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Establishing a company in the Emirates for foreigners

٠٩ مايو Establishing a company in the Emirates for foreigners

How to establish a company in the Emirates for foreigners? The United Arab Emirates is one of the leading global destinations for establishing companies, especially for foreigners seeking to benefit from a thriving investment environment and advanced infrastructure. The country is characterized by its flexible economic policies and legislation that encourage attracting foreign investment, making it an ideal location for establishing businesses in various sectors. Whether you want to establish a company in free zones that provide tax exemptions and full foreign ownership, or in the local market under certain conditions, the Emirates offers multiple options that facilitate the establishment and growth processes. In addition, the updated laws in the Emirates allow foreigners to access government facilities, such as obtaining long-term visas and customs exemptions, which enhances the chances of business success and profitability. We will review some details on how to establish a company in the Emirates for foreigners .

Establishing

Procedures for establishing a company in the Emirates for foreigners

Establishing a company in Dubai, UAE for foreigners requires following a set of legal and administrative procedures, which vary depending on the type of company and location (such as free zones or land areas). Here are the basic steps to establish a company:

  • You can choose the type of company you want to establish, such as a limited liability company (LLC), a branch of a foreign company, or a sole proprietorship.
  • Determine the business activity you wish to engage in. You must choose activities that comply with local laws.
  • Choose a distinctive name for your company that complies with the naming laws in the Emirates, and avoid names that violate or are prohibited.
  • Obtain the necessary approvals from the relevant authorities, such as the Ministry of Economy and local departments, depending on the type of activity.
  • Gather the required documents, which may include passports, passport photos, and copies of previous approvals.
  • Submit a company registration application to the competent authority (such as the Department of Economic Development) and complete the necessary procedures.
  • After registering the company, obtain the commercial license that allows you to practice the commercial activity.
  • Open a bank account in the name of the company, where you will need to deposit the required capital.
  • Securing visas for employees and owners, and registering them in the UAE labor system.
  • If you are setting up a company in the free zones, you will need to obtain an office or workspace.
  • Set up an accounting system to comply with local laws. Make sure to consult with professionals or legal consulting firms such as Atqan to help you complete the procedures correctly and smoothly.

The importance of establishing a company in the Emirates for foreigners

Establishing a company in the UAE for foreigners is an important strategic step for many investors and businessmen. Here are some of the key importance of this step:

  1. Attractive investment environment: The UAE offers a flexible investment environment with tax facilities, which encourages investors to start their businesses.
  2. Full foreign ownership: The UAE allows foreigners to have full ownership of their companies in many free zones, which enhances the chances of success and independence in management.
  3. Ease of procedures: The country is characterized by simple and quick company establishment procedures, with government support provided to investors, which reduces administrative complications.
  4. Opportunities to access new markets: The UAE is an ideal starting point for entering the Gulf, Middle East and North Africa markets, providing opportunities for expansion and growth.
  5. Advanced infrastructure: The UAE offers advanced infrastructure including ports and airports, which facilitates business operations and enhances the efficiency of the supply chain.
  6. Government Incentives: The UAE government offers incentives to investors, such as customs and tax exemptions, which increases the economic viability of businesses.
  7. Multiculturalism: The UAE is home to diverse communities, which contributes to a diverse work environment that fosters innovation and the exchange of ideas.
  8. Investment Protection: UAE laws protect the rights of investors, providing a degree of security and peace of mind for foreigners when establishing their companies.
    Establishing a company in the UAE represents a unique opportunity to benefit from the advantages of the local and international market, which helps achieve commercial and professional goals.

Are foreigners entitled to full ownership to establish their company in Dubai?

Foreigners are entitled to full ownership to establish companies in Dubai , thanks to the flexible policies adopted by the UAE government to promote foreign investment. In many free zones, such as Dubai Silicon Oasis and Dubai Multi Commodities Centre (DMCC), foreigners can establish their companies with full ownership without the need for a local partner. This is a great advantage for investors, as they can operate their businesses with complete freedom and achieve their business goals without restrictions. Moreover, amendments have been made to economic laws that facilitate the establishment of businesses, making Dubai one of the most attractive business destinations in the world. The UAE government offers many incentives, such as tax exemptions and freedom to transfer profits, which increases the attractiveness of investment. However, foreign investors must comply with certain legal and administrative requirements, such as registering a company and obtaining a trade license, in addition to choosing a business activity that is in line with local laws. In this way, Dubai ensures a flexible and encouraging business environment, making it the ideal choice for foreigners seeking to succeed in the UAE market. Thanks to these policies, foreigners can take full advantage of the investment and innovation opportunities in Dubai.

