Opening a commercial register in Dubai represents a promising strategic step for Saudis seeking to expand their businesses and investments outside the Kingdom. Dubai is a vital gateway for business and trade in the Middle East, offering an ideal investment environment that combines advanced infrastructure and encouraging economic policies. Opening a commercial registry in Dubai allows Saudis to access new markets and offer their services and products to a global audience, which enhances growth and expansion opportunities for Saudi companies. In this article, we will take a look at the basic steps to open a commercial register in Dubai, including legal requirements and administrative procedures, in addition to reviewing the economic and strategic benefits of this step for Saudi businesses.
Opening a commercial register in Dubai for Saudis
Opening a commercial registry in Dubai means establishing a company in Dubai or an official commercial institution that is legally registered in the Emirate of Dubai. This includes registering the company or institution in the Dubai commercial registry and obtaining the necessary licenses to practice commercial activities.
The procedure requires submitting a number of documents and information to the competent government authorities in Dubai, such as the Department of Economic Development or the General Authority of Commerce and Industry in Dubai, depending on the type of company and the chosen business activity.
The reasons that may push individuals or companies to open a commercial register in Dubai include benefiting from the advanced economic environment, tax and customs facilities, and advanced infrastructure, in addition to access to broad markets in the Middle East and the world.
Once the procedures for opening the commercial register are completed, the company or organization has an official legal presence in Dubai, which makes it easier for it to conduct business, participate in contracts, and conduct commercial transactions legally and reliably inside and outside the UAE.
Basic steps to open a commercial register in Dubai
To open a commercial register in Dubai , several basic steps must be followed, including the following legal and administrative procedures:
- Determine the type of business activity: You must first determine the type of business activity you want to practice, and ensure that it is in line with local regulations and legislation in Dubai.
- Selection of partners and shareholders: If the company is a partnership or joint stock company, the partners must be identified and their percentage of contributions and roles determined.
- Choosing a company name: You must choose an appropriate name that is compatible with local regulations, and ensure that it is not similar to the names of existing companies.
Submitting the application to the Department of Economic Development: Submit the application and required documents to the Department of Economic Development in Dubai or the relevant government entity based on the type of activity. - Obtaining the necessary approvals: Some activities may require additional approvals from relevant authorities such as the municipality or civil defense as needed.
- Payment of fees and costs: Pay the fees required to process the registration application and obtain the commercial license.
- Receiving the commercial license: After approval of the application, you will obtain a commercial license that enables you to practice commercial activity in Dubai.
The main benefits for Saudis in opening a commercial register in Dubai
Opening a commercial register in Dubai provides Saudis with many key benefits that contribute to enhancing business and achieving success in the UAE and regional market in general. Among the main benefits the following can be mentioned:
- Access to a large and diverse market: Dubai is a gateway to accessing a wide and diverse market in the Middle East, which allows Saudi companies to expand and increase their market share.
- Advanced Infrastructure: Dubai has a modern and advanced infrastructure that includes international airports, sea ports, and advanced transportation networks, which facilitates transportation and distribution and supports commercial activities.
- Customs and tax facilities: Dubai free zones offer easy customs and tax facilities, including tax exemptions on profits and customs exemptions on import and export, which reduces costs and increases profitability.
- Full ownership by foreigners: UAE law allows foreigners, including Saudis, to own 100% companies in free zones, which increases investment flexibility and confidence.
- Favorable legislative environment: Dubai has a favorable legislative environment for business, with laws and legal systems that protect the rights of investors and facilitate administrative and legal procedures.
- Access to diverse experiences and skills: Dubai provides a diverse international work environment that attracts competencies and talents from all over the world, which helps Saudi companies enhance their efficiency and develop their capabilities.
- Strategic cooperation: By opening a commercial register in Dubai, Saudi companies can benefit from strategic cooperation with international and local companies, which contributes to expanding their networks and opening a new horizon for growth and development.
Documents required to open a commercial register in Dubai
To open a commercial register in Dubai , the required paperwork varies slightly depending on the type of company and business activity chosen. Here is a general list of basic documents you may need:
- Company Registration Form: It is the official form that contains company information such as company name, company type, headquarter address, scope of business activities, and details of shareholders and directors.
- Copy of passport: for shareholders, directors and any other partners in the company. The passport must be valid.
- A copy of proof of residency: Some UAE authorities may require a copy of proof of residency for shareholders and directors, especially if they are residents of the UAE.
- Business Plan: A document that explains the company’s goals and future plans for its business, in addition to a detailed description of the services or products that the company will provide.
- Deposit Permit: Limited companies (LLC) are required to submit a capital deposit declaration at the designated bank.
- Required licenses: Licenses vary depending on the type of business activity, such as a general commercial license, professional license, or special industry licenses.
- Memorandum of Association: A document that defines the structure and details of the company such as its activities, scope, and the shareholding percentage of each partner.
- Special permits: Special permits if the activity requires special permits, such as medical, food, or engineering activities.
- Necessary visas: If residence visas are required for foreign managers or employees.
- Preliminary financial reports: Some regulators may require preliminary financial reports to evaluate the stability and reliability of a company.
The cost of opening a commercial register in Dubai
The cost of opening a commercial register in Dubai is affected by several factors, including the type of company and commercial activity, and the geographical area you choose in Dubai. Here’s an overview of the factors that affect cost:
- License costs: Licensing costs vary depending on the type of business activity and the license required, such as a general business license, professional license, or special industry licenses.
- Registration and visa fees: These fees include fees for registering the company with the commercial registry, and visa fees if visas are required for foreign directors or employees.
- Legal and accounting consulting fees: You may need legal or accounting consulting to advise on company structure, licenses and tax obligations, which can increase costs.
- Administrative services fees: These fees include administrative services provided by government agencies, such as processing applications and permits.
- Office rental costs: If you need an office in Dubai, rental costs are part of the overhead costs to consider.
At the conclusion of our article about opening a commercial register in Dubai for Saudis, we find that this step represents an important and motivating opportunity for Saudi individuals and companies seeking to expand into foreign markets such as Dubai and the Emirates in general. Dubai offers modern infrastructure and an advanced legal and economic system, providing an ideal environment for business and investments.
Through the commercial register, Saudis can benefit from the tax and customs facilities available in free zones, in addition to the possibility of 100% ownership of companies without the need for a local partner. They also have access to Dubai’s vibrant local market, which is a gateway to regional and global markets.
Opening a commercial register in Dubai reflects the desire of companies and individuals to benefit from available investment opportunities and promote international growth and expansion. By taking advantage of advanced infrastructure and modern legislation, Saudis can achieve their business goals efficiently and with confidence.
The most important frequently asked questions about opening a commercial register in Dubai
What are the different types of companies that can be established in Dubai?
Includes limited companies, sole proprietorships, public or closed joint stock companies, and partnerships.
Can foreigners own 100% of their companies in Dubai?
Yes, in free zones and special economic zones, foreigners, including Saudis, can own companies 100% without the need for a local partner.
What licenses and permits are necessary to establish a company in Dubai?
Licenses vary depending on the type of activity, and can include general business licenses, professional licenses, and special industry licenses.
What are the tax and customs benefits of establishing a company in the free zones in Dubai?
Companies in free zones enjoy tax exemptions on profits, and customs facilities such as not imposing duties on import and export, which helps reduce operational costs.
What are the procedures for signing contracts and commercial transactions after opening the commercial register?
After opening the commercial registry, the company can participate in contracts and commercial transactions legally and reliably, in accordance with local laws and legislation.
