Learn about the procedures for establishing a company in Dubai, as Dubai is one of the most prominent investment destinations in the world, characterized by an advanced infrastructure and a flexible and developed business environment. Dubai attracts investors from all over the world thanks to its open economic policies and the great facilities it provides for establishing companies. The process of establishing a company in Dubai is an important strategic step, requiring accurate knowledge of legal and administrative procedures. Through this article, we will review the basic steps for establishing a company in Dubai, starting from choosing the type of business activity to obtaining the necessary licenses, which helps investors achieve their business dreams easily and smoothly in this global city.

Procedures for establishing a company in Dubai

Establishing a company in Dubai requires following a set of basic steps that ensure compliance with local laws and obtaining the necessary licenses to start a business. The following are the basic procedures for establishing a company in Dubai:

• The first step is to determine the type of business activity you intend to practice. The activity can be commercial, industrial, or service. This determination affects the type of licenses you will need.
• There are several legal forms that companies can take in Dubai, such as a limited liability company (LLC), a professional company, a local or international branch, and others. You must choose the legal form that suits the nature of your business and your needs.
• You must choose a trade name that is in line with local laws and does not conflict with previously registered names. The name must reflect the type of business activity and be consistent with the cultural values ​​of the Emirates.
• After choosing the trade name and determining the type of activity, you must obtain initial approval from the Department of Economic Development in Dubai. This approval is an essential step before proceeding with the rest of the procedures.
• The articles of association and legal agreements for the company must be prepared. If the company is a partnership, the shares of the partners and the obligations between them must be clarified.
• A physical location for the company in Dubai must be determined. This requires renting an office or workspace, and registering the address with the relevant authorities.
• The licenses required vary depending on the type of business activity. These licenses may include a trade permit, health permit, civil defense permit, and other necessary licenses.
• A bank account must be opened in the name of the company in one of the approved banks in Dubai. This account is necessary to manage the company’s financial transactions.
• The company must be registered with the Dubai Chamber of Commerce and Industry to obtain membership in the chamber, which allows the company to benefit from the services and support provided by the chamber.
• The establishment card must be obtained from the Ministry of Human Resources and Emiratisation to enable the company to legally employ workers and employees.
• Following these steps helps in establishing a company in Dubai easily and in line with local laws, allowing investors to start their businesses in a flexible and supportive economic environment.

Types of Companies in Dubai

Here is a table showing the different types of companies in Dubai with a brief description of each type:

Company Type Description
Limited Liability Company (LLC) A company that can consist of 2 to 50 partners, who are only liable to the extent of their shares in the capital.
Public Shareholding Company (PSC) A company whose capital is divided into equal shares that are traded on the financial market, and the minimum capital must be 10 million dirhams.
Private Shareholding Company (PrSC) A company that has the characteristics of a public shareholding company but whose shares are not traded on the financial market, and the minimum capital must be 2 million dirhams.
General Partnership Company A company made up of two or more partners, who are unlimitedly liable for the company’s debts and obligations.
Limited Partnership Company A company made up of general partners who bear unlimited liability and limited partners whose liability is limited to the extent of their contributions to the capital.
Branch Company (Local/International Branch) A branch of a parent company based outside or inside Dubai, operating under the same name as the parent company and carrying out the same business activity.
Free Zone Company Companies registered in Dubai’s free zones enjoy benefits such as full foreign ownership and no taxation.

Commercial Representative Office An office that acts as a marketing and promotional body for a foreign parent company and cannot conduct direct or profitable business activities in Dubai.

Professional Companies Companies owned and managed by professional groups such as lawyers, accountants and doctors, and are regulated under specific professional laws.

Holding Company A company that owns shares in other companies and manages and controls them, but does not conduct direct business.

This table provides a comprehensive overview of the different types of companies in Dubai, helping investors choose the right type for their business and commercial ambitions.

Investing in Dubai

Investing in Dubai is an important strategic move given the vast investment opportunities offered by this global city. With the help of Etqan, investors can make the most of Dubai’s thriving business environment. Etqan provides comprehensive services including legal and commercial consultations, assistance with company formation procedures, obtaining the necessary licenses, and providing logistical and administrative support. With its deep experience and extensive knowledge of the local market, Itqan provides integrated solutions for investors to ensure a successful and smooth launch of their businesses in Dubai. Your cooperation with Itqan ensures that you benefit from its extensive network of relationships and knowledge of local legislation, allowing you to focus on growing and developing your business with confidence and peace of mind.

