Costs of establishing a company in Dubai

Dubai is one of the most attractive cities for investments and business in the world, thanks to its advanced economic environment and the modern infrastructure it provides. If you are thinking of starting a company in this dynamic city, Dubai offers you vast opportunities across diverse sectors, from technology to trade and services. Establishing a company in Dubai is a strategic move that can open new doors for growth and innovation, but the incorporation process requires a deep understanding of legal procedures and requirements.

First, investors must determine the type of legal entity that suits their activity, whether it is a limited liability company (LLC), a joint stock company, or even a branch of a foreign company. Each of these types comes with a set of special requirements and privileges, which can affect the incorporation process and future success of the company. After determining the type of entity, it is the role of choosing the appropriate area to register the company, as Dubai provides a group of free zones and non-free zones, each of which offers certain advantages that are in line with the nature of the business activity.

The next step involves preparing a clear and detailed business plan, as this plan will help you determine the strategic goals and financial resources required. Then, you will need to apply for the necessary licenses and permits from the relevant authorities. The process of obtaining licenses includes submitting legal and administrative documents, opening a commercial bank account, in addition to leasing or purchasing a suitable business location.

Ultimately, setting up a company in Dubai can be a rewarding process if planned carefully and understanding the necessary requirements. With its advanced infrastructure and the benefits it offers, Dubai provides an ideal environment for new businesses to succeed and thrive.

The best company for establishing companies in Dubai

When it comes to establishing companies in Dubai , Itqan is the ideal choice for investors and entrepreneurs looking for effective and reliable solutions. Thanks to its well-established reputation in the field of company establishment services, Itqan offers a comprehensive range of services that include all aspects of the establishment process, from registration and licensing to legal and administrative consultations.

Itqan Company is distinguished by its ability to provide customized solutions that meet the needs of its customers, which contributes to simplifying procedures and saving time and effort. Its specialized team has extensive experience in dealing with various types of companies and free zones, ensuring that all legal and administrative requirements are met efficiently.

Through its commitment to providing outstanding customer service and success-oriented strategies, Itqan Company proves that it is the ideal choice for those looking to establish a company in Dubai with the highest standards of professionalism and precision.

Steps to establish a company in Dubai

To establish a company in Dubai , you must follow a set of basic steps to ensure compliance with local laws and achieve success in the incorporation process. Here are the main steps to follow:

1. Determine the type of company and business activity: Company type: Determine the type of company that suits your business, such as a limited liability company (LLC), a company in a free zone, or a joint stock company.
2. Business activity: Choose the business activity you will undertake, as this affects the type of license and permits required.
3. Choosing a company name: Choose a trade name that complies with local laws, and check the availability of the name through the electronic portal of the competent authority.
   Make sure the name is not reserved or against legal standards.
4. Preparing a business plan: Prepare a detailed business plan that includes the company’s objectives, market strategies, and competitor analysis.
   A business plan may be required to obtain a business license or to obtain financing.
5. Choosing a company location: Choose a location for the company’s office or headquarters based on the type of company (within Dubai or in a free zone).
   Rent or buy the appropriate property and have the lease notarized.
6. Submit a registration and license application: Submit an application for a business license from the Dubai Economic Department or from the administrative body of the free zone you have chosen.
   Attach the required documents such as passport, rental contract, and other documents.
7. Open a company bank account: Open a business bank account in the company’s name at a local bank.
   Submit the required documents such as the registration certificate, lease contract, and personal identification of the directors.
8. Obtaining work and residence visas: Apply for work and residence visas for managers and employees.
   Fill out the required forms and submit the required documents to the competent authority.
9. Registering the company in government departments: Register the company with other government agencies if necessary, such as the local tax authority.
   Obtain the necessary permits and certificates depending on the type of business activity.
10. Completing the legal procedures: Perform all necessary legal procedures such as documentation, registration in the Chambers of Commerce, and social insurance procedures.
11. Start-up: After obtaining all licenses and visas, you can start business operations and activate the company’s activity.

Costs of establishing a company in Dubai

The costs of establishing a company in Dubai can be multiple and vary based on the type of company, its location, and the requirements of the business. But an overview can be given of the main elements that make up the overall set-up costs:

1. License fees: Includes the costs of obtaining a commercial license, which vary based on the type of business activity and location, whether in economic development zones or free zones.
2. Office rent: It is necessary to rent an office to conduct business, and costs may be related to the location and space of the office. In free zones, costs can also include office services.
3. Insurance: Businesses may need insurance to cover potential risks, such as general liability or accident insurance.
4. Legal consulting costs: Includes fees for legal advisors and business advisors who help prepare documents, provide advice, and ensure the company complies with local laws.
5. Administrative fees: Includes application and registration costs, such as fees for authenticating documents, banking fees for opening a bank account, and any other administrative fees.
6. Initial operational costs: These include the costs of setting up the office, purchasing basic equipment, and hiring employees, in addition to other start-up costs such as brand marketing.
7. Visa-related fees: Includes fees for residence and work visas for investors and employees, which may include application and visa renewal fees.
8. Compliance-related costs: Includes costs associated with meeting regulatory requirements, such as registering for taxes, paying customs duties, and complying with local regulations.

Licenses required to establish a company in Dubai

To establish a company in Dubai , specific licenses are required based on the type of business and the location of the company. Here is an overview of the main licenses required to establish a company in Dubai:

• Commercial licenses: issued by the Department of Economic Development (DED) in Dubai. These licenses are intended for companies operating outside free zones and cover a wide range of business activities. Obtaining a business license requires submitting documents such as the articles of incorporation, lease and articles of association.
• Licenses in free zones: Licenses are issued by the administrative authorities of free zones, such as Dubai Silicon Oasis or Dubai Media City. These licenses include companies that establish in free zones and benefit from benefits such as tax exemptions and full foreign ownership.
• Industrial licenses: for companies operating in the industrial or production sector. These companies need to obtain an industrial licence, which includes evaluating industrial activities, and submitting operating and facility plans.
• Professional Licenses: Required for companies that provide professional services such as consulting, law, engineering, and training. This license requires the submission of documents proving professional qualifications and experience.
• Tourism licenses: If the company operates in the tourism or hospitality sector, such as hotels or travel agencies, it needs a tourism license from the Department of Tourism and Commerce Marketing in Dubai.
• Special business licenses: These include licenses that may be necessary for special or specialized business activities, such as food sales licenses, storage licenses, and export and import licenses.
• Environmental licenses: For certain industrial activities or those that affect the environment, companies may need an environmental license from the Dubai Environment Agency, to ensure their compliance with environmental standards.
• Health licenses: For companies operating in the health sector or dealing with medical products, health licenses are required from the Dubai Health Authority.

In conclusion, establishing a company in Dubai is a strategic move that can open wide doors of opportunities and growth. Thanks to the city’s dynamic business environment, as well as its tax and business advantages, Dubai has become a favorite destination for investors from all over the world. The process begins by determining the type of company that best suits your needs, then comes the registration and licensing step that requires careful planning and compliance with legal procedures.

Communicating with specialized consultants can greatly contribute to simplifying the process, providing the necessary advice to avoid common mistakes and ensuring compliance with local requirements. Itqan Company is an example of companies that provide integrated services in this field, as it provides comprehensive support from the idea stage to the start of actual operations, which helps speed up the steps and provide a smooth investment experience.

Choosing the appropriate location, whether in free zones or within the city, plays a crucial role in determining establishment and management costs. In addition, developing a strong and effective business plan is essential to the success of the project, as it provides you with a clear vision and direction for your investment.