How to Start a Civil Company in Dubai

Open a Civil Company in Dubai

The UAE is a great place to start a business. It offers many benefits, such as easy business establishment and securing a visa. You can set up a company in Dubai with the help of a company formation specialist, like EZONE.

The regulatory body responsible for granting approval for company establishment in Dubai is the Department of Economic and Tourism (DET).

A civil company is one of the legal structures incorporated in the Mainland, where there can be multiple partners who are licensed professionals in their respective fields, offering specific services. Since there are various types of civil companies, here is the necessary information you need to know when you incorporate a civil company in Dubai.

What is a Civil Company?

A Civil Company is a business partnership or establishment involving a group of two or more professionals conducting service-related or professional activities.

Civil Company Ownership

• Any nationality can be a professional partner in a civil company.
• Each partner is jointly responsible without limitation for the company’s liabilities.

Activities

A Civil Company caters to various services such as:

• Consultancy
• Educational
• Medical and healthcare
• Legal professionals/services
• Media and communications
• Design services
• Financial advisory
• Accounting
• Engineering
• Other related professions and/or services

Advantages of a Civil Company

• 100% Foreign Ownership: 100 % foreign ownership is allowed while working with a Local Service Agent (LSA) in the UAE, which is necessary to conduct business in the Mainland.
• LSA Support: LSA has no financial ownership and has the responsibility of communicating with government authorities on the owner’s behalf if necessary.
• No Limitation on Visas: Apply for more than one visa, depending on the size of the office space.
• Shareholder Structure: Shareholders are entitled to 100% company liability and are skilled in certain industry fields to participate in professional operations. The minimum number of shareholders required is two, and the maximum is 50.
• Sponsorship: Owners can sponsor company employees on residence visas.
• Limitations: Trading activities are not allowed in a professional license.

Requirements for a Civil Company

1. Clear full-page colored scanned copy of current passport – 1st page and last or signature page (if applicable)
   Note: passport must be valid for at least 6 months at the time of application submission
2. Clear passport-size photo
3. Copy of recent visa (Tourist, Residence, Cancelation, or Entry Stamped)
4. Copy of old Emirates ID (if any)
5. Non-Objection Letter issued by the sponsor or authority if the appointed Manager holds
   employment visa.
6. Copy of the trade license of the shareholder or appointed manager holding an investor or partner visa.
7. Completed and signed DED License Application Form

Process

1. Initial approval: The approval is done by DET, which is the licensing authority in the UAE. Some activities are subject to external approval.
2. Trade Name Approval: Three trade names must be given, of which at least one will be approved.
3. Local Service Agent Agreement: The owner and LSA will physically or digitally sign the agreement.
4. Office Space: It is mandatory to have a physical office and submit a tenancy contract with an Ejari.
5. Additional Approvals: Specific approvals from government and non-government agencies may be required by the DET for the registration process
6. Payment: A payment voucher will be given after the completion of all the steps, which will enable you to collect the trade license for your sole establishment

Rules and Regulations

• Professionals, regardless of their nationality, can engage in professional activities within the framework of DED business regulations.
• The allocation of managers within a civil establishment or a civil company license is subject to specific limitations dictated by the chosen civil legal structure.
• To enlist a Local Service Agent, a formal Service Agent agreement is obligatory. Precision in selecting a trade name is vital, ensuring it resonates cohesively with the firm’s commercial endeavors.
• Dubai permits a civil company to establish multiple branches, each capable of conducting singular or all activities specified in the main business license.

How EZONE Can Help

Understanding the regulations and compliance for establishing a Civil Company in Dubai involves several key considerations. EZONE Business Setup Consultants streamlines and offers a comprehensive solution to cater to your complete business requisites, spanning from initiating a Civil Company setup to facilitating office space procurement and securing partnership or employee visas.

Our team will be your steadfast companion throughout the process, guaranteeing a seamless and efficient launch of your business operations. Feel free to contact us today at 800-EZONEUAE (39663823) or via email at setup@e.zone to explore how our expertise can propel your business inception.