Types of companies in the Emirates that you can establish in Dubai

There are several types of companies that can be established in the UAE, especially in Dubai, and each type has its own advantages and requirements. Here are some of the main types of companies:

  1. Limited Liability Company (LLC): This is the most common type. It can be owned by two or more people (up to 50 partners). The partners have limited liability, with their financial responsibility limited to their shares in the company.
  2. Public Joint Stock Company: Consists of 5 or more persons, and its shares can be traded in financial markets. It requires large capital, and is subject to the laws of the Securities and Commodities Authority.
  3. Private Joint Stock Company: Similar to a public joint stock company but cannot offer its shares for public subscription. The number of shareholders must be at least 3.
  4. Branch of a foreign company: Foreign companies can open a branch in Dubai. The parent company must be registered abroad and the branch must follow UAE laws.
  5. Sole Proprietorship: An individual investor can establish a sole proprietorship under his own name. This type allows him to fully manage his business, but his responsibilities are unlimited.
  6. Free Zone Companies: Free zones in Dubai such as Dubai World Trade Centre and Dubai Technology Free Zone offer special options for setting up companies. Foreigners can have full ownership and tax benefits.
  7. Partnership: A partnership of two or more people with unlimited liability for the debts of the company. Typically used for small businesses.
  8. Limited Partnership: Consists of at least two partners, one of whom is a limited partner and the other a general partner. The general partner has unlimited liability, while the limited partner’s liability is limited to his contribution.
    Each type of company has its own requirements and procedures, so it is important to consult with specialists or consulting firms such as Atqan to ensure you make the right decision based on your business objectives.

Establishing

Documents required to establish a company in the Emirates for foreigners

Establishing a company in the UAE for foreigners requires submitting a set of basic documents and papers. Here is a list of the generally required papers:

  1. Copy of Passport: The original passport and a photocopy of each founder or partner in the company must be submitted.
  2. Personal Photos: Recent personal photos (usually passport size) of each founder.
  3. Establishment application form: Fill out the establishment application form provided by the competent authority (such as the Department of Economic Development or the authority responsible for the free zone).
  4. Proof of address documents: Documents proving the residential address for foreigners (such as a utility bill or rental agreement).
  5. Business Plan: A business plan that outlines the nature of the business, target market, and financial plans.
  6. Choosing a company name: Provide three suggested names for the company, making sure not to repeat them.
  7. Approval from the competent authorities: In some cases, you may need special approvals from specific government agencies, depending on the type of activity.
  8. Articles of Association: Prepare the Articles of Association and Memorandum, as this document specifies the management structure and the partners’ shares.
  9. Securing capital: Proof of payment of the required capital (you may need to open a bank account and deposit the amount).
  10. Office Insurance: Documents proving the lease or purchase of the office (if required).
  11. Health Insurance: Proof of health insurance for employees (if you have employees).
  12. Visas: If you are planning to hire workers, you will need work visa documents.
    Requirements vary depending on the type of company and location (free zones or onshore), so it is always best to consult with professionals or consulting companies such as Atqan to ensure that the documents are submitted correctly and efficiently.

In conclusion, the UAE is an ideal choice for foreigners looking to establish their companies, thanks to its attractive investment environment and the legal and procedural facilities provided. The country offers a wide range of legal types of companies, allowing investors to choose the structure that suits their goals and requirements. Moreover, the UAE laws ensure the protection of investors’ rights and provide a stimulating business environment, making it easier for companies to grow and prosper. The advanced infrastructure and the presence of a qualified workforce make the UAE a strategic starting point for businesses in the Middle East region. With continuous government support and initiatives that encourage innovation and investment, establishing a company in the UAE is a real opportunity for success. Therefore, foreign investors should take advantage of these unique opportunities and take the step of establishing their businesses in this dynamic market, which will contribute to enhancing their growth and achieving their business goals.

Frequently asked questions about establishing a company in the Emirates for foreigners