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Steps and costs of establishing companies in Dubai

١٢ يونيو Steps and costs of establishing companies in Dubai

What are the steps and costs of establishing companies in Dubai? Dubai is one of the most prominent global destinations for establishing companies, due to its strategic location and thriving economy. The emirate provides a stimulating business environment that combines easy legal systems and advanced infrastructure, making it a preferred destination for entrepreneurs and investors from all over the world. Establishing a company in Dubai requires following specific steps, starting from choosing the type of company and determining its business activity, through obtaining government approvals, and completing the registration procedures and obtaining the necessary licenses. The costs of establishing companies in Dubai vary based on several factors, such as the type of activity, the place of establishment (inside or outside the free zones), and the services provided. Costs are an important factor to consider when planning to start any commercial project in the emirate, and they range from government registration fees, office rental fees, and the costs of obtaining commercial licenses.

Steps

Factors in the costs of establishing companies in Dubai

The costs of establishing a company in Dubai are affected by several main factors that vary depending on the type of business activity and the location where the company is established. Here are the most important factors that affect the costs of establishing a company in Dubai:

  1. Type of business activity: Costs vary depending on the activity to be practiced, as some activities require special approvals or licenses from government agencies, which increases costs.
  2. Company Location: Costs vary between free zones within Dubai and areas outside of it. Setting up a company in a free zone may offer tax benefits and customs exemptions, but initial costs may be higher than in other areas.
  3. Government Licensing Fees: Business licensing fees vary depending on the type and size of the business. These fees include commercial registration, approvals, and other licensing-related costs.
  4. Office Rent: The cost of renting office space or virtual office space plays a big role in the set-up costs. Prime business areas are usually more expensive.
  5. Legal structure of the company: The legal structure varies between limited liability companies, branches of foreign companies, and free zone companies, which directly affects the costs required to establish the company.
  6. Administrative and professional services: Hiring advisory or legal services to facilitate the incorporation process may increase costs, but are necessary to ensure full compliance with local laws.

All of these factors are part of the financial planning for setting up a company in Dubai and must be taken into consideration to ensure the sustainability of the business venture.

Advantages of establishing companies in Dubai

Establishing companies in Dubai offers many advantages and benefits that make the emirate an attractive destination for entrepreneurs and investors from all over the world. The most prominent of these advantages are:

  1. Stable Economic Environment: Dubai has a strong and stable economy, making it a safe place to invest and establish businesses. Economic laws stimulate growth and support startups.
  2. Strategic Location: Dubai is strategically located between Europe, Asia and Africa, making it a global business hub with easy access to international markets.
  3. Advanced infrastructure: Dubai offers an advanced infrastructure that includes highways, ports and airports, in addition to a distinguished communications network and logistics facilities that support business operations with high efficiency.
  4. Benefits of Free Zones: Establishing companies in free zones offers many advantages, such as 100% foreign ownership, exemption from corporate and personal income taxes, and exemption from customs duties on imports and exports.
  5. Flexible Legislation: Dubai offers flexible legislation and laws and an advanced regulatory environment that helps facilitate the procedures for establishing and operating companies. This contributes to reducing legal and administrative challenges.
  6. Access to global markets : Thanks to its geographical location and the presence of many international companies, Dubai provides a great opportunity to expand into global markets and explore new business opportunities.
  7. Multiple investment opportunities: Dubai offers diverse investment opportunities in areas such as technology, tourism, real estate, trade, and financial services, allowing companies to expand in various sectors.
  8. Financial Infrastructure: Dubai has an advanced banking system and easy access to finance, which supports entrepreneurs in building and expanding their businesses.
  9. High Quality of Life: Dubai is a safe city with high levels of healthcare and education services, making it an ideal environment to live and work in. These advantages make setting up a business in Dubai a strategic step for any investor seeking growth and taking advantage of available business opportunities.

