How to open a company in Dubai

Here are detailed steps for the procedures for opening a company in Dubai :

1. Determine the type of company : Choose between limited liability companies (LLC), companies in free zones, or offshore companies. Each type has different requirements and procedures.
2. Choosing a company name : Choose a name that is in line with Dubai’s naming laws. Make sure there is no other company with the same name, and that the name is in line with local ethics and laws.
3. Determine the business activity : Determine the business activity you wish to practice, as this will determine the type of license required.
4. Preparing the required documents :
   • Passports : for partners and managers.
   • Articles of Association : It includes details of the company and the rights of the partners.
   • Business plan : describes the company’s activity and growth strategies.
   • Office leasing document : Proof of the existence of an actual workplace.
5. Apply for a business license : Apply for a license from the Department of Economic Development (DED) in Dubai or the responsible authority in the free zone of your choice.
6. Open a bank account : Open a business bank account in the company’s name at a local bank. This requires submitting official company documents.
7. Completing registration procedures : Register the company with the relevant government agencies, such as the Department of Economic Development (DED) or the responsible body in the free zone.
8. Apply for work and residence visas : Submit applications for work and residence visas for founders and employees through the Naturalization and Residency Department.
9. Social Insurance Registration : If you have employees, register the company in the Social Insurance system according to local laws.
10. Receiving the license and preparing the facilities : After approving the application and receiving the license, prepare the office and facilities according to the requirements of the business.
11. Tax registration : Ensure compliance with local tax requirements, if they apply to your business. Register the company with the Federal Tax Authority if necessary.
12. Registration in the Chamber of Commerce : Register your company with the Dubai Chamber of Commerce and Industry to obtain membership and enhance the credibility of your company.

By carefully applying these steps, you can establish your company in Dubai in a legal and efficient manner.

Establishing a company in Dubai offers many benefits, making it a favorite destination for investors and businessmen. Here are the most important benefits:

1. Favorable business environment : Dubai provides an encouraging business environment with flexible laws and a stable investment climate, which facilitates starting and growing a business.
2. Tax exemptions : Companies in free zones enjoy full tax exemptions on profits, and reductions in import and export duties.
3. Full foreign ownership : Foreign investors can fully own their companies in free zones, allowing them to have full control of their business without the need for a local partner.
4. Advanced infrastructure : Dubai provides excellent infrastructure that includes technological facilities, ports, and airports, facilitating transportation and trade operations.
5. Easy access to international markets : Dubai’s strategic location as a connecting point between East and West makes it an important center for accessing international markets.
6. Accelerating licensing procedures : Dubai provides fast and efficient procedures for business licensing, which reduces the time and effort required to establish a company.
7. Government incentives : The Dubai government offers a range of incentives to companies, including support programs for new projects and technology.
8. Economic Diversity : Dubai provides a diverse economic environment that includes sectors such as technology, industry, services, and finance, providing many business opportunities.
9. Strong banking system : Dubai provides an advanced banking system with a wide range of financial services, facilitating money management and financial transactions.
10. Quality of Life : Dubai provides a high level of quality of life, including advanced educational and health facilities, making it an attractive destination for investors and families.

These benefits contribute to making Dubai an ideal environment for business success, attracting many international and local companies to the region.

Cost factors for opening a company in Dubai

The cost of setting up a company in Dubai varies based on several key factors. Here are the most important factors that affect the cost of establishment:

1. Company type :
   • Limited Liability Company (LLC) : This type typically requires a local partner and may be more expensive due to legal requirements and procedures.
   • Free Zone Company : Costs can be lower for companies operating within free zones, as they do not require a local partner, but there are registration and office rental fees.
   • External company : Costs may vary depending on activity and local laws.
2. Business : Costs vary based on the type of business, as some activities may require special licenses or additional approvals.
3. Company location : Office location : Renting an office in a prime location or free zone may be more expensive than renting an office in a less expensive commercial area.
4. Licensing and registration :
   • Commercial license fees vary according to the type of company and its activity, and also require paying registration fees with government agencies.
5. Legal Procedures : You may need to pay fees for legal advice, preparing contracts, and drafting legal documents.
6. Administrative fees : include fees for issuing licenses, registering the company, and renewing annual licenses.
7. Initial financing : There may be requirements for initial capital that you need to invest in the company.
8. Visas and Work Permits : Costs of obtaining work and residency visas for founders and employees.
9. Insurance : Social insurance and health insurance costs for employees.
10. Facilities and Services : The costs of equipping the office with basic equipment and services such as the Internet and telephone.
11. Taxes : If you operate outside the free zones or engage in some activities that require paying taxes, these costs must be taken into account.

These factors vary depending on the type of business, company size, and location you choose, so it is best to consult a local consultant to get accurate estimates that fit your business needs.

In conclusion, opening a company in Dubai is a strategic step towards achieving success in a vibrant and dynamic business environment. Dubai provides broad opportunities for investors and entrepreneurs thanks to its advanced infrastructure, flexible economic system, and the attractive incentives it offers to investors. By following the necessary legal steps and procedures, such as determining the type of company, obtaining a commercial license, and preparing the necessary documents, new companies can establish a strong foundation for their future success. Your commitment to verifying the legal and financial requirements will contribute greatly to ensuring that your company runs efficiently and smoothly. Ultimately, Dubai offers an ideal environment for business development, making it a preferred destination for anyone seeking to expand their business horizons and achieve their investment goals.

 

Frequently asked questions about opening a company in Dubai

How long does it take to open a company in Dubai?

The process of opening a company in Dubai can take from two weeks to three months, depending on the type of company and the speed of completion of procedures and documents.

Can foreigners fully own a company in Dubai?

Yes, foreigners can fully own companies in free zones. In the case of limited liability companies (LLC), there must be a local partner who owns 51% of the shares.

How much does it cost to open a company in Dubai?

The cost of opening a company in Dubai depends on several factors, including the type of company, its location, and its business activity. Costs can include licensing fees, office rental, legal proceedings, and other costs.

Is it necessary to rent an office to open a company in Dubai?

Yes, opening a company in Dubai requires providing a physical workplace, whether it is in a free zone or in a commercial location in Dubai. Space and facility requirements can vary depending on the type of company and business activity.