Dubai is considered one of the most prominent global destinations for establishing companies, thanks to its stimulating investment environment and advanced infrastructure. This emirate attracts many investors and entrepreneurs from all over the world who are looking for new opportunities to grow their businesses and expand their commercial activities. A number of factors contribute to making Dubai a preferred destination for establishing companies, including government facilities, tax exemptions, and strategic geographical location, in addition to the availability of a large and growing market.

In this article, we will discuss in detail the requirements necessary to establish a company in Dubai for Saudis, starting with choosing the appropriate type of company, through the necessary legal procedures and licenses, all the way to costs and financial requirements. We will review the basic steps that must be followed to ensure establishing a company in Dubai .

Costs of establishing a company in Dubai

When establishing a company in Dubai , entrepreneurs must develop an accurate budget that includes all necessary costs and financial requirements. These costs vary based on the type of company, location, and services required. Here’s an overview of the main costs to consider:

Registration and licensing fees

Registration and licensing fees are among the first costs that a Saudi entrepreneur must pay. These fees vary based on the type of company and where it is registered. For example, registration fees in free zones may be higher than those in local areas, but they come with additional benefits such as tax exemptions and complete ownership freedom for foreigners. Investors should check local regulations for exact details of fees.

Office rental cost

The cost of renting an office varies greatly based on the location, size of the office, and quality of the property. In free zones, many areas offer flexible leasing options including shared or small offices, which helps reduce costs. In local areas, leasing costs may be higher and require commitment to a long-term contract. It is essential for Saudis to study the real estate market in Dubai and choose a location that suits their budget and the needs of their company.

Minimum capital

The minimum capital required varies based on the type of company and the industry in which it operates. In free zones, there may be no minimum capital, while in local companies a certain minimum capital may be required. It is important for Saudis to ensure that sufficient capital is available to meet legal requirements and ensure the smooth operation of the company. In addition, a portion of the capital must be allocated to cover initial operational expenses such as salaries, marketing, and logistics.

In conclusion, establishing a company in Dubai requires careful financial planning that covers all costs and financial requirements. By understanding and preparing for these costs in advance, Saudis can achieve sustainable success in Dubai’s dynamic market.

Choosing the types of companies in Dubai

When considering establishing a company in Dubai , investors must choose the right type of company that aligns with their business goals and provides them with the required flexibility. There are three main options for setting up a company in Dubai, each type carrying its own advantages and challenges. Let’s review these three types:

Free zone company

Companies in free zones are among the preferred options for many investors due to the privileges they offer. The most important of these privileges are:
1. 100% full ownership of the business without the need for a local partner.
2. Complete tax exemption on income and profits for a certain period of time.
3. Facilities for transferring profits and capital without restrictions.
4. Easy and quick establishment procedures compared to local companies.
5. An advanced work environment and modern infrastructure that supports various economic sectors.

Local company

Local companies require a local partner to own 51% of the shares, but allow investors full access to the local market. Among its most prominent features are:
1. The ability to deal directly with the local market and provide services and products without restrictions.
2. Provides greater opportunities to obtain government contracts and large projects.
3. The possibility of benefiting from the advanced infrastructure and government services available to local companies.
4. Greater flexibility in choosing the location of business activity within the Emirate of Dubai.

Offshore company

Offshore companies are an ideal choice for investors who want to manage their international business from Dubai, without the need for a physical presence within the country. Among its main advantages:
1. Fast establishment and simplified procedures.
2. Low operational costs compared to other types of companies.
3. High legal protection and privacy in financial transactions.
4. The ability to open international bank accounts and manage assets easily.

In conclusion, the investor must carefully study each of these types to determine the most appropriate option for his business goals and the nature of his activity. The right choice of company type will represent a crucial step towards achieving success and sustainability in the growing Dubai market.

Legal procedures for establishing a company in Dubai

Establishing a company in Dubai requires following a set of legal procedures and obtaining the necessary licenses. These steps include:

Before starting the company registration process, the Saudi investor must obtain the necessary security approvals. These approvals are issued by the relevant authorities to ensure that there are no security risks associated with the company or its founders. This process includes submitting a set of personal documents, such as a passport and certificates of good conduct, to the relevant authorities who review them and then issue security approval.

Register the company with the Department of Economic Development

The next step after obtaining security approvals is to register the company with the Dubai Economic Development Department (DED). This procedure includes preparing and submitting a set of documents such as the articles of association and the company’s articles of association, in addition to specifying the business activity that the company intends to practice. Investors must ensure that their business complies with local laws and regulations. After submitting the documents and paying the required fees, the Department of Economic Development issues the company registration certificate.

Obtaining a commercial license

Once the company is registered, a trade license must be obtained that authorizes the company to conduct its business activity in Dubai. Types of business licenses vary based on the type of company and specific business activity. These licenses include: commercial license, industrial license, and professional license. To obtain a commercial license, an application must be submitted to the Department of Economic Development, accompanied by documents related to the company’s activity and commercial location. After reviewing and approving the application, a commercial license is issued, which is valid for a certain period of time and renewed periodically.

These legal procedures and licenses are an essential step to ensuring that you establish a company that operates legally and adheres to local laws in Dubai. Following these steps carefully can help investors achieve long-term success in their business ventures in the emirate.

 

In conclusion, it can be said that establishing a company in Dubai is a strategic step that opens wide doors of economic and commercial opportunities. By choosing the appropriate type of company, whether it is a free zone company, a local company, or an offshore company, entrepreneurs can benefit from the facilities and capabilities that Dubai provides as a global business center.

In addition, the required legal procedures and licenses must be taken into account, starting with obtaining security approvals, through registering the company with the Department of Economic Development, all the way to obtaining the commercial license. These steps ensure a sound legal establishment that enables the company to operate effectively and safely.

It is also worth noting the importance of good financial planning to cover financial costs and requirements, such as registration and licensing fees, office rental costs, and minimum capital. These financial factors play a major role in the success and sustainability of the company.

In the end, establishing a company in Dubai remains a golden opportunity for entrepreneurs who aspire to expand and grow in a flexible and prosperous business environment. Good planning and adherence to legal and financial procedures ensure the achievement of the desired commercial and economic goals.

Frequently asked questions about establishing a company in Dubai