The business-friendly environment in Dubai, along with its efficient regulatory system, makes it a preferred destination for many companies. However, businesses must keep their records up to date and comply with legal requirements to operate smoothly.
Among the important documents required for businesses, a Certificate of Good Standing serves as proof of a company’s registration and compliance status with the relevant regulatory authority. This document may be required when opening a corporate bank account, attracting investors, or expanding business operations internationally.
What Is a Certificate of Good Standing in Dubai?
Certificate of Good Standing is a certificate provided officially by the relevant government or free zones’ authorities. This certificate is proof that the company is still registered and complies with all relevant regulations. Depending on the authority providing the certificate, it will prove that the company.
Has a valid trade license
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- Is still registered
- Pays off all fines from the relevant government
- Keeps its books up-to-date
- Satisfies relevant filing requirements
This certificate is a proof of compliance of the company on the date of the issue. But it does not substitute for the company’s trade license.
Who Issues the Certificate in Dubai?
The issuing authority depends on the company’s registration jurisdiction.
| Type of Company | Authority to Approve |
| Mainland companies | Department of Economy & Tourism (DET) |
| Free zone companies | Authority of Free Zone |
| DDA companies | DDA |
| Special regulation companies | Special Regulatory Authority |
For instance, DMCC, JAFZA, or other free zone companies have to approach their respective authorities. Determining the right authority is the first step in obtaining a Certificate of Good Standing.
Requirements for Obtaining the Certificate
An application can only be made provided that a business has fulfilled certain criteria. These commonly include:
Valid trade license: The business should have a valid and up to date trade license.
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- Owed amounts: Any government fees or fines that are outstanding need to be settled.
- Updated information: Information about shareholders, directors and beneficial owners needs to be kept up to date.
- Legality: Statutory filings of the company need to be made.
- UBO Compliance: Information about the UBOs of the company need to be updated where necessary.
- Taxation: Any outstanding obligations relating to taxes need to be fulfilled.
The above ensures successful UAE Corporate Compliance.
Documents Required
The following documentations may be required by applicants as per their jurisdiction and authority issuing the document:
Viable copy of trade license.
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- Valid certificate of incorporation/registration.
- Memorandum and articles of association (MOA/AOA) when required.
- Copies of passport of shareholders and authorized signatories.
- Copies of Emirates ID if required.
- Company establishment card if required.
- Shareholder and UBO information updated.
- Authorization letter/paper if required.
Please note that not all authorities require these documents. For example, in Dubai Development Authority’s online facility there is no requirement of any supporting document for issuing Certificate of Good Standing / Incumbency Certificate.
Application Process: Step-by-Step
The following are six procedures that companies can normally undertake to get their certificates.
1. Identification of the right authority
The company should check whether it is in mainland or free zone and contact the appropriate authority for confirmation of its requirements.
2. Compliance Verification
This involves checking the trade license, payment clearance, corporation documentation, and UBO details.
3. Preparing your documents
Get the corporate or other identification documents. Ensure that all information is identical to the information in the original documents.
4. Applying for the license
Make the application at the official online portal or from any other service channels of such authorities.
5. Paying the fees
Pay the required fees from the government along with the service charges. The fees vary depending on the registration authority.
6. Getting the certificate
The authority will issue the certificate as per the time period of processing the application.
Fees and Processing Time
The processing fees and time vary from one body to another.
Example: Dubai Development Authority (DDA) Fees
| Particulars | Fees |
| Service fee | 1,000 AED |
| Knowledge Dirham | 10 AED |
| Innovation Dirham | 10 AED |
| Total | 1,020 AED |
From the information published by DDA about services, it is clear that the processing is done instantly through its online portal.
Benefits of Obtaining a Certificate of Good Standing
Getting a Certificate of Good Standing also comes with numerous benefits that include:
Banking purposes: Banks could ask for it while opening or checking on the company’s bank account.
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- Self-assurance: It is proof that your company is actively registered and compliant.
- Opening foreign branches: Foreign companies could also ask for it for transactions abroad.
- Convincing investors: It helps convince other investors regarding the company’s legitimacy.
- Government tenders: It can be necessary when applying for some government contracts.
- Company restructuring: It can help in cases where there are ownership or business restructuring processes.
It also indicates that your company is committed to UAE Corporate Compliance.
Conclusion
Certificate of Good Standing enables Dubai companies to prove their ongoing registration and compliance with regulations. The certificate is useful in performing banking processes, expanding into foreign markets, doing due diligence and carrying out business transactions. If a company plans Dubai Company Formation or currently manages a business in Dubai, then keeping proper records and complying with the regulations is very important for them. This will enable them to get the certificate without any difficulty.
FAQs
1. Is it necessary for all companies in Dubai to get a Certificate of Good Standing?
No, it is not required for every company to obtain this certificate. It is usually requested when dealing with banks and other organizations for certain transactions.
2. What is the turnaround time for getting this certificate?
The turnaround time differs from one issuing body to another. Some issuing bodies issue it online instantaneously, while others need a few days to issue the certificate.
3. What is the cost of a Certificate of Good Standing in Dubai?
The cost differs from one issuing body to another. According to the information available at the DDA website, the total fee is AED 1,020.
4. How long does a certificate remain valid?
There is no standard validity period of the certificate as the organization requesting the certificate decides its validity.
Moreover, if you want any other guidance relating to Certificate of Good Standing , please feel free to talk to our business advisors at 8881-069-069.
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