Ways to establish a company in Dubai for foreigners 2022

Ways to establish a company in Dubai for foreigners in 2022. Dubai is one of the most prominent global destinations for business and investment, as it is distinguished by its strategic location linking Asia, Europe and Africa, in addition to its prosperous and supportive economic environment. Establishing companies in Dubai attracts many foreign investors thanks to the great facilities provided by the government and the promising investment opportunities available in various sectors.

In this article, we will review the steps and procedures necessary to establish a company in Dubai for foreigners , starting with choosing the appropriate type of company, passing through the legal requirements, all the way to the benefits and facilities that make Dubai an ideal destination for entrepreneurs and entrepreneurs. We will highlight the options available for establishing companies in free zones, local companies, and branches of foreign companies, in addition to the required licenses, permits, and documents necessary for the procedures.

Whether you are looking to expand your existing business or start an entirely new venture, understanding the basic principles of setting up a company in Dubai will help you make informed decisions and ensure the success of your venture in this thriving global city.

Ways to establish a company in Dubai for foreigners 2022

Choose the type of company in Dubai

When considering establishing a company in Dubai , choosing the type of company is one of the most important initial steps that a foreign investor must take into consideration. The type of company depends on several factors, including the nature of the business activity, the size of the investment, as well as the strategic goals of the company. In this section, we will review the main types of companies that foreigners can establish in Dubai, which are: a free zone company, a local company, and a branch of a foreign company.

• Free zone company

Free zone companies are one of the preferred options for many foreign investors due to the many advantages they provide. These companies are located in specific areas known as free zones, where full foreign ownership is permitted without the need for a local partner. In addition, free zone companies benefit from tax breaks on income and profits, making them an attractive option for companies looking for a favorable business environment. The most famous free zones in Dubai are: Jebel Ali Free Zone (JAFZA), Dubai Internet City, and Dubai Media City.

• Local company

Although establishing a local company requires a local partner who owns 51% of the company, this type of company allows foreign investors to access the local market directly and completely. A local company can conduct business activities throughout the UAE without geographical restrictions. The requirements and procedures for establishing a local company vary based on the type and size of the business, but it is considered the ideal option for companies that want to expand within the UAE market.

• Branch of a foreign company

Dubai allows foreign companies to establish branches within the emirate. These branches can carry out all the commercial activities carried out by the parent company, but they remain under the supervision of the parent company in terms of management and financing. Establishing a branch of a foreign company requires obtaining approval from the local authorities and registering the branch in the commercial registries in Dubai. This option is ideal for foreign companies that want to expand their operations to Dubai while maintaining the organizational and management structure of the parent company.

By choosing the right type of company, foreign investors can benefit from the many advantages that Dubai offers as a global investment destination. It is necessary to carefully study each of the available types to ensure alignment with the strategic objectives and operational processes of the company.

Legal requirements for establishing a company in Dubai

The process of setting up a company in Dubai for foreigners requires adherence to a set of legal requirements aimed at regulating businesses and ensuring compliance with local laws. These requirements can be divided into three main parts: licenses and permits, required documents, and timelines.

Licenses and permits

The type of licenses and permits required depends on the type of company you wish to establish. For example, if you intend to set up a company in a free zone, you will need to obtain a license from the relevant free zone authority. These licenses may include commercial, industrial, and service licenses, depending on the nature of the business activity you intend to practice.

To create a local company, you must obtain a license from the Department of Economic Development in Dubai. This license may require additional approvals from other regulatory bodies depending on the type of activity, such as the Ministry of Health or the Telecommunications Regulatory Authority.

The required documents

The documents required to establish a company in Dubai include a variety of documents proving the identity of shareholders and company details. The most important of these documents are:

• Copies of passports of shareholders and directors.
• A copy of the residence visa (if any).
• The company’s articles of incorporation and articles of association.
• Business plan and business activity details.
• Regulatory approvals (if required).
• Proof of business address in Dubai.

Some types of companies, such as foreign branches, may require the submission of additional documents such as commercial records from the home country and no-objection certificates.

Time procedures

The time period required to establish a company in Dubai varies based on the type of company and the required procedures. In general, this duration can range from several days to several weeks. For example, the process of obtaining a license in a free zone can take less than a week, while the process of incorporating a local company may take longer due to the need for additional approvals.

To speed up the process, it is advisable to seek the help of legal advisors and professionals in the field of company establishment, as they can provide advice, facilitate procedures and avoid any unexpected delays.

By carefully following these legal requirements, foreign investors can seamlessly establish their companies in Dubai and begin exploiting the promising investment opportunities that the emirate offers.

Facilities and investment opportunities for establishing a company in Dubai

Facilities and investment opportunities for establishing a company in Dubai

Establishing a company in Dubai is a golden opportunity for foreign investors, given the facilities and investment opportunities available in the emirate. Dubai is not only a global business hub, it also provides an environment that encourages growth and innovation. Below are some of the facilities and opportunities that foreign investors can benefit from:

• Tax exemptions

Dubai has a flexible tax system that is attractive to foreign investors. One of the most prominent facilities is the tax exemptions that include not being taxed on personal income or business revenues. This tax system contributes significantly to attracting more foreign investments and gives companies the ability to achieve greater profits without the heavy tax burdens that may exist in other countries.

• Advanced infrastructure

Dubai boasts an advanced infrastructure that includes advanced transportation networks, world-class sea and air ports, and highly efficient logistics facilities. This infrastructure makes it easier for companies to carry out their operations efficiently and quickly, enhancing their competitiveness in global markets. In addition, Dubai provides an advanced technological environment with advanced digital infrastructure that helps companies innovate and grow.

• Government support

The UAE government plays a pivotal role in supporting startups and foreign investors through encouraging policies and various support programs. These programs include providing financial grants, credit facilities, and legal and business advice. The government also provides interactive platforms to facilitate communication between investors and government institutions, which facilitates establishment and expansion processes. In addition, the government is constantly updating laws and legislation to make the investment environment more transparent and attractive.

Thanks to these facilities and investment opportunities, Dubai has become a preferred destination for foreign investors seeking to establish successful companies and sustainable growth in a prosperous economic environment.

Our company’s role in establishing a company in Dubai

In conclusion, it can be said that establishing a company in Dubai for foreigners is a strategic step that deserves serious consideration for those looking to expand their business in the Middle East region. Dubai provides an advanced and stable economic environment, supported by flexible legislation and encouraging investment incentives. Whether you choose to establish a free zone company, a local company, or a branch of a foreign company, each option comes with its own benefits and challenges.

It is important to have a clear understanding of the legal requirements and timelines required to successfully establish your company. Make sure you gather all required documents and complete all necessary licenses and permits. And don’t forget to take advantage of the facilities and investment opportunities available, from tax exemptions to advanced infrastructure and continued government support.

In short, Dubai is not only a global tourist destination, it is also a vibrant economic hub that offers golden opportunities to foreign investors. With good planning and leveraging available resources, you can establish a successful and sustainable business in this dynamic city.

Frequently asked questions about establishing a company in Dubai