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How to set up Civil Company in Dubai?

By Ananya - 15 Nov 2021 Last Updated: 05 May 2022
How to set up Civil Company in Dubai?

Table of Contents 

  1. 1. Why Should Someone Setup a Civil Company?
  2. 2. Benefits of Opening a Civil Company in Dubai
  3. 3. Who is eligible to form a civil company in Dubai?
  4. 4. Steps to Setup a Civil Company in UAE
  5. 5. Required Permits and Approvals for a Civil Company in Dubai
  6. 6. Conclusion

Dubai is one of the world's most enticing and fascinating countries. We have witnessed the change of this land since the dawn of time, and its beauty has now reached its pinnacle. The most popular location in Dubai includes many eye-catching landmarks and magnificent beaches, not to mention a sky-scraping infrastructure. The rich class culture, high level of living, expanding GDP, tax-free environment, and flexible business options make Dubai's top-notch infrastructure accessible to tourists and businesspeople. As a result, Dubai is one of the best destinations in the world to start a business.

Why Should Someone Setup a Civil Company?

Anyone looking to start a civil business in Dubai has a number of options. You might choose to create in one of Dubai's several freezones, benefiting from zero corporate and personal tax, 100 percent profit repatriation, and 100 percent foreign ownership. Alternatively, you can form a limited liability company (LLC) on Dubai's Mainland. While the latter option requires you to hand over a 51 percent ownership in your company to a local sponsor, it also provides you with complete access to the UAE market, something free zone businesses do not have.

For international enterprises, there is also the option of forming a civil corporation in Dubai. It comes with 100 percent ownership and access to the local market, but it also comes with limitless liability. Qualified individuals in specialised fields, including as doctors, accountants, lawyers, and consultants, as well as engineers, can establish a corporation on the Dubai mainland.

Benefits of Opening a Civil Company in Dubai

Setup is Quick & Easy

The good news for individuals who are ready to take the plunge and start a business is that forming a civil company in Dubai is both quick and simple. It's simply a matter of submitting an application to the DED for your licence. The government has recently taken steps to make the entire process easier all you have to do now is meet the eligibility conditions.

100% Liability

Civil corporations are fully liable, therefore it's critical to understand what it signifies before making a decision. With an LLC company establishment in Dubai, you are not personally liable for the firm's debts. As a result, there is an additional layer of protection. A civil business has 100 percent responsibility (or 'unlimited liability,' as the case may be), which means creditors may be able to seize your assets and property if the worst happens. While the two types of businesses may have certain structural similarities, the differences become apparent in the case of a liquidation.

Sponsor Dependents

As a shareholder of a civil company, you can sponsor your employees for visas, and you can also sponsor your dependents for residence Visas. You can sponsor visas for employees such as drivers or your spouse, as well as other dependents, if you meet the application requirements. The procedure is rather simple; you must first apply for an entry permit, change your status, and take a medical fitness test, followed by Emirates ID registration and visa stamping. Getting expert guidance is a smart idea.

Affordable Company Formation

The apparent costs of doing business in this region of the world sometimes cause new immigrants to postpone. In reality, however, starting a business in the UAE with a small investment is fairly feasible. To form your civil corporation, you must apply for a professional licence in Dubai, which will cost you around AED 17,000 (approximately). Furthermore, because no paid open share capital is required when forming a new civil corporation, total initial costs are quite minimal.

Easy To Set Up A Corporate Bank Account

It is quick and simple to open a bank account once you have obtained your professional licence and formed your civil company.

Multiple Shareholders

Another advantage of this company structure is that it allows you to start your company with more than one stakeholder. In Dubai, a civil company must have a minimum of two shareholders and a maximum of 50. Individuals or corporations might be included under this category.

Multiple Visa's

Civil company in Dubai is particularly well-known among larger firms since it allows entrepreneurs to apply for several visas. The best part is that mainland companies have no restrictions, but the more visas you apply for, the more office space you'll need.

Read More: Five Big Leading Industries in UAE

Who is eligible to form a civil company in Dubai?

You can register for civil entrepreneurship development if you are a competent and licenced professional in a variety of fields, including law, accounting, medical, engineering, and more. It gives for 100% ownership and access to the local market, but it also comes with infinite responsibility. A civil corporation must also be established as a partner of the business owners who have professional certifications in their fields of expertise.

Steps to Setup a Civil Company in UAE

  1. Decide the Companies structure and location.
  2. Apply for the License.
  3. Obtain the Building Permit.
  4. Apply for other necessary approval and License.
  5. Understanding the provisions and limitations.
  6. Manage Visas and open a Business Bank Account.

Required Permits and Approvals for a Civil Company in Dubai

  1. A permission for civil works, which includes work done before any foundations are laid.
  2. The contractor must submit design drawings of the planned project to the relevant authority in order to get a building permit.
  3. A permit from the appropriate authority in terms of the environment.
  4. To access the road and internal road network for transportation purposes, a permit from the Roads and Transport Authority is required.
  5. The relevant authorities must grant permission to dispose of hazardous trash.
  6. Permits from Dubai government entities for utilities, such as the Dubai Electricity and Water Authority (DEWA) for water, electricity, and sewage, and a permit from Escalate for telecommunications.
  7. NOC from Dubai Civil Defence (DCD) for Dubai Airports Company and other relevant government institutions.
  8. A Certificate of Completion, which authorises the structure to be occupied.

Conclusion

Dubai's building industry is booming, and it's expected to reach new heights in the next three to four years. We've seen why Dubai is the most promising market for the construction industry. It's surprising to see a country with so much potential in just one market segment. If you're in the construction industry or want to start one in Dubai, here's what you need to know. With a large network of banks, years of experience, and a knowledgeable team, Dhanguard is here to assist and guide you for setting up a Civil Company in UAE.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides the company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free offshore company formation services and company formation services in Mainland and Freezone in UAE.

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