The United Arab Emirates has a highly dynamic business environment, with new companies regularly being registered by entrepreneurs from around the world. Many expats consider relocating to this promising country through channels such as the UAE digital nomad visa or investment opportunities. However, despite the active market and the government’s relatively liberal approach to business oversight, there is also a significant risk of fraud. If you’re planning to invest in an existing business or start working with new partners, it’s essential to know how to verify a company in the UAE. This article provides a detailed overview of the topic and includes step-by-step instructions on how to assess a business from multiple perspectives.
The importance of verifying companies in the UAE
Verifying a company’s registration status in the UAE may be relevant in different cases. These measures are mostly required if you intend to buy a ready-made business or shares of an existing organization in the UAE. If you have your own business and are expanding partnerships or entering into new contracts with counterparties, you should also check potential partners. The main aspects of the assessment relate to the legal aspects of the business’s activities, whether there have been any violations in the business’s registration, whether tax obligations have been fulfilled, and whether licenses are valid for certain types of work.
If you plan to buy a business, it is important to conduct a thorough investigation in all areas so that your investments are reliable and in a promising enterprise. Otherwise, you may be held responsible for the previous owners’ violations. When checking potential partners, you can limit your research to the area in which you are establishing partnerships. When working with new partners, it is important to verify that they are legitimate companies without serious financial problems that could ultimately cost you.
Checking the company may also be useful for other purposes, such as registering your business, opening an account in the UAE, and obtaining a residence permit. By assessing how a company should properly operate in the country, you will gain important information for future activities.
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The most common methods of company verification
There are several ways to audit a company in the United Arab Emirates, depending on the subject matter:
- Tax compliance (although taxes in the UAE are low, this does not exclude possible violations);
- Operating licenses and their timely renewal;
- Company registration specifics and shareholder composition;
- Debts and the financial situation in general;
- Reputational risks, litigation, and lawsuits.
You can verify this information independently using various registers in the UAE. You may also choose to consult a lawyer or financial advisor, who can quickly and thoroughly analyze all issues of interest to you. Some company data is publicly available, while other information may need to be requested from a potential partner.
Verification through government registries
If you are curious about the process of vetting companies in the UAE, the sole available option is through government registries. Potential buyers, new partners, and specialists in the field are assessed through the websites of the relevant structures.
Which registries are available in the UAE?
To research companies in the UAE, you can check registers of national and regional authorities, as well as those of emirates and free economic zones. When gathering information, focus on the following resources:
- The UAE Federal Tax Authority (FTA) to clarify tax status and debt availability;
- The UAE Ministry of Economy, which is a general website with basic information on companies in all emirates;
- The Dubai Department of Economic Development website indicates whether a company has a license for certain types of activities;
- The Abu Dhabi Official Registry, where you can find the trade name, registration details, current status, address, and activities;
- The Dubai Financial Services Authority (DFSA) provides information on whether a company is authorized to provide certain financial services;
- Dubai International Financial Center (DIFC) provides data on the status of registered companies and their shareholders.
Information on legal entity owners and entrepreneurs registered in free zones can be verified through their local authorized bodies, such as Shams, Dubai Internet City, and DMCC. The free zones JAFZA, Techno Park, and DAZ have a single company register.
A UAE residence permit gives you the opportunity to:
- Live in a country with a developed economy;
- Open accounts in reliable banks;
- Do business in the UAE;
- Easily obtain visas to Schengen countries and the USA.
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How to use the company registry for verification
In general, using state registries is not difficult. However, it is often challenging to identify a single set of actions because there are many sites, and they are all organized differently. However, the general process involves the following steps:
- Find the service you are interested in on the resource (for example, license verification).
- Enter the required data in the designated field. Be careful, as even the slightest error may prevent the system from identifying the legal entity.
- Review the information received and print it out if necessary.
Generally, there are no obstacles to this process. Sometimes, visitors to the site may be offered registration. In some cases, the requested data may be available only to certain specialists or representatives of the authorities. However, this latter example is rare, and a special status is not required to use the services mentioned in this article.
Licensing and why it’s important
A business license is the basic requirement for a company to operate legally. If the permit is missing or not renewed in time, the company is operating illegally. You should not invest in or cooperate with such a shady organization.
License verification through the Department of Economic Development (DED).
In this regard, you can check a company in the UAE through the Department of Economic Development’s (DED) registry. The authority’s official website has a special online tool for searching license information. Go to this section, enter the license number and company details, and run the check. The system will then provide information on the status of the trade license, including its status, relevance, and expiration date.
For those planning to start their own business, understanding the importance of a license is also important. The DED website provides useful information on this topic and explains what permits are needed in a given niche and how to properly check future partners to ensure contract safety.
International law specialists can help you obtain a residence permit through business registration in the UAE and handle all previous issues, including licenses. Find out more at the consultation.
How to verify a company by identification number
For tax purposes, each company is assigned a unique identification number called a TRN. You can use this code to verify your business on the UAE Federal Tax Authority (FTA) website. In the list of services, there is a section called “TRN Verification,” which you need to select. Enter a unique set of numbers in the designated field. The system may ask for additional Captcha verification. Once you have completed this step, you will receive full information about the company’s tax activity, including any outstanding debts.
