The cost of establishing a company in Dubai

Find out the cost of establishing a company in Dubai because Dubai is considered one of the most prominent economic destinations in the world, as it is characterized by an attractive investment environment and a flexible economic system. One of the most important aspects of this system is the presence of free zones that provide companies with an ideal environment for growth and expansion. Dubai includes a variety of free zones that attract investors from all over the world and allow them to establish their companies easily and conveniently. The types of companies that can be established in these areas differ in terms of the purposes and activities they offer, providing investors with wide options that meet their needs and requirements. In this article, we will review the cost of establishing a company in Dubai , and shed light on its advantages and the opportunities it provides to investors.

The cost of establishing a company in Dubai

Establishing a company in the Dubai Free Zone requires following specific steps. Here’s a simple guide on how to do it:

1. Determine the business activity : Choose the business activity you want your company to do. Free zones in Dubai offer diverse business activities, so make sure that your business is in line with the activities permitted in the free zone you choose.
2. Choosing a free zone : Select the appropriate free zone based on the type of business and your requirements. Each free zone in Dubai has its own features and permitted activities.
3. Choose a company type : Choose the company type that best suits your business, such as a limited liability company (FZ-LLC), branch, or representative office.
4. Submit an application for a license : Submit an application for a commercial license from the responsible authority in the selected free zone. The application typically includes information about the company, partners, and business activity.
5. Prepare the required documents : Provide the necessary documents, which may include a copy of the passport, incorporation agreement, lease contract, and security approval if necessary.
6. Opening a bank account : After obtaining the license, open a bank account in the name of the company in one of the approved banks.
7. Office rental : Rent an office in the free zone. Some free zones offer office space and facilities for rent.
8. Sign the lease : Sign the office lease and ensure that all company documents are signed and approved.
9. Receiving the license and registration : After completing all procedures, receive the business license and register the company with the relevant government agencies if necessary.
10. Compliance with local laws : Ensure compliance with all local laws and regulations related to the business, including taxes and employment.

By following these steps, you can successfully establish your company in the Dubai Free Zone and benefit from the advantages that free zones offer to investors.

Steps to establish a company in Dubai

Establishing a company in Dubai requires following specific steps to ensure compliance with legal and administrative requirements. Here are the basic steps:

1. Determine the type of company and its activity : Choose the type of company that suits your business activity, such as a limited liability company (LLC), a public joint stock company, a branch of a foreign company, or a representative office. Determine the business activity the company will undertake and check the activities permitted in Dubai.
2. Choosing a trade name : Choose a trade name for your company that complies with local laws and reflects the nature of the activity. Make sure that the name is not previously used and is approved by the Department of Economic Development (DED) or the responsible authority in the free zone.
3. Preparing documents : Prepare the required documents, which may include passports, birth certificates, and security clearance if necessary. You may also need to submit the incorporation agreement and lease agreement for the corporate office.
4. Submit an application to obtain a license : Submit an application to obtain a commercial or industrial license from the Department of Economic Development (DED) or the responsible authority in the free zone. The application includes details about the company and business activity.
5. Opening a bank account : After obtaining the license, open a bank account in the name of the company in a local bank. You may need to provide documents such as license and company papers to open the account.
6. Office Rental : Rent an office in Dubai. The office can be in a free zone or in a commercial building depending on the type of company. Ensure that the office complies with legal requirements.
7. Sign the lease : Sign the lease with the landlord or company providing the office space. Make sure the contract includes all details regarding space, facilities and services.
8. Company registration : Register the company with the relevant government agencies if necessary, such as the local Chamber of Commerce. You may also need to register the company with the tax authority if it is subject to taxes.
9. Appointment of directors and shareholders : Appoint directors and shareholders of the company according to the requirements of the company type. Documents proving the identity of directors and shareholders may be required.
10. Obtaining special licenses : If the company’s activity requires special licenses (such as health or environmental licenses), obtain these licenses from the competent authorities.
11. Company Insurance : You may need to provide proof of insurance, such as general liability insurance or employee health insurance.
12. Compliance with local laws : Ensure compliance with all local laws and regulations related to the business, including any employment and tax requirements. By following these steps, you can successfully establish your company in Dubai and start doing business.

