Dubai is one of the most popular business hubs in the world known for its healthy business environment, liberal corporate regulations, and skilled workforce. The region has excellent relaxed tax policies that make businesses operate easily and achieve sustainable growth. Many investors and entrepreneurs visit the region to look for business opportunities, establish companies, conduct business activities and expand their business presence.
A civil company is formed when two or more individuals come together to provide various professional services like healthcare, engineering, legal representation, or accounting. The owners of a civil company can be of any nationality as long as it falls within the UAE or GCC. If one or more partners come from a nation outside these countries, a local service agent must be appointed.
A civil company has benefits like 100% ownership and access to the local market, but does involve unlimited liability. Civil company formation in Dubai is available to qualified professionals in different sectors. They can be professionals such as engineers, doctors, accountants, lawyers, consultants, with professional qualifications in their field of expertise.
Main Things to Keep in Mind When Forming a Civil Company in Dubai
1. Your trade name must be aligned with your company’s business activity.
2. Civil businesses can have several branches, allowing you to expand or incorporate a branch of another franchise.
3. Any individual is allowed to buy or sell a civil company or branch.
4. Owners are permitted to change the legal structure of their company.
5. Professionals of any nationality can do professional activities and form civil companies.
Advantages of Forming a Civil Company in Dubai
Forming a civil company in the Dubai, UAE has many benefits. Let’s have a look at some of them:
1. Quick and Easy Setup
Forming a civil company in Dubai is easy if you know the processes. In some cases, a setup can be completed even in 90 minutes.
2. Apply for Multiple Visas
Those investors setting up civil companies are allowed to apply for multiple visa types.
3. Cost Effective
Professional license applications are high compared to the ones required for forming a new civil company. A civil company does not require upfront share capital. These license fees will reduce your business setup cost.
4. Multiple Shareholders
Civil companies in Dubai allow entrepreneurs and investors to form a business with two or more shareholders.
5. Easy Access to Dependent Sponsorship
Apart from sponsoring your employees for their visas, you’ll also be able to sponsor dependents without much hassle.
6. Work with a Local Service Agent
LLCs need a local service agent who owns a 51% share of your company. But civil companies are permitted to own 100% of the company and hire UAE nationals as legal service agents.
Steps to Setup a Civil Company in Dubai
Forming a civil company, even though a hassle free process can be challenging for entrepreneurs unfamiliar with business setup processes in Dubai. Entrepreneurs can contact professional business setup consultants to help them navigate the process effortlessly. Here are some of the steps involved in the setting up of a civil company in Dubai.
1. Determine Your Business Activity
The first step in starting your civil company is to determine your business activity. Only then you’ll be able to proceed with the processes of company setup easily.
2. Register Your Trade Name
Choose a trade name and submit it to the Department of Economic Development (DED). Make sure that it has not already been claimed and does not contain profanity.
3. Obtain Initial Approval
You need to obtain an initial approval by the DED. For this you have to submit numerous important documents.
4. Submit Documents
The documents required for a civil company formation are:
Initial approval application, signed by local service agents and all foreign partners
Trade Name Certificate
Passport copies of all partners, including local service agent
Partnership agreement between local partners that details capital, profit sharing, and shareholding information.
A legal, notarized agreement with the UAE
national, appointed as a local service agent
Tenancy contract from Land Department
Address and contact information
5. Obtain License
Once you’ve submitted your civil license application and paid the fees, you’ll receive your license and can start your business operations in Dubai!
Bizvise is fully committed to helping clients start a company in Dubai, UAE. We provide advice and assistance with every aspect of the company setup. If you want to start a civil company in Dubai in a hassle free manner, make sure that you get assistance from Bisvise Business Setup team.