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How to establish a company in Dubai in 7 steps

How to establish a company in Dubai in 7 steps

١٩ يناير How to establish a company in Dubai in 7 steps

Establishing a company in Dubai can be an important strategic step for any entrepreneur seeking to expand his business activity in the Middle East region. Dubai is considered one of the most attractive cities for investments due to its distinguished geographical location, advanced infrastructure, and business facilities it provides to investors. The city is characterized by an encouraging investment environment, flexible tax policies, and transparent commercial laws that contribute to enhancing economic growth.

Whether you want to establish a small or large company, Dubai provides you with multiple options that suit different types of businesses. Through this article, we will review the basic steps for establishing a company in Dubai , starting from choosing the type of company until registering the trade name. We will provide you with detailed information and practical advice that will enable you to make the right decisions and avoid potential obstacles. So, if you are thinking about entering the booming Dubai market, this guide will be a useful reference for you to successfully achieve your business goals.

How to establish a company in Dubai in 7 steps
How to establish a company in Dubai in 7 steps

 

How to establish a company in Dubai in 7 steps

To establish a company in Dubai , you can follow the following seven steps:

  1. Choosing a business : Determine the type of business activity you want to practice in Dubai. This can be in various fields such as trade, industry, services, etc. Make sure to choose an activity that matches your abilities and interests.
  2. Determine the legal form of the company : Choose the appropriate legal form for your company, such as a limited liability company (LLC), sole proprietorship, or a branch of a foreign company. The legal form depends on the number of partners and the size of capital.
  3. Determine a business name : Choose a business name that is compatible with the business and local laws. The name must be unique and not conflict with other company names in Dubai.
  4. Obtaining initial approvals : You may need to obtain initial approvals from the competent authorities such as the Department of Economic Development, especially if your business activity requires special approvals from certain regulatory authorities.
  5. Preparing the articles of incorporation : Prepare the articles of association and articles of association of the company. This includes details of partners, capital, and company objectives. You may need to retain an attorney or legal advisor to prepare these documents.
  6. Site selection and company registration : Choose a suitable location to conduct your business and rent or buy the property. Next, register your company with the Department of Economic Development and obtain a business license.
  7. Obtaining permits and licenses : After registering the company, obtain the necessary permits and licenses from the relevant government agencies such as the municipality, civil defense, and other bodies related to your commercial activity.

Following these steps will help you establish a company in Dubai in a legal and organized manner, which can enhance your chances of success in the local market.

Advantages of establishing a company in Dubai

Establishing a company in Dubai offers many advantages that make it an attractive destination for entrepreneurs and investors. Here are some key features:

  1. Stable economic environment : Dubai has a stable and growing economy, which provides an encouraging environment for business and investments.
  2. Strategic location : Dubai is located in a strategic location linking Europe, Asia and Africa, making it easy to access global markets.
  3. Advanced infrastructure : Dubai provides world-class infrastructure that includes modern ports and airports, an excellent road network, and advanced logistical facilities.
  4. Stimulating tax system : Dubai is characterized by a flexible and stimulating tax system, as it does not impose taxes on personal or corporate profits, with the exception of some sectors such as banks and oil companies.
  5. Ease of establishing companies : Dubai provides simplified and quick procedures for establishing companies, in addition to the presence of free zones that allow full foreign ownership.
  6. Business Diversity and Opportunities : Dubai provides a diverse business environment that includes various sectors such as trade, tourism, technology, finance, and real estate, providing multiple opportunities for growth and expansion.
  7. Strong government support : The Dubai government provides strong support for businesses through investment-encouraging policies, financing programs, and initiatives to support innovation and entrepreneurship.
  8. The presence of free zones : Dubai includes many free zones that allow investors to fully own companies, in addition to tax facilities and simplified regulatory procedures.
  9. Qualified workforce : Dubai has a multicultural and highly qualified workforce, making it easy to find high-caliber employees.
  10. Quality of life : Dubai enjoys a high quality of life that includes distinguished residential facilities, an advanced health system, and high-level educational and entertainment services, which makes it an attractive place to live and work.

Establishing a company in Dubai can be a strategic move that enhances the chances of success and provides a strong platform for growth and expansion in local and international markets.

 

Costs of establishing a company in Dubai

Establishing a company in Dubai involves a variety of costs that may vary based on the type of business activity, the legal form of the company, and the location in which you wish to establish your company. Here are some elements that affect the costs of setting up a company in Dubai:

  1. Registration and licensing fees : Fees for registering the company and obtaining a commercial license from the Department of Economic Development. Additional fees for obtaining special licenses from regulatory authorities based on the type of business activity.
  2. Paid-in capital : The required capital varies depending on the type of company (e.g., limited liability company, joint stock company). Some activities require a minimum paid-up capital.
  3. Commercial site costs : The cost of renting or purchasing a commercial site in Dubai. Costs may include fees for basic services and amenities.
  4. Legal and accounting consultation costs : Legal consultation fees for preparing the articles of association and articles of association. Accounting consulting and financial audit fees.
  5. Additional permits and licenses : The costs of obtaining additional permits from the competent authorities such as the municipality and civil defense.
  6. Membership fees in the Chamber of Commerce : Fees for joining the Dubai Chamber of Commerce and Industry.
  7. Insurance and government fees : fees for compulsory insurance and health insurance for employees, along with various government fees and annual renewals.
  8. Office furniture and equipment costs : The costs of equipping the office with the necessary furniture and equipment.
  9. Marketing and advertising costs : Marketing and advertising budget to launch the company and attract customers.
  10. Visa and residence fees : Costs of issuing work and residence visas for foreign employees.
  11. Professional and Administrative Services : Fees for professional services such as administrative services and human resources services.

