27 Jan Establishing a company in Dubai for foreigners: procedures and steps
The procedures for establishing a company in Dubai for foreigners is one of the vital strategic decisions that opens wide doors to investment opportunities and economic growth in one of the fastest growing economies in the world. Dubai, with its strategic geographical location between East and West, its advanced infrastructure, and its flexible economic laws, provides an ideal environment for foreign entrepreneurs and investors. Dubai’s attractiveness is enhanced by the presence of multiple free zones that offer tax benefits and administrative facilities that make the company establishment process smoother and more efficient. Whether you are seeking to enter regional or global markets, establishing a company in Dubai for foreigners provides you with a strong platform to launch and succeed in the business world.
Establishing a company in Dubai for foreigners, procedures and steps
Procedures for establishing a company in Dubai for foreigners
The city of Dubai is an important commercial area in the Emirates and is considered the investment center of the country. Dubai has been the largest economic region in the Middle East for years, for the following reasons:
- Choosing a company type : Determine the appropriate company type, such as a limited liability company (LLC), a branch of a foreign company, or a representative office.
- Choosing a business activity : Determining the business activity that the company will undertake, and ensuring its compliance with local laws and regulations.
- Choosing a company name : Choosing a trade name for the company, and ensuring that it complies with the standards of the Dubai Economic Development Department (DED).
- Obtaining initial approvals : Submit a request to obtain initial approvals from the competent authorities, which include the Department of Economic Development and other regulatory authorities according to the type of commercial activity.
- Preparing legal documents : Preparing the necessary legal documents, such as the company’s articles of association and articles of association.
- Choosing a business location : Choosing a suitable location for the company, and submitting the notarized lease contract to the competent authorities.
- Obtaining a commercial license : Submit an application to obtain a commercial license from the Department of Economic Development after completing all required documents.
- Registration in the Chamber of Commerce : Register the company in the Dubai Chamber of Commerce and Industry to obtain membership in the Chamber and benefit from the services provided.
- Opening a bank account : Opening a bank account in the name of the company in one of the approved local banks.
- Employee registration and insurances : Register employees with the Ministry of Human Resources and Emiratisation, and obtain the necessary insurances.
- Obtaining visas : Submitting applications for work visas for foreign employees, if required.
Steps to establish a company in Dubai for foreigners
Establishing a company in Dubai for foreigners requires following certain steps to ensure compliance with local laws and regulations. Here are the basic steps:
- Select company type : Choose the appropriate company type, such as a limited liability company (LLC), a branch of a foreign company, or a representative office.
- Choosing a business : Determine the business activity the company will undertake and ensure it complies with local laws and regulations.
- Choosing a company name : Choose a business name for the company, and ensure that it complies with the standards of the Dubai Economic Development Department (DED).
- Obtaining initial approvals : Submit a request to obtain initial approvals from the competent authorities, which include the Department of Economic Development and other regulatory authorities depending on the type of commercial activity.
- Preparing legal documents : Prepare the necessary legal documents, such as the company’s articles of association and articles of association.
- Choosing a business location : Choose a suitable location for the company and submit the notarized lease contract to the competent authorities.
- Obtaining a commercial license : Submit an application to obtain a commercial license from the Department of Economic Development after completing all required documents.
- Registration in the Chamber of Commerce : Register the company with the Dubai Chamber of Commerce and Industry to obtain chamber membership and benefit from the services provided.
- Opening a bank account : Open a bank account in the company’s name in one of the approved local banks.
- Employee registration and insurances : Register employees at the Ministry of Human Resources and Emiratisation, and obtain the necessary insurances.
- Obtaining Visas : Apply for work visas for foreign employees, if required.
We help you with all procedures for establishing a company in Dubai for foreigners, as we have an expert legal team in the fields of investment over years of experience and exposure to the UAE market.
Documents required to establish a company in Dubai
To establish a company in Dubai for foreigners, a set of documents and papers must be submitted to ensure compliance with local laws and regulations. Below are the basic required documents:
- Establishment application form : Fill out and submit the establishment application form from the Department of Economic Development (DED).
- Passports : Copies of passports of founders and partners.
- Copy of residency : A copy of the UAE residency visa, if any.
- No Objection Certificate : Submit a No Objection Certificate (NOC) from the current sponsor if the founder is residing in the UAE and working for another sponsor.
- Lease Contract : A copy of the office or commercial site lease contract, authenticated by the Real Estate Regulatory Authority (RERA).
- Memorandum of Association and Articles of Association : Preparing, documenting and submitting the Memorandum of Association and Articles of Association of the company.
- Business Plan : Submitting a business plan that explains the goals and expected commercial activity of the company.
- Initial approval certificate : Obtain an initial approval certificate from the Department of Economic Development.
- Approval from other government agencies : If the commercial activity requires approvals from other government agencies (such as the Ministry of Health, Roads and Transport Authority, etc.).
