In light of the rapid economic development in the United Arab Emirates, Dubai has become one of the preferred global centers for establishing international companies and investments. Dubai is distinguished by its advanced infrastructure, open economic laws, and excellent strategic location, making it an ideal destination for those wishing to enter the Middle East market. For foreigners who wish to establish a company in Dubai, Itqan Company provides specialized services that facilitate the establishment and operation process. Through a specialized team that understands legal and regulatory challenges, Itqan helps foreign companies choose the appropriate legal structure, provides support in the procedures for obtaining the necessary licenses, and ensures compliance with local laws. This article will review the steps for establishing a company in Dubai in detail, in addition to reviewing the role of Itqan Company in facilitating this process and ensuring the practical success of foreign investors in the emirate.
Establishing a company in Dubai for foreigners
Steps to establish a company in Dubai for foreigners
To establish a company in Dubai as a foreigner, you can follow the following steps:
- Choosing the type of company and commercial activity: The investor must determine the type of company appropriate for his commercial activity, whether it is an individual company, a joint stock company, or a limited liability company, as well as determine the commercial activity that the company will practice.
- Choosing the legal location: The company’s legal location must be chosen, whether in one of the Free Zones or outside it, based on the company’s needs in terms of foreign ownership, administrative fees, and taxes.
- Determining and registering the trade name: You must choose a trade name for the company, ensure its availability and compliance with local laws and regulations, and then register it with the relevant authorities.
- Determining the financial contribution and preparing contracts: The financial contribution required from each partner is determined, and the necessary contracts are prepared, such as the Partners Contract (MOA) and the Company Contract (AOA), which regulates the company’s activities and management.
- Obtaining the necessary licenses and approvals: Government licenses and necessary approvals must be obtained from the relevant authorities, such as a commercial activities license, a work license, and the necessary visas for employees.
- Opening a bank account for the company: A bank account must be opened in the name of the company in one of the approved banks that deal with foreign companies.
- Securing a corporate office (if necessary): If the company operates out of free space, it may need to rent an office for day-to-day operations, and local rental requirements must be met and appropriate contracts signed.
- Registering the company and obtaining a certificate of incorporation: You must submit all required documents to the relevant authorities and officially register the company. After approval, you will receive a certificate of incorporation proving the existence of the company.
Consulting companies such as Itqan provide their services to help foreigners carry out these steps effectively, and provide the necessary support to ensure full compliance with local laws and regulations, making the investment process in Dubai easier and more successful.
Types of companies in Dubai that spouses can establish
Here are the types of companies that foreigners can establish in Dubai in tabular form:
| Type of Company | a description |
|---|---|
| Limited Liability Company (LLC) | – A company consisting of partners, the majority of whom can be foreigners. <br>- The financial responsibility of each partner is determined according to his share in the company. <br>- A maximum of 51% Emirati national partner is required. |
| Private Joint Stock Company | – Owned and managed by private companies and individuals. <br>- Requires a minimum paid-up capital and shareholders can be foreigners. |
| Public Joint Stock Company | – It is a public joint stock company if its shares are offered for sale to the public. <br>- It is regulated in accordance with the UAE Companies Law and includes foreign shares. |
| Sole Establishment | – A company run by one person without the need for a partner. <br>- The owner can be completely foreign and there is no need for an Emirati citizen as a partner. |
| Branch/Representative Office | – A branch of a foreign company with a presence in the Emirates. <br>- The parent company must be registered in its country of origin and possess the necessary business licenses. |
Remember that these types may vary slightly from one area to another in Dubai and may require specific registration and licensing requirements. It is best to consult the Itqan Legal or Economic Consulting Office to obtain the necessary advice before starting the incorporation process.
The cost of establishing a company in Dubai for foreigners
The costs of establishing a company in Dubai for foreigners vary based on several factors such as the type of company, legal location, commercial activity, and services required from the approved consulting company such as Itqan. Here are some of the items that include the costs of setting up a company in Dubai:
- Company registration fees: Includes the costs of registering the company and obtaining a certificate of incorporation.
- Legal Consulting Fees: To obtain necessary legal advice and ensure compliance with local laws.
- Business Fees and Licenses: Requires specific business registration and possibly additional licenses depending on the type of business.
- Company establishment fees: Includes preparing legal documents such as the partners’ contract and other required contracts.
- Ancillary services fees: such as opening a bank account and renting an office if necessary.
- Trademark registration fees: If the company plans to register its own trademark.
- Company management fees: such as daily management and accounting costs.
- Corporate taxes: for example, value added tax (VAT) and other local taxes.
Consulting firms such as Itqan offer customized consultations to accurately determine costs and provide comprehensive estimates to investors, helping them plan to establish their company in Dubai in an efficient and economical manner.
