10 Feb Procedures for establishing a company in Dubai: 7 steps learn about them
Learn about the procedures for establishing a company in Dubai because Dubai is considered one of the most prominent investment destinations in the world, as it combines a stimulating business environment and advanced infrastructure. With the increasing global interest in investing in this developed city, the search for how to establish companies there is increasing. The procedures for establishing a company in Dubai require a careful understanding of the legal and administrative requirements, starting with choosing the appropriate type of company, through obtaining the necessary licenses, all the way to final registration. This article aims to provide a comprehensive overview of the basic steps of setting up a company in Dubai, highlighting the key aspects that must be considered to ensure starting a business legally and efficiently.
Procedures for establishing a company in Dubai: 7 steps, learn about them
Steps to establish a company in Dubai
Establishing a company in Dubai requires following a set of basic steps to ensure compliance with local laws and official procedures. Here are 7 main steps to start a company in Dubai:
- Determine the type of business activity : The first step is to determine the type of business activity you want to engage in. You need to choose the activity carefully because it will affect the business license you will need.
- Choosing a trade name : Choosing an appropriate trade name that is in line with the standards specified by the Department of Economic Development in Dubai. The name must be unique and not conflict with other registered trade names.
- Obtaining initial approvals : Before proceeding with the establishment procedures, initial approvals must be obtained from the relevant authorities in Dubai. These approvals usually include the Department of Economic Development and sometimes other parties depending on the nature of the activity.
- Choosing the company’s location : You must select a location for the company’s headquarters. This location could be in a free zone or within Dubai. A lease contract must be submitted for the chosen location.
- Preparing legal documents : Preparing the necessary legal documents such as the company’s articles of incorporation and articles of association. This may require the use of an attorney or legal advisor to ensure the authenticity of the documents.
- Registration and obtaining a commercial license : After submitting all required documents and approvals, the company is registered and a commercial license is obtained from the Department of Economic Development or the competent authority in the free zone.
- Opening a bank account and preparing the infrastructure : After obtaining the commercial license, a bank account must be opened for the company in one of the approved banks in Dubai and the necessary infrastructure must be prepared to start the business.
Establishing a company in Dubai can be a somewhat complicated process, so it is preferable to use experts or specialized companies such as Itqan Company to facilitate the procedures and ensure full compliance with local laws.
Types of companies in Dubai
Here is a table showing the types of companies in Dubai with a brief description of each type:
| Type of Company | the description |
|---|---|
| Limited Liability Company (LLC) | A firm consisting of 2-50 partners who are liable only to the extent of their equity shares. |
| Sole proprietorship | Owned and operated by one person, suitable for small businesses. |
| Public joint stock company | A large company can raise capital from the public by selling shares. |
| Private joint stock company | It is similar to a public joint-stock company, but the capital comes from a limited number of shareholders. |
| Branch of a foreign company | A branch established for a foreign company to conduct business in Dubai without establishing a new legal entity. |
| Representative office | An office of a foreign company that aims for marketing and research without carrying out direct commercial activities. |
| Joint company | A company consisting of two or more partners who share unlimited legal and financial responsibility. |
| Limited partnership company | It consists of general partners who bear full responsibility and limited partners whose liability is limited. |
| Free company free zone | A company established in a free zone benefits from tax exemptions and full foreign ownership. |
| Civil company | Designed for professional and service professions such as doctors, lawyers, and engineers. |
This table provides a comprehensive overview of the different types of companies that can be established in Dubai, helping investors choose the most appropriate type for their business.
Conditions for establishing a company in Dubai
Establishing a company in Dubai requires compliance with a set of legal and administrative conditions and requirements to ensure that the business is started correctly and legally. Here are some basic conditions for establishing a company in Dubai:
- Determine the type of company : The investor must choose the appropriate type of company for his business activity, such as a limited liability company (LLC), a sole proprietorship, a public or private joint-stock company, or a branch of a foreign company.
- Trade name : Choose a trade name that complies with the standards and regulations of the Department of Economic Development in Dubai. The name must be unique and not used by any other company.
- Initial approval : After determining the type of company and trade name, initial approval must be obtained from the Department of Economic Development. This consent is not considered a license but is a necessary step to continue the procedures.
- Articles of Association : Preparing and signing the company’s Articles of Association and notarizing it with a notary. The contract includes details such as capital, ownership structure, and company goals.
- Determine the office location : A physical location for the company must be determined in Dubai and a notarized lease contract must be submitted. A physical address is a prerequisite for obtaining a business license.