- Submitting registration fees : Paying the fees required to register the company and obtain a commercial license.
Cost factors for establishing a company in Dubai for foreigners
The costs of establishing a company in Dubai for foreigners are affected by several factors that must be taken into consideration when planning to establish the company. The following are the main factors affecting costs:
- Company type : Costs vary based on the type of company such as a limited liability company (LLC), a branch of a foreign company, a representative office, or a free zone company.
- Geographic Region : Establishing a company in free zones such as Jebel Ali, Dubai South, or Dubai Multi Commodity Zone (DMCC) carries fees specific to those zones, while there are different fees for companies within Dubai City.
- Type of business activity : Some commercial activities require additional licenses or special approvals from other regulatory bodies such as the Ministry of Health or the Roads and Transport Authority.
- Commercial license fees : Fees for obtaining a commercial license from the Department of Economic Development (DED) include registration costs, initial approvals, and annual renewal.
- Office Rent : Office rental costs vary based on location, space, and equipment. Some free zones provide offices at competitive prices that include basic services.
- Legal costs : These include preparing and documenting legal documents such as the articles of association and articles of association, and their costs can vary based on the services provided by lawyers or consulting companies.
- Administrative costs : include registration fees at the Chamber of Commerce, accommodation fees, visas, and health insurance for employees.
- Consulting services : Consulting companies such as “Itqan” provide services that facilitate the establishment process and help in obtaining the necessary approvals, and this includes their consulting fees.
- Labor and Employment : Labor recruitment costs include salaries, visas, health insurance, and labor card fees.
- Supplies and Equipment : The costs of equipping the office with the necessary equipment such as furniture, computers, and office supplies.
- Marketing and Promotion : Includes marketing and promotion costs for new businesses, such as advertising campaigns, brand design, and website.
Types of companies in Dubai
Itqan Company services in establishing companies in Dubai
Itqan Company provides a full range of services for establishing companies in Dubai for foreigners, helping them overcome bureaucratic obstacles and take advantage of investment opportunities in the city. Itqan services include:
- Company establishment consulting : Providing specialized consultations to determine the most appropriate type of company based on the client’s needs and the targeted business activity.
- Choose a business activity : Helping clients choose the right business and ensuring it complies with local laws and regulations.
- Licensing procedures : Managing all procedures for obtaining a commercial license from the Department of Economic Development (DED) and other relevant government agencies.
- Preparing and documenting documents : Preparing all the legal documents necessary to establish the company, such as the articles of association and articles of association, and documenting them with the competent authorities.
- Site selection : Helping clients choose the appropriate location for the company, whether inside Dubai or in one of the free zones, and providing support in the contracting and leasing process.
- Obtaining approvals : Obtaining all initial and final approvals from the relevant regulatory and governmental authorities.
- Opening bank accounts : Providing support in opening the necessary bank accounts for the company in local banks.
- Registration in the Chamber of Commerce : Register the company in the Dubai Chamber of Commerce and Industry to obtain membership and benefit from the services provided.
- Visa and residency procedures : Providing assistance in obtaining work and residency visas for employees and individuals associated with the company.
- Employment and insurance services : Providing support in the process of recruiting workers and registering them with the Ministry of Human Resources and Emiratisation, in addition to arranging health and other insurance.
- Post-incorporation support : Providing ongoing advisory services after the company is established, including legal, accounting, and administrative support to ensure business continuity and success.
In conclusion, establishing a company in Dubai for foreigners is a strategic step that opens wide doors towards success and prosperity in one of the fastest growing economies in the world. Dubai’s unique geographic location, advanced infrastructure, and flexible legal environment make it an ideal destination for foreign entrepreneurs and investors. Despite the challenges and multiple procedures that must be followed, utilizing specialized consulting services and incorporation companies can greatly contribute to simplifying the process and ensuring full compliance with local laws. Establishing your company in Dubai not only provides you with a strong platform for growth, but also opens up tremendous opportunities for expansion and access to regional and global markets, which enhances your chances of achieving success and prosperity in the business world.
Frequently asked questions about establishing a company in Dubai for foreigners
Can foreigners own a company entirely in Dubai?
Yes, foreigners can fully own a company in free zones. Outside the free zones, the establishment of limited liability companies (LLC) requires a local partner who owns 51% of the shares, but there are new laws that allow full ownership of foreigners in some commercial activities.
What are the documents required to establish a company in Dubai?
Copies of the founders’ passports, a copy of the residence visa (if applicable), a no-objection certificate (NOC) from the current sponsor, the company’s articles of association and articles of association, a notarized lease contract, a business plan, and an initial approval certificate.
How long does the company establishment process take?
The company incorporation process usually takes 1 to 4 weeks, depending on the type of company and the procedures required.
Do I need a local partner to set up a company in Dubai?
In limited liability companies (LLC) outside free zones, the law requires a local partner to own 51% of the shares. However, foreigners can fully own companies in free zones and some commercial activities.