Requirements for establishing a company in Dubai

To establish a company in Dubai, there are several conditions that must be met to ensure compliance with local laws and ensure that the process runs smoothly. These conditions vary based on the type of business activity and the legal form of the company, but there are some common basic requirements:

• Determine the type of business activity that the company will conduct. The activity must be permitted in Dubai and approved by the Department of Economic Development.
• Choose the appropriate legal form for the company (such as a limited liability company, a public joint stock company, a branch company, a free zone company, etc.). Ensure that the requirements of the chosen legal form are met.
• Choose a trade name that complies with the laws of trade names in Dubai. The name must be unique and not used by another company in Dubai. An application for approval of the trade name must also be submitted to the Department of Economic Development.
• Obtaining initial approvals from the Department of Economic Development and other relevant government agencies.
• Preparing the articles of association and legal agreements that clarify the company structure and the rights and duties of the partners.
• Authenticating the contract with a notary public if necessary.
• Renting an office or place to work in Dubai and obtaining a certified lease contract.
• Registering the company’s address with the relevant authorities.
• Submitting an application for the necessary commercial licenses from the Department of Economic Development.
• Additional licenses may be required based on the type of activity (such as health licenses, civil defense licenses, etc.).
• Opening a bank account in the company’s name in one of the approved banks in Dubai.
• Registering the company with the Dubai Chamber of Commerce and Industry to obtain membership in the chamber and benefit from its services.
• If the company is a branch of a foreign company, a local service agent must be appointed in Dubai.
• Applying for an establishment card from the Ministry of Human Resources and Emiratisation, which allows the company to employ workers and employees.

The importance of establishing a company in Dubai

Establishing a company in Dubai has many benefits and advantages that make it a preferred destination for investors and entrepreneurs from all over the world. Here are some reasons that highlight the importance of establishing a company in Dubai:

• Dubai is located in a global hub that connects the East and the West, making it a focal point for international trade. Dubai provides easy access to the markets of Asia, Africa and Europe.
• Dubai enjoys a flexible and stable economic environment, supported by government policies that encourage investment and provide facilities for new companies.
• Dubai provides an advanced infrastructure that includes international airports, modern seaports, and a developed transportation network, which facilitates logistics operations and commercial movements.
• Companies in Dubai enjoy significant tax advantages, such as no personal income tax and no corporate tax in many free zones, which enhances profitability.
• Dubai provides many free zones that offer many advantages, such as 100% foreign ownership, no restrictions on the repatriation of capital and profits, and special import and export facilities.
• Dubai is characterized by economic diversification that provides opportunities in various sectors such as trade, tourism, real estate, technology, and financial services, allowing companies to diversify and grow.
• Dubai has a flexible legal and legislative system that facilitates the establishment of companies and provides the necessary legal protection for investors.
• Dubai is known for its political and security stability, making it a safe and attractive environment for long-term investment.
• Dubai provides a diverse labor market with qualified cadres from all over the world, allowing companies to access the required skills and expertise.
• The Dubai government offers many programs and initiatives to support entrepreneurs and startups, including providing financing, advice, and guidance.
  In conclusion, Dubai is an ideal destination for establishing companies thanks to its advanced infrastructure, attractive investment environment, and strategic location. Following the correct procedures for establishing a company in Dubai ensures compliance with local laws and benefits from the many advantages that the city offers. Whether you are planning to establish a small company or a large project,
• Dubai provides you with the ideal environment for growth and prosperity. With the help of specialized companies such as “Itqan”, investors can easily overcome administrative and legal complexities, allowing them to focus on developing their business and achieving success. Setting up a company in Dubai is not just a business move, it is an investment in a future full of promising opportunities.

Frequently Asked Questions about Setting Up a Company in Dubai

What are the free zones in Dubai?
Free zones are areas that offer special benefits such as 100% foreign ownership, tax exemptions, and flexibility in employment. Examples include Dubai Airport Free Zone, Jebel Ali Free Zone, and Dubai Academic City.

Can foreigners set up a company in Dubai?
Yes, foreigners can set up companies in Dubai, whether in free zones or in companies that require a local partner (in non-free zones).

What are the costs associated with setting up a company in Dubai?
The costs depend on the type of company, its location, and its activity. Costs include registration fees, company license, rent, and consulting services.

What are the benefits of setting up a company in Dubai?
Tax exemptions, 100% foreign ownership, a thriving business environment, easy access to international markets, and a business-friendly legal system.

Is a local partner required to set up a company in Dubai?
In non-free companies (such as LLCs), the law requires a local partner to own 51% of the shares. In free zones, foreigners can own the company entirely.