Is it possible to establish a company in Dubai by proxy? Establishing a company in Dubai by proxy is a topic of interest to many investors who want to benefit from the thriving business environment in the emirate without having to be physically present there. Dubai offers a wide range of investment and business opportunities that make it an ideal destination for many entrepreneurs from all over the world. However, some may face challenges related to residency or personal obligations that prevent them from being able to manage their businesses directly. Here comes the idea of ​​establishing a company by proxy as an ideal solution, as the authorized agent can take on administrative and legal tasks on behalf of the investor, allowing him to benefit from the advantages of establishing a company in Dubai by proxy without having to be physically present in the emirate.

Establishing a company in Dubai by proxy

A company can be incorporated in Dubai by proxy. Investors are allowed to appoint a legal agent to represent them and complete all the necessary procedures for establishing the company on their behalf. This procedure allows investors who may not be able to be present in Dubai permanently or who prefer to delegate an experienced person to carry out the incorporation procedures. Establishing a company in Dubai by proxy requires following specific steps to ensure that the process is legal and efficient. Here are the basic steps to establish a company in Dubai using an agent:

Choosing a reliable legal agent

• Research and Selection: The first step is to choose a reliable and experienced legal agent in establishing companies in Dubai. This person will be responsible for representing you in all legal and administrative procedures.
• Documentation: Make sure that the agent is legally registered and has the authority to represent investors in Dubai.

Preparing the legal power of attorney:

• Drafting a Power of Attorney: Prepare a legal power of attorney that gives the agent the necessary powers to establish the company on your behalf. The power of attorney should be specific and clear about the tasks that the agent can perform.
• Notarization: The power of attorney must be certified by an official body such as a notary public to ensure its legal validity.

Specify the type of business:

• Choose the activity: In cooperation with the agent, decide what type of business activity you wish to practice in Dubai. This will help determine the type of license required.
• Company Type: Select the legal entity of the company such as a limited liability company (LLC), a branch of a foreign company, or a sole proprietorship. This determines the legal structure of the company.

 Choosing a trade name

• Trade Name: In coordination with the agent, choose a trade name that complies with local regulations. The name must be unique and not used by another company in Dubai.
• Reservation: The agent submits a request to reserve the trade name to the Department of Economic Development (DED) or the competent authority in the free zone.

Submit an application for establishment

1. Preparing papers: The agent collects all necessary documents, such as the articles of incorporation and other legal documents.
2. Submission: Submitting the establishment application to the Department of Economic Development (DED) or the competent authority in the selected free zone. In addition to obtaining approvals and licenses: The licenses are considered to be what the agent follows up on to obtain the required licenses from the relevant government authorities, such as the commercial license and activity permits.
3. Renting an office: The agent finds a suitable location for the company (if required) and rents a commercial office. Some free zones provide virtual offices initially. Work on signing the commercial office lease contract and attaching it to the required documents.
4. Bank Account: The agent opens a bank account for the company in a local bank, according to the requirements of the business activity and the legal entity of the company.
5. Receiving Final Documents: Licensing After all procedures are completed, the agent receives the trade license and final legal documents. The agent delivers all final documents to you.
6. Business Management: If granted sufficient authority, the agent can begin managing the day-to-day operations of the company on your behalf.

What is a power of attorney? 

A power of attorney is a legal document that gives another person (the agent) the authority to do certain things or represent the principal (the person who issued the power of attorney) in legal, business, or personal transactions. A power of attorney can be general, allowing the agent to act in all matters on behalf of the principal, or special, limited to performing specific tasks.

A power of attorney can be used in a variety of situations, such as signing contracts, managing property, conducting banking transactions, or representing the client before government agencies. In some cases, a power of attorney is necessary for individuals who cannot be present in person to complete their business, whether for reasons related to travel or other obligations. A power of attorney must be written in a clear and specific manner, and is usually certified by a competent authority such as a notary public to ensure its legality and effectiveness.

The difference between the two types of agency, private and public

A power of attorney can be general or special, and the two types differ in the extent of the powers granted to the agent:

1. General Power of Attorney:

• Powers: A general power of attorney gives the agent broad powers to perform all legal or business acts and tasks on behalf of the principal. The agent can dispose of all property, manage money, sign contracts, and make decisions regarding all aspects of the principal’s life or business.
• Uses: It is usually used when the principal wants to give the agent complete freedom to deal with his various affairs, especially if the principal is unable to manage his business himself for a long period due to travel or illness.