- Obtaining additional approvals : Some commercial activities require additional approvals from the competent authorities such as the Ministry of Health or the Roads and Transport Authority, depending on the type of activity.
- Capital Deposit : Deposit the required capital in a local bank in Dubai, and submit a certificate proving the deposit.
- Registration in the Commercial Registry : Register the company in the Commercial Registry with the Department of Economic Development and obtain the final commercial license.
- Obtaining an establishment card : Register with the Ministry of Human Resources and Emiratisation to obtain an establishment card, which allows the company to employ employees.
- Tax registration : Registration with the Federal Tax Authority if the business activity is subject to value added tax (VAT).
These conditions represent the basic steps for establishing a company in Dubai, and investors must ensure that all legal and administrative requirements are met to ensure that the process runs smoothly and successfully.
Types of companies in Dubai.
Advantages of establishing a company in Dubai
Establishing a company in Dubai offers many unique advantages that make it an attractive destination for investors and entrepreneurs. Below are the most prominent features:
- Ease of procedures : Dubai provides a facilitating environment for establishing companies with smooth procedures and low bureaucracy. Many government agencies provide electronic services that facilitate the process of registering and obtaining licenses.
- Full foreign ownership : In many free zones in Dubai, foreign investors can fully own (100%) their companies, which enhances the attractiveness of investment in these zones.
- Global business environment : Dubai provides an integrated and advanced business environment, with world-class infrastructure that includes airports, ports, and an advanced transportation network, in addition to the presence of major international companies.
- Tax exemptions : Companies in free zones enjoy tax exemptions on personal income and corporate taxes for long periods, which helps achieve higher profits.
- Easy access to global markets : Dubai’s strategic location makes it a gateway to markets in the Middle East, Asia and Africa, allowing companies to easily reach a wide segment of customers.
- Economic and political stability : Dubai is considered one of the most stable cities in the region, providing a safe and suitable environment for investment and commercial growth.
- Legislation that supports business : Dubai is committed to developing legislation and policies that support business and investment, with flexibility to amend laws to suit global economic changes.
- Cultural and Labor Diversity : Dubai has a diverse community that includes multiple nationalities and cultures, which facilitates the recruitment of skilled and diverse workers from all over the world.
- Support Services : Dubai provides a wide range of support services for startups, including co-working spaces, business incubators, and financing programs.
- Advanced legal system : The legal system in Dubai is based on the principles of transparency and justice, with specialized courts in commercial disputes, which enhances confidence in the business environment.
Thanks to these advantages, Dubai is considered one of the best destinations for establishing companies and investing, which contributes to attracting more entrepreneurs and investors from all over the world.
In conclusion, establishing a company in Dubai represents a golden investment opportunity that allows investors to benefit from an integrated and supportive business environment. Thanks to great facilities, tax exemptions and advanced infrastructure, Dubai becomes an ideal destination for startups and large companies alike. Adherence to legal and administrative procedures ensures the success of the establishment process and the sustainability of business in the city, which is considered a global center for trade and economics. Therefore, establishing a company in Dubai is a strategic step towards a bright and prosperous future in the business world. In cooperation with competent authorities such as the Department of Economic Development and Free Zones, entrepreneurs can realize their dreams and transform their ideas into successful and fruitful projects. In addition, it is possible to benefit from the advisory and professional services provided by specialized companies such as “Itqan” Company, which contribute to simplifying the establishment process and providing the necessary support in every step of establishing the company.
Frequently asked questions about establishing a company in Dubai
What are the different types of companies that can be established in Dubai?
Types include limited liability company (LLC), sole proprietorship, public joint stock company, private joint stock company, branch of a foreign company, representative office, joint liability company, limited partnership, free zone company, and civil company.
What are the basic steps to establish a company in Dubai?
The steps include choosing the company type, choosing the trade name, obtaining initial approval, preparing and signing the articles of incorporation, determining the office location, obtaining additional approvals, depositing capital, registering in the commercial registry, obtaining an establishment card, and registering with the Federal Tax Authority if necessary. .
Can foreigners fully own companies in Dubai?
Yes, in many free zones foreigners can fully own companies (100%).
What are the costs associated with setting up a company in Dubai?
Costs vary based on the type of company, location and procedures required. Costs include registration fees, licenses, rentals, and consulting services.
How long does it take to establish a company in Dubai?
The time depends on the type of company and the procedures required, but usually takes from a few days to several weeks.