Steps

Conditions for establishing companies in Dubai

Establishing companies in Dubai requires fulfilling a set of conditions that ensure compliance with local laws and regulations. The conditions vary depending on the type of company and location, whether inside or outside the free zones. The following are the most important general conditions for establishing companies in Dubai:

  1. Choosing the type of business activity: The type of business activity to be carried out must be determined, as this entails choosing the appropriate type of license and ensuring that the activity is compatible with local laws.
  2. Legal structure of the company: Choosing the appropriate legal structure is one of the most important steps, as the requirements differ depending on the type of company (limited liability company, free zone company, branch of a foreign company, or partnership).
  3. Choosing a trade name: A trade name must be chosen that complies with local regulations and does not conflict with existing trademarks. The trade name must be related to the company’s activity and not include any terms that are prohibited or unacceptable in the UAE.
  4. Obtaining initial approvals: After determining the type of activity and trade name, it is necessary to obtain initial approvals from the relevant authorities such as the Department of Economic Development in Dubai, and sometimes from other authorities depending on the activity.
  5. Determining the company’s location : It is necessary to provide an actual headquarters for the company, whether inside Dubai or in one of the free zones, and a certified lease contract (Ejari) must be submitted to document the headquarters.
  6. Foreign Ownership: In free zones, foreigners can own 100% of the company. Outside free zones, some activities require a local partner who owns 51%, unless the company follows certain laws that allow full foreign ownership.
  7. Opening a bank account: A bank account must be opened for the company in one of the local banks to manage financial operations. This requires submitting the necessary documents such as the commercial license and the articles of association.
  8. Obtaining the necessary licenses: The type of license required depends on the business activity of the company. The license can be commercial, industrial, or professional, and additional licenses may be required from certain government agencies depending on the activity.
  9. Employee registration: In some cases, it is necessary to register a certain number of employees depending on the type of activity and the company, and to provide employment contracts and health insurance for employees.
  10. Compliance with local taxes and laws: You must comply with local tax regimes (such as VAT) and any other financial regulations governing business operations in Dubai.

Establishing a company in Dubai requires adherence to these conditions to ensure that the process runs legally and smoothly, allowing the company to operate effectively and achieve success in Dubai’s dynamic business environment.

Itqan Company Services in Establishing Companies in Dubai

Etqan offers a wide range of specialized services in establishing companies in Dubai , aiming to facilitate the process of establishing companies and provide the necessary support to ensure compliance with local laws and legal procedures. The most prominent services provided by Etqan in this field are:

  1. Company Formation Consulting: Itqan provides professional consultations tailored to determine the appropriate legal structure and type of company based on the client’s needs and the business activity he/she wishes to pursue.
  2. Commercial Licensing Procedures: Itqan handles all procedures for obtaining the necessary commercial licenses from the relevant government agencies such as the Department of Economic Development and Free Zones, saving investors time and effort.
  3. Trade Name Selection and Registration: The company assists clients in selecting and registering the appropriate trade name that complies with local regulations, in addition to ensuring that it is free from any conflict with other trademarks.
  4. Bank account opening procedures: Itqan facilitates the process of opening commercial bank accounts in local banks, providing the necessary consultations and ensuring the availability of all documents required to open the account.
  5. Providing office and commercial space solutions: Itqan offers flexible options for renting offices and commercial spaces in line with the company’s requirements and the investor’s budget, whether within Dubai or in the free zones.
  6. Visa and Residency Services: Itqan helps facilitate the procedures for obtaining work and residency visas for employees and investors, including submitting applications to the relevant departments.
  7. Preparing contracts and legal documents: Itqan prepares articles of association, partnership agreements, and all legal documents necessary to establish the company and ensure their compliance with local laws.
  8. Tax and Legal Compliance Support: Itqan provides tax and legal advice to ensure compliance with all tax requirements and local laws such as VAT and any other regulatory requirements.
  9. Free Zone Company Formation: Itqan offers company formation services in various free zones in Dubai, allowing foreign investors to benefit from the advantages of full ownership and tax exemptions.
  10. Expansion and Development Services: After establishing the company, “Itqan” continues to support clients by providing services that help expand and develop businesses in the local and regional market.

Through these services, Itqan ensures that the process of establishing companies in Dubai is easy and fast, with a focus on meeting the needs of customers and providing a supportive environment for business growth.

In conclusion, setting up a company in Dubai is an important strategic step for investors and entrepreneurs looking for a stimulating economic environment and promising growth opportunities. Dubai offers advanced infrastructure, flexible commercial laws, and a strategic location that makes it a global business hub. Whether you are looking to set up a company in the free zones or within the city, the available facilities and continuous support from government agencies contribute to making the process smoother. Leveraging specialized expertise such as the services of Itqan can expedite the incorporation process and ensure compliance with the laws, allowing you to focus on the success of your business and achieving your commercial goals in this dynamic market.

Frequently asked questions about establishing companies in Dubai