Learn how to establish a company in Dubai in 7 steps because Dubai is characterized by a diverse and prosperous economic environment, as it embraces a wide range of industries such as trade, tourism, real estate, technology, and financial services. Dubai’s economic system encourages innovation and investment, thanks to laws and legislation that facilitate the processes of establishing and managing companies. In addition, Dubai provides advanced infrastructure that includes world-class airports and ports, as well as a strong financial system and qualified human resources.
This article aims to provide a comprehensive and simplified guide on how to establish a company in Dubai through basic steps. In this article, we will review the types of companies available, how to choose the appropriate type, determine the ideal location, and obtain the necessary licenses and permits. In addition, we will provide practical tips and useful resources to help you through every step of starting your company. Whether you are new to the business world or have previous experience, this article will give you the information you need to start with confidence and success.
How to establish a company in Dubai in 7 steps
Establishing a company in Dubai can be an organized and easy process if you follow the right steps. Here is a simplified guide to establishing a company in Dubai in 7 steps:
- Determine the type of company and activity : Choose the type of company you want to establish (such as a limited liability company, joint stock company, etc.) and specify the business activity you will undertake, as this affects the type of license you will need.
- Choosing a company name : Choose a name that expresses the company’s activity and is compatible with the laws of Dubai. Make sure that the name is not used before and is approved by the relevant authorities.
- Determine the company’s location : Choose the company’s location, whether in a free zone or in Dubai. The choice of location affects the type of license and ownership benefits.
- Prepare the required documents : Prepare basic documents, such as passport, residence visas, articles of incorporation, proof of address, and business plan. You may also need additional documents depending on the type of company.
- Registration and obtaining licenses : Submit your application to register and obtain a license from the competent authorities such as the Department of Economic Development (DED) or the body supervising the free zone you have chosen. This includes filling out forms and submitting the required documents.
- Opening a company bank account : Open a commercial bank account in the name of the company in one of the approved banks in Dubai. You will need to submit company documents to the bank to obtain the account.
- Completing the incorporation procedures : Complete the incorporation procedures such as obtaining visas, registering the company with the Dubai Chamber of Commerce, and securing an office for the company. Ensure that the company adheres to all legal and business requirements.
By following these steps, you can establish your company in Dubai efficiently and effectively, and benefit from the optimal business environment that the city provides.
The importance of establishing a company in Dubai
Dubai is considered one of the most attractive business destinations in the world, due to its strategic location in the heart of the Middle East and its thriving economic environment. Establishing a company in Dubai can open up great opportunities for entrepreneurs to expand and grow, thanks to the advanced infrastructure and flexible economic policies. Whether you want to start a small business or establish a large company, Dubai provides an ideal environment to support and develop your business. Here are some reasons that highlight the importance of establishing a company in Dubai :
- Favorable business environment: Dubai provides a developed and ideal business environment for companies thanks to its modern infrastructure, strong financial system, and facilities provided to investors.
- Tax exemptions: Companies established in Dubai’s free zones benefit from tax exemptions, including corporate tax and value-added tax, which reduces financial burdens.
- Full foreign ownership: In free zones, foreigners can own 100% of a company’s shares without the need for a local partner, providing greater control and independence.
- Strategic location: Dubai is located in a distinct geographical location between east and west, making it a major commercial center for international trade and logistics.
- Ease of establishment procedures: Dubai offers easy and fast procedures for establishing a company thanks to digital services and government initiatives that aim to facilitate the process for investors.
- Safety and stability: Dubai provides a stable political and economic environment, which enhances confidence in investments and reduces risks.
- Diversity of business opportunities: Dubai offers wide opportunities in various fields, including trade, technology, tourism, real estate, and financial services, allowing investors to choose the sector that best suits their interests.
- Advanced regulatory environment: Dubai adheres to advanced regulatory standards that preserve investors’ rights and provide legal protection for companies.
- Extensive network of relationships: Companies in Dubai can benefit from a wide network of business relationships with international companies and the opportunities provided by international events and trade fairs.
