantly evolving
  • As an incentive for new investments, they have an entire support system to facilitate the formation of an Industrial Company.

7. How to set up an Industrial Company in Dubai Industrial City?

The Industrial Company Formation process in Dubai Industrial Park is very similar to the process of setting up an onshore company in Dubai.

Firstly, you must choose the productive activity of your company, select the trade name (which must be related to the productive area), prepare the memorandum of association, and take the corresponding documents to the relevant government authorities.

Then, once the documents are ready, you will be given a registration certificate and business license.

Dubai Industrial Park has, at the present time, six areas in which companies can work. Each area is dedicated to a specific productive activity, like the following:

  • The transport area
  • The machinery area
  • The food and beverages area
  • The mineral production area
  • The base metal area
  • The chemicals area

 7.1 What is Dubai Industrial City?

Dubai Industrial City is the free zone in Dubai that focuses on manufacturing industries. It opened in 2004 and recently its name changed to Dubai Industrial Park.

7.2 What type of Industrial Company can settle in Dubai Industrial City?

At this point, Individuals or legal entities can establish limited liability relationships in Dubai Industrial City. Subsequently, foreign companies can open extensions of their offices or enter into joint ventures with other companies in Dubai.

The industries allowed to settle in Dubai Central Park (in addition to manufacturing) are:

  • Machinery
  • Transportation
  • Logistics
  • Food and beverages

Also, Manufacturing Companies in Dubai Central Park can process metals, minerals, and even chemical materials.

8. In which way can we help you with the setup of your Industrial Company in Dubai?

When it comes to Industrial Company Formation in Dubai, Connect Zone is the perfect partner to carry out this process. We are your trusted agency that will take care of all the paperwork, legal and administrative aspects so that your only concern is to focus on the formation of your new business. Also, we will provide you with the best places to locate the headquarters of your company.

Here at Connect Zone, we care about your safety and the security of your investment, which is why we assume the role of your local agent, to guarantee a safe process.

Would you like to connect with us?  If you want to learn more about Connect Zone and how to set up an Industrial Company in Dubai, you can call us at +97143316688. Also, you can contact us via email at info@connectzone.ae, where you will speak with one of our advisors who will answer all your questions.

Besides, if you are looking for a job in the UAE and other regions, feel free to visit thetalentpoint.com. Do not worry, your information will not be shared or stored in any database.

How to set up an industrial company in Dubai?

industrial company

The diversification of Dubai’s economy opened up a gap to new methods of income. Among them, the industrial company is an important asset in this Emirate. A strategic location, state-of-the-art equipment, and a successful market set Dubai a perfect center for establishing manufacturing companies of any category.

In this article, you will learn all about setting up an industrial company in Dubai. Plus the long list of business activities you can do. On the other hand, you will find out what steps to take to make the process run smoothly. Moreover:

  1. What types of activities are manufacturing companies in Dubai engaged in?
  2. Why should you start an industrial company in Dubai?
  3. Where is the best area in Dubai to start an industrial business?
  4. How to open an industrial business in Dubai?
  5. What can you do with an industrial license in Dubai?
  6. How much will it cost to form an industrial business and obtain an industrial license?
  7. How can we help you in the UAE VAT Registration process?

1. What types of activities are manufacturing companies in Dubai engaged in?

Dubai is famous for its wide economic activities’ diversity. Foreign investors see the Golden City as a zone for establishing manufacturing companies. That is to say, enterprises aimed at manufacturing products from raw materials, focusing on the use of machinery rather than human power.

Therefore, the idea of industrial companies is to create as many goods and services as possible through automated systems using the UAE’s tech developments. On the other hand, there are multiple types of activities performed by industrial companies in Dubai. These can be:

  • Base metal engineering
  • Chemicals
  • Transportation
  • Food and beverage
  • Machinery
  • Mining
  • Energy
  • Textile

There are other types of companies that work with product manufacturing in Dubai like clothing, hardware equipment, or hydrocarbons. However, companies linked to oil, gas, and telecommunications do have some restrictions when it comes to 100% ownership. Of the rest, all manufacturing companies keep the same benefits, rights, and duties.

