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Company registration in Dubai

Company registration in Dubai

Dubai is considered one of the most prominent business destinations in the world thanks to its strategic location and the thriving economic environment it provides. The process of registering a company in Dubai is an essential step for any investor seeking to exploit these wonderful opportunities. With continuous developments in trade policies and legislation, Dubai has become a global business hub, making it an exciting choice for investment and growth.

In recent years, the Dubai government has provided multiple incentives to attract foreign and local investments, facilitating the company registration process and simplifying procedures. Dubai allows foreign investors to own 100% of companies in free zones, which enhances the city’s attractiveness as an investment destination. In addition, Dubai free zones provide advanced infrastructure, integrated support services, and attractive tax benefits.

The process of registering a company in Dubai begins with determining the appropriate type of business entity, whether it is a limited liability company, a public joint stock company, or even a branch of a foreign company. After that, investors must submit their applications to the competent authorities, such as the Department of Economic Development or the relevant free zone authority, along with submitting the required documents, such as the business plan, certificates of incorporation, and details of partners.

By adhering to global standards and offering an advanced business environment, Dubai enables companies to expand and grow in a dynamic and renewable market. Therefore, setting up a company in Dubai is a strategic step towards achieving success in one of the most attractive business markets in the world.

Company registration in Dubai
Company registration in Dubai

Basic steps to register a company in Dubai

Registering a company in Dubai requires following a set of basic steps to ensure compliance with legal and regulatory requirements. Here is an overview of the steps to register a company in Dubai :

  1. Determine the type of company and business activity: Determine the type of company you want to establish (such as a limited liability company, a private joint stock company, or a company in a free zone).
    Determine what business activity the company will undertake, as requirements may vary based on the type of activity.
  2. Choosing a company location: Decide whether you will register the company in a free zone or within Dubai. Free zones offer specific benefits such as tax exemptions and 100% company ownership.
  3. Prepare a business plan: Prepare a detailed business plan that outlines the company’s goals, target market, marketing strategies, and finances. It may be necessary to provide this plan when applying.
  4. Trade Name Registration: Choose a unique trade name for your company and review its compliance with Dubai laws. Register the trade name with the Department of Economic Development (DED) or the competent authority in the free zone.
  5. Obtaining approvals and licenses: Submit an application to obtain the necessary licenses from the Department of Economic Development or the relevant authority in the free zone. This includes business licenses and other relevant licences.
  6. Preparing company documents: Prepare the required legal documents, such as the articles of association and articles of association, partner information, and identity documents. This may require notarization.
  7. Open a bank account: Open a company bank account in a local bank to deposit the required capital according to the type of company.
  8. Registering the company and obtaining the license: After completing all documents and licenses, submit the final application to register the company with the relevant authorities and receive the commercial license.
  9. Submit Employment Applications and Visas: If you will be hiring employees, submit applications for the necessary work visas and permits, and follow established procedures for hiring workers.
  10. Registration with other bodies: Register with other bodies such as the Chamber of Commerce and the Ministry of Human Resources and Emiratisation, as needed.

Documents required to register a company in Dubai

To register a company in Dubai, you will need to submit a set of necessary documents. The required documents may vary based on the type of company and location (inside the city or in a free zone). Below is a list of general documents that are usually required:

  • Articles of Association and Articles of Association: The Articles of Association and Articles of Association of the company must be prepared and documented. It should include details such as company name, type, business activity, and ownership structure.
  • Proof of identity: A valid passport and a copy of the ID card of the founders and directors.
    If there is a local partner, his or her identity documents must be presented.
  • No objection certificate: No objection certificate from the local sponsor or a local partner if the company requires a local partner.
  • Business Plan: A detailed business plan that outlines business objectives, strategic and financial plans.
  • Lease contract: A lease contract for an office or work site. This contract must be certified by the relevant authorities if it is in a free zone.
  • Approval of competent authorities: Prior approvals from competent authorities, such as municipalities or regulatory authorities if the commercial activity requires this.
  • Copy of the commercial registry: A copy of the commercial registry or similar documents if the company is part of a larger group or a branch of an international company.
  • Authorization and signatures: Authorizations and signatures from the founders or authorized shareholders to register the company and submit applications.
  • Capital: Proof of payment of the required capital, which varies depending on the type of company and business activity.
  • Licenses and accreditations: Licenses or accreditations if the company operates in a sector that requires special licenses, such as health care or education.
  • Company registration application: Submit a company registration application via the electronic system or through the relevant registration office, according to the requirements of the competent authority.
  • Company insurance: Insurance documents if required, such as civil liability insurance or property insurance.

