Steps to establish a company in Dubai for Gulf citizens

Dubai is considered one of the main destinations for business and investment activities in the Arabian Gulf region, thanks to its thriving economic environment and advanced infrastructure. The city offers tremendous opportunities for Gulf investors looking to establish their companies and benefit from the multiple facilities provided by the government. From diverse free zones to flexible laws that facilitate the process of starting a business, Dubai provides an attractive environment for new and innovative projects.

This article aims to provide a comprehensive guide for Gulf nationals wishing to establish their companies in Dubai. In this article, we will discuss the basic steps that must be followed, starting with choosing the appropriate type of company and ending with procedures related to licensing and registration. We will also discuss the required financial costs and the financial planning necessary to ensure the company’s success and continuity.

Through this guide, we will help you understand all aspects related to establishing a company in Dubai , which will make it easier for you to make the right decisions and ensure a strong and fruitful start in the business world.

Steps to establish a company in Dubai for Gulf citizens

Documents necessary to establish a company in Dubai

The process of preparing the necessary documents is an essential step in establishing a company in Dubai for Gulf citizens , as this step ensures that the company is in compliance with local laws and regulations. This stage includes several important documents that must be prepared and submitted to the competent authorities. Below are the details of the required documents:

Identity documents

Personal identity documents are among the most important documents that must be submitted, as they include:

1. A copy of the passport: The passport must be valid for a period of no less than six months.
2. A copy of the national ID: It is requested to verify the person’s identity and credibility.
3. A recent personal photo: used for official identification purposes.

Business plan

A business plan is a basic document that outlines the vision and goals of the new company, and includes:

1. Executive summary: Provides an overview of the company, its field of work, and its basic goals.
2. Market analysis: includes a study of the target market and main competitors.
3. Business strategy: It includes the operational and marketing plans that the company will follow to achieve its goals.
4. Financial projections: Include estimates of the company’s expected revenues, expenses, and profits during the first years of operation.

commercial register

The commercial registry is a document proving the company’s registration with the competent authorities, and must include:

1. Company name: The name must be unique and not used by another company.
2. Type of business activity: determines the field of work that the company will undertake.
3. Company address: It must be an actual and precisely specified address.
4. Shareholder data: includes the names of partners and the percentages of their shares in the company.

By preparing all these documents and ensuring they are correct, the company can move to the next stage of the incorporation process confidently and smoothly. These documents are the foundation on which the company’s future is built, and must therefore be handled with care and precision to ensure full compliance with local laws and regulations.

Types of companies that can be established in Dubai

Choosing the type of company is one of the essential steps when establishing a company in Dubai , as this choice greatly affects the legal, financial and operational processes of the company. There are several types of companies that Gulf citizens can choose when establishing their businesses in Dubai, and the most important of these types are:

Limited liability companies

Limited Liability Companies (LLC) are one of the most common types of companies in Dubai. This type of company is characterized by the fact that the partners’ liability is limited according to the value of their shares in the capital. Many entrepreneurs prefer to establish limited liability companies because they allow great freedom in management and operation and can include between 2 and 50 partners.

Advantages of limited liability companies:

• Flexibility in management: The partners themselves can be the directors or professional managers can be employed.
• Foreign ownership: Gulf nationals can own up to 100% of the company without the need for a local partner.
• Financing and expansion: It is easy to obtain financing from banks and financial institutions.

Public joint stock companies

Public Joint Stock Companies (PJSC) are an ideal choice for large companies looking to raise capital by selling shares to the public. The company’s capital is divided into shares of equal value, and these shares can be traded on the stock exchange.

Advantages of public joint stock companies:

• Raising capital: The ability to raise large amounts of capital through an IPO.
• Sustainability and Transparency: Public joint-stock companies require a high level of transparency and financial disclosure, which enhances trust and reliability.
• Ease of trading: Shares can be bought and sold easily in the financial markets.

Free zones

Free zones are considered an attractive option for many Gulf investors due to the benefits and incentives they offer. Free zones allow the establishment of companies with full foreign ownership (100%) and provide an integrated business environment with advanced infrastructure.

