Opening a commercial register in the Emirates for Saudis is considered an important strategic step for Saudis who seek to expand the scope of their business and benefit from the investment opportunities available in the Emirates. The UAE is characterized by a distinctive investment environment, providing investors with many opportunities and competitive advantages.

In this article, we will review how to open a commercial registry in the UAE, including the necessary steps, required documents, and expected costs. We will also address the challenges that Saudis may face during the commercial registration process and how to overcome them.

In addition, we will provide general advice on how to achieve success in establishing a business in the Emirates, and how to take advantage of the advanced infrastructure and flexible laws that the Emirates provides to investors. This article aims to guide Saudis wishing to open a commercial register in the Emirates and provide the necessary information to start a successful business in this thriving country.

Opening a commercial register in the Emirates for Saudis

Opening a commercial register in the Emirates for Saudis

Saudis can open a commercial register in the UAE under the joint trade agreements and arrangements between the UAE and the Kingdom of Saudi Arabia. Here are the general steps for opening a commercial register in the Emirates:

1. Search for a business: Select the business you wish to practice in the UAE. Make sure the activity you choose is permitted and appropriate for Saudis and local laws.
2. Find the right emirate: There are seven emirates in the UAE, and each emirate has its own requirements and laws. Search for the emirate that suits your business activity and provides the most suitable environment for your activity.
3. Get a local partner or trade agent: Locally owned companies or trade agents with UAE nationality are among the common requirements for Saudis to open a commercial register. You can search for a local partner or commercial agent in the emirate of your choice and reach an agreement that regulates the commercial relationship between you.
4. Register the company: Opening a commercial register in the UAE may require registering a local company. You must submit the required documents and fill out the forms provided by the relevant authorities. You can obtain contact information for the responsible authorities from the economic development offices in the Emirates.
5. You may need an additional license: Additional licensing requirements depend on the company\’s activity and the emirate in which it is located. You may need to obtain additional licenses from responsible authorities, such as a municipal license or business license.
6. Establishing capital: You must determine and provide the capital required for the company. This may require opening a commercial bank account in the UAE and depositing the required amount into the account.
7. Please note that the exact procedures and requirements may vary between emirates and can change over time. Therefore, it is best to contact ITQAN to provide you with the accurate information and guidance necessary to open a commercial register in the Emirates.

What are the basic steps to open a commercial register in the UAE?

Opening a commercial register in the Emirates requires following several steps, and these steps differ slightly depending on the emirate in which you wish to register. However, here are the basic steps that need to be taken to open a commercial registration in the UAE:

1. Choosing a business activity: Determine the business activity you want to practice, and make sure that the activity you choose is permissible and does not violate local laws and legislation.
2. Choosing a company name: Choose an appropriate name according to the rules and guidelines of the relevant commercial registry, and ensure that the name is available and not previously registered.
3. Identify partners and responsibilities: If the company will be a partnership, identify the partners and distribute responsibilities and rights among them.
4. Determine the location: Determine the location where you want to establish the company, whether it is in a free zone, an industrial zone, or another place.
5. Submitting an application: Submit an application for a work license to the relevant authority in the emirate, such as the Department of Economic Development or the local Chamber of Commerce.
6. Completing the required documents: The registration process may require submitting a set of documents such as a passport, a copy of personal identification, a business plan, and other required documents.
7. Payment of fees: Pay the fees required to obtain the license, and this must be done according to the schedule and amounts specified by the competent authority.
8. Receiving the license: After meeting all conditions and requirements and paying the fees, your application will be reviewed and then your work license will be issued.

Advantages of opening a commercial register in the Emirates for Saudis

Opening a commercial register in the UAE provides Saudis with a range of features and benefits that make it an attractive destination for business and investments. Here are some key benefits:

1. Favorable investment environment:
   • The UAE is considered among the most competitive countries in the region, providing a favorable investment environment for emerging, medium and large companies.
2. Distinctive strategic location:
   • The UAE is located in a strategic region linking the East and the West, which facilitates access to diverse global markets and enhances opportunities for international expansion and growth.
3. Advanced economic policies:
   • The UAE relies on advanced economic policies that encourage investment and provide advanced infrastructure and effective government services.
4. Full ownership of foreigners:
   • Saudis can obtain full ownership of their company in the UAE without needing a local partner in many economic activities.
5. Tax exemptions and financial facilities:
   • In some regions, companies enjoy tax exemptions on income and international taxes, in addition to financial facilities including loans and concessional financing.
6. Advanced business environment:
   • The UAE provides an advanced infrastructure that supports businesses, with modern facilities and advanced technology that facilitate efficient business management.
7. Ease of administrative procedures:
   • The UAE offers simple and streamlined administrative procedures for opening and operating a business, making it easier for entrepreneurs to manage their companies effectively.
8. Diversity of economic sectors:
   • The UAE offers wide opportunities in various economic sectors such as trade, financial services, technology, tourism, industry, and others, allowing diversification of investments and sustainable growth.

