Companies and investors around the world are looking to discover new markets that enhance their growth and expansion opportunities. In this context, Dubai comes as a major destination characterized by a vibrant and favorable business environment for establishing companies in Dubai. Dubai is considered one of the most prominent global business centers, offering unique investment advantages and a strategic location that attracts companies from all over the world.
However, starting the journey of establishing a company in Dubai can be somewhat complicated, and requires a thorough understanding of the legal and administrative procedures, in addition to the costs associated with this process. This is where the importance of seeking the help of specialized experts such as Itqan Company emerges, which provides a set of services specifically designed to facilitate the establishment process. Itqan Company provides comprehensive support to investors through specialized consultations and assistance in dealing with government procedures, making the experience of establishing a company smoother and more efficient.
Itqan supports investors by providing strategic advice on choosing the appropriate type of company, providing assistance in preparing legal documents, and facilitating the company registration process and obtaining the necessary licenses. The company also helps in balancing costs and legal requirements, allowing clients to focus on developing and growing their businesses.
In this article, we will review the steps of establishing a company in Dubai, and explain how Itqan can be a crucial partner in achieving your business goals efficiently and successfully. By leveraging their expertise and experience, you can enjoy the unique advantages of Dubai and achieve success in the global business market.
Steps to Establish a Company in Dubai
Establishing a company in Dubai requires following several basic steps to ensure that the process is carried out smoothly and efficiently. Here are the main steps to establish a company in Dubai:
Determine the type of company: Choose the type of company you want to establish, such as a limited liability company (LLC), a company wholly owned by foreigners in a free zone, or a branch of a foreign company. The choice depends on the nature of the company’s activity and business requirements.
Prepare a business plan: Prepare a detailed business plan that includes the company’s objectives, strategy, target market, and financial analysis. The business plan helps guide the company’s activity and determine its resource needs.
Choose a company name: Choose a trade name for your company that complies with local laws and reflects the company’s activity. Make sure that the name is available and not used by other companies.
Register the company: Submit the registration application to the Department of Economic Development (DED) in Dubai or the responsible authority in the free zone of your choice. You will need to submit the required documents such as a business plan, a copy of your passport, and the permits of the founding members.
Obtain a license: Depending on the type of activity, obtain the appropriate commercial license from the relevant authority. This could be a government entity if you are establishing the company in the mainland of Dubai or the responsible authority in the free zone.
Office Securing: Secure an office or workspace that meets the licensing requirements. In the case of free zones, you can get a virtual office or a small space depending on the company’s needs.
Open a bank account: Open a business bank account in the company’s name at a local bank. You will need to submit the company’s documents, including the trade license, lease agreement, and passports for the founders.
Recruiting workers: If you plan to hire employees, issue them the necessary work visas and licenses. This includes submitting work visa applications and registering with the social insurance system.
Register with the relevant authorities: Register your company with other government agencies, such as the Tax Authority and financial departments, depending on the type of activity and market requirements.
Starting a business: After completing all the procedures, you can start your business as specified in the business plan and legal regulations.
Dubai Company Formation Fees
Dubai Company Formation Fees vary based on several factors, but the basic fees you may need can be summarized as follows:
Company Registration Fees: These include fees related to registering the company with the Department of Economic Development (DED) or the relevant authority in the free zone. These fees include the cost of submitting the application and approving the trade name and activity.
Licensing fees: Costs of obtaining a commercial or industrial license, depending on the type of business you plan to operate.
Office rent: Fees for renting an office or office space, which may be required to obtain a license.
Legal and administrative consulting fees: Fees for providing legal or advisory advice on legal procedures and documentation.
Notarization fees: These include fees related to documenting contracts and legal documents, such as the company’s articles of association and partners’ agreements.
Visa fees: Costs of issuing work and residence visas for founders and employees, in addition to labor insurance fees.
Bank account opening fees: Opening a business bank account may require fees related to banking services and submitting the required documents.
Other costs: These may include additional costs such as purchasing equipment, marketing the company, or obtaining additional services such as accounting services.
Licenses required to establish a company in Dubai
To establish a company in Dubai, you need to obtain certain licenses according to the type of business activity and the location of the company. Here are the basic licenses required:
Commercial license: A commercial license is the basic license for any business activity in Dubai. It is issued by the Department of Economic Development (DED) to companies operating in commercial and service activities.
Requires a registration application, proof of trade name, and business plan.
Industrial License: If your company’s activity includes industrial or manufacturing activities, you will need an industrial license. This is also issued by the Department of Economic Development (DED).
Requires details of the industrial activities and equipment used.
