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Establishing a company in Dubai

١٤ يوليو Establishing a company in Dubai

How to set up a company in Dubai? Dubai is one of the most attractive cities for investment in the world, providing a distinguished business environment and flexibility in commercial systems. Dubai was founded on an ambitious vision to transform into a global center for trade and investment, making it the focus of attention of entrepreneurs and investors from all over the world. Setting up a company in Dubai is not just a business move, but an opportunity to benefit from its strategic location and diversity of markets, in addition to tax benefits and government incentives. In this article, we will discuss the basic steps and procedures required to set up a company in Dubai , highlighting the benefits that commercial projects can achieve in this vibrant city.

Establishing

Steps to set up a company in Dubai

You must first determine the type of company you want to establish, such as a limited liability company, a branch of a foreign company, or a sole proprietorship. The choice of type depends on the nature of the business and future plans. Here are the rest of the steps to establish a company in Dubai :

  1. Choosing a business activity: Determine the business activity you will be running, as each activity has specific requirements. It may require obtaining a specific license.
  2. Choosing a company name: Choose a trade name that matches the activity and is available for registration. The name must comply with local laws and not include prohibited words.
  3. Obtaining approvals: After choosing the name and activity, the necessary approvals must be obtained from the relevant authorities, such as the Department of Economic Development (DED) in Dubai.
  4. Preparing legal documents: Preparing the required documents, which include the articles of association, personal documents of the founders, the business plan, etc.
  5. Determine the location of the business: Choosing a location for the company’s office, which could be in a free zone or in other areas, depending on the type of activity.
  6. Submitting a license application: Submitting all required documents with the application for obtaining a commercial license to the relevant authorities.
  7. Open a bank account: Open a bank account in the name of the company, which usually requires a minimum capital deposit.
  8. Completing administrative procedures: After obtaining the license, you must register with the Chambers of Commerce, as well as obtain a tax registration number if required.
  9. Starting Business: After completing all the procedures, you can start your business and explore the opportunities available in the market.
  10. Be sure to consult a legal advisor or a specialized Etqan firm to ensure you comply with all legal and regulatory requirements.

Documents required to establish a company in Dubai

Here is a list of the papers required to establish a company in Dubai :

  1. Passport: A copy of the passport of the owner or shareholders of the company.
  2. Photo: Recent photos of each founder or partner.
  3. License Application Form: Fill out the application form for obtaining a commercial license from the Department of Economic Development (DED) in Dubai.
  4. Articles of Association: A document that includes details of the company’s formation, such as names, shareholders, ownership percentage, and company purposes.
  5. Proof of address: A document that proves the office address, such as a lease or title deed.
  6. Business Plan: Clarifies the nature of the business, the services or products offered, and the marketing strategy.
  7. Specify the business activity: A list of the business activities you wish to engage in, along with any special requirements for them.
  8. Approval from the competent authorities: If special approvals are required from other government agencies (such as the Ministry of Health or the Ministry of Education), they must be submitted.
  9. Power of Attorney: If there is a legal representative, a power of attorney must be submitted stating his powers.
  10. A copy of previous trade licenses: If one of the founders has a previous trade license in Dubai.
  11. Requirements may vary slightly depending on the type of company and business activity. It is also important to check with the relevant authorities or consult with Itqan Company to ensure that all requirements are met.

Advantages of establishing a company in Dubai

First of all, Dubai offers a business-friendly environment with flexible and investor-friendly laws, making it easy to set up a company. Here are some of the key benefits of setting up a company in Dubai:

  1. Tax Exemptions: Companies in free zones enjoy complete tax exemption for up to 50 years, which enhances financial returns.
  2. Strategic Location: Dubai is located in the heart of the world, making it an ideal link between East and West, and facilitating access to new markets.
  3. Multiple options in free zones: Dubai offers many specialized free zones, allowing investors to choose the environment that suits their business activity.
  4. Ease of obtaining licenses: The procedures for obtaining commercial licenses are clear and quick, which reduces the time it takes to set up a company.
  5. Opportunities for expansion and growth: Dubai offers great opportunities for expansion, with a large, multicultural market that facilitates international trade.
  6. Advanced Infrastructure: Dubai has a modern infrastructure, including transportation, communications and commercial facilities, which supports business operations.
  7. Intellectual Property Protection: Companies have legal protection for intellectual property, which promotes innovation and investment.
  8. Diversity of business activities: Dubai offers a wide variety of business activities, enabling investors to choose areas that suit their interests.
  9. Obtaining Residency: Setting up a company in Dubai allows investors and employees of the company to obtain residency visas, making life in the city easier.
  10. These features make Dubai an ideal destination for investors and businessmen looking to establish new companies and take advantage of the available opportunities.

Cost Factors of Starting a Company in Dubai

The cost of establishing a company in Dubai depends on several factors, including:

  1. Company Type: Incorporation costs vary depending on the type of company (LLC, branch of a foreign company, free zone, etc.). Each type has different costs and fees.
  2. Business Activity: Some businesses require special licenses or additional fees, which impacts the overall cost.
  3. Location: Rental costs vary depending on the location of the office, whether it is in a free zone or in a commercial area within Dubai.
  4. Licensing fees: These include business license fees and registration fees, which can vary depending on the activity and location.
  5. Legal costs: You may need to consult an attorney or legal advisor to assist you with the incorporation process, which adds additional costs.
  6. Securing capital : Some types of companies require a minimum paid-up capital as a condition for registration, and this varies depending on the type of company.
  7. Staff: If you plan to hire staff, salaries and visa costs must be taken into account.
  8. Utilities and services: Costs of services such as internet, electricity, water and furniture.
  9. Annual Renewal Fees: The costs of renewing a business license, rents, and other obligations must be calculated annually.
  10. Additional procedures: such as the costs of opening a bank account, and the costs of other licenses, such as licenses for import and export.
  11. These factors are part of the costs of setting up a company in Dubai, and you must plan carefully to estimate the costs correctly and ensure the success of your project.

In conclusion, Dubai is one of the best global destinations for setting up a business, offering a stimulating and flexible business environment that combines innovation with diverse investment opportunities. With advanced infrastructure, tax facilities, and access to new markets, investors and entrepreneurs can achieve remarkable success. Following the right steps and fulfilling the legal requirements can ensure a strong start for your project in this vibrant city. So, if you are thinking of setting up a company in Dubai, get ready to explore new horizons of growth and expansion, and benefit from the advantages that this leading emirate has to offer.

Frequently asked questions about setting up a company in Dubai