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Company formation in Dubai for foreigners

تسجيل العلامات التجارية في دبي

٢٤ يوليو Company formation in Dubai for foreigners

How to set up a company in Dubai for foreigners? Dubai is one of the world’s leading destinations for establishing companies, especially for foreigners seeking to expand their businesses in an advanced and stable economic environment. With its advanced infrastructure, encouraging government policies, and tax incentives, Dubai offers golden opportunities for foreign investors. With the facilities provided by free zones and flexible work systems, foreigners can easily establish their companies without the need for a local partner in some cases. Moreover, Dubai provides an advanced legal system that protects the rights of investors and enhances the business climate. Through this article, we will review some details about establishing a company in Dubai for foreigners .

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Steps to establish a company in Dubai for foreigners

Establishing a company in Dubai for foreigners requires following specific steps to ensure compliance with local laws and regulations. Here are the steps to establish a company in Dubai:

  1. Determine the type of company: Investors must determine the type of company they wish to establish, whether it is a limited liability company (LLC), a subsidiary, or a free zone company.
  2. Choosing a trade name: You must choose a trade name that complies with Dubai laws, and make sure that it is not already in use. Available names can be checked on the Dubai Department of Economy and Tourism website.
  3. Obtaining Initial Approvals: After choosing a name, you must apply for initial approval from the local authorities. This step involves providing information about the planned business activity.
  4. Determine the location of the company: A location must be chosen for the company’s office. An office can be chosen within a free zone, which offers many facilities, or an office in a traditional commercial area.
  5. Preparing legal documents: It requires preparing a set of legal documents, such as the articles of association, the bylaws, and other required documents.
  6. Submitting a license application: After preparing the documents, an application for a commercial license is submitted to the Department of Economy and Tourism in Dubai. The fees required to obtain the license may include:
  7. Opening a bank account: After obtaining the license, a business bank account must be opened to facilitate financial transactions.
  8. Obtaining work visas: Company founders and employees can obtain work visas after completing all necessary procedures.
  9. Registration with the relevant authorities: The company may need to be registered with other authorities, such as the Chamber of Commerce, depending on the type of business activity.
  10. Starting Business Operations: After completing all the steps, you can start business operations and provide services or sell products. These steps are a general framework for establishing a company in Dubai, and some details may vary depending on the type of activity and the requirements of the local authorities.

Advantages of establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners has many advantages that make it an attractive destination for investors. Here are some of the main advantages:

  1. Full ownership: Foreigners can own 100% of companies in many free zones, giving them complete control over the business.
  2. Tax incentives: Dubai has a favourable tax regime, with no personal income tax or corporate tax in many free zones.
  3. Convenient business environment: Dubai offers modern infrastructure and a conducive business environment, with easy access to global markets.
  4. Ease of Procedures: The Dubai government facilitates the procedures for establishing companies by providing fast and efficient services, which helps investors start their businesses quickly.
  5. Multiple legal options: There are various options for establishing companies, such as limited liability companies, sole proprietorships, and companies in free zones, giving investors the flexibility to choose the appropriate structure.
  6. Expanding Business: Dubai offers great opportunities for expansion into new markets, thanks to its strategic location linking the East and the West.
  7. Government Support: The UAE government provides strong support to investors, including incentive programs and legal assistance.
  8. Economic Diversity: Dubai has a diverse economy, offering investment opportunities in various sectors such as trade, tourism, technology, and financial services.
  9. Investor Protection: Dubai offers a sophisticated legal system that ensures the protection of investors’ rights, which enhances the climate of confidence.
  10. Rich social and cultural life: Dubai has a modern and diverse lifestyle, making it an attractive place to live and work, with a diverse international community. These features make Dubai an ideal choice for foreign investors looking to establish successful businesses in a sophisticated environment.

