Establishing a company in Dubai for foreigners, establishing a company in Dubai for foreigners is a strategic option that attracts investors from all over the world thanks to the distinguished business environment and the many advantages offered by the city. Dubai, as a global trade center and investment hub in the Middle East, provides a flexible legal and regulatory framework that supports the establishment of companies of various sizes and activities. The Emirate of Dubai seeks to attract foreign capital by providing economic and financial incentives, such as tax exemptions and full ownership options for foreigners in free zones, allowing them to establish their businesses without the need for a local partner.
When establishing a company in Dubai, investors face a variety of options in terms of establishment locations and the type of licenses required. Whether the investor is planning to establish a company in the free zones or within other economic zones, the emirate provides facilities that make the process of establishing companies smoother, as integrated services are available to facilitate and accelerate procedures. Foreigners can also benefit from the advanced infrastructure that allows them to easily access regional and global markets, which enhances the chances of success of their businesses and increases their competitiveness.
Etqan provides comprehensive solutions for foreign investors looking to establish their companies in Dubai. From company formation consultations to legal guidance and logistical support, Etqan works to provide all the necessary information and procedures to ensure a successful and successful start. The Etqan team helps investors understand local regulations and laws and choose the most appropriate structure for their business, allowing them to focus on developing their projects with confidence and stability.
Types of companies that foreigners can establish in Dubai
Establishing a company in Dubai is an attractive option for foreign investors due to the emirate’s advanced and diverse business environment that suits various sectors. Dubai seeks to attract foreign capital by providing many facilities, including tax exemptions, strong infrastructure, and a variety of options available for establishing companies. This diversity provides multiple opportunities for investors to establish their companies according to the type of business activity, the nature of their business, and their investment goals.
Here are the most prominent types of companies that foreigners can establish in Dubai:
Limited Liability Company (LLC): Limited liability companies are one of the most common types in Dubai, where foreigners can own up to 100% of some activities within the free zones, and enjoy flexibility in administrative and financial structure.
Free Zone Companies: Free zones in Dubai offer many advantages, including full foreign ownership (100%), tax exemptions, and easy access to international markets. These areas are an ideal option for foreigners who want to own their companies entirely without the need for a local partner.
Private and Public Joint Stock Companies: Joint stock companies are suitable for large projects that require huge funding and multiple shareholders. Dubai allows the establishment of private and public joint stock companies, where the capital is divided into tradable or subscribeable shares.
Subsidiary Companies (Branches): Dubai allows foreigners to establish branches of their international companies, allowing them to expand their businesses and provide their services in the UAE market under the original brand, and the branch enjoys the same privileges as the head office.
Civil Companies: These companies are suitable for specialized professionals such as doctors, lawyers, and consultants. Civil companies do not require a local partner, but they do require the company to be registered with one of the competent authorities and to adhere to the legal requirements.
Commercial representation offices: Commercial representation offices are ideal for companies that only want to market their products or services in Dubai without directly engaging in commercial activity, as the role of the office is limited to promotion and marketing.
Each type of these companies has advantages that suit the investors’ goals and business needs, and foreigners can choose the type that best suits their business based on their strategic and financial needs.
Documents required to establish a company in Dubai
Establishing a company in Dubai requires compliance with a set of legal and administrative requirements to ensure that the registration process runs smoothly. With the wide variety of types of companies and economic zones, Dubai seeks to provide a suitable environment for businessmen and foreign investors by facilitating procedures and providing integrated services. An important aspect of the establishment process is providing the required documents that prove the identity of the shareholders and determine the nature of the business, as the competent authorities require a set of documents that ensure the transparency of business activities and compliance with local regulations.
The following are the basic documents required to establish a company in Dubai:
Copies of the passports of all partners and shareholders: These documents are essential to verify the identity of the shareholders, as clear and valid copies of the passports of all foreign partners are provided.
Personal photos of shareholders and directors: The competent authorities require recent personal photos of the shareholders and appointed directors, usually passport-sized photos.
Business plan (in some cases): Some types of activities or companies require the submission of a business plan that explains the purpose of the project and the scope of the company’s work, especially if a company is established in free zones.
Signature form of the director or authorized signatory: A signature form of the director or authorized signatory must be provided, as it is used for legal purposes to authenticate signatures on official papers.
