How to establish a company in Dubai

Dubai is one of the most prominent global destinations for establishing companies and investing, thanks to its thriving economic environment and diversity of business opportunities. If you are thinking about starting a company in Dubai , you are on the right track to achieve success and growth in a dynamic and innovative market. Dubai offers a wide range of options for investors, including free zones that provide great facilities and attractive tax exemptions. In addition, Dubai features advanced infrastructure and a supportive legal framework that makes establishing and operating a business smooth and fast. In this article, we will review the basic steps for establishing a company in Dubai, from choosing the appropriate type of company to obtaining the necessary licenses to start working.

How to establish a company in Dubai

Establishing a company in Dubai with the help of “Itqan” company is an ideal option for investors who seek to simplify the process of starting their business. Itqan provides a comprehensive range of services that cover all aspects of establishing companies, from commercial planning consultations and choosing the most appropriate legal structure, through preparing the necessary documents and submitting them to the concerned authorities, all the way to obtaining the required licenses and permits. Thanks to its experienced team of legal experts and advisors, our company ensures that the incorporation process runs smoothly and efficiently, allowing investors to focus on developing their business and achieving their goals. Cooperating with our company gives you the advantage of benefiting from their in-depth knowledge of local laws and bureaucratic procedures, saving you time and effort and enhancing the chances of success of your project in Dubai.

Types of companies in Dubai

Here is a table showing the types of companies in Dubai with a brief description of each type:

The requirements and procedures for establishing each type of company differ, so it is important to understand the differences between them and choose the type that best suits your business needs.

Steps to establish a company in Dubai

Establishing a company in Dubai requires following a set of steps to ensure compliance with laws and obtaining the necessary Dubai business licenses . Here are the basic steps to establish a company in Dubai:

1. Determine the type of company: Choose the appropriate type of company, whether it is a free zone, a local company, or a limited partnership.
2. Choosing a Business: Determine what business you want to engage in and make sure it complies with local regulations.
3. Determine the company name: Choose an appropriate trade name and ensure that it is available and does not conflict with existing names.
4. Location selection: Determine the location of the office or facility, whether in a free zone or in the city.
5. Obtaining initial approvals: Submit a request to obtain initial approvals from the competent authorities.
6. Document preparation: Collect and prepare the necessary documents such as a copy of the passport, articles of incorporation, and company bylaws.
7. Commercial Registration: Register the company with the Department of Economic Development in Dubai or the selected Free Zone Authority.
8. Obtaining licenses: Applying for the licenses required to practice commercial activity.
9. Opening a bank account: Opening a bank account for the company in a local bank.
10. Office rental: Renting an office or facility that suits the company’s activity and meets licensing requirements.
11. Staff Recruitment: Hiring necessary staff and completing visa and work permit procedures.
12. Compliance with Laws and Regulations: Ensure compliance with all local laws and regulations relating to businesses.
    By following these steps, setting up a company in Dubai can be done easily and efficiently, allowing you to start your business in one of the most attractive and stable markets in the world.

Conditions for establishing a company in Dubai

Establishing a company in Dubai requires compliance with a set of conditions and procedures imposed by the competent authorities. These conditions vary based on the type of company, business activity, and area in which you wish to establish (free zone or within the city). Here are the basic conditions for establishing a company in Dubai:

1. Determine the type of business activity: Choose the appropriate business activity from the list of activities approved by the Department of Economic Development in Dubai or the selected free zone authority.
2. Legal structure of the company: Choose the legal structure of the company such as a limited liability company, joint stock company, branch of a foreign company, or sole proprietorship.
3. Company name: Choose a unique and appropriate trade name that is consistent with applicable regulations and does not conflict with previously registered names.
4. Shareholders and Directors: Specify the number of shareholders and directors and provide their personal details such as passports and proof of residence.
5. Capital: Determine the required capital according to the type of company and activity, and capital requirements may differ based on the type of company and free zone.
6. Commercial location: Securing a suitable location for the company, whether in a free zone or within the city, and obtaining a notarized lease contract.
7. Approvals and licenses: Obtaining initial approvals from the competent authorities based on the type of business activity. Submitting an application to obtain a commercial license from the Department of Economic Development or the Free Zone Authority.
8. Legal documents: Submit required documents such as the articles of incorporation, the company’s articles of association, and copies of passports for shareholders and directors.
9. Visas and Work Permits: Obtaining residence visas and work permits for employees and managers.
10. Compliance with Local Laws: Ensure compliance with all local laws and regulations related to taxes, social security, and other legal obligations.
11. Opening a bank account: Opening a bank account for the company in a local bank to facilitate financial operations.
    By meeting these conditions, investors can establish a company in Dubai and begin conducting their business activities in a prosperous and supportive business environment.

