How to establish a company in Dubai? Establishing companies in Dubai is a strategic step for many investors and businessmen, as the emirate is one of the most prominent global destinations for business and investment. The UAE market enjoys a dynamic business environment, supported by an advanced infrastructure and flexible laws, making it easy for entrepreneurs to establish their own projects. Establishing a company in Dubai requires knowledge of the necessary legal and administrative steps, as well as understanding the requirements of the local and international market. Whether you are looking to establish a limited liability company, a sole proprietorship, or a company in one of the free zones, the process involves several stages, including choosing the type of business activity, submitting the required documents, and obtaining the necessary licenses. In this article, we will review the basic steps for establishing a company in Dubai, and highlight the factors that must be taken into account to ensure the success of the project.
How to establish a company in Dubai
Establishing a company in Dubai requires following certain steps to ensure compliance with local laws and take advantage of available opportunities. Here are the steps to establish a company in Dubai:
Determine the type of company: You must first determine the type of company you wish to establish.
Choose the business activity: Determine the business activity you wish to practice, as this requires knowing whether the activity is permitted in the selected area.
Choose the company name: Choose a distinctive name for your company that complies with the naming laws in Dubai. The name must not be used before and reflects the nature of the business activity.
Obtain initial approvals: Apply for initial approval from the Department of Economy and Tourism in Dubai. This step confirms that your company name and activity are in compliance with the laws.
Prepare the required documents: You need to prepare the following documents: Passports of the owners and managers, the establishment application form, the Articles of Association (MOA), and the partners’ agreement (if applicable)
Obtain a commercial license: After preparing the necessary documents, submit an application for a commercial license from the Department of Economy and Tourism. The costs and fees for licensing vary depending on the type of activity.
Opening a bank account: After obtaining the license, you can open a commercial bank account for your company in a local bank.
Company registration: Register your company in the commercial register and obtain a registration certificate.
Obtaining additional permits: Depending on the type of your business, you may need to obtain additional permits or special licenses.
Starting a business: After completing all the legal procedures, you can start practicing your business. Also, establishing a company in Dubai can be a fruitful experience if the right steps are followed.
Advantages of establishing a company in Dubai
Establishing a company in Dubai offers many advantages that make it an attractive destination for investors and businessmen. Here are some of these advantages:
Distinctive business environment: Dubai is considered one of the most prominent commercial centers in the world, as it has an advanced infrastructure and strong support services, which facilitates trade and investment operations.
Attractive tax system: Dubai provides a favorable tax system, as there are no personal income taxes, and corporate taxes are low, which helps increase profits.
Full freedom of ownership: In free zones, foreign investors can own 100% of the company without the need for a local partner, which gives them more control.
Ease of Procedures: The Dubai government seeks to simplify the procedures for establishing companies, reducing the time and effort required to complete the process.
Diversity of Business Activities: Dubai offers a wide range of permitted business activities, allowing investors to choose the activity that suits their skills and interests.
Diverse Markets: Dubai is a gateway to the Middle East, Asia and Africa, providing opportunities for expansion and growth.
Talent Attraction: Dubai attracts many highly skilled professionals, making it easier for companies to obtain the right talent to develop their businesses.
Political and Economic Security: Dubai enjoys political and economic stability, which increases investor confidence and enhances the chances of business success.
International Marketing: Dubai is a global hub for exhibitions and events, allowing companies to promote their products and services on an international scale.
Financing Facilities: Many banks and financial institutions in Dubai offer financing facilities for new projects, making it easier for entrepreneurs to obtain the necessary capital to establish their companies.
Establishing a company in Dubai offers many competitive advantages, making it an ideal choice for investors from all over the world.
Documents required to establish a company in Dubai
Establishing a company in Dubai requires the preparation of a set of basic documents. Requirements vary slightly depending on the type of company and business activity, but here is a general list of required documents:
Passports: Copies of passports for all shareholders and directors.
Personal photographs: Recent personal photographs of shareholders and directors (usually passport size).
Application form: The application form for establishment, which can be obtained from the Department of Economy and Tourism in Dubai.
Choosing a company name: A proposal for a company name, while adhering to local naming laws.
Memorandum of Association (MOA): The memorandum of association includes details of the company such as objectives and business activity. It is recommended to prepare this contract through a lawyer or legal consultancy office.
Shareholders’ agreement: In the event that there are partners, it is preferable to prepare a clear agreement that specifies the rights and obligations of each party.
Shareholders’ approval: In some cases, written approval from all shareholders may be required.
Letter of authority: A letter of authority specifying who will be authorized to sign and act on behalf of the company.