- Access to new markets: Dubai’s presence as a global commercial center provides opportunities for expansion and access to new markets in the region and the world. Establishing a company in Dubai can be a distinctive strategic step that achieves remarkable growth and opens doors to various business opportunities.
Types of companies in Dubai
When considering starting a company in Dubai , choosing the type of company is a crucial step that greatly affects the success of your business venture. There are several types of companies available, and each type has its advantages and disadvantages. In this section, we’ll review the different types of businesses and discuss how to choose the best type for your needs.
| Type | the description |
|---|---|
| Limited Liability Company (LLC) | It consists of two or more partners, and the partners’ liability is limited to their shares in the capital. May require a local partner if established outside free zones. |
| Public Joint Stock Company (PJSC) | It consists of a large number of shareholders, and the shares are tradable in the financial markets. Requires compliance with financial regulations and public reporting. |
| Private joint stock company (PVT) | Similar to a public joint stock company, but the shares are not tradable in the financial markets. Requires fewer contributors. |
| Solidarity Company | It consists of two or more partners who are personally liable for the company’s debts. There is no minimum capital. |
| Limited partnership company | It consists of two types of partners: general partners who are responsible for the company’s debts, and limited partners who are exposed to risks only to the extent of their contributions. |
| Company | A subsidiary of a main company, operating under the supervision of the parent company and carrying out the same type of business activity or complementary activity. |
| Limited liability company in free zones | A wholly foreign-owned company operating in Dubai’s free zones, benefits from tax exemptions and is 100% owned by foreigners. |
| commercial Corporation | It includes general commercial activities and their types vary according to the type of business activity and field. |
| Industrial company | It focuses on activities related to manufacturing and production, and operates in areas such as factories and laboratories. |
| Service company | It offers various services such as consulting, technology, and professional services, and is designed to meet specific needs. |
You can choose the type of company based on the nature of your business and your business needs in Dubai.
Documents required to establish a company in Dubai
To obtain the necessary licenses, a set of documents must be submitted that include but are not limited to:
1. License application form: Fill out the official license application form from the concerned authority.
2. Copy of passport: Submit a copy of the passport of the company owner or partners.
3. Business plan: Submit a detailed business plan that explains the business activity and its objectives.
4. Memorandum of Association and Articles of Association: Submit copies of the Memorandum of Association and Articles of Association of the company.
5. Office lease contract: Submit a lease contract for the company’s headquarters approved by the local authorities.
6. Initial approval certificate: Obtain an initial approval certificate from the competent authorities.
7. No objection certificate: In some cases, a no objection certificate may be required from the local sponsor.
In conclusion, Dubai is one of the most attractive destinations for establishing a company thanks to its dynamic business environment and the many advantages it offers to investors. With its advanced legal system, strategic location, tax exemptions, and full foreign ownership in free zones, Dubai offers ample opportunities for new businesses and rapid growth. By following the right steps and meeting the legal requirements, investors can establish successful companies and enjoy a stimulating business environment. Investing in Dubai is not only about making profits, it also provides access to a global network of business opportunities. With support from specialized companies such as Itqan, the incorporation process becomes smoother and more efficient, enabling entrepreneurs to focus on developing their business and growing in a diverse global market.
Frequently asked questions about establishing a company in Dubai
Do companies in Dubai need a local partner?
In limited liability companies outside free zones, foreign investors need a local partner who owns 51% of the shares. In free zones, foreign investors do not need a local partner.
What are the main benefits of establishing a company in Dubai?
Benefits include: a favorable business environment, tax exemptions, full foreign ownership in free zones, strategic location, political and economic stability, and broad business opportunities.
Is it possible to change the company’s activity or location after incorporation?
Yes, the company’s activity can be modified or its location changed, but this requires formal procedures and updates to licenses and documents.
How long does it take to establish a company in Dubai?
Establishing a company in Dubai can take from several days to several weeks, depending on the type of company and the complexity of the procedures.
What are the costs of establishing a company in Dubai?
Costs vary based on company type, location, and activities. Costs typically include licensing fees, rentals, registration fees, and consulting costs.