Cost factors for setting up a company in Dubai

The cost of establishing a company in Dubai is affected by several key factors, which vary depending on the type of company, business activity, and chosen location. Here are the most important factors that affect the cost of establishing a company in Dubai:

Company type

One of the first factors regarding cost is the type of company, such as a limited liability company (LLC), a free zone company, a branch of a foreign company, or a sole proprietorship.

the site

Choosing a free zone or within the city greatly affects the cost. Free zones may offer incentives and tax breaks, but establishment and licensing fees can be higher compared to setting up a company within a city.
Capital in that some types of companies require a certain capital to be deposited in a bank account, and capital requirements may vary depending on the type of company and the chosen region.

Licenses

License fees vary depending on the type of business activity and the free zone or Department of Economic Development. Some activities may require additional licenses from specialized regulatory bodies. In addition to documents and registration, it includes the costs of preparing legal documents, such as the company’s articles of incorporation and articles of association, and registration fees with the competent authorities.

Rent and utilities

The cost of renting an office or commercial facility in the free zone or within the city. Some free zones require a physical office, which increases the cost. In addition to visas and work permits, which include the costs of obtaining residence visas and work permits for employees and investors.

Consulting and professional services, insurance:

It may include costs of legal and financial consulting, and incorporation services provided by specialized companies such as Itqan. It also includes the costs of health insurance and business insurance, which are basic requirements for some types of businesses. In addition to taxes and government fees in terms of annual registration and renewal fees, in addition to any other government fees related to commercial activities.

Supplies and equipment

The costs of purchasing or renting equipment and supplies necessary to start a business. When planning to establish a company in Dubai, it is important to conduct a comprehensive analysis of all potential costs and ensure there is an adequate budget to cover these expenses. Hiring experts in company formation, such as Itqan, can help accurately estimate costs and simplify the incorporation process.

Documents required to establish a company in Dubai

Establishing a company in Dubai requires submitting a set of papers and documents to the competent authorities. Requirements may vary based on the type of company, business activity and chosen area (free zone or within the city). Below are the basic papers required to establish a company in Dubai:

Required papers

1. Copies of passports: Color copies of the passports of all partners and directors.
2. Personal photographs: Recent personal photographs (passport size) of all partners and directors.
3. Company registration application form: Fill out and submit the company registration application form with the Department of Economic Development or the selected free zone authority.
4. Company name: Proposing three trade names for the company and obtaining initial approval from the competent authority.
5. Memorandum of Understanding (MOA): Signing of a memorandum of understanding that sets out the details of the partnership between partners and documenting it legally.
6. Memorandum of Association and Articles of Association of the company: Preparing and signing the Memorandum of Association and Articles of Association of the company and notarizing them with the competent authorities.
7. Approval of the relevant authorities: Obtaining the necessary approvals from the authorities concerned with the chosen commercial activity (if the activity requires this).
8. Office lease contract: Submit a copy of the office or commercial facility lease contract authenticated by the competent authorities.
9. Capital: Submit a certificate of deposit of capital in a local bank (if required).
10. Security approval: Obtaining security approval from the competent authorities for certain activities or nationalities.
11. Legal power of attorney: If there is an agent submitting the application on behalf of the partners, a notarized legal power of attorney must be submitted.

Additional procedures may be required

1. Business Plan: Submit a business plan that explains the business activity and company goals.
2. No Objection Certificate (NOC): Obtain a NOC from the current sponsor if one of the partners or managers is residing in the UAE on another sponsorship.
3. Additional documents: Some commercial activities may require the submission of additional documents such as professional qualification or experience certificates.
   Seeking the assistance of experts or specialized companies such as Itqan can help facilitate the collection and preparation of the required documents and ensure that the incorporation process runs smoothly and efficiently.

In conclusion, establishing a company in Dubai is an important strategic step to navigate a dynamic and diverse business environment. Choosing a reliable partner like Itqan helps you simplify all the procedures and transactions necessary to successfully establish your company. Thanks to its extensive experience and specialized team, our company provides comprehensive support to ensure that your company complies with all legal and administrative requirements, saving you time and effort to focus on growing your business and achieving your business goals. Thanks to this company, you can start your business journey in Dubai with confidence and reassurance, taking advantage of the promising opportunities in one of the most prominent global markets.

Frequently asked questions about establishing a company in Dubai