Here is a table showing the types of companies in Dubai’s free zones:

Company type	Description	Advantages
Free Zone Limited Liability Companies (FZ-LLC)	It was established with a separate capital and the liability of the partners is limited to the extent of their shares in the capital.	Limited liability, flexibility in the administrative structure, the possibility of opening bank accounts, and benefiting from legal facilities.
Branches	Branches of foreign or local companies that allow them to carry out their activities in free zones without the need to establish a new legal entity.	It does not require new capital, business facilities, or full representation of the parent company.
Representative Offices	It is used to market and advertise products or services without carrying out any direct commercial activities.	Representing a brand, marketing products or services, does not require large capital.

Each type of these companies has special characteristics and advantages, which helps investors choose the type that suits the nature of their business and investment objectives.

 

Conditions for establishing a company in Dubai

Establishing a company in the Dubai Free Zone requires adherence to certain conditions and requirements, which may differ slightly between free zones. Here are the most important general conditions:

1. Identification of commercial activity : The required commercial activity must be consistent with the activities permitted in the specified free zone.
2. Minimum Capital : Capital requirements vary based on the type of company and business activity. In many free zones, capital requirements can be low or even zero in some cases.
3. Personal Documents : Copies of passports and ID cards of the founders and directors must be submitted. You may be required to provide additional proof such as birth certificates or academic qualifications.
4. Office address : The company must rent an office in the free zone. Some free zones provide ready-to-rent offices, while others require proof of a physical office.
5. Incorporation Agreement : The incorporation agreement must be prepared and signed, which explains the company details such as the company name, business activity, and founders’ shares.
6. Licenses and approvals : A commercial license must be obtained from the responsible authority in the free zone. You may also need to obtain additional approvals if the business requires it.
7. Directors and Shareholders : Some free zones may require directors and shareholders from certain countries or certain standards. Check the requirements for directors and shareholders in the free zone you choose.
8. Compliance with Taxes and Regulations : Ensure compliance with all tax-related laws and regulations, including local taxes, if applicable.
9. Insurance : Businesses may be required to provide proof of insurance, such as general liability or workers’ insurance.
10. Registration with Chambers of Commerce : In some cases, registration with the local Chamber of Commerce or other regulatory bodies may be required.

Each free zone in Dubai requires specific procedures and requirements, so it is best to check the exact details with the responsible authority in the free zone of your choice or consult a specialist consultancy such as Atqan.

Advantages of establishing a company in Dubai

Establishing a company in Dubai offers a range of advantages that make it an attractive option for investors from all over the world. Here are the most prominent features:

1. Tax breaks : Dubai offers significant tax benefits, including exemption from corporate tax and value-added tax in many free zones. This enhances Dubai’s attractiveness as a global business centre.
2. Full ownership : Foreign investors can own 100% of the shares of their companies without the need for a local partner, especially in free zones, which provides complete freedom in managing the company.
3. Ease of procedures : Dubai offers simplified and quick procedures for registering and establishing companies, which reduces complications and increases the efficiency of starting a business.
4. Advanced commercial environment : Dubai provides modern infrastructure, including advanced business centers, specialized free zones, and global transportation networks, which supports the growth and expansion of companies.
5. Access to new markets : Dubai is a strategic gateway to markets in the Middle East, Africa and Asia, allowing companies to access a wide network of customers and partners.
6. Investment incentives : Dubai offers multiple incentives to investors, including grants and aid for new projects, in addition to government support for business initiatives and innovation.
7. Intellectual Property Protection : Dubai provides a strong system for protecting intellectual property rights, ensuring the protection of patents, trademarks and copyrights.
8. Political and economic stability : Dubai provides a politically and economically stable environment, which enhances investor confidence and reduces the risks associated with investment.
9. Economic diversity : Dubai offers broad opportunities in multiple sectors such as technology, trade, tourism, and financial services, providing a suitable environment for various types of businesses.
10. Availability of human resources : Dubai has a diverse and qualified labor base, making it easier for companies to find the talent required to run their businesses effectively. These advantages are part of the exceptional environment that makes Dubai an attractive business center for global companies and investors.

In conclusion, the cost of setting up a company in Dubai is an important investment for ambitious investors looking to enter a dynamic and thriving market. Although costs can vary based on the type of company, location, and type of business, Dubai offers significant advantages such as a developed business environment, tax incentives, and simplified registration procedures. Dubai’s free zones provide excellent opportunities at reasonable costs, making them a preferred destination for foreign investors. It is necessary to plan well and understand the financial and administrative details associated with establishing a company to ensure that you make the most of the opportunities available. By accurately estimating costs, investors can make informed decisions and maximize their chances of success in one of the world’s most vibrant markets.