Costs and procedures for establishing a company in Dubai

Dubai is considered one of the most prominent global destinations for business and investment, due to the advanced business environment and attractive commercial advantages it provides. Setting up a company in Dubai involves a set of procedures that can vary based on the type of business and location within the city. The main procedures include choosing the type of company, determining its location, and preparing the necessary documents. The appropriate license must also be obtained from the relevant authorities. In addition, costs vary depending on the type of company and the free or local zone chosen. Dubai offers various options to suit different budgets and requirements, making it an ideal destination for investors and entrepreneurs.

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Establishing a company in Dubai

Establishing a company in Dubai with the help of “Itqan” company provides a smooth and easy experience for investors and entrepreneurs. “Itqan” is distinguished by its extensive experience in the field of establishing companies and providing legal consultations, which facilitates the process of establishing a new company effectively. “Itqan” begins by providing integrated consultations to help you choose the most appropriate type of company, whether it is a limited liability company or a branch of an international company. After that, “Itqan” contributes to preparing the required legal documents, including the articles of association and bylaws, and registering the trade name. The company also provides support in obtaining a commercial license from the relevant authorities, and helps you rent a suitable office according to your requirements. In addition, “Itqan” contributes to accelerating the procedures for obtaining work visas and necessary residency. Thanks to its deep knowledge of local laws and market requirements, Itqan ensures that all procedures are completed quickly and without complications, allowing you to focus on developing your business. By relying on “Itqan”, you can benefit from its deep experience and achieve rapid and sustainable success in the Dubai market.

You should choose the type of company based on your business objectives, size of activity, and legal requirements in Dubai. Here is a table showing the main types of companies in Dubai:

Company type	Description	Main characteristics
Limited Liability Company (LLC)	A company that includes several shareholders (from 2 to 50) and the shareholders’ liability is limited to the extent of their shares in the company.	– Requires a local partner (does not have to have a large stake). – Suitable for all commercial activities.
Private Joint Stock Company	A corporation can have a limited number of shareholders and enjoy limited liability.	– It requires specific capital. – Suitable for large and medium companies.
Public Joint Stock Company	A company whose shares can be offered for public trading in the financial markets.	– Requires more capital. – Requires the preparation of periodic financial reports.
Branch of a foreign company	A branch of an international company.	– Requires a local partner in some cases. The branch’s activity must be identical to that of the parent company.
Free zone company	A company operating within a specific free zone in Dubai.	– Allows full ownership by foreigners. – Tax exemptions and customs facilities.
Individual limited liability company	A company owned by only one individual and liability is limited to his share.	– Suitable for individuals wishing to own full ownership. – Requires a special license.
holding company	A company that owns shares in other companies and is used to manage investments.	-Does not engage in direct commercial activities. – Bears responsibility to the extent of its shares in subsidiaries.

The cost of establishing a company in Dubai

The costs of setting up a company in Dubai vary depending on the type of company and the free or local zone chosen. In general, the main costs include:

Licensing and registration costs : It is required to obtain a commercial license from the relevant authorities, and the amount varies based on the type of activity and type of license.
Rental costs : If the company will be operating in a free zone, there are rental fees for an office or work space. Rental costs vary depending on location and office size.
Incorporation costs and legal procedures : These include fees related to preparing legal documents, such as incorporation contracts, and notarizing them.
Recruitment costs : Includes the costs of hiring employees, including work visas and social insurance.
Support services costs : Sometimes, companies need consulting or legal services to assist them with procedures.
Infrastructure costs : such as purchasing or renting the equipment necessary to operate the company.

These costs vary based on the type of company, scope of business, and selected area in Dubai. It is important to conduct a comprehensive feasibility study to obtain accurate estimates according to your company’s specific requirements.

