Steps and tips for establishing a company in Dubai for Saudis

Dubai is one of the most prominent economic destinations in the world, as it enjoys a strategic location linking East and West and provides an ideal environment for business and investment. Establishing a company in Dubai represents a strategic step that can open up wide horizons of business and financial opportunities. For Saudis looking to expand their business or start a new venture, Dubai offers a variety of options and facilities that make the incorporation process easy and convenient.

Dubai is characterized by advanced infrastructure, a strong legal system, and an ever-evolving commercial environment, in addition to the presence of free zones that allow foreign investors full ownership of companies, which enhances the emirate’s attractiveness to investors. In addition, Dubai provides multiple tax and customs incentives that help reduce costs and increase profitability.

In this article, we will review the basic steps and tips that Saudis must follow to establish a company in Dubai . We will discuss the different types of companies that can be established, the legal procedures and licenses required, as well as financial and financing tips that help run a business efficiently. This article will be a comprehensive guide that will help you make the right decisions and achieve success in the dynamic business environment in Dubai.

Steps and tips for establishing a company in Dubai for Saudis

Choosing the type of companies in Dubai for Saudis

When you decide to establish a company in Dubai , the first and most important step is to choose the type of company that best suits your needs and investment goals. This choice depends on multiple factors such as the nature of your business, the size of the investment, and the benefits offered by each type of company. In this section, we will highlight the three main types of companies in Dubai: free zone companies, local companies, and offshore companies.

Free zone companies

Free zone companies are an attractive option for many Saudi investors due to the many advantages they offer. These areas include special economic zones that provide an ideal business environment with tax and financial incentives. Among the most prominent advantages:

1. Complete foreign ownership: Foreign investors can own the company 100% without the need for a local partner.
2. Tax exemptions: Free zones often provide complete tax exemptions on income and profits for a certain period, sometimes up to 50 years.
3. Ease of procedures: Free zones are characterized by the speed and ease of procedures for establishing companies, as all procedures can be completed within a few days.
4. Integrated services: Free zones provide advanced infrastructure and various support services, including legal and accounting consultations.

Local companies

Local companies are the traditional type of companies established within the emirate under the umbrella of UAE commercial law. Although this type requires a local partner to own 51% of the company, it offers some important advantages:

1. Access to the local market: Local companies can operate in any part of the Emirates and reach the local customer base directly.
2. Flexibility in commercial activities: Local companies allow greater flexibility in practicing a wide range of commercial activities without restrictions.
3. Contracting with government agencies: Local companies are allowed to enter into contracts and tenders with government agencies, which opens new horizons for business.

External companies

Offshore companies are companies that are registered outside the Emirates but conduct their business activity there. This type of company is considered a suitable option for large companies that want to expand their business activity in the region without the need for a permanent physical presence in Dubai. The most prominent advantages of this type are:

1. Maintaining privacy: Offshore companies provide a high level of privacy regarding shareholder and partner information.
2. International Business Management: This type allows companies to manage their international business efficiently by taking advantage of Dubai’s advanced infrastructure.
3. Avoid double taxation: Offshore companies are often eligible to benefit from double taxation avoidance agreements signed between the UAE and other countries.

By choosing the right type of company, you can make the most of your investment in Dubai and ensure the success of your business in this thriving economic environment.

Steps to establish a company in Dubai for Saudis

Establishing a company in Dubai for Saudis requires compliance with a range of legal procedures and obtaining the appropriate licenses. This process includes several steps that must be followed carefully to ensure things run smoothly and successfully. Below we review the most important legal procedures and licenses required:

• Legal requirements

The first step in the legal procedures is to determine the type of company you wish to establish. Saudis wishing to establish a company in Dubai must familiarize themselves with the laws and regulations for the specific type of company and ensure compliance with them. Legal requirements vary depending on the type of company, whether it is a free zone company, a local company, or an offshore company. Among the general requirements:

1. Choose the company name and ensure that it complies with local laws and does not conflict with the names of other companies.
2. Preparing the company’s articles of association and articles of association in accordance with legal requirements.
3. Submit the required documents such as passports and certificates of incorporation.

• Licenses required

After meeting the legal requirements, you must obtain the necessary licenses to conduct business activity. The licenses required vary based on the type of business and the location of the company. Common licenses include:

1. Commercial license: Granted by the Department of Economic Development in Dubai, it is considered the basic step for doing business.
2. Free zone license: If a company is established in a free zone, a license must be obtained from the competent authority in that zone.
3. Specialized licenses: Some commercial activities require additional licenses from specialized government agencies such as the Ministry of Health or the Roads and Transport Authority.

• Registration in government departments

The final step in the legal procedures is to register the company with the relevant government departments. This includes:

1. Register the company with the Department of Economic Development in Dubai to obtain a commercial license.
2. Register with the Dubai Chamber of Commerce and Industry to obtain chamber membership.
3. Registration with the Ministry of Human Resources and Emiratisation if the company will employ local or foreign workers.
4. Registration with the Federal Tax Authority if the company is obligated to pay value-added tax.

In addition, the company may need to be registered with other bodies depending on the type of business activity, such as the Land Department if the company works in the real estate field.

By following these legal procedures and obtaining the appropriate licenses, Saudis can establish a successful company in Dubai and start conducting their business with confidence and compliance with local laws.

Financial advice for establishing a company in Dubai for Saudis

Financial aspects are one of the most important elements of setting up a company in Dubai , especially for Saudis who aim to create a successful and sustainable business in this dynamic market. In this section, we will go over some basic financial tips and effective financing methods that can help achieve this goal.

• Open bank account

The first vital financial step is to open a business bank account in Dubai. It is necessary to choose a bank that suits your company’s needs and provides integrated banking services. This process requires submitting a set of documents such as a copy of the trade license, passport, and company articles of association. It is preferable to deal with banks with a good reputation and experience in serving foreign companies to ensure ease of banking operations.

• Get financing

You may need additional financial support to cover initial setup and operating costs. There are several options available for obtaining financing in Dubai, including bank loans, investment companies, and venture capital funds. It is recommended to prepare a detailed and attractive business plan that highlights the strengths of your project and shows how to achieve profits to attract potential investors and obtain the necessary financing.

• Cost and expense management

Managing costs effectively is the key to the financial success of any company. A tight budget must be drawn up, and basic and subsidiary expenses must be accurately identified. It is beneficial to use financial management tools and software that help monitor cash flow and reduce unnecessary expenses. In addition, strategies to reduce costs should be considered such as utilizing shared services in free zones or negotiating contracts to supply raw materials at competitive prices.

In conclusion, it can be said that establishing a company in Dubai for Saudis represents a golden opportunity to benefit from the thriving investment environment and advanced infrastructure in the emirate. By following the right steps and choosing the right type of company, whether it is in the free zone, the local market, or even as an offshore company, success and sustainable growth can be achieved.

It is necessary to adhere to legal procedures and obtain the required licenses to ensure that the business operates in a legal and orderly manner. In addition, you must register with the relevant government departments to avoid any legal problems that may hinder the work process.

The importance of good financial planning and searching for appropriate financing cannot be overlooked, whether by opening a bank account or exploring available financing opportunities. Managing costs and expenses wisely is also critical to achieving profitability and sustainability.

In short, setting up a company in Dubai requires careful planning and in-depth knowledge of local laws and requirements, but with effort and dedication, success and prosperity can be achieved in one of the most promising markets in the region.

The most important frequently asked questions about establishing a company in Dubai for Saudis