Articles of Association and Memorandum of Association of the company: This contract is a legal document that specifies the terms of establishment, the share of each partner, and the rights and obligations of the parties. The articles of association are usually in Arabic or certified by official authorities.
No Objection Certificate (NOC) from the current sponsor (if required): If one of the shareholders resides in the UAE under the sponsorship of a company or other entity, the procedures may require a No Objection Certificate from the current sponsor.
Proof of address: In some cases, authorities require proof of the partners’ residence by submitting utility bills or rental contracts.
Bank account details: Some companies may be required to prove the capital deposited in an Emirati bank account, where a certificate from the bank is submitted stating the value of the initial capital.
These documents may vary depending on the type of company and the region in which it will be established, and specialized companies such as “Itqan” provide support services to prepare documents and provide the necessary consultations to ensure compliance with all legal requirements.
Tax Benefits Dubai Offers to Foreigners
Dubai offers an attractive investment environment thanks to its encouraging tax policies, making it an ideal destination for foreign investors from all over the world. The emirate seeks to enhance its position as a global business hub by offering flexible tax incentives that support corporate development and facilitate business expansion. Tax benefits are one of the most important factors that contribute to attracting foreign investment to Dubai, as investors enjoy flexible tax exemptions and controls that enhance their chances of success in the market.
Here is a look at the most prominent tax benefits Dubai offers to foreigners:
No personal income tax: Dubai is one of the countries that does not impose a tax on individual income, which is a great advantage for investors who seek to live and work in the emirate without incurring income tax on their personal profits.
Tax exemptions for companies in free zones: Dubai offers a wide range of free zones that grant full tax exemptions on corporate profits for up to 50 years, making it an ideal choice for foreigners who want to establish their companies and benefit from comprehensive tax exemptions.
No tax on foreign profits: Dubai allows foreigners to operate their international businesses from the emirate without tax on foreign profits, which contributes to strengthening its position as an ideal platform for multinational companies looking to invest in the Middle East.
Limited corporate tax: Dubai imposed a low corporate tax rate in 2023, but it remains within a competitive range compared to many other countries. This tax is not imposed on all companies, and there are special exemptions for certain sectors and small and medium-sized enterprises.
No value-added tax on some goods and services in free zones: Although a 5% value-added tax is applied to most goods and services in the UAE, some free zones in Dubai provide exemptions from this tax, which enhances the ability of companies to control their operating costs.
Easy repatriation of capital and profits: Foreign investors can repatriate their profits and capital to their countries without tax restrictions, ensuring greater liquidity and financial stability for their companies.
Special tax exemptions for some strategic sectors: Dubai offers tax exemptions for some vital sectors such as technology, industry, and education, which encourages investors to invest their money in these areas of strategic importance.
With these various tax benefits, Dubai provides foreign investors with a flexible and supportive environment for the growth and development of companies locally and internationally.
Our company’s role in establishing a company in Dubai
Establishing a company in Dubai for foreigners is an important step towards achieving success and benefiting from the various economic opportunities offered by the emirate. Dubai stands out as a global business center thanks to the great facilities it provides to international investors, and the diversity of economic sectors available, which provides a stimulating environment for growth and innovation. When choosing Dubai as an investment location, foreigners enjoy many advantages, such as tax exemptions and modern infrastructure, in addition to flexible laws that allow them to have full ownership of their businesses in free zones, which gives them complete control over their investments and contributes to improving the sustainability of their businesses.
For foreign investors, dealing with the procedures and legal details of establishing companies in Dubai can be a complex task, and this is where “Itqan” comes in as a supporter and strategic partner. Itqan offers a comprehensive range of services covering every aspect of company formation, from providing legal and commercial advice to handling the required paperwork and licenses. Itqan has a specialized team with extensive experience and knowledge of the local market and regulatory laws, enabling it to provide customized solutions that are in line with the needs and aspirations of investors. Itqan facilitates the journey of company formation, allowing investors to focus on the operational aspects of their business and develop their business strategies. With the continuous support provided by Itqan, investors are able to overcome potential obstacles smoothly and ensure a successful start in the promising Dubai market. Choosing a reliable partner such as Itqan enhances the chances of success for startups and reduces the risks related to legal and administrative procedures. Therefore, establishing a company in Dubai in cooperation with Itqan is a worthwhile investment that can open new horizons for growth and prosperity in a growing global market that welcomes creativity and innovation.
