Establishing a company in Dubai for Saudis – steps and tips

Learn about establishing a company in Dubai for Saudis in terms of steps and tips because Dubai is considered one of the most prominent business destinations in the world, as it combines an advanced business environment and attractive investment opportunities. For Saudis looking to enter the Dubai market, establishing a company in the city is an important strategic step. Dubai provides modern infrastructure, flexible commercial laws, and business-friendly facilities, making it an ideal choice for business expansion and investment. In this article, we will review the most important steps and requirements that Saudis need to know to establish a company in Dubai for Saudis , in addition to the advantages that they can achieve through this step.

Steps to establish a company in Dubai for Saudis

Establishing a company in Dubai for Saudis requires following several basic steps to ensure success and compliance with legal requirements. Here are the main steps:

1. Choose the type of company : Select the type of company you wish to establish, whether it is a limited liability company (LLC), a private joint stock company, or a branch of an existing company.
2. Choosing a business activity : Choose the business activity that the company will undertake, as it must be in line with the classification of commercial activities in Dubai.
3. Choosing a company name : Choose a suitable name for your company that complies with naming laws in Dubai and must be available and not registered by other companies.
4. Preparing a business plan : Prepare a detailed business plan that explains the company’s goals, market strategies, and cost budget.
5. Office or workplace rental : Reserve a suitable space for the company’s office. Some free zones offer office options, but companies operating outside free zones may need to rent office space.
6. Registration and obtaining a license : Submit an application for a commercial license from the Department of Economic Development in Dubai or from the relevant authority in the free zone of your choice.
7. Open a bank account : Open a business bank account in the company’s name to manage financial transactions.
8. Issuance of residence visas : If you require work or residence visas, apply for the necessary visas for employees and owners.
9. Tax registration : Register your company with the local tax department if the business requires it.
10. Preparing internal systems : Establish internal systems and policies for company management to ensure effective workflow.

Following these steps will help you establish a successful company in Dubai, while ensuring that you comply with all legal and procedural requirements.

Tips before establishing a company in Dubai for Saudis

Before thinking about establishing a company in Dubai for Saudis, there are some tips that should be followed if you are thinking about investing in Dubai in order to get the best results from your investment, and they include the following:

Here are some tips that can help Saudis establish a successful company in Dubai:

1. Good research : Conduct a comprehensive market study to understand the demand for your products or services, as well as local competitors and their requirements.
2. Choosing the right partner : If you plan to establish a limited liability company (LLC), make sure you choose a reliable local partner. This could be through cooperation with a consulting company such as “Itqan” to ensure the facilitation of legal procedures.
3. Benefiting from free zones : Considering establishing a company in a free zone may provide you with advantages such as tax exemptions and the freedom to own all of the company’s shares, in addition to simplified registration procedures.
4. Expert advice : Use the services of specialized legal and financial advisors in the UAE market. This can help you understand local laws and handle bureaucratic procedures effectively.
5. Focus on Licenses and Permits : Make sure you have all the necessary licenses and permits for your business. Avoid delaying this step to avoid any legal problems.
6. Preparing a strong business plan : Having a clear and comprehensive business plan will help you clearly define your goals and strategies, which contributes to the company’s success.
7. Communicate with local authorities : Maintain good relations with local government agencies and regulatory bodies to facilitate all company procedures.
8. Choose a strategic location : Choose a suitable location for your office or workplace based on your business needs and marketing strategy.
9. Compliance with Laws and Regulations : Ensure compliance with all local laws and business regulations to ensure the business runs smoothly and avoid penalties.
10. Build a network : Connect with local businessmen, participate in business events, and become part of the business community in Dubai to expand your network and open new opportunities. By following these tips, you can achieve greater success and facilitate the process of setting up your company in Dubai.

