In the vibrant landscape of business, Dubai has emerged as a hub for new ventures, and law firms are no exception. If you’re considering establishing a law firm in this dynamic city, understanding the legal requirements is paramount. In this guide, we’ll break down the process to help you out!
1. Setting Up in Dubai:
Dubai offers a compelling business environment, and for those venturing into legal services, the process involves meticulous steps.
a. Choosing Your Location:
Dubai’s multi-jurisdictional nature allows you to set up in mainland Dubai or opt for one of the numerous industry-specific free zones. The Department of Economic Development (DED) oversees mainland Dubai, where Limited Liability Companies (LLCs) are a popular choice. Keep in mind the 51% UAE ownership requirement for LLCs, often managed through nominee shareholders.
Alternatively, free zones provide a streamlined setup with 100% foreign ownership, tax benefits, and no customs duties for imports used by the company. However, trading outside the free zone may require a commercial agent in mainland Dubai.
b. Legal Structure:
Dubai operates under a dual court system, including local and federal courts. The legal system is rooted in Islamic Sharia Law, supplemented by international laws. Before practicing in any court, lawyers must be registered with the Ministry of Justice, emphasizing the ethical and knowledgeable expectations placed on legal professionals.
c. License Acquisition:
For those setting up in mainland Dubai, the DED is the licensing authority. Limited Liability Companies (LLCs) require a minimum of 51% UAE ownership, often managed by nominee shareholders. The application process involves submitting educational and professional qualifications, a business plan, and other supporting documents.
2. Legal Affairs Department Approval:
The Legal Affairs Department approval is an indispensable requirement for establishing a Legal Consultancy or Law Firm in Dubai.
a. Eligibility Criteria: Article 9(e) Compliance
Non-UAE nationals applying for a legal consultancy firm license must demonstrate ten consecutive years of legal experience. The unique legal services offered should either fill a gap in existing firms or meet an evident demand in Dubai, aligning with Article 9(e) of the Department’s Bylaw, 236 of 2015.
b. Sole Establishment Legal Consultancy Firm License Requirements
To secure a Sole Establishment Legal Consultancy Firm License, applicants need:
- A Bachelor’s Degree in Law certified by the Ministry of Higher Education.
- Letter(s) of legal experience spanning ten years.
- A detailed Professional Business Plan outlining the unique legal service or demand for legal service.
c. Legal Consultant Registration Prerequisites
Legal consultant registration requires:
- Valid Passport and Emirates Identity Card.
- CV showcasing professional qualifications.
- Legalized evidence of professional legal or academic qualification with experience letters.
- Recent passport-size photo.
3. Fees and Additional Considerations
a. Financial Considerations:
License fees vary based on jurisdiction and office size. Additionally, those opting for a Lawyers and Advocates office, assuming the defense in court cases, must furnish a bond of AED 1 million.
b. Department Fees and Registration Charges
Apart from license fees, applicants must allocate AED 3,000 for the Legal Affairs Department’s approval. Legal consultant registration incurs an additional AED 2,000.
For personalized guidance and support tailored to your unique legal venture, reach out to Dubai lawyers, legal consultants, and business advisors today. Your journey to establishing a successful law firm in Dubai starts with the right expertise by your side.