Costs of establishing a company in Dubai

Dubai is considered one of the most prominent global destinations for investments and business thanks to its strategic location, advanced economic environment, and government policies that support business. Establishing a company in Dubai is an essential step towards achieving success and prosperity in the business world. Whether you are an aspiring entrepreneur or an international company looking to expand its operations, Dubai provides an integrated environment that facilitates all aspects of establishing and operating businesses.

In this article, we will detail the steps for establishing a company in Dubai , including choosing the company type, registering the trade name, and submitting the required documents. We will also review the many features that make Dubai an ideal destination for establishing a business, such as an advanced business environment, tax exemptions, and easy access to global markets. In addition, we will discuss the necessary conditions for establishing a company, from having a local partner to the required capital and obtaining the necessary licenses. Finally, we will discuss the costs involved in setting up a company in Dubai, including licensing fees, office rental costs, and legal services. Through this article, you will find a comprehensive guide that can help you make the right decision and successfully establish your company in Dubai, a city that never stops growing and innovating.

Steps to establish a company in Dubai

The first step in establishing a company in Dubai is to determine the type of company you want to establish. You can choose between several types of companies such as:

• Limited Liability Company (LLC): This type of company is the most common in Dubai as it allows multiple partners.
• Public Joint Stock Company (PJSC): Suitable for large companies that want to raise capital through the sale of shares.
• Branch of a foreign company: If you own a company in another country and want to open a branch in Dubai.
• Sole proprietorship: If you want to establish a small company that you wholly own.

Trade name registration

After choosing the company type, you must register the trade name under which your company will operate. The trade name must be unique and not used by any other company in Dubai. You can check the availability and registration of the trade name through the Dubai Economic Development Department (DED).

Submit the required documents

After registering the trade name, you must submit the required documents to establish the company. These documents include:

• Copies of passports: for all partners and shareholders.
  Proof of address for each partner.
• Company Articles of Association: It must contain details of partners, capital ratio, and distribution of profits.
• Initial license: Must be obtained from the Department of Economic Development.

After submitting these documents, they will be reviewed by the relevant authorities and, if approved, you will receive the final license to establish the company.

Advantages of establishing a company in Dubai

Dubai is characterized by an advanced commercial environment that contributes to facilitating business and trade operations. The city provides modern infrastructure and advanced logistical facilities, in addition to the presence of specialized free zones that facilitate import and export operations. It is also a global commercial center linking eastern and western markets, making it a strategic location to start and expand businesses.

Tax exemptions

Tax exemptions are one of the most important features that attract investors to Dubai. The city offers flexible tax policies that include tax exemptions on personal and corporate income in many free zones. This is in addition to not imposing taxes on capital gains, which helps companies achieve sustainable financial growth.

Easy access to global markets

Thanks to its unique geographical location, Dubai provides easy access to global markets. The city is considered an important trade gateway between Asia, Europe, and Africa. The presence of advanced sea and air ports enhances ease of access to various global markets, giving companies the opportunity to expand and grow quickly.

Conditions for establishing a company in Dubai

Many businesses in Dubai require a local partner to own a certain percentage of the company, usually 51%. This local partner can be an individual or an approved local company. However, there are free zones in Dubai that give foreign investors full ownership of companies without the need for a local partner. Capital requirements vary depending on the type of company and the sector in which you intend to operate. Investors must determine the required capital based on the regulations in Dubai. Some companies may require a large amount of capital, while small and medium-sized companies can start their business with less capital.

Companies must obtain the necessary licenses to conduct business activities in Dubai. These licenses include a commercial license, an industrial license if the company is engaged in manufacturing, and a professional license if the company provides professional services. Obtaining these licenses requires submitting certain documents and paying prescribed fees. Required to comply with legal and regulatory requirements imposed by government agencies in Dubai. These requirements may include submitting periodic financial reports, complying with safety and health standards, and ensuring the company adheres to environmental laws.

Costs of establishing a company in Dubai

The costs of establishing a company in Dubai include several important factors, including:

1. Type of business activity : Costs vary depending on the type of business activity to be established, as the required fees and licenses vary.
2. Geographical location : Choosing a free zone or outside it affects the costs. Free zones offer special benefits, but their fees differ from establishment fees in other areas of Dubai.
3. Type of legal entity : There are different types of legal entities such as limited liability companies or sole proprietorships. Each type has different fees and costs.
4. Licensing and registration fees : These include the fees required to obtain a commercial license and register the company in the commercial registry.
5. Operational costs : include office rental costs, employee salaries, and utility costs (such as electricity, water, and communications).
6. Government fees : fees for issuing visas and other administrative procedures.
7. Professional advisors and services : You may need the services of a law firm or financial consulting, which increases costs. You can use a company like Itqan for advice and assistance in reducing costs and choosing the most appropriate options for your company.

In conclusion, it can be said that establishing a company in Dubai holds many advantages and promising opportunities for investors and entrepreneurs. By following the right steps and choosing the right type of company, success and growth can be achieved in an advanced business environment that supports innovation and provides attractive tax exemptions. In addition, Dubai facilitates access to global markets thanks to its advanced infrastructure and strategic location.

However, it is important to consider legal terms and requirements such as having a local partner and obtaining the necessary licenses, as well as good financial planning to cover various establishment costs, including licensing fees, office rental costs and legal services.

In conjunction with these factors, investors can achieve profitable returns and a successful trading experience in one of the most dynamic and competitive cities in the world. So, if you are thinking about establishing a company in Dubai, now is the best time to take advantage of all the limitless opportunities and potential that this global city has to offer.

Frequently asked questions about establishing a company in Dubai