What is the need for security approval to establish a company in Dubai?

Security approval is an essential part of the company establishment process in Dubai , and is a vital step that ensures compliance with the security and legal standards in the emirate. Dubai requires all new investors and business owners to obtain security approval as part of licensing and registration procedures, to ensure that proposed business activities do not pose a threat to national or public security. In this article, we will discover the steps to obtain security approval to establish a company in Dubai and what security approval is necessary to establish a company in Dubai.

The process of obtaining security approval begins with submitting an application to the relevant authorities, which usually include the Department of Economic Development and the Ministry of Interior. The application includes providing detailed information about the company to be established, including details about the owners, management, and planned business activity. Supporting documents such as passports, residence permits, and business plans must also be submitted.

Concerned authorities review this information to ensure its compliance with local laws and national security standards. The assessment typically includes reviewing the backgrounds of the individuals involved and measuring the company’s compliance with established security and administrative systems. These reviews can include verifying financial sources, examining commercial registry history, and checking previous certificates and licenses if applicable.

Once the evaluation and approval process is completed, the company can proceed with completing the registration procedures and obtaining the necessary licenses to conduct business. Security approval is a crucial step that contributes to achieving a safe and stable business environment, which enhances investor confidence and contributes to sustainable economic growth in Dubai.

What is the need for security approval to establish a company in Dubai?

Steps to obtain security approval for work 

To obtain security approval to work in Dubai, follow these basic steps:

1. Submitting the application: It begins with submitting a formal application for security approval to the relevant authorities, which are usually the Department of Economic Development (DED) and the Ministry of Interior.
2. Filling out forms and submitting information: The application requires providing detailed information about the proposed company, including details about the owners and executives, and the type of business activity planned.
3. Submitting Supporting Documents: Supporting documents such as passports of key owners and managers, residence permits, and business plans for the company must be submitted.
4. Security review and assessment: The competent authorities review the information provided to verify its compliance with local security laws and regulations, including background checks of the individuals concerned.
5. Approval or rejection: After completing the assessment, a decision is made to approve or reject the application based on the results of the security assessment.
6. Completing registration and licensing procedures: After obtaining security approval, the company can proceed with completing the final registration procedures and obtaining the necessary licenses to start the business.

The entity responsible for issuing security approval

In Dubai, the entity responsible for issuing security approval is the Federal Authority for Identity, Citizenship, Customs and Ports Security. Security approval is part of the necessary verification procedures for individuals seeking to establish or manage companies in the UAE, especially for investors and key partners in companies. Here are the general steps to obtain security approval:

1. Applying for security approval: After obtaining initial approval to establish the company from the Dubai Economic Development Department (DED), an application must be submitted to obtain security approval.
2. Submitting the required documents: Obtaining security approval requires submitting documents such as a passport, a personal photo, and certificates of good conduct from the relevant authorities. Concerned authorities may also request additional documents depending on the type of business activity.
3. Conducting security checks: The process includes conducting security checks to verify the criminal background of the individuals concerned. This is done through approved security systems to ensure that there are no security or criminal issues against them.
4. Receiving approval: After completing the security checks, a security approval is issued, which is part of the complete company registration requirements.

Documents required within the conditions for establishing a company in Dubai

To incorporate a company in Dubai , you need to submit a set of essential documents to ensure the incorporation procedures are completed successfully. Here is a list of required documents:

• Company incorporation application: The incorporation application form obtained from the Department of Economic Development or the Free Zones Authority.
• Business plan: A comprehensive summary that explains the company’s objectives, the nature of the business, and the strategy followed.
• Personal documents for the founders: Valid passports for all founders, in addition to personal photos.
• Visas and Residences: In case of foreign investors or employees, their residence visas must be submitted.
• Memorandum and Articles of Association: Legal documents that define a company’s structure, objectives, and bylaws.
• Legal authorization: A power of attorney from the founders to a specific person to represent the company before government agencies.
• Approval from government agencies: If the company requires additional licenses or approvals from certain authorities, these must be submitted.
• Business address: Proof of the company’s location, such as a lease contract or proof of office ownership.
• Bank account details: Opening a bank account in the name of the company requires submitting additional documents, such as the establishment decision and lease contract.
• Insurance certificates: Legal insurances covering civil liability or insurances required according to the type of activity.