Advantages of establishing a company in free zones:

• Tax exemptions: Companies in free zones are often exempt from local taxes such as income tax and value-added tax.
• Full ownership: Gulf investors can fully own the company without the need for a local partner.
• Logistics facilities: Free zones provide advanced infrastructure that includes offices, warehouses, and logistics services.

Choosing the type of company is a strategic decision that depends on the nature of the business and the future goals of the company. It is essential to carefully consider each option and consult legal and financial experts to ensure the optimal decision is made.

Procedures for registering a company in Dubai

Licensing and registration procedures are considered one of the most important steps for establishing a company in Dubai , as this process requires a set of steps and requirements that must be followed carefully to ensure that things go smoothly. In this section, we will review the most important procedures necessary to obtain licenses and register the company.

Obtain initial approval

The first step in the licensing and registration process is obtaining initial approval from the competent authorities. This step requires submitting a formal application containing basic information about the proposed company, such as the company name, type of business activity, and names of partners. The application is reviewed by the relevant authorities to ensure its compliance with the laws and regulations in force in Dubai. After obtaining initial approval, you can move on to the next steps.

Preparing the required documents

After obtaining initial approval, a set of documents required to register the company must be prepared. Required documents vary based on the type of company, but usually include the following:

1. Copies of passports of all partners.
2. A copy of the initial approval.
3. A detailed business plan explaining the company’s goals and business activity.
4. The company’s articles of incorporation and articles of association.
5. Proof of address for the company’s headquarters (if there is a specific headquarters).

It is necessary to ensure that all documents are complete and correct to avoid any delays in the registration process.

Registration with the Department of Economic Development

The final step in the licensing and registration procedures is to register the company with the Dubai Economic Development Department (DED). This step requires submitting all prepared documents and paying the required fees. After reviewing the documents and ensuring their authenticity, a commercial license is issued that allows the company to begin practicing its commercial activity legally.

DED services also include providing advice and support to new businesses, helping to facilitate the registration process and ensuring compliance with all laws and regulations.

By carefully following these steps and procedures, Gulf nationals can establish their companies in Dubai with ease, opening the doors to success and prosperity in a distinguished business environment.

Costs and financial planning for establishing a company in Dubai for Gulf nationals

Establishing a company in Dubai requires careful financial planning to avoid any unexpected surprises. Financial costs can be divided into several main parts, including the required capital, licensing fees, and operational costs.

• Required capital

The capital required to establish the company depends on the type of company to be established. For example, limited liability companies require less capital compared to publicly traded companies. In free zones, a minimum required capital may be determined by the type of business activity. It is important that this amount is determined accurately to ensure sufficient liquidity is available to operate the business efficiently and without interruption.

• License fees

License fees include a set of costs that must be paid to various government agencies. These fees include obtaining initial approval, registering the company with the Department of Economic Development, and fees for issuing a commercial license. These fees vary based on the type of business and the geographic area in which the company will be established. It is necessary to check with the relevant authorities to obtain a complete and updated list of these fees.

• Operational costs

Operational costs include all expenses that the company will incur after its establishment to begin its commercial activities. These costs include office or facility rent, employee wages, marketing and advertising costs, and fees for various services such as electricity, water, and communications. In addition, a contingency budget should be set aside to cover any unexpected expenses that may arise during daily operations.

Good financial planning requires accurately identifying all these costs and developing a comprehensive budget that covers all financial aspects of the company. It is important to conduct a financial feasibility study before embarking on the legal procedures to establish the company, in order to ensure that the project is financially viable and viable in the long term.

Establishing a company in Dubai for Gulf nationals is a process that requires good planning and careful knowledge of legal and administrative procedures. By choosing the appropriate company type, providing the required documents, and obtaining the necessary licenses, Gulf investors can benefit from the thriving economic environment and advanced infrastructure that Dubai provides.

It is also important for investors to have a clear financial plan that includes the required capital, fees associated with licenses, and ongoing operational costs. This good financial planning will help ensure the sustainability and growth of the company in the local and regional market.

In the end, Dubai remains an attractive destination for investors thanks to its flexible and supportive economic policies, in addition to its strategic geographical location. Therefore, taking the right steps in the stages of establishing a company can open the doors to promising business opportunities and a prosperous future in one of the most vibrant cities in the world.

The most frequently asked questions about establishing a company in Dubai for Gulf nationals