Opening a commercial register in Dubai for Saudis, Opening a commercial register in Dubai is one of the important steps that many Saudi businessmen seek to take in order to expand their businesses and reach new and diverse markets. Dubai, as one of the most prominent commercial destinations in the region, provides a flexible investment environment and a range of opportunities that allow Saudi companies to expand and grow. Dubai is distinguished by being a global business center, as it provides an advanced infrastructure and supportive legal frameworks that contribute to facilitating the start of business. Opening a commercial register in Dubai requires going through several basic steps that ensure that stores and companies operate legally within the Emirate of Dubai.
By cooperating with Itqan Company, which provides comprehensive services to support businessmen in establishing their businesses, establishing a commercial register in Dubai for Saudis, applicants can obtain specialized legal and financial advice that helps them identify appropriate business activities and organize procedures quickly and efficiently. Dubai encourages Saudi investors to open commercial registers due to the many advantages it provides, such as 100% company ownership in some free zones, in addition to tax exemptions and facilities in obtaining licenses. Dubai, with its strategic location, is an ideal gateway to the Middle East, Asia and Africa, making it the best choice for establishing and expanding businesses. Opening a commercial register in Dubai is not just an administrative procedure, but an important step towards building a strong brand within a vibrant and diverse market, taking into account the legal and tax regulations that ensure the success and sustainability of businesses in the future.
Basic steps to open a commercial register in Dubai
Dubai is one of the most important business destinations in the Middle East and the world, and provides an incubator environment for local and international businesses and investors. Opening a commercial register in Dubai is the first step to establishing any type of company or business in the emirate. The legal system in Dubai provides a flexible framework that allows investors to open companies easily and conveniently, with a variety of options that suit their business needs, whether in free zones or within the city. To succeed in this field, investors must follow a series of basic steps that ensure they establish a company legally and effectively. Dubai is distinguished by providing facilitation services that contribute to accelerating this process, as procedures are handled directly and transparently through various relevant government agencies. By cooperating with consulting companies such as Itqan, investors can expedite procedures and ensure compliance with all legal requirements.
Basic steps to open a commercial register in Dubai
Choosing the type of business activity: First, the investor must determine the type of business activity he wants to practice in Dubai. This choice depends on several factors, such as the size of the activity and the nature of the target market.
Determining the free zone or location within Dubai: The investor must decide on the area in which the company will be registered, whether in one of the free zones that allow full ownership for foreigners or in commercial areas within the city where a local partner is required.
Choosing a trade name: A trade name must be chosen that complies with local laws in Dubai. This requires ensuring that the name has not been previously used and accurately reflects the business activity.
Preparing legal documents: After determining the type of activity, the investor must prepare a set of legal documents such as passports, a lease contract for the site, personal photos, and a company business plan.
Applying for a trade license: The trade license application is submitted to the Dubai Department of Economy or the relevant authority if the company is in a free zone. Documents are reviewed and approved quickly.
Completing the establishment procedures: After obtaining the trade license, the investor can complete other procedures such as opening a bank account for the company, and applying for work and residence visas.
Compliance with local regulations: It is important for the investor to comply with all local legal regulations such as health and safety licenses, and environmental requirements, if any.
These steps are the foundation for establishing a successful company in Dubai, and cooperation with Itqan Company contributes to facilitating the implementation of these procedures and achieving full compliance with local laws.
Documents required to open a commercial register in Dubai for Saudis
Opening a commercial register in Dubai is a vital step for Saudi investors wishing to establish their businesses in the growing Dubai market. Dubai is one of the most important commercial destinations in the Middle East, providing an ideal business environment for investors of various nationalities, including Saudis. There are many types of companies that can be established in Dubai, ranging from companies in free zones to companies operating in the land areas within the emirate. In order for an investor to be able to open a commercial register in Dubai, it is necessary to submit some basic documents that prove the identity of the investor and the compatibility of the business activity with the applicable regulations. By cooperating with Itqan Company, Saudi investors can ensure that the procedures run smoothly and are fully compliant with local regulations, which contributes to accelerating the registration process and establishing the company.
Documents required to open a commercial register in Dubai for Saudis
Valid passport: The Saudi investor must provide a copy of a valid passport, as it is one of the most important documents submitted during the process of opening a commercial register.
Personal photo: A passport-sized personal photo of the investor is required, and this photo is used to complete the procedures for requesting a commercial license and visas.
Proof of address: A document proving the investor’s address must be submitted, such as a recent electricity or water bill or a bank statement showing the residential address.
Initial approval for the business activity: The investor needs to obtain initial approval from the competent authorities to determine whether the business activity applied for is in compliance with local laws.
Lease or property ownership contract: The lease contract for the location that will be used as the company’s headquarters or the property ownership document must be submitted if the investor owns the location where the business will be headquartered.
Determining business activities: The business activities that will be carried out must be specified and a list of activities that will be included in the commercial register must be provided, as this requires that the activity be in compliance with the activities permitted by the Department of Economy in Dubai.
Company business plan: Some free zones or economic departments in Dubai submit a request for a business plan that explains the nature of the business activities, the company’s objectives and future plans.
Additional documents (if required): In some special cases, some free zones may request additional documents such as professional certificates for the founders or other legal documents related to the business activity.
By following these documents and procedures, a Saudi investor can open a commercial register in Dubai efficiently and quickly. If you cooperate with Itqan Company, the investor will get the necessary support to ensure that the procedures are carried out properly.