Types of companies that can be registered in Dubai

Here is a table showing the types of companies that can be registered in Dubai, with a summary of each type:

Company typeDescriptionAdvantagesRestrictions
Limited Liability Company (LLC)A commercial company can have multiple shareholdersJoint ownership, flexibility in distributing profits, and protection for investorsRequires a local partner to own 51% of the shares in non-free zones
Public joint stock companyA company whose shares can be traded on a stock exchangePossibility of raising capital from the public, flexibility in financingHigh regulatory requirements, preferably based in the market
Private joint stock companyA company whose shares are not tradable on the stock exchangePrivately owned, less regulated than public companiesLimited number of shareholders, restrictions on stock trading
Branch of a foreign companyA branch of a foreign company operating in DubaiFlexibility to work under the original brandIt is not possible to undertake new commercial activities outside the scope of the mother’s activity
Sole proprietorshipWholly owned by one individualEasy to establish, limited liabilityIt does not protect investors from personal liabilities
Free trading companyA company operating in free zonesFull foreign ownership, tax exemptions, ease of exportingLimited commercial activities that can be practiced within the Emirates
Consulting companyProvides high-level consulting servicesFewer regulatory requirements, flexibility in services providedRestrictions on providing consulting services in certain areas
Professional services companyIt provides professional services such as law and accountingSpecialization in providing professional services, flexibility in operationsRequires special licenses from regulatory bodies in the professional field

Each type of company has its own requirements and laws, and investors must choose the most appropriate type based on the nature of their business and goals.

Costs of registering a company in Dubai
Costs of registering a company in Dubai

Costs of registering a company in Dubai

Costs for registering a company in Dubai vary based on several factors, including the type of company, registration location, and type of business. However, a general idea of ​​the costs you may encounter can be provided:

  • License fees: Includes fees paid to obtain a commercial license from the Department of Economic Development (DED) or the competent authority in free zones. Fees may include initial and renewal licenses.
  • Office Rent: The cost of renting office space in Dubai. This cost may be higher in prime areas or free zones than in other areas.
  • Incorporation fees: Fees paid to companies include services specialized in registering companies, such as application fees and assistance in preparing legal documents.
  • Insurance: The cost of business insurance, such as property or civil liability insurance, which may be required depending on the type of business.
  • Document attestation fees: Costs of attesting and notarizing legal documents such as articles of incorporation and articles of association from a notary public or the relevant authorities.
  • Recruitment and visa fees: Costs for obtaining work and residency visas for employees, in addition to registration fees at the Ministry of Human Resources and Emiratisation.
  • Bank fees: Fees for opening a company bank account, which may include banking fees and minimum capital requirements.
  • Consulting fees: Legal or financial consulting costs for specialized advice on company establishment and legal procedures.
  • Additional service fees: These may include fees for additional services such as accounting services, legal consultations, or trademark registration services.

At the conclusion of this article about registering companies in Dubai , it becomes clear that the process, despite its many steps, offers a valuable opportunity for investors from different parts of the world. Dubai, thanks to its flexible investment environment and attractive advantages, seeks to facilitate business start-up procedures and ensure a smooth experience for investors.

It is necessary for investors to pay special attention to the required documents, including the passport, establishment license, and business plan, as completing these documents accurately can contribute significantly to speeding up the process. Also, choosing the type of company and the appropriate location for it from among the available options, whether in free zones or in land areas, can positively affect the success of the business in the future.

In addition, Dubai provides many incentives to investors, such as tax exemptions and customs facilities, making it a favorite destination for many entrepreneurs. It is also important to benefit from specialized consulting services provided by companies such as Itqan, which provide integrated support and legal and procedural advice to ensure compliance with all requirements.

The most important frequently asked questions about registering a company in Dubai

Are there any tax breaks for investors in Dubai?

Yes, Dubai provides tax exemptions in free zones such as exemption from corporate income tax. However, businesses may need to comply with value-added tax (VAT) and other fees.

Is it possible to modify the company’s activity after registering it?

Yes, the company’s activity can be modified after its registration, but this requires submitting an application to amend the commercial license with the competent authorities and updating the relevant documents.

What are the responsibilities of companies after registration?

Businesses are responsible for complying with local laws, paying annual license renewal fees, filing financial and tax reports, and maintaining legal and procedural updates.

What are the procedures followed in the event of a change in the company’s address or headquarters?

Changing the company’s address or headquarters requires updating information with the competent authorities, submitting a new lease contract, and amending the commercial license if necessary.

Do companies need to obtain additional licenses?

Depending on the type of business, companies may need additional licenses or special permits, such as health licenses or environmental permits.