2. Why should you start an industrial company in Dubai?

Dubai is a world-class financial center. Any foreign entrepreneur wishing to start an industrial company in Dubai should know the following key points about business setup in Dubai:

  • Strategic location: Dubai is a city with two of the best international airports and world-class infrastructure allowing investors to access the city with ease.
  • Local and foreign talent: There is a wide range of local professionals ready to run the machinery of a manufacturing company. Furthermore, the UAE’s pro-migration policy allows entrepreneurs to access a highly trained pool of foreign talents from anywhere in the world.
  • Foreign Investors market: Dubai is one of the best investment cities in the world. Therefore, UAE authorities have flexible policies for company formation. Consequently, the rules and guidelines allow investors to establish themselves with ease and have high levels of productivity.
  • Broad customer base: Dubai’s large population, coupled with its successful market, allows access to a wide variety of customers. In addition, its strategic location allows access to consumers in the Middle East, Africa, and South Asia which may allow for future expansion into other markets

2.1 Other key points to consider are:

  • One of the lowest tax rates within the Middle East territory
  • Easy access to logistics equipment and means of transport for products and goods
  • Economical foreign and domestic labor force.
  • High-class infrastructures such as business centers, warehouses, and offices
  • Low cost of resources and energy sources. In addition, Dubai promotes green manufacturing. Resulting in an environment that seeks to promote more environmentally conscious companies.
  • Constant market development and growth. Providing new opportunities for local entrepreneurs.

3. Where is the best area in Dubai to start an industrial business?

Throughout Dubai, there are multiple Free Zones dedicated to business start-ups like Dubai Multi Commodities Centre (DMCC). However, if your vision is to start an industrial business, it is best to do it in Dubai Industrial City.

Since its launch in 2004, Dubai Industrial City (DIC) is home to more than 500 operational local and international companies. Thanks to its robust infrastructure, tech resources, and competitive enterprise structures and services, DIC aims to be a hub for manufacturing companies to grow with ease.

The DIC is located between Al Maktoum Airport and near Jebel Ali Port. In addition, the area has total free traffic driveways connected to Sheikh Mohammed Bin Zayed Road and Emirates Road. It allows access to different types of company structures such as LCC structure, branches, and subsidiaries according to the owner’s license.

Likewise, the DIC guidelines permit maintaining 100% foreign ownership; it has no personal income or corporate taxes and allows full repatriation of invested/generated assets and capital.

4. How to open an industrial business in Dubai?

Although there are very few restrictions for opening an industrial business in Dubai, the procedure is quite simple. All you have to do is to follow the next 10 steps to the letter:

4.1. Choose the type of industry

To get started in the Dubai industrial market, it is necessary to define your industry sector. In other words, choose the appropriate product you would like to develop.

4.2. Find a local partner

Secondly, you should look for a local partner to help you establish your Gulf business easily within the UAE. In this way, you will gain an ally within Dubai who can advise you 24/7.

4.3. Pick a trading name

The next step is to select a name that fits your corporate identity and Dubai’s guidelines on the subject. Remember to avoid abbreviations, religious references and, if you use a proper name, it should be that of the owner or a shareholder.

4.4. Initial approvals

To get started, you must obtain initial approval from the Department of Economic Development (DED). You will need to provide a copy of your passport and your detailed business plan to open your industrial company in Dubai. This will allow you to get approval on your trading name and future requirements.

Likewise, it is important to note that you will require some extra permits according to the type of business. For example, some industrial activities may be harmful to humans and the environment. Therefore, it is necessary to obtain additional approvals before setting up in Dubai.

4.5. Post Approval Memorandum of Association

After obtaining approval for the product and trading name, it is time to sign the Memorandum of Association (MoA). For clarification, a draft of the MoA should be taken to the notary’s office for owners and shareholders to sign before submitting it to the DED.