The cost of setting up a company in Dubai for Saudis depends on several key factors. Here is a look at the most important factors that affect the cost of incorporation:

1. Type of company : The cost of establishing a company varies depending on its type, such as a limited liability company (LLC), a private joint stock company, or a company in a free zone. Each type has different costs in terms of fees and licenses.
2. Location : Choosing the company’s location, whether in free zones or outside it, greatly affects the cost. Companies in free zones are often less expensive due to the incentives and perks they provide.
3. Licensing and commercial activity : The cost of obtaining a license varies according to the type of commercial activity. Some activities require special licenses and may have higher costs.
4. Office space : The cost of renting an office depends on the location and space. Premium commercial areas such as Downtown Dubai are usually more expensive than areas further away.
5. Government fees : These include the fees you pay for business licenses, company registration, and other permits. These fees vary depending on the type of company and location.
6. Consultation and legal services costs : Using the services of legal consultants or consulting companies such as “Itqan” can add an additional cost, but it provides you with experience and guidance in legal procedures.
7. Opening a bank account : Some banks may require fees to activate a business bank account, which varies from one bank to another.
8. Visas and Residence : The costs of obtaining work and residency visas for employees or owners, which depend on the number of individuals and the type of visas required.
9. Operational costs : include daily costs such as salaries, rent, utilities, and other services related to operating the company.
10. Marketing and Advertising : Investing in marketing your brand and promoting your services or products is an important cost to take into consideration.

By taking these factors into consideration, you can prepare an accurate budget for setting up your company in Dubai and ensure you are prepared for the costs associated with the process.

 

The importance of establishing a company in Dubai for Saudis

Establishing a company in Dubai for Saudis carries great strategic importance for several reasons:

1. Vast market opportunities : Dubai is a major commercial center in the Middle East, with a dynamic and multi-sector market. Establishing a company there gives you access to a wide range of clients and companies in the regional and international market.
2. Favorable business environment : Dubai provides a stimulating business environment with flexible laws that encourage investment. Easy procedures and simplified regulations make the process of establishing and running a business smoother compared to many other countries.
3. Tax exemptions : Many free zones in Dubai offer tax and customs exemptions, which can reduce operational costs and increase the profitability of companies.
4. Advanced infrastructure : Dubai is characterized by a modern infrastructure that includes ports, airports, and logistical facilities, which facilitates the movement of goods and trade and enhances the effectiveness of commercial operations.
5. Easy access to global markets : Dubai’s strategic location as a link between Europe, Asia and Africa makes it an ideal platform to expand into new markets and expand international business.
6. Economic and security stability : Dubai offers a safe and economically stable environment, which reduces the risks associated with investment and enhances confidence in the economic and political conditions.
7. Encouraging incentives for investors : Dubai offers multiple incentives to foreign investors, including financing options and facilities in obtaining licenses, making it an attractive destination for expansion.
8. Multiple business options : Dubai offers a variety of free zones that meet the needs of different types of business activities, making it easy to choose the most suitable location for your business.
9. Opportunities for cooperation and partnerships : Dubai provides an opportunity for cooperation with international and local companies, which enhances the opportunities for partnership, growth and expansion.

Establishing a company in Dubai can be an important strategic step for Saudis looking for a successful investment in a favorable and stimulating business environment.

Do the Saudis have the right to obtain full ownership of the company without a partner?

Yes, Saudis are entitled to full ownership of the company in Dubai in some cases. According to current laws, there are two main ways to gain full ownership of a company:

1. Free Zones : In many free zones in Dubai, foreign investors, including Saudis, can obtain 100% ownership of the company. These areas offer special incentives such as tax exemptions and simplified registration procedures.
2. Limited Liability Companies (LLC) : In areas outside free zones , LLCs were required to have a local partner who owns 51% of the shares. However, according to recent legal updates, foreign investors can establish 100% limited liability companies in some activities, especially if the company is in a free zone or under a special classification.

It is important to follow legal updates and legislation with local authorities or consult a specialized legal advisor to ensure compliance with the latest laws and requirements related to business ownership in Dubai.

In conclusion, establishing a company in Dubai for Saudis is a strategic step that opens wide doors to business and investment opportunities in one of the most dynamic and growing markets in the world. With Dubai providing a favorable business environment, advanced infrastructure, and tax incentives, Saudi investors can take advantage of these advantages to achieve their business goals and expand their business. By choosing the appropriate type of company, utilizing specialized consulting services, and understanding local laws, you can ensure the success of this step and achieve fruitful results. Investing time and effort in research and planning will contribute significantly to achieving sustainable success and successful expansion in the UAE market.

 

Frequently asked questions about establishing a company in Dubai for Saudis