Dubai is quickly becoming the foreign investor’s preferred choice of location for setting up new companies, due to its position as a dynamic business hub in the Middle East. One of the most common ways in which investors attempt to set up a business Dubai is to incorporate a new company in the Emirate, which usually takes the form of a limited liability company. Setting up a limited liability company (LLC) is a relatively straightforward process that includes registering the Company with the Dubai Commercial Register. If you are planning on setting up an LLC in Dubai, here are a few things you must take care of before heading to the Dubai Commercial Register.

1.Register the Company with the Department of Economic Development (DED)

You will have to select a company name and have it approved by the Licensing Department of the Department of Economic Development at this stage. Initial approval for registering your business will also be required from the DED after the company name has been registered.

2.Draft and Notarize the Company’s Constitutional Documents

The next step would be to draw up the constitutional documents of the Company, such as the Memorandum and Articles of Association. You would then have to get these documents notarized by a Notary Public in the Dubai Courts.

3.Submit all required documents to the DED

Submit the business license application and initial approval along with the notarized copy of the Company's constitutional documents to the DED.  At this stage, the application is submitted for entry to in the Commercial Register.

4.Registration in the Dubai Commercial Register

Once the DED grants the required approval, the Company will then be entered into the Dubai Commercial Register. The license will then follow, which will be issued by the Department of Economic Development.

Other points to keep in mind before applying for registration of your new Company is that, depending on the type of activity that will be carried out, you may require special approval from the relevant government department. The LLC must also have a minimum of two shareholders and a maximum of fifty shareholders.

When setting up an LLC in the mainland of Dubai, foreign investors can only hold up to 49% of the Company. A sponsor of UAE nationality must own at least 51% of the shareholding, and so you must find a local sponsor before you apply for registration of the Company.