How to establish a company in Dubai without the need for a sponsor

How to establish a company in Dubai without the need for a sponsor? In the modern business world, Dubai has become one of the most prominent global destinations for attracting investments and establishing companies. To make this easier for foreign investors, Dubai has introduced an innovative model that allows companies to be established without the need for a local sponsor. This radical transformation reflects the city’s commitment to providing a flexible and supportive business environment for investors from all over the world. In this article, we will review the basic steps and procedures that must be followed to establish a company in Dubai without the need for a local sponsor, in addition to the advantages that these new options provide to investors who want to take advantage of the vast economic opportunities that Dubai offers.

How to establish a company in Dubai without the need for a sponsor

Establishing a company in Dubai without the need for a local sponsor is now an option for foreign investors thanks to legal developments and reforms introduced by the UAE. Here are key steps to establishing a company in Dubai without a local sponsor:

1. Choosing the type of company : First, you must determine the type of company you want to establish. In Dubai, you can choose between a limited liability company (LLC), a private joint stock company, or a branch of an international company.
2. Choosing a free zone : Companies can be established in one of the free zones in Dubai, such as the Jebel Ali Free Zone (JAFZA) or the Dubai International Financial Center (DIFC). Companies in free zones do not need a local sponsor, as these zones allow foreign investors to own 100% of the company.
3. Company Registration : After selecting the free zone, a registration application must be submitted to the relevant authority in the free zone. You will need to provide the necessary documents such as passport, business plan, and any other required documents.
4. Obtaining a license : After completing registration, you will need to obtain a commercial or industrial license that allows you to start practicing commercial activity. This includes paying the specified fees and submitting the required documents.
5. Opening a bank account : After obtaining the license, a bank account must be opened for the company. You will need to provide company-specific documents such as a license and articles of association.
6. Securing an office : You must secure an office for your company. The office can be in the free zone or in any location you choose according to the laws of the region.
7. Recruitment and Compliance : After establishing the company, you can start hiring employees and comply with legal and tax requirements in Dubai.

By following these steps, foreign investors can establish companies in Dubai without the need for a local sponsor and benefit from the advanced business environment that the city provides.

Establishing a company in Dubai without the need for a local sponsor provides many advantages that enhance the city’s attractiveness as a global business and investment center. Here are some of the most notable advantages:

1. Full ownership of the company : The commercial environment in free zones allows you to own 100% of the company’s shares without the need for a local partner. This provides you complete control over operations and strategic decision making without third party interference.
2. Simplifying procedures : The legal and administrative procedures for establishing a company become simpler and faster, as you do not need to negotiate with a local sponsor or deal with additional requirements related to the local partner.
3. Asset protection : Full ownership of the company allows you to protect your private assets and investments, as financial and legal responsibility is limited to the company without the need for the influence of another party.
4. Cost Savings : By bypassing the need for a local sponsor, you can avoid potential local partner costs, reducing the overall costs of setting up and running a company.
5. Flexibility in commercial activities : You can practice any licensed commercial activity within the activities permitted in the free zones, without the need to adhere to the conditions that may be imposed by the local sponsor.
6. Financing and licensing facilities : Free zones provide great facilities in obtaining financing and licenses, which makes it easier for new companies to start their business.
7. Benefit from tax incentives : Most free zones in Dubai provide tax incentives such as income tax exemption, which contributes to enhancing profitability and business growth.
8. Flexibility to expand : With full ownership, it becomes easier to plan expansion and expand your business in the future without the need for consultations with a local sponsor.

These advantages make Dubai an ideal destination for foreign investors who want to establish their companies efficiently and flexibly, which contributes to achieving tangible business successes.

 

Cost factors for establishing a company in Dubai without the need for a sponsor

The cost of establishing a company in Dubai without the need for a sponsor depends on several key factors. Here are some of these factors that can affect costs:

1. Choosing a free zone : Establishment costs vary depending on the free zone you choose. Some free zones may be more expensive due to the facilities and services available, while others offer lower costs.
2. Type of company : The type of company you want to establish can affect the cost. Limited liability companies (LLC), branches, and sole proprietorships vary in terms of the costs required to establish them.
3. Licensing and Registration : Obtaining a commercial or industrial license requires paying registration and licensing fees. These fees vary based on the type of business and industry.
4. Office costs : Costs include renting or purchasing office space. Free zones often offer office options at different costs, such as shared offices or private offices.
5. Legal and Financial Advisors : You may need to engage the services of legal and financial advisors to assist you in preparing legal documents, providing advice, and ensuring compliance with local laws.
6. Government fees : Government fees include the costs of registering the company and obtaining the necessary approvals and licenses. It may also include fees for documentation and other legal formalities.
7. Insurance and employment : Health insurance and employment costs may be part of the total costs, in addition to salaries and social insurance.
8. Bank Account : Opening a business bank account may require fees, in addition to other financial requirements related to depositing capital.
9. Additional Services : Potential costs also include additional services such as advertising, marketing, and employee training.

An accurate estimate of the cost of starting a company requires taking all of these factors into consideration, and can vary depending on the company’s needs and goals. It is best to contact consulting firms specializing in company formation in Dubai to get a detailed estimate and guidance on the options available.

