In the UAE, companies can be registered in various emirates, and in each emirate it can be either local companies or companies registered inside free zones.
In this article, we will look at how you can verify the company’s registration and license validity.
It should be noted that there is no single solution here, and each emirate or free zone provides its own ways of checking companies, and some do not provide any means of verification, and accordingly in such cases only local authorities can file an official request.
What do you need to know about checking out companies registered in the UAE?
Before you start cooperation with any company in the UAE, make sure that the prospective partner has an appropriate license, which is not canceled.
There are several ways to test companies:
- Check the status of the company’s license through the Internet.
- Send written inquiries to the relevant government authorities to confirm the company’s registration in the UAE.
- Ask the company to provide corporate documents and a copy of the business license.
- Ask the company to provide a “Good Standing” Certificate issued by the local registration authority.
As for additional measures of security:
- Request letters of recommendation from customers and partners of the company.
- Use the Internet to search and verify information about the company, business owners, read customer reviews.
- The company should not object to providing the documents for verification (license). If the potential partner refuses in providing you with this information, then this should alert you.
- Ask for a copy of the memorandum of the company, to know the owners of the business.
Knowing the exact name of the company and in which authority it is registered, the company status and its license can be checked in the following way:
- For a local UAE company: it is registered at the Department of Economic Development of the corresponding emirate. Also local companies can be viewed on the website of the Ministry of Economy of the UAE.
- For a company registered in one of the free zones, you can not be check it through the Internet. Alternatively, send a request to the appropriate registration authority by e-mail, specifying the name of the company, and request in it confirmation of registration and license of company.
If you enter into an agreement that includes high-value transactions, then it is worth asking the company for a “Good Standing” Certificate from its registration authority. It confirms that the company is in good economic condition.
If there is a stamp of the Ministry of Foreign Affairs of the UAE on the document, you can be sure that the documents are valid and authentic.
After completing these steps, you can be sure that the company in the UAE is properly registered, licensed and in good economic condition.