Additional Documents: Depending on the type of business activity, additional documents may be required, such as:
Special licenses or approvals from government agencies (if the activity requires it). Professional certificates or licenses for professions that require a special license.
Proof of office address: A lease contract or proof of ownership of the office where you will establish the company.
Financial reports (if required): Financial statements or reports from foreign partners (if required).
It is preferable to consult a legal consulting office such as Atqan for assistance in preparing documents and ensuring compliance with all legal requirements.
Conditions for establishing a company in Dubai
Establishing a company in Dubai requires compliance with a number of legal and administrative conditions. Here are the most important conditions to consider:
Determine the type of company: You must choose the type of company you wish to establish.
Register with the Department of Economy and Tourism: The company must be registered with the Department of Economy and Tourism in Dubai and obtain the necessary commercial license to practice the commercial activity.
Determine the commercial activity: The commercial activity that the company will carry out must be determined, as this activity must be included among the activities permitted in Dubai.
Having an office address: Companies must provide proof of office address, such as a lease or ownership documents, as a company cannot be established without a physical headquarters.
Determining capital: Capital requirements vary depending on the type of company. For example, limited liability companies may require a certain amount of capital that must be deposited in a bank.
Local participation: If a company is established outside of free zones, a local partner is required to own 51% of the company’s shares.
Submitting required documents: A set of required documents must be submitted, such as passports for owners and managers.
Memorandum of Association (MOA) and partner statements. Additional licenses or approvals (if required).
Complying with local laws: The company must comply with all local laws and regulations related to the business, including taxes and employment.
Obtaining necessary licenses: Depending on the business activity, additional licenses, such as professional or health licenses, may be required.
Preparing legal agreements: Necessary legal agreements must be prepared, such as partner agreements, employment contracts, and other legal documents that define the rights and obligations of all parties.
Itqan Company Services in Establishing a Company in Dubai
Itqan Company provides a comprehensive range of services to help investors and businessmen establish their companies in Dubai. Here are some of the main services it provides:
1- Etqan provides specialized legal advice on all aspects of establishing a company, including choosing the right type of company and understanding local legal requirements.
2- Etqan helps facilitate the company registration procedures with the Department of Economy and Tourism, ensuring that there are no delays or complications in the process.
3- Etqan prepares all the necessary documents for establishing the company, including the Memorandum of Association (MOA), partners’ agreements, and application forms
4- Obtaining licenses Etqan helps in obtaining the necessary commercial licenses, including licenses for specific activities, making it easier to start work as quickly as possible.
5- Providing administrative support Etqan provides administrative support services such as opening bank accounts for companies. Assisting in renting or equipping offices. Providing secretarial services.
6- Guidance on compliance Etqan helps companies comply with all local laws and regulations, including tax and labor laws, helping to avoid any legal issues.
7- Providing specialized consultations The company provides consultations in specific areas, such as employment, health licenses, and security and safety requirements, depending on the type of business activity.
8- Post-establishment services Itqan provides ongoing services after the company is established, such as license renewals, amendments to the company structure, and legal assistance when needed.
9- Marketing and business support services Itqan helps companies develop effective marketing strategies and open channels of communication with potential customers.
10- Customized solutions Itqan provides customized solutions that suit the needs of each client, ensuring the provision of an integrated service that meets all their needs.
11- Thanks to these services, Itqan is an ideal choice for investors who want to establish their companies in Dubai efficiently and professionally.
In conclusion, setting up a company in Dubai is an exciting opportunity for investors and entrepreneurs from all over the world. With its advanced business environment, attractive tax regimes, and economic diversity, Dubai offers ample scope for growth and prosperity. With specialized services such as those provided by Itqan, the path to establishing a company becomes easier and more straightforward. However, hiring experts in this field remains essential to ensure compliance with local laws and facilitate administrative procedures. Therefore, setting up your company in Dubai can be a strategic step towards success in a growing global market. Invest in Dubai today and discover new horizons of business opportunities.
Frequently Asked Questions about Setting Up a Company in Dubai
Can foreigners own 100% of their company in Dubai?
Yes, in free zones, foreigners can own 100% of the company. In traditional companies, they need a local partner who owns 51% of the shares.
How much does it cost to set up a company in Dubai?
The cost varies depending on the type of company and business activity, and includes registration fees, licenses, and legal service fees. It is best to consult a consulting firm to determine the exact costs.
Does opening a company bank account require partners to be present in Dubai?
It usually requires partners or managers to be present to open a bank account, but some banks may offer remote options depending on their policies.
