Steps to establish or set up a company in Dubai
In order to be able to establish a company in the Emirates in general and in Dubai in particular, you must take a set of steps and procedures in order to obtain several approvals from the Department of Economic Development and other government agencies. Below we will mention the procedures for opening a company in Dubai:
Determine the nature of the company’s business or activity
The first steps to open a company in Dubai are to determine the company’s economic activity and the nature of its business. The company’s economic activities are divided into 3 types, which are:
- commercial
- professional
- industrial
The company’s activity determines several matters, the most important of which are the type of company, its legal form, and the entities from which approval must be obtained. The following are the legal forms of companies and the activities they are permitted to practice:
- Partnerships: Commercial and industrial activities only
- Limited Liability Companies
- Any industrial, commercial or professional activity except for legal, auditing and any other type of consulting activity
- Financial activities may be carried out with special approval.
- Public Joint Stock Companies: Commercial, Industrial and Professional Activities
- Private joint stock companies: any commercial or industrial activity
- Civil Business Companies: Professional Activities Only
- Branches of Gulf or local companies: All activities included in the parent company’s license
- Branches of foreign companies
- Professional activities, commercial representation office activities, indirect commercial activities and contracting
- Carrying out all the company’s business except importing its goods into the UAE
- Branches of Free Zone Companies: Commercial, industrial and professional activities licensed by the parent company in the UAE
- Sole proprietorships: commercial, industrial and professional activities
Establishing a company in Dubai is the best way to make money. Yes, in the city of dreams, Dubai is distinguished by being one of the largest cities with the highest average per capita income in the Arab world and even in the Middle East. It is also one of the most attractive cities for investors due to its development and use of the latest global methods in opening the doors of investment and production prospects. It has many free trade zones and many advantages that make investing in Dubai an important step. In this article, we will review everything related to ways to open a company in Dubai for foreigners in detail.
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ToggleProcedures for opening a company in Dubai
The UAE is working to facilitate all means of investment in it, as it makes the procedures for establishing a company in it simple and uncomplicated matters. There are several important steps that must be followed to open a company in Dubai, Sharjah, or any region in the Emirates, which are:
- Determine the activity: The first step to start investing in Dubai is to determine your activity. This also depends on choosing the activity that suits the location and also the activity must be within the needs of the population consuming the product in the location you have chosen and the activity that has been determined.
- Commercial Register: This is the second step, where you can specify the trade name of the company you are establishing and based on that you can start it, as you must meet all the requirements of the Department of Economic Development in order to be able to obtain approval to register your company.
- Initial approval: You must first obtain approval from the General Directorate of Residency and Foreigners Affairs, and then we move on to initial approval from the rest of the relevant authorities.
- Determining the company’s location: It is necessary for a company to be established in Dubai for foreigners to have a fixed location and legal headquarters in Dubai in particular or in the Emirates in general, as this requires you to obtain a lease contract authenticated by the Real Estate Regulatory Authority in Dubai.
- Approval of the relevant authorities in the company: such as transportation authorities, as well as the authorities responsible for insurance in the company, as well as legal consultations.
- Obtaining an instant license in Dubai: In order to obtain the license, there are several steps, which are:
- Payment of the cost of a commercial license in the Dubai Free Zone
- Collect all attachments and documents related to the company and everything related to it and submit them to the Department of Economic Development
Cost of opening a company in Dubai
If you are planning to start a business in Dubai, you need to determine the options; in order to be able to determine the cost, such as: Is the company big or small? How many employees? And where do you want to establish the company?
So you need to know the fees required, because there are new business licenses that you have to obtain for a fee and money, in addition to obtaining visas for the company’s employees.
There are costs involved in sponsoring employees and providing them with the necessary visas and paperwork in order for them to be allowed to reside in the UAE.
Cost of opening a company in Dubai
- Cost of a commercial license “Cost of a commercial license in the Dubai Free Zone” (license to practice business).
- The cost of the company location or office where you want to conduct your business (annual office rent or the cost of purchasing a new office).
- Costs related to office furniture and decoration.
- The cost of work permits and visas required for employees sponsored under your company name.
- Open a bank account in the company’s name and deposit the minimum capital required according to the type of your business activity.
The legal form of the company also plays a fundamental role in the increase or decrease in the cost of establishment. For example, the costs of establishing industrial companies are higher than those of commercial and professional companies.
The commercial license in Dubai is the most important document you need, and we at your organization “Itqan” help you to obtain the commercial license in the easiest way possible.
Steps to open a company in Dubai:
- The first step in establishing companies is to choose the activity that the company will practice. The word company means the agreement of the will of one or more persons to achieve a specific goal for which the company is established.
- The activity that the company is based on determines its appropriate classification, as well as the type of company, whether it is a limited liability company, a general partnership, a public or private joint stock company, a private joint stock company, a civil business company, etc.
- The legal form of the company must also be determined, which is known based on the nationality of its owners. The trade name must also be distinct from all existing names, and there are a number of conditions for choosing this name, which are:
- The name should be free of any words that may violate public taste.
- The name shall be subordinate to what indicates the legal form that the company represents.
- The company’s trade name must express the activity carried out by the company.
- The name must not resemble the name of any government agency.
- The name should not contain any divine connotations or religious terms.
Steps to open a company in Dubai
Every business owner must follow a set of steps before starting to open a company in Dubai, in order to achieve the benefit of everyone, the investor, the country and consumers in general. These steps are represented firstly: –
- Determine the company’s objective and activity. The investor must determine the activity of the company he is establishing, whether it is a real estate company, food products company, or other activities that the market in the Emirates, especially Dubai, needs. In order to ensure the success of the company he is establishing, and to have clients and fulfill the desire of consumers in Dubai, which achieves the investor’s goal of obtaining benefits and profits from the company.
- Conducting a study of the market and its needs. The investor must conduct a study of the market and the customers who will deal with the company, to identify the most important things they want in the company. This is to provide the best service that the consumer needs, in addition to distinguishing the service provided by other competing companies in order to be able to survive and achieve their profit goals. As well as identifying the customs and traditions of customers, in order to determine what they want and what they refuse to deal with in companies.
- Knowing the laws and procedures: The company owner must know the country’s laws and the licenses required to establish a company, and know the procedures that must be followed, as well as the prohibitions. This is to prevent any problems after establishing the company, to ensure its success and not to be exposed to any future losses.
- Submit an application for the company you want to establish online, as the state has provided many facilities that have helped investors establish a company by submitting an application form online. This is to reserve the company name and obtain approval for it while adhering to all the conditions that apply to its establishment. The application is approved within a week of its submission.
- Paying licensing fees and signing legal documents, to ensure that the investor establishes the company he wishes to establish, which helps in starting implementation and work in the company. By obtaining a license with approval to practice his desired activity, which achieves benefit for the investor and helps in employing young people, and increasing economic growth in Dubai.