Procedures for establishing a company in Dubai, opening a company in Dubai is an important strategic step for investors and entrepreneurs seeking to benefit from the thriving economy and advanced infrastructure of this global city. Thanks to its unique geographical location between the East and the West, Dubai is a global business hub that provides access to major markets in Europe, Asia and Africa, making it an ideal destination for establishing and expanding businesses. The city provides an encouraging and supportive business environment characterized by political and economic stability, which enhances investor confidence and encourages them to establish their companies in it.
When considering establishing a company in Dubai, investors face many challenges related to legal and administrative procedures, which may be complicated for some, especially for those who lack local knowledge or previous experience in the UAE market. This is where cooperation with specialized companies such as Itqan comes in, which has extensive experience and in-depth knowledge of local laws and procedures related to establishing companies in Dubai. By cooperating with Itqan, investors can benefit from comprehensive advisory services that include choosing the appropriate type of company, preparing the necessary documents, and guiding them through all stages of establishment, from submitting applications to obtaining the necessary licenses.
Itqan simplifies procedures and provides innovative solutions that help investors achieve their goals quickly and efficiently, allowing them to focus on developing their business instead of dealing with administrative details. This collaboration ensures that company formation in Dubai is smooth and legal, while adhering to all regulatory requirements, laying the foundation for sustainable success in one of the most dynamic and competitive markets in the world. Therefore, company formation in Dubai in collaboration with Itqan not only removes complications, but also opens wide doors to opportunities for future growth and prosperity.
Procedures for establishing a company in Dubai
Types of companies that can be established in Dubai
Dubai is one of the world’s leading destinations for business formation, thanks to its thriving economic environment and strategic location linking European, Asian and African markets. Dubai attracts investors and entrepreneurs from all over the world due to its advanced facilities and infrastructure, in addition to its distinguished economic incentives that include tax exemptions and freehold options. The diversity of types of companies that can be established in Dubai is one of the key factors that makes the city a preferred business destination, as it allows investors to choose the legal entity that best suits the nature of their business activity and strategic goals. By understanding the different types of companies available, investors can make informed decisions that positively impact the long-term success of their business. Below we review the different types of companies that can be established in Dubai: Types of companies that can be established in Dubai:
Limited Liability Company (LLC):
A limited liability company is the most popular option for company formation in Dubai. In this type of company, investors have limited liability proportionate to their share in the capital. This type of company requires a local partner who owns 51% of the shares.
Public Joint Stock Company (PSC) or Private Joint Stock Company (PJSC):
Joint stock companies are a suitable option for large companies looking to raise capital through an initial public offering (in the case of a public joint stock company) or through limited investors (in the case of a private joint stock company).
Branch Office:
Foreign companies can open a branch in Dubai without the need for a local partner. The branch is allowed to conduct the same business activity as the parent company, but is legally and financially dependent on the parent company.
Free Zone Company:
Foreign investors are allowed to own 100% of the company in the free zones. These companies are tax-exempt and suitable for international trade, as the free zones offer distinctive customs and administrative facilities.
Offshore Company:
Offshore companies are established in Dubai for foreign purposes, such as asset management and international investment. These companies cannot conduct business within the UAE, but they benefit from flexibility in financial and legal transactions.
Partnership Company:
General partnerships are allowed to be established between two or more persons, with all partners taking full responsibility for the company’s debts and obligations. This type of company is suitable for small businesses and family businesses.
Choosing the right type of company depends on several factors including the type of business activity, the size of the investment, and the company’s objective. Investors should carefully consider these options to get the most out of their company formation in Dubai.
Documents required to establish a company in Dubai
Documents required to establish a company in Dubai
Establishing a company in Dubai is a strategically important step for investors who want to benefit from the thriving economic environment and advanced infrastructure offered by this global city. With its unique geographical location and business-friendly environment, Dubai offers ample opportunities for growth and expansion across various sectors. However, establishing a company in Dubai requires adhering to a set of legal and administrative procedures that ensure compliance with local legislation and properly regulate business activities. One of the key steps in this process is collecting and submitting the necessary documents to establish the company, a crucial step that ensures transparency and compliance with the laws.
Properly preparing and submitting documents is an essential part of the company formation process, and investors should be fully aware of the required documents and seek the help of specialized experts if necessary to ensure that all necessary documents are submitted in accordance with the legal requirements in Dubai. The required documents vary depending on the type of company to be established, as well as the nature of the business activity that the company will be engaged in. Documents required to establish a company in Dubai:
- Copies of Passports: Copies of passports of all shareholders, partners, and directors of the company must be provided. These copies must be clear and up to date.