4.6. Get a signed NOC

After submitting the required documents, you must obtain a NOC. The No Objection Certificate will allow you to start your manufacturing company operations as soon as possible. For this, you will need a NOC from the Ministry of Economy and Trade. You can obtain it by attaching the necessary documents.

4.7. Locating a commercial space

Choosing a warehousing space or a commercial office is critical. You must choose a location and look for a space to rent or buy. One of the biggest advantages that Dubai has is the wide variety of spaces equipped for industrial businesses.

Also, remember to look for a space that meets the construction measurements according to Dubai regulations. To get a trade license further on, virtual offices are not permitted.

4.8. Ejari and tenancy contract

After choosing the commercial and warehousing space, you must obtain your Ejari registration, the tenancy contract, and a barcode for future reference. Each one will be unique and unrepeatable.

4.9. Last requirements and approvals

Depending on the type of activities and products, you will need to obtain additional permits. For example, obtain approval from the Dubai Municipality and a NOC from the civil defense. This will help you to obtain an industrial clearance.

Similarly, depending on your product, you will also need different approvals. For instance, food control, narcotics department, or Dubai police could be some of the cases.

4.10. Get a valid trade license

Once all the requirements have been met, the only thing left to do is to opt for a trade license. In the case of manufacturing companies in Dubai, the most advisable is to opt for an industrial license.

4.11. Apply for a residential visa

Because you will need a physical workspace, it is essential that you apply for a visa. Depending on your purchasing power it can be a short-term visa, i.e. 3 years, or a Golden Visa which has a longer duration.

5. What can you do with an industrial license in Dubai?

There are three different types of trade licenses in the UAE (industrial, professional, and commercial) and each covers a different set of activities.

Therefore, the industrial license allows its holder to work within the manufacturing industry with freedom focusing on sectors such as food, textiles, metallurgy, heavy equipment and engines, hydrocarbons, and paper.

Getting an industrial license is the final step before opening an industrial business in Dubai because it is the one that guarantees that the business owner has fulfilled all the requirements to operate in the UAE. The license is yearly renewable

5.1 How can you get an industrial license in Dubai?

Among the steps to follow are:

  • Obtain the appropriate permits from the Dubai authorities.
  • After three months from the receipt of the authorization, you must apply for your license through DED.
  • The DED intermediary will notify you of the status of your license within 15 days.
  • Obtain a permit from the city council to build or modify the manufacturing business space. You will also need approval from the Chamber of Commerce and Industry, the Industrial Registry, and the Ministry of Health.
  • Submit the required documents according to the specifications

6. How much will it cost to form an industrial business and obtain an industrial license?

Dubai’s policies ensure that the company formation process is fast and cost-effective for both foreigners already resident in Dubai and newcomers.

In this regard, the total cost of manufacturing company formation can vary from AED 9,000 to AED 15,000. On the other hand, the license fee can range from AED 10,000 to AED 50,000 annually.

7. How can we help you to set up an industrial company in Dubai?

To sum up, starting an industrial business in Dubai is a perfect option to enter the Emirati market. If you know your product well and have a structured business plan, it is possible to start operations in a short time. At Connect Zone we have more than 20 years of experience helping local and foreign investors to set up their business in Dubai.

Our team is ready to assist you during every stage of the company formation. In addition, we can provide you with bookkeeping services, VAT registration systems, and consultancy services. Likewise, if you are interested in long-term residency in the UAE, we also offer specialized visa services to help you obtain your residency quickly, easily, and cost-effectively.

Would you like to contact Connect Zone to help you set up an industrial business in Dubai Mainland or Free Zone? If you have any questions, call us on +97143316688. Likewise, you can email us at contact@connectzone.ae, and you will talk to one of our representatives who will answer your questions.

In addition, to receive extra information attach your CV or resume to thetalentpoint.com. There is no need to worry, your personal information will not be stored or shared.