 

Conditions for establishing a company in Dubai without the need for a sponsor

Establishing a company in Dubai without the need for a local sponsor requires meeting a number of conditions and requirements. Here are the most prominent of these conditions:

1. Choosing a free zone : The company must be established in one of the free zones that allow 100% foreign ownership, such as Jebel Ali Free Zone (JAFZA), Dubai International Financial Center (DIFC), or Dubai Airport Free Zone (DAFZ). These areas provide a legal environment that allows companies to be established without the need for a local sponsor.
2. Determine the type of company : You must determine the type of company you wish to establish. It can be a limited liability company (LLC), a branch of an international company, or a private joint stock company, depending on the type of activity and the requirements of the free zone.
3. Submitting a business plan : A clear business plan must be submitted that includes details of the business activity, target market, and growth plan. This helps in evaluating the feasibility of the project and obtaining the appropriate license.
4. Compliance with legal requirements : Investors must comply with the local laws and regulations of the free zone, including submitting the necessary legal documents such as a passport, articles of incorporation, and proof of address.
5. Securing an office : You must secure an office in the free zone you choose. The office can be furnished and equipped according to the requirements of the free zone.
6. Obtaining a license : A commercial or industrial license must be obtained from the relevant authority in the free zone. This includes paying the specified fees and submitting all required documents.
7. Opening a bank account : A commercial bank account must be opened in one of the approved banks. This requires submitting company documents and depositing the required capital.
8. Tax Compliance : Although many free zones offer tax exemptions, you must ensure compliance with all relevant local and international tax requirements.
9. Hiring employees : If you plan to hire employees, you must comply with Dubai’s labor laws, including obtaining work visas and providing health insurance. These conditions are necessary to establish a company in Dubai without the need for a local sponsor, and help ensure compliance with local laws and regulations.

Documents required to establish a company in Dubai without the need for a sponsor

To establish a company in Dubai without the need for a local sponsor, especially in free zones that allow 100% ownership by foreigners, you will need to submit a set of papers and documents. Below is a list of documents typically required:

1. Passport : A colored copy of the passport for both shareholders and managers. The passport must be valid.
2. Personal photographs : Recent personal photographs of shareholders and directors, usually with specific descriptions.
3. Articles of Association and Articles of Association : The company’s articles of association and articles of association, which is a legal document that defines the organizational structure and activity of the company.
4. Business Plan : A detailed business plan that includes company goals, market strategies, and competitive analysis.
5. Residence permit (if applicable) : If the shareholders or directors are residents of the UAE, a copy of the residence permit may be required.
6. Proof of address : Proof of the residential address of shareholders and directors, such as utility bills (electricity, water, telephone) or a rental contract.
7. Approval from government agencies : In some cases, you may need additional approval from the relevant government agencies if your business activity requires it.
8. Office insurance : a lease contract or proof of the provision of office space in the relevant free zone.
9. Activity License : An application for a commercial activity license, which includes details about the type of activity and its description.
10. Signature of documents : Shareholders and directors sign all required legal documents.
11. Payment of fees : Payment of fees related to registration and licensing, which vary according to the free zone and the type of company.

Paperwork requirements may vary slightly depending on the free zone you choose and the type of business. It is best to check the specific requirements with the responsible authority in the free zone in which you intend to establish the company, or to seek legal counsel to help you prepare the necessary documents.

In conclusion, establishing a company in Dubai without the need for a local sponsor represents a golden opportunity for foreign investors wishing to enter the vibrant business market in the UAE. By enjoying full ownership of the company, enjoying a flexible business environment, and streamlining procedures, ambitious business goals can be achieved more efficiently. Thanks to its free zones, Dubai provides a supportive system that ensures ease of establishment and management, making it an ideal destination for investors from all over the world. Therefore, if you are thinking about establishing your own business in this global city, taking advantage of this system may be the first step towards achieving tangible successes and sustainable growth in the business world.

 

Frequently asked questions about establishing a company in Dubai without the need for a sponsor

What are the free zones in Dubai that allow companies to be established without the need for a sponsor?

There are many free zones in Dubai that allow companies to be established without the need for a local sponsor, such as Jebel Ali Free Zone (JAFZA), Dubai International Financial Center (DIFC), Dubai Airport Free Zone (DAFZ), and others.

What types of companies can be established in Dubai without the need for a sponsor?

You can establish limited liability companies (LLC), branches of international companies, and private joint stock companies in free zones. You should check the most suitable type according to your business and free zone requirements.

What are the documents required to establish a company in Dubai without a sponsor?

Basic documents include passports, personal photos, articles of incorporation, business plan, proof of address, and perhaps some additional documents depending on the free zone.

Do you need work visas to hire employees for my company?

Yes, you must obtain work visas for employees if you plan to employ them. Must adhere to local labor laws in Dubai.

What are the costs of establishing a company in Dubai without a sponsor?

Costs vary based on company type, free zone, and additional options such as office size and consulting services. It is best to obtain a detailed estimate from the relevant authority or a legal advisor.