Corporate Taxes in Dubai
Dubai is one of the most attractive destinations for international investors thanks to its advanced economic environment and its flexibility in attracting companies and businesses. What distinguishes Dubai is that its tax system is one of the most attractive systems for investors, as the emirate offers many incentives that make it an ideal destination for opening companies. There is no corporate income tax in many free zones, which gives companies operating in these areas a significant competitive advantage. Dubai also provides a simple and transparent tax system that ensures ease of doing business while complying with the lowest levels of taxes. However, with the expansion of commercial activities, some companies require knowledge of the tax laws imposed on them according to the type of activity and geographical location of their companies. Although there is no corporate income tax in many cases, there are some other taxes and fees that companies must take into account when establishing their business in Dubai.
Corporate Taxes in Dubai
Until recently, there was no corporate income tax in Dubai in general. However, in 2023, the UAE government imposed a 9% corporate income tax on companies making profits of more than AED 375,000 per year. Companies making profits below this amount are exempt from the tax.
Corporate Taxes in Free Zones
Companies registered in Dubai’s free zones are often exempt from income tax on profits made within the free zone. This is a major advantage for foreign investors, as they can own their companies 100% without the need for a local partner. Many free zones also offer tax exemptions of up to 50 years in some cases.
Value Added Tax (VAT)
Value Added Tax (VAT) was introduced in the UAE in 2018 at a rate of 5%. This tax applies to most goods and services provided within the country. Businesses with annual revenues above a certain threshold (AED 375,000) are required to register to pay and collect VAT from customers.
Taxes on Employment
There are no direct taxes on employee salaries in Dubai. However, businesses must pay annual fees to renew employees’ work and residency permits, which vary depending on the type of job and location.
Registration and Compliance Fees
Apart from taxes, there are other fees related to company registration, such as annual trade license fees, residency permit fees, and license renewals. These fees vary depending on the type of activity and geographical location.
Customs Taxes
Dubai also applies customs duties on some imported goods at a rate of 5% to 10%, depending on the type of goods. However, Dubai offers facilities in the import and export process, which contributes to enhancing the business environment in the emirate.
Tax Exemptions
Some companies may enjoy tax exemptions over a certain period of time, especially in free zones or on activities that support the local economy or modern technology, which enhances investors’ chances of obtaining tax benefits.
Ultimately, Dubai provides a competitive tax environment that contributes to supporting the economic growth of companies, as its tax system is simple and clear, with many exemptions and incentives for foreign investors.
Our company’s role in opening a commercial register in Dubai
In conclusion, it can be said that opening a commercial register in Dubai for Saudis is a strategic step towards success and expansion in one of the most dynamic markets in the world. Dubai provides many advantages that encourage Saudi investors to establish their businesses there, in terms of the supportive legal environment and diverse investment opportunities. Cooperating with Itqan Company is an ideal choice to ensure that all legal and administrative procedures have been completed properly and effectively, which contributes to accelerating the process of opening a commercial register and overcoming the challenges that investors may face.
The services provided by Itqan, including legal and financial consultations, help in identifying the most appropriate and profitable business activities, as well as providing the right guidance in choosing the appropriate free zone or the required license. Through these services, Saudi investors can avoid common mistakes that may affect the course of business, and enjoy all the advantages that Dubai offers, such as customs and tax facilities. In addition, Dubai provides an advanced infrastructure of transportation and communications that contribute to facilitating the work of companies and increasing their ability to reach new markets.
By taking advantage of this attractive and flexible business environment, Saudi investors can achieve significant growth for their businesses and achieve their economic goals. Opening a commercial register in Dubai is the beginning of a new phase of success and growth, and is considered one of the most important steps that contribute to achieving the commercial ambitions of Saudi investors in an advanced economic environment with multiple opportunities.
Frequently asked questions about opening a commercial register in Dubai
What are the basic steps to open a commercial register in Dubai?
To open a commercial register in Dubai, the investor must choose the type of business activity, determine the location whether it is in the free zone or inside Dubai, prepare the required documents such as passports, and submit an application for a commercial license from the Department of Economy in Dubai or the competent authority in the free zone.
Can Saudis own 100% of their company in Dubai?
Yes, Saudis can own 100% of their companies in Dubai if they choose to establish the company in one of the free zones. However, if the company will operate outside of the free zones in Dubai, the investor will need a local partner who owns 51% of the shares.
Does opening a commercial register in Dubai require a local partner?
In some cases, especially for businesses outside of the free zones, UAE law requires a local partner who owns 51% of the company’s shares. However, in the free zones, the investor can own the company outright.
What are the documents required to open a commercial register in Dubai for Saudis?
The basic documents include the partners’ passports, proof of address, personal photos, the lease contract for the commercial premises, the company’s business plan, and any special approvals depending on the type of business activity.
How long does it take to open a commercial register in Dubai?
The process of opening a commercial register in Dubai usually takes from two days to two weeks, depending on the type of activity and the required conditions. In the free zones, the procedures can be completed faster.
Are there any corporate taxes in Dubai?
Dubai offers significant tax benefits to investors, as there is no corporate income tax in many free zones. However, some businesses may require certain taxes or annual fees.
Can I get a residence visa by opening a commercial register in Dubai?
Yes, when opening a commercial register in Dubai, the investor can get a work residence visa in Dubai, in addition to the possibility of obtaining other visas for employees.
