How to set up a company in Dubai

٠٩ فبراير How to set up a company in Dubai

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Establishing a company in Dubai is an important strategic step for many businessmen and investors around the world. Dubai is one of the most attractive business destinations in the world thanks to its strategic location, advanced infrastructure, and pro-business government policies. The city is a vibrant business hub thanks to its diverse economic environment and the great investment opportunities it offers.

Starting a company in Dubai begins with choosing the appropriate type of commercial license, which depends on the type of activity you intend to carry out. Dubai offers a variety of commercial licenses, including the general commercial license, industrial license, and professional license, in addition to free zone licenses that provide additional benefits such as tax exemptions and full foreign ownership.

It is also necessary to determine the most suitable location to establish your company. Dubai contains several free zones, such as JAFZA and DAFZA, which provide a suitable business environment with special facilities. Companies can also be established in non-free zones that provide a variety of options in terms of rents and facilities.

The process of establishing a company also requires submitting a set of basic documents, such as a passport, a lease contract, and approval from the relevant authorities, in addition to paying the prescribed fees. The procedures are straightforward, but they require attention to detail to ensure compliance with local laws.

Establishing a company in Dubai is not just an administrative step, it is an investment in a thriving business environment that supports growth and innovation. Therefore, it is essential to be aware of all the requirements and opportunities available to successfully establish your business in this dynamic market.

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How to establish a company in Dubai

Establishing a company in Dubai requires following several steps and legal procedures. Here are the general steps to establish a company in Dubai:

Choosing the type of company: You must decide what type of company you want to establish, such as a sole proprietorship, partnership, limited liability company, or joint stock company.
Choosing the company name: You must choose a unique name for the company and ensure that it has not been used before and that it complies with local regulations.
Determining the business activity: You must determine the main and secondary activities that the company intends to carry out.
Determining the shareholders and capital shares: You must identify the shareholders in the company and determine their capital shares.
Determining the location and head office: You must determine the location of the company’s establishment and the address of the head office.
Submitting the required documents: The required documents must be submitted to the relevant government authorities, such as the company’s document and the company’s incorporation instrument.
Paying fees: You must pay the fees related to establishing the company and obtaining the necessary licenses.
Tax registration: You must register with the local tax authorities and comply with all applicable tax obligations.
Obtaining a business license: You must obtain a business license from the relevant government authorities to allow the company to start operations.

Documents Required to Establish a Company in Dubai

To establish a company in Dubai, a set of basic documents are required to ensure that all legal and administrative requirements are met. Below is a list of the documents generally required:

Passports: Copies of passports of all partners, investors and directors of the company.
Residence Visas: Copies of residence visas for persons residing in the UAE.
Memorandum of Association and Articles of Association: The company’s Memorandum of Association and Articles of Association, detailing the partners’ details, share distribution and the company’s objectives.
License Application Form: The commercial license application form that includes details of the business activity, company name and location.
Business Plan: A detailed business plan outlining the nature of the business, objectives and growth strategies.
Owner/Partner Report: If one of the partners or directors is a resident of the UAE and is employed by another entity, a No Objection Certificate (NOC) from the current employer may be required.
Proof of Address: A document proving the company’s address, such as an office or warehouse lease in Dubai.
Board of Directors Resolution (in case of branches): A resolution from the parent company’s board of directors approving the opening of a branch in Dubai, if a branch of an existing company is being established.
Signature Forms: Signature forms are submitted to the relevant authorities to authenticate the signatures of the directors.
Special Licenses: In case the company is operating in activities that require special licenses (such as health, educational, or investment activities), documents related to obtaining these licenses must be submitted.
Proof of Capital Availability: Documents proving the availability of the capital required to establish the company, if this is required by the authorities.

Costs of establishing a company in Dubai

Establishing a company in Dubai requires considering a range of costs that are associated with different aspects of the process. Below is an overview of these costs without mentioning specific numbers:

License fees: These include costs related to obtaining the necessary commercial license to operate in Dubai. These fees depend on the type and nature of the business activity.

Registration fees: These fees include the costs of registering the company with the relevant government authorities and issuing official certificates and documents.
Office or commercial space rental costs: Rental costs vary based on the size and type of space required, whether it is an office, warehouse, or industrial unit, in addition to the location within Dubai.
Legal document preparation fees: These costs include preparing the company’s articles of association and memorandum of association, as well as any other legal documents necessary to register the company.
Work and residence visa costs: These include fees associated with issuing and renewing work and residence visas for managers and employees.
Bank account opening costs: Opening a bank account for the company requires paying fees related to the account opening and management procedures.
Administrative services fees: These fees include costs associated with procedures such as obtaining the necessary approvals and certifications from government agencies.
Chamber of Commerce Membership Fees: Companies may need to register with the Dubai Chamber of Commerce and Industry, which requires a membership fee.

Special License Costs: For certain business activities that require special licenses, there will be additional fees associated with obtaining these licenses.

In conclusion, establishing a company in Dubai is a strategic step towards achieving success in a global and thriving business environment. Dubai offers a range of advantages that make it a preferred destination for investors and entrepreneurs from all over the world, including its distinguished geographical location, advanced infrastructure, and legal systems that support growth and expansion.

The journey of establishing a company begins with understanding the requirements of the market and choosing the most appropriate type of legal entity, whether it is a limited liability company (LLC), a branch of a foreign company, or a company in a free zone. The next stage is choosing the appropriate license that matches the business activity you intend to carry out, and collecting the required documents and submitting them to the relevant authorities such as the Department of Economic Development (DED) or the General Authority for Investment in Free Zones.

It is also essential to accurately determine the location of the business, ensuring that it complies with legal and commercial standards, as well as arrangements related to financing, taxes, and employment. Adhering to local legal procedures and regulations provides legal protection for your business and ensures that it runs smoothly.

Don’t forget that consulting with experts specializing in company formation in Dubai can have a significant impact on speeding up the process and avoiding potential obstacles. Leveraging their expertise can help you achieve your business goals more effectively.

Taking into account all these factors, you can boost your chances of success for your business venture in Dubai. Taking the right steps and planning well will put you on the right path to success and growth in this dynamic and ever-evolving city.