How to set up a civil company in Dubai

The requirements to apply for a civil company formation.

Since civil companies provide professional services, you must be a qualified professional in fields like law, medicine, accountancy, engineering etc. There are no limitations on the owner's nationality but a Local Service Agent (LSA) must be appointed for the formation of the company if the owners are not nationals of UAE or GCC. 

An LSA provides necessary services to the company like support from the Department of Immigration, the Department of Economic Development (DED), and the Ministry of Labour. They are free from liabilities related to the company whether inside or outside the UAE. Appointing an LSA requires a Service Agent agreement and always remember that the Local Service Agent is not a local sponsor, so they won't be able to hold a stake in your company. These are a few of the requirements to begin your venture into forming a Civil company among mainland business setups in Dubai.

Documents required to apply.

• Copy of all partners' and managers' passports, visas etc. 

• Application- signed by all foreign partners and Legal Service Agent.

• Shareholding company's documents.

• Proposed name of the company, which can be in Arabic, English or abbreviations.

• Partnership agreement with details of capital, shareholding and profit-sharing.

• Office attested Tenancy Contract from Land Department.

• Local Service Agent's passport copy.

• Local Service Agent agreement. 

What are the processes for forming a civil company in Dubai?

Company Name- At first, choosing a company name might seem like an easy job, but it must fall under the rules and regulations of the Department of Economic Development. The name also needs to be distinct enough to stand out and it must be in either English, Arabic or it can be in abbreviations. 

Choose a business activity- You must already know this if you've been planning to form a Civil Company early on. But choosing the activity is a must since you need to have clarity on what type of business license to apply for.

The location- Many services a Civil Companies handle cannot be conducted in a virtual workplace and in the UAE it is necessary to find an office space for registration. 

Partnership Agreement- A partnership agreement must be executed and prepared in front of the honourable court. Also, the MOA must be ready because it is one of the most important documents of a company. It outlines the power within which the company can act. 

Local Service Agent- As mentioned earlier, the role of an LSA is significant for a company among other mainland business setups in Dubai. A local service agent agreement is between the LSA and foreign partners and it will contain details about the functioning of the company.

Application- make sure you get approvals from the required sectors. After gathering the required documents you can send your application to the jurisdiction you chose and get the paperwork done. 

These are some of the main processes and details to get your Civil Company formation started. But why should you start a Civil Company in Dubai? 

The Benefits!

Fast and Simple- The best part of the Dubai mainland business setup is it can be established fairly quickly. Setting up a Civil Company in Dubai is an even simpler process. It is pretty straightforward and all you need to do is follow the short processes and apply for a license. 

Startup Expense- The most advantageous part of forming a Civil Company is that the amount of money you need to spend for a license is approximately AED 17,000. You can apply for a Civil Company in a cost-effective and hassle-free set-up. The upfront share capital can be safe in your hands since it's not necessary to share it, so you can start a business at low-cost 

Multiple Visas- The civil companies in Dubai are famous for enabling entrepreneurs the opportunity to apply for multiple visas and the mainland business setups of Dubai are said to have no defined limits. But with more visas, the workplace will require more space, that's why the workplace will get 100 sq.ft of office space per visa. 

Foreign Ownership- Unlike LLCs (51% of which has to be owned by a local sponsor) and other Dubai mainland business setups, a Civil company lets you enjoy 100% foreign ownership. It is not required to affiliate with a local sponsor when you opt for a Civil Company. 

Corporate Bank Account- After you successfully receive a license and finish setting up your Civil Company, you must open a corporate bank account. The process of opening one can become easy once you form a Civil Company. 

In closing, Dubai is a global business hub that can have a great effect on the growth of your business. Starting a Civil company, AKA Professional Company in Dubai takes very little effort and it is a direct, unsophisticated process. Civil companies come with their own set of benefits that will help in your venture greatly. Excel at the service you plan to provide with great assistance from the government by utilizing the opportunities the government provides. The city is constantly growing and successfully adapting to technological advancements. Every mainland business setup in Dubai can experience tremendous growth with some determination and making use of the opportunities the land is providing. Taking all of the factors into consideration, this might be the perfect time to start your venture.