This document outlines the procedure for registering a new company in Dubai. It involves selecting a company name, preparing memorandum and articles of association documents, submitting documents to the Department of Economic Development, and obtaining a certificate of incorporation. It also discusses forming a Limited Liability Company (LLC) which requires a minimum of two partners, up to 49% foreign ownership, and 51% local sponsor ownership. The minimum capital required to form an LLC is AED 300,000. Professional fees for registering an LLC range from AED 200 to AED 12,000 depending on the services required.

1. DUBAI NEW COMPANY REGISTRATION
PROCEDURE
B C Shetty & Co., Chartered Accountants

2. COMPANY FORMATION PROCEDURE
.
•Promoters
•Check Name
availability
•All the documents needs
to be signed in front of
Certified Public Accountant
or a solicitor in
Singapore.***
•Look for location
of company
•Submission of MOA
and AOA along with
other documents * to
ACRA**
• Directors details
along with ID proof
and residential proof.
One of the Directors
should be resident of
Singapore
• Shareholders details
along with ID proof
and residential proof

3. COMPANY FORMATION PROCEDURE (CONTD.)
*
•Certificate of Incorporation will be obtained after a week
•Commencement of Business
•Opening of
bank account
•Appointment of Secretary
within Six months of
incorporation*
*Company Secretary shall be a locally resident individual
•Board Meeting

4. LLC
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A Limited Liability Company can be formed by a minimum of two
and a maximum of 50 persons whose liability is limited to their
shares in the Company's capital. The time required to form a
company will be approximately 1-2 weeks from the date of receipt
of all the documents. and procedures and the breakdown of the
cost can be given upon request.
The Majority of Companies with expatriate partners have opted for
this Limited Liability Company, due to the fact that this is the only
option which will give maximum legal ownership i.e. 49% to the
expatriates for a trading license.
Fifty-one per cent participation by UAE nationals is the general
requirement for the Limited Liability Companies. Therefore the
normal shareholding pattern for an LLC will be:
Particulars
Share
Local sponsor(Partner)
51%
Foreign Shareholder (s)
49%

5. STEPS TO ESTABLISH LLP.
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Selecting a commercial name for the company and having it
approved by the licensing department of the economic
department.
Drawing up the company’s memorandum of association and having
it notarized by a notary public in the Dubai courts.
Seeking approval from the economic department and applying for
entry in the commercial register.
Once the approval is granted, the company will then be entered
into the commercial register and have its memorandum of
association published in the ministry of economy and commerce’s
bulletin. The license will then follow, which will be issued by the
economic department
The company should then be registered with the Dubai chamber of
commerce and industry.

6. IMPORTANT POINTS
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Minimum capital required is AED 300,000 (US$ 82,000), and should
be contributed in cash. Whilst foreign equity in the Company is not
permitted to exceed 49%, profit and loss distribution can be agreed
mutually
The various fees and charges paid at different levels vary depending
on activity, premises rent etc. Estimated at AED 30,000

7. SCOPE OF WORK
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Obtain Approval for Trade Name from Department of Economic
Development.
Obtain approval from the Immigration Department for Expatriate
Owner (if the 49% shareholder is an individual/individuals).
Obtain Initial Approval for the Activity from Department of
Economic Development.
Obtain Approval/no objection from concerned Ministry/Authority.
Registration in Ministry of Economy.
Prepare and Review the Memorandum of Association.
Notarize the Memorandum of Association from the Court.
Prepare the side agreement.(by the local partner stating that the
51% he is holding is for the expatriate partner)
Obtain Approval for the Office Premises.

8. SCOPE OF WORK (CONTD.)
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Assistance in opening a bank account.
Follow up with Department of Economic Development until
issuance of license.
Complete the formalities with Chamber of Commerce to obtain the
Membership Registration Certificate.
Obtaining approvals from other Departments, if necessary.
Immigration and Labor File Opening.
Work Permit for the Partner and Manager

9. BENEFITS
- Lower Corporate tax
at 17%
- Rebate for first 10,000
75% exempt, next
290,000 50% exempt.
- For start up companies
with individual
shareholding of at least
10%, there is a tax
concession for the first
three assessment years,
whereby there will no tax
on income up to
S$1,00,000.
- Capital Gain is exempt
from tax
If the local turnover of
the Company exceeds
S$ 1M, company has to
register with GST
authorities and collect
7% and remit to the
Govt. They can offset all
input taxes. On exports,
there is no GST and
Govt would refund input
tax suffered where
applicable

10. PROFESSIONAL FEES
Particulars
Amount in
AED
Trade name approval
200
Initial Approval from Department of Economic Development
100
Trade license Fee (Department of Economic Development
5000
Abu Dhabi Chamber of Commerce & Industry
4000
Ministry of Economy
3000
Legalization of LLC Agreement & Side Agreement
1500
Sign board sketch
500
Department of IT - say
12000
Bank letter – for Capital remittance - Refundable upon issuance of 300000
license)
Immigration and Labor File Opening
3000
Sponsor ship fee. – say 20,000. – ( 50% of it initially to be paid.)
10000

11. Thank You.
Please feel free to Contact
Mr. Sathya Hegde
BBM,FCA,CPA
Partner
B C Shetty & Co.,
Chartered Accountants
Mobile :+91 9945179868
Mail Id: sathyahegde@bcshettyco.com