Opening a commercial register in the Emirates for Saudis

Opening a commercial register in the UAE is an important strategic step for Saudi investors seeking to exploit the wonderful economic opportunities offered by the country. The UAE, especially Dubai and Abu Dhabi, is considered one of the most prominent business destinations in the Middle East, thanks to the dynamic and stimulating business environment it provides. The UAE is home to many international and local companies, making it an ideal destination for business expansion and seeking new opportunities.

For those wishing to open a commercial register in the Emirates , there are a set of procedures and requirements that must be adhered to. These procedures begin by determining the type of business activity you wish to operate in, which directly affects the type of license required and the location where the company will be registered, whether in a free zone or outside it. At the same time, opening a commercial register requires compliance with local laws and the submission of certain documents such as passports, articles of incorporation, and data about the business activity.

By opening a commercial register in the UAE, Saudi investors can benefit from many benefits such as tax exemptions, 100% ownership of companies in free zones, and facilitation of customs procedures. The UAE also offers advanced infrastructure and advanced financial and commercial services, which enhances the chances of business success and sustainability.

Basic steps to open a commercial register in the Emirates

Opening a commercial register in the UAE requires following a set of basic steps to ensure compliance with local laws and obtaining the necessary license. Here are the basic steps to open a commercial register in the UAE:

1. Determine the type of business activity: Determine the type of business activity you wish to engage in. Business activity will affect the type of license required.
2. Choose the type of company: Choose the type of company you want to establish, such as a limited liability company (LLC), private joint stock company, free zone company, or sole proprietorship.
3. Choosing a company name: Choose a trade name that is consistent with the laws of the UAE. Make sure the name is not already registered and does not conflict with other names or trademarks.
4. Preparing legal documents: Prepare the required documents such as passports, proof of address, CVs of the founders, and articles of incorporation.
5. Office Rental: Get a rental contract for a commercial office in the UAE. The office can be physical or virtual, depending on the type of company and the requirements of the authority.
6. Submitting a registration application: Submit a company registration application to the competent authority in the Emirates, such as the Department of Economic Development in the emirate you wish to work in or the Free Zone Authority if you are establishing a company in a free zone.
7. Obtaining the necessary approvals: If the business activity requires special approvals (such as health or educational activities), obtain these approvals from the competent authorities.
8. Pay Fees: Pay the fees associated with registering the company and obtaining a business license. Fees typically include registration fees, licensing, and any additional fees.
9. Receiving the commercial license: After completing all procedures and paying the fees, the Authority will issue the commercial license. You can receive the license from the Authority or via email.
10. Employee insurance (if necessary): If you will employ employees, obtain the necessary work and residency visas, and provide medical and social insurance.
11. Open a bank account: Open a company bank account at a local bank. You will need to submit your business license, articles of incorporation, and other required documents.
12. Comply with local laws: Make sure you comply with all local laws and regulations related to your business, including any environmental or health requirements.

Fees associated with opening a commercial register in the UAE

Opening a commercial register in the UAE requires paying a set of fees associated with registration and licensing procedures. These fees vary based on the type of company, its location, and business activity. Here’s an overview of the basic fees you may face:

• Registration fees: Fees for submitting a company registration application to the Department of Economic Development (DED) or the relevant authority. Typically includes the costs of registering the trade name and issuing a certificate of incorporation.
• License fees: Fees for issuing a commercial or industrial license, which depend on the type of business activity and the size of the company. Fees may include work permits and special licenses if required.
• Office rental fees: This includes the cost of renting a commercial office, whether it is a physical or virtual office. Fees depend on location, office size, and services provided.
• Legal incorporation fees: include the costs of preparing and documenting the company’s articles of incorporation and articles of association. It may also include legal services to ensure compliance with local laws.
• Visa Fees: Fees for obtaining work and residency visas for founders, directors and employees. It may also include medical and social insurance costs.
• Chamber of Commerce Fees: Local Chamber of Commerce registration fees if required. These fees vary according to the emirate and commercial activity.
• Additional Services Fees: Includes the costs of additional services such as printing, translation, and attestations necessary to complete the registration process.
• Renewal Fee: The company’s annual license and contract renewal fee, which is usually paid on an annual basis or according to the schedule specified by the registration body.
• Other fees: Other fees may include any additional costs related to obtaining business licenses or verifying necessary certificates.