Cost Factors of Company Formation in Dubai for Foreigners

The cost of setting up a company in Dubai for foreigners is affected by several main factors, which may vary based on the type of business, location, and legal structure of the company. Here are the most important factors that determine the cost of incorporation:

  1. Company Type: Incorporation costs vary depending on the type of company (such as LLC, sole proprietorship, or free zone company). Free zone companies are often less expensive than traditional companies.
  2. Location: The cost of renting an office varies greatly between areas. For example, traditional business districts may be more expensive than free zones.
  3. Business License: Every business requires a business license, and the costs of this license vary depending on the type of activity. Some business activities require additional fees.
  4. Government Service Fees: These fees include licensing costs, initial approvals, and any required registration fees.
  5. Legal Documents: The costs of preparing contracts and legal documents such as articles of incorporation and articles of association can also impact the overall cost.
  6. Bank Accounts: Opening a business bank account may require a minimum deposit, which affects costs.
  7. Work Visas: The costs of obtaining work visas for founders and employees must be taken into account, as they include visa application fees and medical examinations.
  8. Consulting Services: If you hire consultants or specialized companies such as Atqan, you may add additional consulting fees.
  9. Insurance: Businesses may require certain insurances, such as liability insurance or health insurance for employees, which adds to costs.
  10. Operating costs: These costs include daily expenses such as utility bills and administrative expenses. All of these factors should be taken into consideration when estimating the total cost of setting up a company in Dubai for foreigners.

CompanyDocuments required to establish a company in Dubai for foreigners

Establishing a company in Dubai for foreigners requires preparing a set of necessary documents and papers. Here is a list of the required papers:

  1. Establishment application form: to be filled out and submitted to the Department of Economy and Tourism in Dubai.
  2. Copies of Passports: Valid copies of passports of all founders and investors must be submitted.
  3. Personal Photos: Recent personal photos of the founders are usually required.
  4. Determine the company name: It requires providing suggestions for company names, making sure that they are not repeated.
  5. Articles of Association: The company’s articles of association must be prepared, which detail the legal structure and business activity.
  6. Initial Approval Form: Obtain initial approval from local authorities before applying for a license.
  7. Office Location Proof: A document proving the actual address of the office location or the place designated for practicing the activity must be submitted.
  8. Specify the business activity: The type of business activity that will be carried out must be specified.
  9. Permission from the relevant authority: In some cases, special permission may be required from another regulatory body (such as the health authority or tourism authority).
  10. Bank Account: You may need to provide proof to open a business bank account.
  11. Work Visas: If there are employees, work visa applications must be submitted for each employee.
  12. Any additional documents: Depending on the type of activity and the requirements of the free zone or relevant authority.

It is advisable to cooperate with a company specialized in company formation such as Atqan to ensure that all required papers are prepared correctly and the procedures are facilitated.

Are foreigners allowed to own companies in Dubai?

Yes, foreigners are allowed to own companies in Dubai. There are some key points that explain this right:

  1. 100% ownership in free zones: Foreigners can own 100% of companies in many of Dubai’s free zones . These zones offer a flexible business environment with tax benefits and administrative facilities.
  2. Limited Liability Companies (LLC): When establishing an LLC outside of the free zones, a local partner is usually required to own 51% of the shares. However, there are exceptions for certain activities that allow foreigners to own 100% of the companies.
  3. Permitted Activities: Foreigners are allowed to establish companies in a wide range of business activities, whether in the fields of trade, industry, or services.
  4. Government Facilities: The Dubai government offers great facilities to attract foreign investors, making company establishment easier and more transparent.
  5. Diversified investments: Foreigners can invest in various fields, such as real estate, tourism, financial services, and others.

Overall, Dubai provides an environment that encourages foreigners to invest and establish businesses, making it a preferred destination for international entrepreneurs.

In conclusion, setting up a company in Dubai for foreigners is a strategic move that allows them to invest their potential in one of the fastest growing economies in the world. With its attractive business environment, tax benefits, and streamlined procedures, Dubai offers unparalleled opportunities for international investors. Whether the goal is to expand into global markets or take advantage of the advanced infrastructure, Dubai is the ideal destination to realize business ambitions. By partnering with trusted local partners, such as Atqan, foreign investors can achieve their success and establish their businesses with confidence and security. So, if you are thinking of entering the UAE market, Dubai has everything you need to achieve your business goals.

Frequently asked questions about establishing a company in Dubai for foreigners

What are the costs associated with setting up a company in Dubai?

Costs vary based on company type, location, and business activities. Costs include government fees, office rent, and any legal or consulting fees.

How long does it take to set up a company in Dubai?

The incorporation period can range from a few days to several weeks, depending on the type of company and the procedures required.

What are the advantages of establishing a company in the free zones?

Benefits include: full ownership, tax exemptions, simplified registration procedures, and easy transfer of funds.