Procedures for establishing a company in Dubai 

Establishing a company in Dubai requires following a set of basic procedures that ensure compliance with local laws and regulations. Here’s an overview of the main steps for setting up a company in Dubai:

1. Choose the type of company: Select the type of business entity you wish to establish, whether it is a limited liability company (LLC), a branch of a foreign company, or a public or private joint-stock company. Requirements and benefits vary according to the type of company.
2. Choosing a company name: Choose a trade name for the company that complies with the naming convention rules in force in Dubai. The name must be available and not previously registered.
3. Preparing a business plan: Create a detailed business plan that includes the company’s goals, target market, marketing strategies, and competition analysis. This plan can be useful for obtaining necessary permits and financing.
4. Obtaining initial approvals: Apply for initial approval from the Dubai Department of Economic Development (DED). This requires submitting an application form and a set of documents such as a passport and residence permit if applicable.
5. Select Company Location: Choose a location for the company office. You may need to rent an office in a free zone or an office in a non-free zone, depending on the type of company and licenses required.
6. Preparing legal documents: Prepare the necessary legal documents such as the articles of association and articles of association, and prepare official signatures from shareholders or founders.
7. Submitting a license application: After obtaining initial approval, apply for a business license from the Dubai Economic Development Department (DED) or the appropriate free zone regulator, if the company will be operating in a free zone.
8. Open a bank account: Open a business bank account in the company’s name at a local bank. This requires submitting documents such as a business license and articles of incorporation.
9. Complete registration procedures: Complete all other registration procedures such as employee registration, employment insurance, and VAT registration if applicable.
10. Obtaining the necessary permits: You may need additional permits depending on the type of business activity. Make sure to obtain all necessary permits from the relevant authorities.
11. Start-up: After completing all procedures and obtaining the necessary permits, you can start the company and begin its commercial activities.

The cost of establishing a company in Dubai

The cost of setting up a company in Dubai includes several main elements, without going into specific numbers. Here is an overview of the elements that affect cost:

1. Licensing and Registration: Includes the cost of obtaining a commercial license that allows the company to practice the required activity. This varies depending on the type of activity and business field.
2. Government department fees: These include fees required by various government agencies to obtain the necessary permits and approvals.
3. Rent and office expenses: Establishing a company requires providing an office or work site, and this includes the cost of rent and office equipment expenses.
4. Legal consulting: Legal consulting services include costs for writing the company’s articles of incorporation and articles of association, in addition to guidance in legal procedures.
5. Accounting and auditing services: Includes accounting costs, preparation of financial statements, and required audit procedures.
6. Insurances: Various insurances are required such as civil liability insurance, which may have an impact on the overall cost.
7. Banking fees: Opening a business bank account usually requires paying fees for various banking services.
8. Tools and human resources: This includes the costs of hiring employees and their equipment, as well as the necessary work tools.
9. Translations and Notarizations: Includes the costs of translating and notarizing legal documents according to the requirements of local authorities.

Advantages of establishing a company in Dubai

Establishing a company in Dubai provides a range of advantages that make it a preferred destination for businesses and investors from all over the world. Here are the most important advantages of establishing a company in Dubai:

• Strategic location: Dubai is located in a distinctive geographical location, linking the main markets in the Middle East, Asia and Europe. This site contributes to facilitating trade and communication with global markets.
• Suitable business environment: Dubai provides a developed and supportive business environment, including modern infrastructure, advanced logistics services, and advanced technological systems, which enhances the ease of operating a business.
• Tax breaks: Dubai offers many tax breaks, such as no corporate income tax (in most free zones) and no profit tax. This provides a huge advantage to companies in terms of reducing costs.
• Flexible legal systems: Dubai allows companies to be established across free or non-free zones, providing multiple options to suit different types of businesses. Each free zone has its own regulations which may be more flexible in some aspects.
• Ease of registration procedures: Dubai seeks to facilitate company registration procedures and provide support to investors by improving processes and procedures, making the incorporation process faster and easier.
• Financing opportunities: Dubai provides great opportunities to obtain financing through local banks and investment institutions, as well as opportunities to attract investments from international investors.
• A global, multicultural community: Dubai attracts a diverse group of nationalities and cultures, which contributes to creating an international and diverse work environment that contributes to commercial expansion and interaction with multiple markets.
• Advanced infrastructure: Dubai’s infrastructure includes modern facilities such as ports, airports, and an advanced transportation network, which contributes to facilitating the movement of goods and employees.
• Intellectual Property Protection: Dubai provides strong laws to protect intellectual property rights, which enhances the security of innovations and business ideas and encourages investment in research and development.
• Advantages of residency: Establishing a company in Dubai allows investors to obtain residency visas, which contributes to facilitating the residency process for business-related individuals and providing them with stability.

In conclusion of the talk about the importance of security approval for establishing a company in Dubai , it becomes clear that this requirement represents a vital step to ensure transparency and security in the business environment. Security approval is not just a routine procedure, but rather a guarantee of the highest standards of security and integrity, which form the basis of a sustainable and prosperous trading system. By vetting the backgrounds of the founders and the goals of the companies, security approval helps protect the market from potential risks and enhances confidence among investors and clients.

The most frequently asked questions about security approval to establish a company in Dubai