Documents required to open a commercial register in the UAE

To open a commercial register in the Emirates , it requires submitting a set of basic documents that vary slightly based on the type of company, location and activity. Here is a list of the main documents required:

1. Passports: Colored copies of the passports of all founders and relevant directors of the company.
2. Personal photos: Recent personal photos of the founders and directors, in accordance with the requirements of the local authority.
3. Memorandum and Articles of Association: A copy of the company’s Memorandum and Articles of Association, which defines the legal structure and rights and obligations of the founders.
4. Proof of address: Proof of current address for founders and directors, such as an electricity or water bill or lease.
5. Definition of business activity: An accurate description of the business activity that the company will undertake, including the activities and services it intends to provide.
6. Approval of competent authorities (if necessary): Some activities require special approvals or licenses from governmental or other regulatory authorities, such as health or educational activities.
7. Copy of previous trade license (if it is an existing company): If you are opening a branch of an existing company, you will need a copy of the parent company’s trade license.
8. Bank report: In some cases, you may be asked to provide a bank report or proof regarding the financial status of the company or founders.
9. Details about the location: Information about the location of the office or address that will be used as the company’s headquarters, along with the lease agreement if the office is rented.
10. Local partner approval (if necessary): If the company requires a local partner (in the case of companies operating outside free zones), local partner approval documents must be submitted.
11. Insurance: In some cases, you may be asked to provide insurance documents such as medical and social insurance for employees.
12. Application forms: Application forms for the Department of Economic Development or the relevant body, which contain information about the company, its activity, and owners.

Laws and regulations that must be adhered to

When establishing a company in Dubai, you must adhere to a set of laws and regulations that govern business in the emirate. Here are the most important laws and regulations to keep in mind:

• Companies Law: This law regulates all aspects of establishing and operating companies in Dubai. Includes determining the type of company, shareholder responsibilities, and required legal procedures.
• Tax Law: Includes tax laws related to business activities, such as the value-added tax (VAT) imposed on most goods and services. Businesses must register for VAT if their sales exceed the required minimum.
• Labor Law: Regulates the rights and duties of employees and employers. Includes laws related to employment contracts, working hours, vacations, wages, and work safety.
• Licensing Laws: Companies are required to obtain the appropriate license from local authorities, such as the Department of Economic Development (DED) or the authorities of the free zone in which the company operates.
• Intellectual property laws: These include trademark, patent, and copyright laws that protect a company’s creations and innovations.
• Environmental, health and safety laws: regulate regulations related to preserving the environment and ensuring the health and safety of employees. Includes waste management standards and sanitary and preventive measures.
• Financial Compliance Laws: Companies are required to adhere to laws related to financial reporting, financial auditing, and anti-money laundering procedures.
• Trade sanctions laws: include laws that specify penalties and legal procedures in the event of violations of trade laws and regulations.

At the conclusion of our article about opening a commercial register in the Emirates for Saudis, it is clear that the Emirates offers an attractive and flexible investment environment for businesses, making it a preferred choice for Saudi investors. Thanks to its advanced infrastructure, easy legal system, and financial and tax advantages, the UAE provides distinguished opportunities for individuals and companies wishing to expand and innovate.

The process of opening a commercial register begins with thoughtful steps that include determining the type of business activity, choosing the appropriate trade name, and preparing the necessary documents. After submitting the application, investors must obtain the required licenses from local authorities such as the Department of Economic Development (DED) or free zone regulatory bodies, based on the location and nature of the activity. It is also necessary to open a business bank account and provide the necessary visas for employees, which requires careful planning and familiarity with legal procedures.

The Emirates, especially Dubai and Abu Dhabi, are considered a global trade center thanks to their strategic location and a set of advantages that include tax exemptions, customs facilities, and supportive government measures. These advantages make the UAE an ideal environment for doing business and achieving commercial success. Cooperation with specialized consulting companies can also contribute to simplifying the process and ensuring full compliance with all legal and procedural requirements.

The most important frequently asked questions about opening a commercial register in the Emirates for Saudis