Procedures for establishing a company in Dubai

The procedures for establishing a company in Dubai include several main steps, which can be summarized as follows:

Determine the type of company and commercial activity :
- Choose the type of company (such as a limited liability company, a joint stock company, or a branch of a foreign company).
- Determine what business you will be doing.
Location selection : Decide whether you will establish the company in a free zone or in a local area within Dubai.
Trade name registration : Submit an application to register your company’s trade name. Make sure it is in line with local laws and does not conflict with other company names.
Preparing legal documents : Prepare the required incorporation documents, such as the articles of incorporation, bylaws, and documents related to ownership and management.
Obtaining a commercial license : Apply for a commercial license from the Department of Economy and Tourism or the relevant authority in the free zone.
Office Rental : Rent an office or work space in Dubai, where the law requires a physical address for the company.
Opening a bank account : Open a bank account in the name of the company. You will need to provide legal and financial documents.
Issuing work and residency visas : Issue the necessary work and residency visas for founders and employees.
Registration with government agencies : Register your company with other government agencies if necessary, such as the Emirates Authority for Standardization and Metrology.
Obtaining final approvals : After completing all procedures, obtain final approvals from the relevant authorities and start operating your company.

Some details will vary based on the type of company and location, so it is best to consult legal counsel or a professional services firm to ensure you comply with all local requirements.

Advantages of establishing a company in Dubai

Establishing a company in Dubai offers many advantages that make it a preferred destination for investors and entrepreneurs. The most prominent of these advantages are:

Encouraging business environment : Dubai provides an advanced business environment and world-class facilities that support business growth.
Tax exemptions : Dubai offers an attractive tax system that includes tax exemptions on profits in free zones and some activities.
Ease of procedures : Dubai facilitates the procedures for registering companies and obtaining licenses, which reduces bureaucratic complications.
Strategic location : Dubai is located in an ideal geographical location linking the markets of Europe, Asia and Africa, making it a major commercial center.
Diversified economy : Dubai is characterized by a diverse economy that includes the financial, commercial, technical, and tourism sectors, which provides broad investment opportunities.
Advanced infrastructure : Dubai provides modern infrastructure, including transportation networks, ports, and airports, which facilitates business operations.
Investment incentives : The UAE government offers incentives to foreign investors, including facilities for full ownership and special licenses for some activities.
Political and security stability : Dubai enjoys political and security stability, which enhances confidence and ensures a safe business environment.

These advantages combine to make Dubai an ideal destination for launching and expanding businesses at the regional and international levels.

Conditions for establishing a company in Dubai

Establishing a company in Dubai requires meeting several basic conditions, which vary slightly depending on the type of company and the free or local zone you choose. In general, the main conditions include:

Choose the type of company : Select the type of company you wish to establish, such as a limited liability company (LLC), a joint stock company, or a branch of a foreign company.
Determine the commercial activity : Determine the commercial activity that you will undertake, as the activity must be consistent with what the license allows.
Choosing a trade name : Choose a trade name that is compatible with local laws and must not be used by other companies.
Determine the location of the company : Choose the appropriate location for the company, whether in a free zone or a local area. Make sure the site meets your business needs.
Preparing legal documents : Prepare the necessary incorporation documents, such as the articles of association and bylaws. You may need to have these documents authenticated by the competent authorities.
Obtaining a commercial license : Submit an application to obtain a commercial license from the Department of Economy and Tourism or the relevant authority in the free zone.
Office Rental : You must have a physical address for the business, so you will need to rent an office or work space.
Opening a bank account : Open a bank account in the company’s name to facilitate financial operations and money management.
Issuing work and residency visas : Issue work and residency visas to founders and employees in accordance with legal requirements.
Registration with government agencies : You may need to register with additional government agencies, such as the Emirates Authority for Standardization and Metrology, depending on the type of activity.

These steps require compliance with local laws, and the procedures can be a little complicated, so it is helpful to consult legal counsel or a professional services company to help expedite and streamline the process.

At the conclusion of our article on the costs and procedures for establishing a company in Dubai , we find that Dubai provides a vibrant and attractive business environment for investors and entrepreneurs. Although costs and procedures may vary based on the type of company and location, the many benefits that Dubai offers make it a preferred destination for launching a business. By following the correct steps, such as determining the type of company, choosing the location, and preparing the required documents, a successful and smooth establishment can be achieved. The importance of cooperation with specialized consulting companies lies in speeding up procedures and ensuring full compliance with local laws. Thanks to the many advantages that Dubai offers, from a cutting-edge business environment to tax breaks, the city provides an ideal opportunity for growth and expansion. Investing in Dubai does not only mean launching into a global market, but also benefiting from a strong support network that helps achieve sustainable success.