Before doing business with a company based in the United Arab Emirates, check that the company really exists and is duly registered.
The question you need to keep in mind is: is this company legal?
Recently, we have noticed an increase in scams. And the last thing we want is to become the victim of one of these crimes. Ensuring that a company is legitimate is an essential precaution to avoid scams or suspicious offers that seem «too good to be true».
First of all, every businessperson can conduct their own verification using the basic information they have about the company they are negotiating with. They can:
- call the company and confirm whether it actually exists;
- if the company's physical office address was mentioned in the communications, simply go there and check that the offices exist.
You also have other ways to make sure that a company is registered in the UAE. First, every company registered in the country must hold a commercial license in order to operate legally. You can simply request a copy or check online with the Department of Economic Development (also called the DED) to see whether the company exists. It should be noted that commercial licenses are not confidential documents since, by law, they must be displayed publicly in any office or store. The public has the right to access this document or request to view it.
Keep in mind that most illegal companies will provide you with an invalid registration number. This can easily be verified and save you from entering into a complicated and unsuccessful business relationship.
Remember that you do not need to be Inspector Gadget to check whether a company exists. There are several methods you can use separately or in combination for the benefit of your business.
Here are some steps to follow to verify business information:
- As mentioned above, you can request the commercial license and check directly on government platforms whether the license is valid. If you are considering doing business with a partner based in Dubai, they should be able to provide the necessary documents themselves. If you sense reluctance, this should immediately raise a red flag. Indeed, a commercial license contains no confidential information. The only details you will find are: the company name, office address, registration number, license number, and manager's name. Someone who refuses to share it may indicate that their company is illegal;
- If the company is registered in one of the UAE's free zones, you may not be able to verify the license online. The only option available to you is to contact the registry by email, stating the company name and asking whether the company is actually registered and whether the license is valid. You also have the option of going directly to the registry by visiting its offices;
- You can request a “Certificate of Good Standing ” from the authorities where the company is registered. In general, this certificate indicates that the entity has filed all reports and paid all fees to the authorities. It serves as proof that the entity exists and is authorized to conduct business in the Emirates;
- You can also use social media to verify a company's existence. Check that the company has an online presence, for example by searching for its pages on Instagram, Facebook... Another way is to check whether the company has employees on professional online platforms such as LinkedIn...;
- Finally, you can simply “Google” the company: try to find information on online discussion forums, testimonials, reviews... If the company has been involved in scams or illegal activities, there is a good chance you will find this information on the Internet.
Last but not least, you can consult government portals and free zone portals to ensure that you are doing business with a genuine and legitimate company. Several channels and platforms can be used to obtain information about a license. These include the DED websites of each emirate and the national economic register.
Here is how you can verify the authenticity of a business
We have listed useful internet links where you can check for yourself whether a company is registered in the country. You can use the company name or license number to check:
- If you are doing business with a local company in the United Arab Emirates, you can consult the DED website of the relevant emirate:
If the only information you have is the name, you can visit the National Economic Register website and check whether the company exists. Follow this link:
https://cbls.economy.gov.ae/Search_By_BN.aspx
As for free zone companies, you can check directly on the free zone's website, where you will find the company directory. This directory includes all valid companies operating in that same free zone. Here are some company directories for the main UAE free zones:
As a precaution, take into account all the points mentioned above before doing business with a company. Make sure that the company exists and is legally registered in the country before signing contracts or documents.
Would you like us to check for you whether a company in the Emirates really exists? We offer a
service to verify whether a company exists in the Emirates, including Dubai and Abu Dhabi.
