Opening a commercial register in Dubai for Saudis is an important strategic step for Saudi entrepreneurs and investors who wish to expand their businesses within one of the most prominent global markets. Dubai, thanks to its flexible and thriving economic environment, offers multiple business opportunities in various sectors such as trade, technology, services, and industry. The emirate also provides significant facilities in the process of opening a commercial register through innovative electronic platforms, making the procedures faster and easier. Moreover, opening a commercial register in Dubai allows Saudis to benefit from multiple advantages, such as full ownership of the company in free zones, and enjoying tax incentives and customs exemptions for long periods. Dubai is an ideal gateway for Saudi investors wishing to reach new markets in the Middle East, Asia, and Africa.
How to Open a Commercial Register in Dubai for Saudis
Opening a commercial register in Dubai for Saudis requires following several simple but important steps and procedures to ensure compliance with local laws and benefit from the facilities provided. Here are the steps to open a commercial register:
Choose the type of company: First, you must determine the type of business entity you wish to establish. In Dubai, you can choose from several types such as limited liability companies (LLC), joint stock companies, sole proprietorships, or companies in free zones. The nature of the business will affect the type of company you choose.
Determine the business activity: You must determine the activity that the company will be doing. Business activities can be chosen through specific categories in the Department of Economic Development (DED) in Dubai. Make sure that your activity is in line with the activities permitted in Dubai.
Choose a company name: Choose a trade name that complies with local laws. The name must be free of any legal or religious violations, and be consistent with the specific business activity. You can then reserve the name through the Department of Economic Development (DED).
Prepare the articles of association: It is required to prepare the articles of association of the company (if you are establishing a limited liability company), which includes the partners’ details, the company’s objectives, the percentage of ownership, the company’s headquarters, and any other terms related to the company. In case the company has an activity designated for free zones, there may be a specific contract for each zone.
Submit the required documents: A set of documents must be submitted such as a copy of the founders’ national ID or passport. Article of association. Reserve the trade name. Proof of business address (rent or ownership). Some activities may require special permits or additional licenses.
DED Registration: Submit all required documents to the Dubai Department of Economic Development to obtain approval and register the business. This process can be completed online through the DED electronic platform.
Obtaining a commercial license: After reviewing and approving the documents, you will receive a commercial license that will enable you to start your business legally.
Tax registration: If the business is subject to value-added tax (VAT), your company must be registered with the General Authority of Zakat and Income (ZATCA) to obtain a tax number.
Chamber of Commerce Registration: After obtaining the commercial license, you can register with the Dubai Chamber of Commerce as part of the legal procedures. By following these steps, Saudis can easily open a commercial register in Dubai and launch into a vibrant and promising market.
The importance of opening a commercial register in Dubai for Saudis
Opening a commercial register in Dubai for Saudis is an important strategic step that contributes to enhancing business opportunities and economic growth. The importance of opening a commercial register in Dubai for Saudis lies in several aspects, the most prominent of which are:
Expansion into global markets: Dubai is one of the most prominent commercial destinations in the world, and by opening a commercial register in it, Saudi investors can expand into new and diverse markets in the Middle East, Asia and Africa, which enhances the opportunities to reach international clients.
Full ownership: In many free zones in Dubai, a Saudi investor can own the company 100% without the need for a local partner. This provides complete flexibility in making business decisions and managing operations independently.
Tax exemptions and customs facilities: Dubai offers many tax incentives, such as tax exemptions for 50 years in some free zones, which contributes to reducing the financial burdens on new companies.
Ease of procedures: Opening a commercial register in Dubai is done through quick and simple procedures, whether online or through government agencies. This makes it easier for Saudi investors to start their commercial projects without legal complications.
Innovative business environment: Dubai has an advanced infrastructure, including transportation and communications networks, which contributes to facilitating commercial activities. The emirate also provides a flexible business environment that supports innovation and growth across sectors.
Government support and strategic partnerships: The UAE government provides significant support to businessmen and investors, which contributes to ensuring the success of business projects. The presence of global and local companies in Dubai also enhances opportunities for cooperation and strategic partnerships.
Access to capital: Dubai is a global financial center, making it easier for companies to obtain financing and investment from multiple sources, both local and international. Opening a commercial register in Dubai for Saudis provides them with a range of benefits and advantages that make it an ideal destination for establishing and growing businesses.
Does a Saudi investor need a local partner to establish his company?
A Saudi investor wishing to establish a company in Dubai does not necessarily need a local partner, as he has many options that enable him to fully own his company. If he chooses to establish his company in one of the free zones in Dubai, such as the Dubai Internet Zone or the Jebel Ali Zone, he can enjoy 100% full ownership without the need for an Emirati partner. This feature is one of the most prominent reasons that makes Dubai a preferred destination for Saudi investors, as they can make business decisions independently and without the intervention of a local partner.