Free Zone License: For companies established in free zones, you will need a free zone license. These licenses are issued by the authorities responsible for each free zone.
This includes submitting a registration application, details of the activity, and a lease agreement.
Sub-license or Branch License: If you are establishing a branch of an existing company, you will need a sub-license. This license is issued by the Department of Economic Development (DED) or the authority responsible for the free zone.
Requires documents proving the relationship between the branch and the parent company.
Special Services License: Some special activities such as education, healthcare, or financial activities require a special license from the relevant regulatory authorities such as the Dubai Health Authority or the Financial Services Regulatory Authority.
Rental License: If you intend to provide rental services, such as property or car rental, you will need a special rental license. This license is obtained from the relevant departments such as the Dubai Land Department.
Additional Permits: You may need additional permits depending on the nature of the activity, such as permits from other government agencies or regulatory bodies specific to the activity.
Advantages of establishing a company in Dubai
Establishing a company in Dubai has many advantages that make it a preferred destination for investors and entrepreneurs. Here are the most prominent advantages of establishing a company in Dubai:
Favorable business environment: Dubai provides a dynamic business environment that supports innovation and growth. The advanced infrastructure and modern facilities allow companies to operate efficiently and achieve their goals with ease.
Strategic geographical location: Dubai is strategically located linking the markets of the Middle East, Asia and Africa. This location makes it a global business hub and provides easy access to new markets.
Tax exemptions: Dubai offers attractive tax benefits, including exemption from corporate income tax and profits in most cases, which contributes to increasing net profits.
Full foreign ownership: In certain free zones, foreigners can own 100% of companies without the need for a local partner, providing complete control over the management of the company.
Ease of establishment procedures: The legal and administrative procedures for establishing companies in Dubai are relatively easy compared to many other destinations, which helps to start work quickly and effectively.
Strong government support: The government in Dubai provides significant support to investors through initiatives and incentives that encourage investment and expansion. Support is provided through facilitating procedures and providing advice and consultations.
Multiple free zone options: Dubai offers a wide range of free zones that meet the needs of different types of businesses, from small to large, with specialized advantages in each area.
Safe and stable business environment: Dubai provides a stable and secure business environment, making it a preferred destination for investors seeking market stability and asset protection.
Multiple financing opportunities: Dubai offers numerous opportunities to obtain financing through local banks and investors, helping companies achieve their expansion and investment goals.
Vibrant markets: Dubai is an international business hub with active and thriving markets, providing ample opportunities for trade and investment in various sectors.
In conclusion, establishing a company in Dubai is a strategic move that deserves serious consideration, thanks to the ideal business environment and attractive features that the city provides to investors. With its advanced infrastructure, tax benefits, and strategic geographical location, Dubai is an ideal destination for international business activities. However, the incorporation process can be a bit complicated, requiring a thorough knowledge of legal and administrative procedures.
This is where consulting firms like Itqan come in. With its extensive experience and deep understanding of the legal and procedural requirements in Dubai, Itqan can greatly contribute to facilitating the incorporation process. Whether it is obtaining licenses, preparing documents, or guiding you through the various steps, Itqan provides the support and expertise necessary to ensure that your business starts efficiently and smoothly.
Itqan seeks to provide integrated and customized solutions, allowing you to focus on developing your business and achieving your business goals instead of getting involved in complex administrative details. By partnering with Itqan, you can benefit from professional consultations, facilitation of procedures, and effective ways to overcome the challenges that you may face during the incorporation process.
In the end, it can be said that Dubai provides a great opportunity for commercial success, and with the support of Itqan, investors and entrepreneurs can achieve their goals easily and effectively, and benefit from all the advantages that this leading global city has to offer. Establishing companies in Dubai, with the support of Itqan Company, opens the doors for you to success and expansion in a dynamic and thriving market.
The most important frequently asked questions about establishing a company in Dubai
What types of companies can be established in Dubai?
Limited Liability Companies (LLC), companies wholly owned by foreigners in free zones, branches of foreign companies, public or private joint stock companies, and others.
What are the requirements for obtaining a commercial license?
Obtaining a commercial license requires submitting documents such as a business plan, proof of identity for the founders, an office lease contract, and permits from the relevant authorities if the activity requires it.
Can foreigners fully own companies in Dubai?
Yes, foreigners can fully own companies in certain free zones. In Dubai mainland, it usually requires a local partner with 51% of the shares.
How long does it take to establish a company in Dubai?
The process of establishing a company can take from several weeks to approximately two months, depending on the type of company and the procedures required.
Can I obtain work visas for employees?
Yes, after establishing the company, you can obtain work visas for employees according to the number of visas allowed based on the size of the company and the type of license.
