Establishing a company in Dubai is an important strategic step towards entering a growing global market full of opportunities. Dubai is one of the most prominent business destinations in the world, combining a stimulating business environment with a distinguished geographical location that links the East and the West. Thanks to its advanced infrastructure, investment-friendly legislation, and the great facilities provided by the government, Dubai has become a major attraction for investors and entrepreneurs from all over the world.
Dubai has several free zones that provide unique business advantages such as tax exemptions, full foreign ownership, and easy incorporation procedures. In addition, Dubai offers a diverse business environment that suits various commercial activities, from technology and innovation to trade and services. Free zones in Dubai, such as Silicon Oasis and Jebel Ali, provide great opportunities for startups and large corporations alike, thanks to the ease of registration procedures and effective government support.
However, despite the facilities, establishing a company in Dubai requires a good understanding of the procedures and legal requirements, including obtaining the appropriate trade licenses, registration, insurance, and preparing legal documents. It is important for investors to be fully aware of all the steps and requirements to ensure compliance with local regulations and achieve success in the competitive Dubai market.
In this article, we will review the basic steps for establishing a company in Dubai, review the potential challenges, and provide practical advice for those wishing to start their businesses in this leading destination, which contributes to facilitating the process and making the most of the available opportunities.
Establishing a company in Dubai requires following a series of procedures that include several basic steps to ensure that all legal and regulatory requirements are met. Here is an overview of the main procedures:
Determine the type of company and its activity: Choose the type of company you wish to establish (such as a limited liability company, a branch of an international company, a joint stock company, etc.).
Determine the business activity that the company will conduct, as this choice affects the type of license required.
Choose and reserve the company name: Choose a suitable trade name for your company that complies with local laws.
Submit a request to reserve the trade name through the Department of Economic Development (DED) or the competent authority if you are in a free zone.
Prepare legal documents: Prepare incorporation documents such as the company’s articles of association and memorandum of association.
Obtain approvals from key partners and notarize documents as needed.
Submit a commercial license application: Apply for a commercial license from the Department of Economic Development or the relevant authority in the free zones.
It may be necessary to submit documents such as a lease contract, partners’ passports, and no-objection certificates.
Choose the company location: Determine the company’s location and sign a lease contract for an office or commercial space.
Ensure that the location complies with the business requirements of the regulatory authority.
Open a corporate bank account: Open a corporate bank account with a local bank.
You may need to submit company incorporation documents and partner information to open the account.
Issuing work permits and visas: Apply for work visas and residence permits for employees and managers.
This step also includes registering the company with the Human Resources and Emiratisation Department if required.
Receiving the trade license: After completing all the procedures and submitting the required documents, receive the trade license from the competent authority.
Make sure to review all the details included in the license to ensure their accuracy.
Register the company with government agencies: Register the company with other government agencies as needed, such as the Tax Authority if your activities require it.
Initiating business operations: After obtaining the license and preparing all administrative matters, you can start business operations and run the company officially.
Cost of establishing a company in Dubai
Establishing a company in Dubai requires considering a set of costs that vary based on the type of company, its size, and its location. Below is an overview of the costs associated with setting up a company in Dubai without referring to specific numbers:
License fees: These include fees related to obtaining a commercial license from the competent authorities. These fees vary depending on the type of business activity and the type of license required.
Registration costs: These include the costs of registering a company, which includes submitting the required documents and preparing the necessary legal contracts.
Rental costs: These include the costs of renting an office or workspace in Dubai. These costs depend on the location, size of the office, and available facilities.
Visa and residency fees: These relate to the costs of issuing work and residency visas for investors and employees, which are necessary to operate legally in Dubai.
Legal fees: These include the costs of legal consultations and preparing legal documents such as articles of association and bylaws.
Insurance costs: The company may need to pay fees for insurance that covers business-related risks, such as civil liability insurance or property insurance.
Administrative fees: These include any additional fees related to registration or renewal procedures, such as updating information or amending business activities.
Office fit-out costs: These include the costs of equipping the office with the equipment and furniture necessary to start operating.
Annual fees: These include fees for renewing the license, visas, and residencies, which are paid annually to ensure the continuity of the business legally.
Etqan Company Services for Company Formation in Dubai
Etqan Company provides a variety of integrated services for company formation in Dubai, which contributes to facilitating the process for investors and business owners. Here is an overview of the services provided by “Etqan”:
Company Formation Consulting: Etqan provides specialized consultations to help clients choose the appropriate type of company, determine the business activity, and choose the optimal legal structure.
Preparing Legal Documents: The company helps in preparing and preparing all legal documents required to establish the company, including the articles of association and the articles of association, and documenting them when necessary.
Company Registration Services: Etqan contributes to submitting company registration applications and obtaining commercial licenses from the competent authorities, including the Department of Economic Development and Free Zones.
Reserving a Trade Name: Helps in choosing and reserving the appropriate trade name for the company, and submitting the necessary applications to obtain approval from regulatory authorities.
Leasing Offices and Commercial Spaces: Provides services for renting offices or commercial spaces in free zones or other commercial places in line with the company’s activity.
Opening Bank Accounts: Etqan provides support in opening bank accounts for companies, including preparing documents and submitting applications to local banks.
Visa and Work Permit Procedures: Assists in submitting work and residence visa applications for employees and managers, including completing procedures with the Immigration and Human Resources Department.
License and Licence Renewal: Provides renewal services for commercial licenses and permits, including following up on deadlines and renewing necessary documents.
Legal and Tax Compliance: Provides advice and services to ensure that the company is in compliance with all local laws and tax requirements, including registering the company with the Tax Authority if required.
Administrative Support Services: Includes administrative support services such as assistance in preparing corporate reports, complying with legal requirements, and providing administrative consulting.
Foreign Company Services: Provides customized services for foreign companies wishing to enter the UAE market, including setting up branches of foreign companies