Advice for foreigners when establishing their company in Dubai
When foreigners intend to establish a company in Dubai , here are some important tips that can help them in the process:
- Specialized consultation: Collaborate with a local legal and economic consulting company such as Itqan to obtain the necessary advice regarding the correct type of company, commercial activity, and appropriate legal location.
- Understand local laws and regulations: Learn about the commercial laws, taxes and licensing that apply in Dubai, and ensure full compliance with these regulations to avoid future problems.
- Choosing the right location: Look for Free Zones or local areas that suit your business and provide benefits such as full foreign ownership and tax exemptions.
- Preparing an integrated business plan: Prepare a detailed business plan that includes market analysis, financial forecasts, marketing plans, and human resources, to ensure the success of your business in the UAE market.
- Appointing a local manager or agent: If a company is established outside the free spaces, you need a local manager or agent to represent the company before government agencies, and this requires signing an agency agreement.
- Use technology to facilitate: Take advantage of technology solutions to simplify business procedures such as registering the company online and managing money and operations effectively.
- Build a network of relationships: Invest in building strong local relationships with suppliers, local customers and potential partners, which will help boost the success and scale of your business.
- Interact with the local community: Participate in business and community events to increase presence and communication, which contributes to building a positive reputation for your company in the local market. By following these tips, foreigners can achieve sustainable success and expand their business opportunities in Dubai in a consistent and efficient manner.
The importance of establishing a company in Dubai for foreigners
Establishing a company in Dubai for foreigners has several benefits and importance, including:
- Access to an active and diverse market: Dubai is considered a major investment gateway to the Middle East and North Africa market, providing foreign companies with opportunities for growth and expansion in a region with increasing economic activity.
- Advanced Infrastructure: Dubai has advanced infrastructure and modern facilities that support business, including international airports, ports, and advanced logistics facilities.
- Favorable investment environment: Dubai has open economic policies and flexible business laws, which facilitates the process of establishing companies and encourages foreign direct investment.
- Foreign ownership: Free Zones in Dubai provide the possibility of 100% foreign ownership, allowing foreigners to have full control of their businesses without the need for a local partner.
- Orientation towards technology and innovation: Dubai strives to achieve a future vision centered around technology and innovation, which provides broad opportunities for emerging and innovative companies to grow and develop.
- Access to multinational human resources: More than 200 different nationalities work in Dubai, providing foreign companies with access to a diverse community of skilled and qualified employees.
- Legal and financial transparency: Dubai has a transparent legal and financial system that ensures legal protection for investors and enhances confidence in the business environment.
In short, establishing a company in Dubai for foreigners represents a unique opportunity to benefit from a modern and developed business environment, and access an active and diverse investment market in a globally central region, which contributes to the success and continuity of business in the long term.
Establishing a company in Dubai for foreigners
The time period for establishing a company in Dubai for foreigners
There are several factors that affect the length of time required to establish a company in Dubai for foreigners, but in general the process can take from 4 to 8 weeks.
First, partners have to choose the type of company and the appropriate name. After that, the necessary approvals must be obtained from the competent authorities, such as approval of the company name and the nature of the activity. This is done within one to two weeks. After obtaining initial approvals, a commercial license is issued by the Department of Economic Development in Dubai. This process usually takes two to three weeks. At the same time, foreigners establishing the company must obtain residency in the UAE. This procedure may take two to four weeks, depending on the speed of approvals.
After all legal and regulatory requirements are completed, the company is officially registered. This stage takes one to two weeks. Based on this, it can be said that the total time period for establishing a company in Dubai for foreigners ranges between 4 to 8 weeks, and this period may vary based on the circumstances of each individual case.
In conclusion, it can be said that establishing a company in Dubai for foreigners represents an important strategic step towards success and continuity in today’s business world. Dubai provides a suitable and advanced investment environment, where modern infrastructure and flexible laws combine with an active and diverse labor market. By taking advantage of full foreign ownership in freehold spaces and investing in a multinational environment, foreign companies can build a strong base for growth and expansion, and achieve sustainable success in the UAE market and beyond. Therefore, establishing a company in Dubai is not just an operational procedure, but rather a strategic investment that enhances the chances of success and prosperity in the long term.
Frequently asked questions about the importance of establishing a company in Dubai
Why do foreigners want to establish companies in Dubai?
Dubai provides an attractive business environment for foreigners thanks to its advanced infrastructure, low taxes, government incentives, and ease of doing business.
What are the main advantages of setting up a company in Dubai for foreigners?
The most prominent advantages are: 100% foreign ownership, low or no tax returns, ease of incorporation and registration, advanced infrastructure, and ease of movement and residence.
What are the basic requirements for establishing a company in Dubai for foreigners?
The most important requirements are: choosing the type of company, obtaining appropriate licenses, providing the required capital, and securing residency permits for foreign partners.
What are the most attractive sectors for establishing companies in Dubai for foreigners?
Popular sectors include: trade and retail, information technology, financial services, tourism and hospitality, and professional services.
