How to set up a professional company in UAE?
What is a Professional Company?
Before company formation, it is essential to understand the meaning of a professional company. It refers to that company which is formulated by some experts having necessary qualification and experience in that particular field. Some main examples of professional company are IT consultancy, legal consultancy, accountancy, education, administrative services, management consultancy, etc. These companies operate because of intellectual efforts of their partners.
The services rendered by the professional companies are closely monitored by the government. For example- a law firm cannot advertise or solicit their service and they need to put a disclaimer on the website for the same. However, with the help of top lawyers of UAE, these conditions can be easily complied with.
Setting up a professional Company
For company formation, it is essential to follow some steps, which are enumerated below
Register a trade name
Just like a person is known and recognised by its name, similarly a professional company is also named to distinguish it from other business entities. An interested person needs to register the name of the company with the Economic Department of the respective Emirates. For deciding the name, you can take help of company formation lawyers and company formation law firms, having specialised expertise in the area.
However, it is important to note that there are certain restrictions while choosing the name. The name shouldn’t be offensive; the words referring to Allah, religious groups, political groups, etc should be strictly avoided. Further, the name shouldn’t be identical or in resemblance with any existing company. As suggested by best company formation lawyers, while making an application for registering the trade name, you will be issued a transaction number, which can be used to track the status of your application.
2. Take Initial approval
For proceeding ahead in company formation in UAE, it is essential to take the nod of the government that it doesn’t have any problem with the company.
The top lawyers of UAE have also suggested that for a foreign investor, it is essential to obtain the approval of the General Directorate of Residency and Foreigners’
3. Memorandum of Association (MOA) and Local Service Agent
The MOA is the constitution of the company containing all the essential information about its objective, functioning, share capital, etc. For drafting MOA, you should approach best company formation lawyers of UAE. It is also essential to appoint a local service agent. While drafting the agreement, it is essential to comply with all the applicable legal requirements. The agreement must be attested through a notarized public or the court.
4. Submit documents and get business license
The last step in company formation in UAE is getting the trade license from Economic department. For getting a license, following documents should be submitted before the department-
- Receipt of the initial approval from the government;
- Copy of the lease contract duly attested by the Real Estate Regulatory Agency (RERA) in Dubai;
- Attested Memorandum of Association and Service Agent Contract.
You need to make a payment within 30 days of receiving the payment voucher to get the license. In case of failure, your application may be cancelled.
For setting up a professional company, it is essential to comply with all the above-mentioned steps and get the necessary approvals. BSB Legal is the best law firm of UAE with top lawyers engaging in company formation, drafting documents, and obtaining necessary approvals. To register your company with BSB Legal, contact us below.