However, if the investor chooses to establish his company in the local market within Dubai (outside the free zones), it may require a local partner who owns 51% of the shares, according to the laws of limited liability companies (LLC). However, in light of recent economic developments, the UAE has begun to provide many facilities, such as allowing full ownership of foreign companies in some sectors within the “National Strategy for Attracting Investment” plan, which allows the Saudi investor more freedom in choosing his business model. Therefore, the Saudi investor can make the decision to establish his company based on the type of business activity and the location he prefers to work in, which provides him with great flexibility in owning and managing his business.
Advantages of establishing a company in Dubai for Saudis
Establishing a company in Dubai for Saudis comes with many advantages that make it an ideal destination for local and international investors. The most prominent of these advantages are:
Stable business environment: The Kingdom offers a stable economic environment, supported by government policies that encourage investment and support the growth of companies, which contributes to protecting the rights of investors.
Ease of procedures: Government procedures for establishing companies have been simplified through electronic platforms such as the “Ministry of Commerce” and “Absher”, which facilitates and speeds up the procedures.
Great investment opportunities: Saudi Arabia is one of the largest economies in the Middle East, with a huge domestic market and economic diversity in sectors such as energy, technology, health, and education, which provides great opportunities for companies in various fields.
Tax incentives: The Saudi government provides encouraging tax incentives, including tax exemptions in some special economic zones and free zones.
Access to new markets: Establishing companies in Saudi Arabia gives them access to the GCC markets, in addition to export opportunities to other markets in the region and the world.
Benefit from SME support programs: The Saudi government offers many programs and initiatives to support entrepreneurs and small and medium enterprises, which helps develop projects.
Strategic location: The Kingdom enjoys a strategic geographical location between the continents of Asia, Africa and Europe, which facilitates access to large markets around the world.
Foreign direct investment: Saudi Arabia provides a legislative environment that supports foreign direct investment, as some restrictions related to foreign ownership have been abolished, allowing foreigners to own 100% of companies.
Advanced infrastructure: The Kingdom enjoys a modern and advanced infrastructure that includes transportation networks, ports, airports and communications, which contributes to facilitating business operations. These advantages make establishing a company in Saudi Arabia a strategic and profitable step for investors.
Required documents to establish a company in Dubai for Saudis
To establish a company in Dubai for Saudis, a set of documents must be provided to ensure full legal registration. These documents include:
A copy of the national ID or passport: A copy of the national ID for Saudi partners or a passport for foreign partners must be submitted, ensuring that the documents are valid.
The company’s articles of association: The articles of association are the basic document that defines the company’s structure, the partners’ percentages, and their rights and duties. This contract must be notarized by the competent authorities.
A certificate of no objection from the sponsor (for non-Saudis): Foreign partners are required to submit a certificate of no objection from the current sponsor to allow them to establish the company.
A certificate of reservation of the trade name: A trade name for the company must be reserved and approved by the Ministry of Commerce, with the certificate attached to the required documents.
A capital report: If the company’s authorized capital requires a deposit, a report must be submitted proving that the capital has been deposited in the company’s bank account.
A license for the activity (if required): If the business activity requires a special license, such as medical or engineering activities, approval must be obtained from the competent authority.
Proof of address: Submit a lease contract or proof of ownership of the company’s headquarters.
Other documents depending on the type of company: Some types of companies, such as joint stock companies, may require additional documents related to the details of the capital and the number of shares. After preparing all the required documents, they can be submitted to the Ministry of Commerce via the electronic platforms designated to complete the establishment procedures.
In conclusion, opening a commercial register in Dubai for Saudis is an important step towards achieving success and growth in a global and advanced business environment. Thanks to the facilities provided by the UAE government and tax exemptions, Saudi investors can expand into new markets and benefit from promising investment opportunities. Dubai also provides investors with the freedom to own companies in free zones, which enhances the flexibility of making business decisions and allows them to manage their projects efficiently. Dubai is not only an ideal destination for establishing companies, but it is a platform for innovation and economic growth in the Middle East region, making it the ideal choice for Saudi investors looking for new opportunities to expand their businesses and increase their profitability.
Frequently asked questions about opening a commercial register in Dubai
What are the documents required to open a commercial register in Dubai?
The required documents usually include: a copy of the passport, a copy of the residence visa (if applicable), a lease contract, specifying the type of business activity, in addition to a license application form from the Dubai Department of Economy.
How long does it take to open a commercial register in Dubai?
The process of opening a commercial register usually takes a few days if all documents are correct and complete. However, it may take longer if additional documents or special approvals are required.
Do I need an accountant or legal advisor to open a commercial register?
You may need a legal advisor or accountant to help with legal or financial matters, especially if your business is complex or requires a local partnership. Hiring local advisors can help speed up the process and ensure full compliance with the laws.