In short, opening a commercial register in the UAE for Saudis provides great opportunities for growth and expansion in a thriving market, while providing a favorable and encouraging business environment for sustainable businesses and investments.

Documents required to open a commercial register in the UAE

To open a commercial register in the UAE, it is usually required to submit a set of documents proving the identity of the founders and details of the company planned to be established. Here is a list of basic documents that may be required:

• Registration application form: It is filled out and submitted to the competent authority in the emirate in which you plan to open the commercial register.
• Company incorporation document: A copy of the company’s incorporation document, such as the articles of incorporation or the justification for incorporation, must be submitted, depending on the type of company.
• A copy of the passport: for each founder or partner in the company.
• Recent personal photos: of each founder or partner.
• Lease contract or office license: A copy of the office lease contract or the virtual office license if the office is external.
• Business plan: Some government agencies may require the submission of a detailed business plan.
• Business Activity Permit: Details about the type of business activity planned for the company must be provided.
• Power of attorney: If a specific person is authorized to administer the proceedings, a power of attorney may be required.
• Personal data form: contains personal details of the founders.
• Bank report: A bank report may be requested to prove the founders’ ability to establish and manage the company.

Documents to open a commercial register in the Emirates

Expected costs of opening a commercial register in the UAE for Saudis

The expected costs of opening a commercial register in the UAE vary based on several factors, including the type of company, the emirate in which the company is established, the planned business activity, the amount of capital required, and other factors. Here is a list of the main costs expected to open a commercial registry in the UAE:

1. Registration fees: Registration fees vary according to the type of company and the emirate. These fees include the costs of registering the company and obtaining a business license.
2. Legal and accounting consultation fees: It is recommended to obtain legal and accounting consultation to ensure compliance with government laws and regulations, and the cost of these consultations varies depending on the amount of services provided.
3. Necessary Capital: Some companies may require a certain initial capital which depends on the type and scope of the business.
4. Real estate fees and rents: If a company needs office or commercial space, it may incur rental costs and real estate fees.
5. Marketing and advertising costs: Marketing and advertising costs must also be taken into consideration to attract customers and build the brand.
6. Employee fees and salaries: These costs include employee salaries, fringe benefits, health insurance fees, and more.
7. Insurance costs and additional licenses: Some companies may require additional insurances and licenses for their activity.

Special conditions regarding opening a commercial register in the Emirates for Saudis

For Saudis wishing to open a commercial register in the UAE , the conditions may differ slightly from those that non-Saudis must comply with. Here are some special conditions that may apply to Saudis:

1. External investor permit: The Saudi investor must obtain a permit as an external investor in the UAE.
2. Personal presence: The Saudi investor may have to provide a certificate of his personal presence in the Emirates for a certain period, and this usually depends on the conditions of residence in the emirate in which the commercial register is opened.
3. Additional government permits: UAE authorities may require additional government permits for foreign investors, including Saudis, depending on the type of business activity and the emirate.
4. Necessary capital: The capital required to open the company must comply with the legal and regulatory requirements in the emirate.
5. Tax requirements: The Saudi investor should ensure compliance with UAE tax legislation, especially if there are tax agreements between the UAE and Saudi Arabia.

In conclusion, opening a commercial register in the UAE for Saudis is an important strategic step who seek to expand the scope of their businesses and investments. The UAE provides them with a distinct investment environment, characterized by political and economic stability, flexible laws that support business, and advanced infrastructure.

Thanks to bilateral agreements between the UAE and Saudi Arabia, a commercial register can be easily opened in the UAE, allowing them to access new markets and expand their business. The UAE also offers a vibrant business environment, where Saudis can exploit available investment opportunities and achieve success and profitability.

In short, opening a commercial register in the UAE is a great opportunity for Saudis to expand their business and achieve success in a distinguished international market. The UAE provides them with the opportunity to benefit from a developed and supportive investment environment, and is considered an important strategic step towards achieving success in the business world.

The most important frequently asked questions about opening a commercial register in the Emirates for Saudis