2. Special Power of Attorney:

• Powers: A special power of attorney gives an agent specific, limited powers relating to a particular task or activity. For example, a principal may give his agent the right to sell a specific property or conduct a specific banking transaction, without giving him any other powers beyond that scope.
• Uses: It is used when the principal needs to authorize someone to perform a specific task or represent him in a specific matter. This type of power of attorney limits the powers of the agent in accordance with what is specified in the document.
• Conclusion: General power of attorney covers all aspects and tasks, while special power of attorney is limited to specific tasks. Choosing the appropriate type depends on the needs of the principal and the extent of trust he places in the agent.

Establishing companies in Dubai by proxy

Atqan Company provides a comprehensive range of services for establishing companies in Dubai by proxy, which makes it easier for investors to complete all legal and administrative procedures without the need for a physical presence in the Emirates. Below are some of the services provided by “Atqan” in this context:

Providing legal advice

• Legal Guidance: Atqan provides comprehensive legal advice on the best ways to establish a company in Dubai, including choosing the right legal entity and learning about local laws related to company formation.
• Power of Attorney Preparation: The company assists in preparing and documenting the legal power of attorney that allows the agent to represent the investor in all necessary procedures.

Company registration and choosing a trade name

• Trade Name Reservation: Atqan reserves the company’s trade name and ensures that it complies with local legal standards.
• Official Registration: The company shall submit all necessary documents to the Department of Economic Development or the competent authority in the selected free zone.

Issuance of commercial licenses

• Licensing Procedures: Atqan follows up on the procedures for obtaining the necessary commercial licenses for the company’s chosen activity, whether in the free zones or in main Dubai.
• Communication with government agencies: The company represents the client in all dealings with government agencies to ensure that the process runs smoothly.

Commercial office rental

• Location Selection: Atqan provides consulting services for selecting a suitable location for the company, whether in the free zones or within Dubai.
• Signing the lease contract: The company prepares and signs the necessary lease contract for the company on behalf of the investor.
• Coordination with banks: “Atqan” helps in opening a bank account for the company in a local bank, in accordance with the applicable legal and financial requirements.
• Submitting the required documents: The company collects and submits all the necessary documents to the banks to ensure easy account opening.

Preparing articles of association

1. Contract Drafting: Atqan provides services for drafting incorporation and partnership contracts in accordance with local laws and ensuring the rights of all parties.
2. Legal documentation: The company undertakes to document contracts with the competent authorities to ensure their legal validity.
3. Operations Management: After the company is established, Atqan can provide day-to-day company management services based on the investor’s needs.
4. Providing periodic reports: Providing periodic reports on the progress of work and the measures taken to ensure transparency of dealings.
5. License Renewal: The company provides license renewal services and follows up on annual legal obligations.
6. Continuous Support: Atqan provides continuous support to companies after their establishment to ensure compliance with all legal and administrative requirements.

Advantages of company formation in Dubai

1. Tax exemption: Dubai offers tax exemption to companies in many free zones, making it attractive for investments.
2. Advanced business environment: Dubai offers an integrated business environment that includes excellent infrastructure, logistics services, and a flexible regulatory environment.
3. Strategic Location: Dubai is a gateway to regional and international markets thanks to its distinguished geographical location.
4. Free Zones: Dubai offers a number of free zones such as Jebel Ali, Dubai South, and Dubai Internet City, which offer benefits such as full foreign ownership and no restrictions on the repatriation of profits and capital.
5. Cooperating with specialized agencies: Hiring consulting companies such as “Atqan” can facilitate the establishment process, as these companies provide comprehensive services starting from providing legal advice to completing all the procedures necessary to establish the company.

Establishing a company in Dubai by proxy is a practical and flexible solution for investors looking to enter the UAE market and benefit from the great economic opportunities that Dubai offers, without the need for a physical presence in the emirate. By appointing a reliable legal agent, many administrative and logistical challenges can be overcome, while ensuring compliance with local laws and achieving business objectives efficiently. This option is ideal for investors looking to achieve success in a sophisticated and thriving business environment such as Dubai, while maintaining the flexibility to manage their business remotely.