- Personal Photographs: Recent personal photographs of all shareholders and directors must be provided, in a size and format that meets the submission requirements.
- Establishment Application Form: The company establishment application form is filled out, which includes information about the company, type of activity, names of shareholders, and capital structure.
- Articles of Association and Memorandum of Association: This document includes details about the company such as the capital structure, rights and obligations, and how profits and losses will be distributed. This document must be signed by all shareholders.
- Brief Business Plan: A business plan should be submitted that outlines the company’s business activities, target market, and expected organizational structure. This helps provide stakeholders with a clear picture of the nature and scope of the company.
- Proof of Address: A document proving the company’s head office address in Dubai must be provided. This document can be a lease contract or a property agreement.
- No Objection Letter (NOC): In case a shareholder or director is working for another entity within the UAE, a No Objection Letter may be required from the current employer.
- Approval from the competent authorities: For some commercial activities, it may be necessary to obtain additional approvals from the competent authorities in Dubai, such as the Department of Economic Development or the Ministry of Health.
- Capital Deposit Certificate: In some cases, the company may be required to provide a certificate proving that the required capital has been deposited in a bank account within the UAE.
Preparing and submitting these documents is a crucial step in the process of company formation in Dubai. Investors should ensure that all required documents are accurate and complete to avoid any delays or legal complications. Working with specialized consulting firms such as Itqan can be helpful in facilitating this process and ensuring full compliance with legal requirements.
Our company’s role in establishing a company in Dubai
In conclusion, establishing a company in Dubai is a strategic step that requires extensive study and careful planning to ensure success in a dynamic and competitive market. Dubai offers an ideal business environment thanks to its advanced infrastructure and strategic geographical location, in addition to political and economic stability that makes it an attractive destination for investors from all over the world. However, the process of establishing a company in Dubai can be complex for those who do not have prior experience in dealing with local laws and administrative procedures.
This is where the importance of working with Itqan comes into play, as it provides investors with comprehensive and integrated consulting services, starting from choosing the right type of company to obtaining the necessary licenses. Itqan has a team of experts who have extensive knowledge of the legal and regulatory procedures in Dubai, ensuring that the company is established smoothly and without any complications. This cooperation allows investors to focus on developing their business instead of being preoccupied with administrative procedures, as Itqan handles all the necessary details to ensure compliance with local laws.
Moreover, working with Itqan provides investors with ongoing support even after the company is established, including providing advice on financial and administrative matters, which contributes to enhancing the company’s chances of long-term success. Choosing Dubai as your company’s headquarters means joining a global business community characterized by innovation and diversity, and working with Itqan ensures you have a strong and stable start in this growing market.
In addition, Itqan is committed to providing customized solutions that meet the needs of each individual client, which helps to effectively achieve the company’s strategic objectives. Establishing a company in Dubai in cooperation with Itqan is not just an administrative procedure, but rather an investment in a prosperous future that combines promising business opportunities and continuous professional support, paving the way for long-term success in one of the most attractive markets in the world.
Frequently Asked Questions About Starting a Company in Dubai
What types of companies can be established in Dubai?
In Dubai, different types of companies can be established such as a Limited Liability Company (LLC), a Public or Private Joint Stock Company, a Branch Office of a Foreign Company, a Free Zone Company, and an Offshore Company.
Can foreigners establish a company in Dubai?
Yes, foreigners can establish companies in Dubai. They can establish companies in the free zones with 100% ownership or in partnership with a UAE national in companies located outside the free zones (such as LLCs).
What is the cost of setting up a company in Dubai?
The cost of setting up a company in Dubai depends on the type of company, its location (inside or outside the free zones), and the type of license required. In general, costs range from a few thousand to tens of thousands of dirhams.
What are the procedures required to establish a company in Dubai?
The procedures include choosing a company name, determining the type of activity, submitting the required documents, paying fees, and obtaining a license from the relevant authorities.
What documents are required to establish a company in Dubai?
Documents typically required include passport copies of shareholders and directors, an application form for incorporation, the company’s articles of association, and a brief business plan.
Are there any tax exemptions for setting up companies in Dubai?
Dubai offers tax breaks to companies in free zones, where they are exempt from corporate income tax and VAT (in some cases). Companies outside free zones may be subject to the recently implemented corporate tax.
How long does it take to set up a company in Dubai?
The time it takes depends on the type of company and the procedures required, but it often takes from two weeks to a month, with the possibility of acceleration in some cases.
Is it necessary to have a local partner to establish a company in Dubai?
In limited liability companies outside the free zones, the local partner must own 51% of the shares. In free zones and offshore companies, foreigners can own 100% of the company without the need for a local partner.
