Opening a commercial register in Dubai for Saudis

٠٧ مارس Opening a commercial register in Dubai for Saudis

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Opening a commercial register in Dubai for Saudis is a strategic step toward entering one of the region’s strongest economic markets. Dubai boasts a favorable investment environment that offers numerous benefits, such as full foreign ownership, tax exemptions, and advanced infrastructure, making it an attractive destination for Saudi investors. With legal facilitations and simplified procedures, Saudis can establish their companies in various sectors, whether within free zones or on the Dubai mainland. However, opening a commercial register in Dubai for Saudis requires fulfilling a set of conditions and procedures that ensure compliance with local laws and obtaining the appropriate licenses. In this article, we will review the key requirements, necessary steps, and benefits Saudis receive when establishing their companies in Dubai, helping them achieve success in a competitive and thriving business environment.

Table of Contents

Opening a Commercial Register in Dubai for Saudis

Opening a commercial register in Dubai allows Saudi investors to benefit from the UAE’s thriving business environment. The procedures are easy and flexible, and Saudis can establish their companies in Dubai, whether on the mainland or in free zones.

Steps to Open a Commercial Register in Dubai for Saudis

Determining the Type of Business Activity
The investor must choose the appropriate business activity, whether commercial, industrial, service, or professional, as this choice affects the type of commercial license required.

Choosing a Trade Name
The trade name must be chosen in compliance with the laws of the Dubai Department of Economic Development (DED), and must be available and not previously registered. It must also reflect the nature of the business activity and not contain words that violate regulations.

Determining the Legal Form of the Company
Saudis can establish sole proprietorships, limited liability companies (LLCs), or joint-stock companies, with the possibility of opening branches of existing Saudi companies.

Obtaining Initial Approvals
After determining the activity and trade name, an application for initial approval is submitted to the DED, which allows the investor to proceed with the incorporation procedures.

Preparing the Articles of Association and Lease Contract
Opening a commercial register requires preparing the company’s articles of association and notarizing them with the relevant authorities. Additionally, an official lease contract for the company’s headquarters must be submitted, which must be registered in the Ejari system.

Issuing a Commercial License
After completing all the required paperwork, the fees must be paid and the investor receives the commercial license that officially allows the investor to practice the activity.

Registering with the Chamber of Commerce and Opening a Tax File
The company must be registered with the Dubai Chamber of Commerce and, if required, open a tax file with the Federal Tax Authority.

Documents Required to Open a Commercial Register in Dubai

To obtain a commercial register in Dubai, a set of official documents must be provided to ensure the successful completion of the legal procedures. Requirements vary based on the type of business activity and the legal form of the company, but in general, the required documents include the following:

Copy of Passport

A clear copy of the passport must be provided for all partners in the company (if any), ensuring that the passport is valid.

Copy of Residence Visa or Entry Stamp

If the investor is a resident of the UAE, a copy of the residence visa or entry stamp page must be provided.
Emirates ID (if applicable)

If one of the partners is a resident of the UAE, a copy of their Emirates ID card must be provided.
Trade Name Registration Application

A trade name reservation application must be submitted through the Dubai Department of Economic Development (DED). The name must be compliant with applicable laws and regulations.
Initial Approval Application Form

The initial approval application form must be submitted to the relevant authority to initiate company registration procedures.
Company Articles of Association (for limited liability companies or joint stock companies)

If establishing a limited liability company (LLC) or joint stock company, the articles of association must be notarized by a notary public.
Company Headquarters Lease Contract

A lease contract for the company’s headquarters must be provided and registered in the Ejari system of the Dubai Land Department.
Approval from the relevant authorities (if required)

Some commercial activities require special approvals from specific entities, such as the Ministry of Economy, the Health Authority, or the Department of Tourism, depending on the nature of the activity.
Company Registration with the Chamber of Commerce

After completing all procedures, the company must be registered with the Dubai Chamber of Commerce to obtain the necessary membership to practice the activity.

The cost of opening a commercial registration in Dubai for Saudis

The cost of opening a commercial registration in Dubai varies based on several factors, such as the type of business activity, location (mainland or free zone), and fees from relevant authorities. Costs include several key components, including trade name registration fees, initial approval fees, and the cost of issuing and renewing a commercial license.

In addition, the cost depends on whether the investor prefers to establish their company in a free zone, which often offers special packages including a commercial license and residency visas, or on the mainland, where fees vary depending on the activity. Choosing a physical office for the company’s headquarters or utilizing virtual offices also affects the total cost.

In addition, there are some potential additional fees, such as the articles of association and notarization fees, Chamber of Commerce registration fees, and residency visa fees for investors and employees. These costs can vary based on the company’s needs and operational requirements.

In general, Saudi investors are advised to consult consultants specializing in company formation in Dubai to obtain an accurate cost estimate based on the type of activity and licenses required. This helps them better plan their finances before starting their business.

How to Start a Successful Investment in Dubai?
Investing in Dubai is a golden opportunity for ambitious investors thanks to its advanced economic environment, flexible legislation, and world-class infrastructure. To ensure the success of your investment project, it is essential to follow well-thought-out steps and benefit from the services of specialized companies such as Itqan, which provides comprehensive support to smoothly establish your business.

1. Determine the Appropriate Business Activity
The first step towards a successful investment is choosing the right business activity, whether in the commercial, industrial, or service sectors. Dubai offers a wide range of investment opportunities that suit various sectors, with the possibility of establishing a company on the mainland or in one of the free zones, depending on your needs.

2. Choose the Legal Structure of the Company
Determining the type of company is essential. You can choose between a Limited Liability Company (LLC), a branch of a foreign company, a sole proprietorship, or other types of companies. The Itqan team helps you choose the most appropriate structure for your business.

3. Obtaining Licenses and Permits
To obtain a trade license, you need to fulfill certain requirements, such as registering a trade name, obtaining government approvals, and preparing articles of association. Itqan helps you prepare the required documents and expedite the process.

4. Opening a Company Bank Account
A business bank account is a necessary step for managing your financial transactions. Itqan provides specialized advice to help you choose the right bank based on your business type and needs.

5. Choosing the Right Business Location
Whether you need a physical office, a virtual office, or a warehouse, Itqan offers flexible solutions that suit the nature of your business and regulatory requirements.

6. Obtaining an Investor Residence Visa
Dubai offers residence visas for investors and entrepreneurs, granting you legal residency and the ability to easily manage your business. Itqan handles the visa application process to ensure a speedy completion.

7. Starting Business Operations and Marketing
After completing all the procedures, you can start operating your business. Itqan provides additional support in the areas of financial consulting, business planning, and digital marketing to help you achieve success and sustainability in the UAE market.

In conclusion, opening a commercial registration in Dubai for Saudis is a smart choice for those wishing to expand their businesses and take advantage of the emirate’s tremendous economic opportunities. Thanks to flexible legislation, swift procedures, and advanced infrastructure, Saudi investors can easily establish their companies and launch themselves in a growing market that welcomes entrepreneurs. By adhering to the required conditions, choosing the appropriate activity, and taking advantage of the benefits Dubai offers to investors, Saudis can achieve sustainable success in a global business environment. So, if you are considering opening a commercial registration in Dubai for Saudis, don’t hesitate to begin your investment journey and take advantage of the outstanding opportunities Dubai offers investors from around the world.