It is important to have a detailed financial plan that takes into account all of these costs to ensure that you are financially prepared to successfully establish the company. You can use a company specialized in establishing companies in Dubai, such as “Itqan” Company, to obtain an accurate estimate of costs and assistance with all required procedures.

 

Conditions for establishing a company in Dubai
Conditions for establishing a company in Dubai

Conditions for establishing a company in Dubai

Establishing a company in Dubai requires adherence to several conditions and procedures to ensure compliance with local laws and regulations. Here are the basic conditions for establishing a company in Dubai:

  1. Choosing a business : Determine the type of business activity you want to practice in Dubai. Some activities require special approvals from certain regulatory bodies.
  2. Determine the legal form of the company : Choose the appropriate legal form of the company, such as a limited liability company (LLC), sole proprietorship, or a branch of a foreign company.
  3. Choosing a trade name : Choose a trade name that complies with local laws and reflects the nature of the company’s activity. The name must be unique and not conflict with the names of other companies registered in Dubai.
  4. Obtaining initial approvals : Initial approvals must be obtained from the competent authorities such as the Department of Economic Development, especially if the commercial activity requires approvals from specific regulatory authorities.
  5. Preparing the Memorandum of Association and Articles of Association : Preparing the Memorandum of Association and Articles of Association of the company, which includes details of the partners, capital, and the company’s objectives. This may require legal advice.
  6. Determine the capital : Determine the capital required to establish the company according to the legal form and the chosen business activity. Some activities may require a minimum capital.
  7. Choosing a commercial location : Renting or purchasing a commercial location suitable for conducting commercial activity. The site must comply with local regulations and be subject to approval by the relevant authorities.
  8. Submitting the required documents : Submitting the required documents to the Department of Economic Development and other relevant authorities, which may include passports, personal photos, and the rental contract.
  9. Obtaining licenses and permits : After submitting documents and obtaining approvals, a commercial license is issued by the Department of Economic Development. Additional permits from other parties may be required depending on the type of activity.
  10. Registering the company in the Chamber of Commerce : Registering the company in the Dubai Chamber of Commerce and Industry to obtain membership that allows it to conduct business legally.
  11. Opening a bank account : Opening a commercial bank account in a local bank to manage the company’s financial operations.

By following these conditions and procedures, you can establish your company in Dubai in a legal and regulated manner, allowing you to benefit from the commercial and economic opportunities available in the emirate.

Establishing a company in Dubai is an exciting and rewarding opportunity, but it requires careful steps to ensure compliance with local laws and regulations. By choosing the right company type and identifying businesses that align with your vision and goals, you can build a strong foundation for your business success. You should also pay attention to choosing a trade name that reflects your company’s identity and complies with legal requirements to ensure your distinction in the market.

Adhering to the correct procedures and preparing the necessary documents will greatly contribute to facilitating and accelerating the incorporation process. Always remember the importance of legal and financial advice from experts to ensure making the right decisions and achieving sustainable success.

Starting a business in Dubai can open new doors of opportunities and possibilities for you. With good planning and careful implementation, you will be on your way to growth and prosperity in one of the most dynamic and developed cities in the world. We wish you success in your entrepreneurial journey.

Frequently asked questions about how to establish a company in Dubai

What types of companies can be established in Dubai?

You can establish several types of companies in Dubai, such as a limited liability company (LLC), joint stock company, sole proprietorship, branch of a foreign company, and free zone companies.

Can foreigners establish a company in Dubai?

Yes, foreigners can establish a company in Dubai. In free zones, they can own the entire company, while in other zones they may need a local partner who owns a certain percentage of the company.

How long does the process of establishing a company in Dubai take?

The process of establishing a company in Dubai can take from a few days to several weeks, depending on the type of company and the speed of obtaining the required approvals and licenses.

Are there free zones in Dubai? What are its advantages?

Yes, there are several free zones in Dubai such as Jebel Ali, Dubai South, Dubai International Financial Center (DIFC), and others. Free zones provide advantages such as full foreign ownership, tax exemption, and ease of exporting and importing.

What are the costs associated with setting up a company in Dubai?

Costs include registration and licensing fees, paid-up capital, business location costs, legal and accounting consulting fees, insurance costs, and visa and accommodation costs.