Since the verification is performed on the official tax authority website, the service is free of charge. However, using the site may require registration for convenience. There is no need for paid services since you can obtain the information through the official website. However, if you use the services of a financial advisor, be prepared to pay for their work.
Free verification services
People often ask how to verify a company in the UAE for free. All state registers in the country can be used to verify a business free of charge. The only inconvenience is that there is no single register where you can find all the necessary information at once. Additionally, for various aspects (taxes, licenses, etc.), you need to contact the appropriate authorities, and these authorities are different in each emirate and free economic zone. Typically, there are no restrictions on the number of inspections. Some sites may require mandatory registration only.
Paid platforms for full company verification
Since there is no central registry where all company information is collected, many people are interested in the option of an accelerated, paid business verification in the UAE. However, there are no platforms that allow you to do so independently. In any case, all information must come from the state registry — it is the only reliable, up-to-date source. The only way to obtain faster, easier access to data is to seek the help of specialists.
A financial consultant will also refer to state registers, which are generally accessible, but due to their experience and fine-tuned algorithms, they will be able to prepare a clear, structured report on the company you are interested in in a minimum amount of time. Whether you look for information yourself for free or use professional help is up to you. In the first case, you save money but spend more time, and you have to figure out exactly what to request from which registers. In the second case, you pay a certain amount of money and get the result faster. When using professional assistance, rely on experienced professionals with a good reputation in the market. If possible, work under a contract to ensure you receive all the necessary services.
Company financial statement and audit assessment
A financial audit of a company in the UAE allows you to assess its true state of affairs and profitability, identify problematic aspects, and determine its growth prospects. This type of audit is often useful when buying a ready-made business. A full analysis of financial activity is possible only if the current owner provides the relevant reports. All financial transaction details are confidential and cannot be made public. Additionally, a thorough verification of the audit history and financial reports from the partner should be entrusted to a specialist.
Through state registers, you can only find out about business activity and the potential tax debt of the company. An important aspect of assessing financial activity is ensuring there are no legal claims, lawsuits, or restrictions on bank accounts or property. UAE banks will not provide such data to outsiders, so you should request any data on financial activity from the business owner.
Buying a ready-made business is always risky financially. If the company is experiencing economic difficulties, the owner will likely try to hide them, so it’s possible to miss some details, even during an inspection. Considering the initial investment and subsequent costs due to such issues, the investment may be impractical. In this sense, it is much more reliable to invest in your own business from the ground up. This way, you can be sure that everything is done legally, and you can personally control the development, including the financial strategy.
Reputation and reviews
A company’s reputation is important when buying a business or starting a new partnership. You can easily evaluate an organization’s reputation by searching for information online. You will be able to find customer reviews online, and if the company was involved in any fraud, you will certainly read about it on local news sites. The most important thing is to read all the data that a search engine provides on the company’s name so as not to miss anything important.
Try different queries, including those about scams, fraud, and debt. In addition to the company’s name, you can also use the owner’s details in your search. However, remember that customer reviews online are not always objective. First, people are different, and what suits one person may not suit another. Second, competitors can often spoil the reputation of custom reviews. Therefore, rely primarily on information from the media and try to find correlations and logic in the reviews to ensure they are real.
Litigation and claims check
A company’s regular involvement in litigation and unresolved claims are bad signals for potential shareholders and new counterparties. It suggests that the entrepreneur has financial problems or is irresponsible with his contractual obligations. Therefore, this aspect should be carefully evaluated during the business’s verification. However, you can only find details about a particular proceeding if you have the case number. This confidential information is unlikely to be disclosed.
You can check for court cases by searching the name of the legal entity or owner through the Dubai International Financial Center or the Abu Dhabi Global Market. These authorities’ websites have registers that can be used to make such inquiries.
Intellectual property and patent verification
The protection of intellectual property rights is a common issue in many industries. If you work in a related field and are concerned about the credibility of a potential partner, check if they have a patent for their products or brand. In the UAE, the Ministry of Economy is responsible for registering and protecting intellectual property, through its subdivision, the Department for Development of Innovations in the Economy and Patents. Through the PATENTSCOPE database, you can find out which patents, trademarks, and industrial designs are already registered in the UAE. This allows you to verify your counterpart or, if you wish to register your intellectual property, ensure its uniqueness and save time.
Tips for a successful company verification in the UAE
If your business plans require UAE company verification, keep the following expert tips in mind:
- Be sure to perform all possible checks through government registries;
- If possible, request more than just general information, such as the company name and code. Ask for other sensitive data from the partner for a full audit;
- Ask if the business has a Certificate of Good Standing, which indicates that the company is not in the process of liquidation or bankruptcy;
- Ask for official letters of recommendation from the firm’s partners and clients (you may not receive a lot of information, but some requests may be fulfilled);
- Look for data on the internet and analyze all sources where the business is mentioned.
Verifying a company is a difficult, multi-step process involving a lot of new, complex information. However, taking a responsible approach will allow you to prevent all risks and successfully achieve your entrepreneurial goals.
