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Steps to establish a company in the Emirates

٠٩ أبريل Steps to establish a company in the Emirates

Establishing a company in the UAE is a strategic step for many businessmen and investors who want to enter a promising and prosperous market. The UAE offers an encouraging business environment, thanks to its advanced infrastructure, supportive legal systems, and favorable tax policies. However, despite the great opportunities, the process of establishing a company requires comprehensive knowledge of the necessary steps and procedures. The process begins with determining the type of company and its activity, followed by the procedures for obtaining the necessary licenses and choosing the appropriate location. It is also necessary to adhere to local laws, including registration with the competent authorities and opening a bank account. By following clear and organized steps, investors can establish a company in the UAE , which contributes to achieving their business goals.

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Investing in the Emirates

The UAE has many advantages that make it the first country in global investment. This is due to its possession of several advantages that make it the first country in successful investment in the world. The most important of these advantages are the following:

For the strategic location:

The UAE has an excellent strategic location between the East and the West, which makes it fully prepared to attract most investors to it, as it is considered the most important emerging global market, and is also considered a center for various major and basic business centers in Europe, Africa, Asia, the Pacific, and North America as well.

For advanced infrastructure:

The UAE has the most advanced infrastructure in the Arab world, which makes it a successful investment. This is due to the dedication of huge capital to enhance its infrastructure, in order to achieve the UAE Vision 2021 and achieve successful investment.

For various business facilities:

The UAE has many diverse facilities in all fields to include diversity, shopping centers, different commercial towers, and multiple industrial areas such as the Jebel Ali area and the free zone. All of these places make them a successful investment. These facilities also work to establish businesses and companies, and according to the activity and capital available to them, any of the commercial activities can be established or an investment company can be established in the UAE in various regions of the country.

Regarding political stability:

The UAE is considered one of the most politically stable countries, although most Arab countries are currently experiencing multiple revolutions against all regimes, it enjoys political stability and balance. All of this makes it a source of attracting money and makes it a successful investment, considering that it is a country with security and safety. This stability helps in establishing a company in the UAE.

Regarding social stability:

The UAE is considered one of the most important countries that has social stability and does not have any social problems, even in terms of the crime rate. It is considered the only country with a very low crime rate, almost non-existent.

It is also characterized by the availability of multiple entertainment facilities, which makes investing in it in any field a successful investment, as it also provides various means of work to enable the establishment of investment companies. It is a very comfortable country for anyone who wants to reside in it, and the UAE government is working hard to provide ways to obtain residency and investment in the Emirates.

For ease of doing business:

The UAE was named the best country in facilitating and simplifying economic activities in 2019. It also ranked first in the world in successful investment, which also made it the first to receive successful investment and is considered one of the largest countries in establishing investment companies.

For the protection of intellectual property rights:

The United Arab Emirates is distinguished by the fact that it places intellectual rights in front of its eyes and is concerned with preserving them. It enacts laws to protect all intellectual rights and prevent piracy, which leads to distorting any investment in any country. This leads to all areas of investment being successful.

Steps to establish a company in the Emirates

Establishing a company in the UAE requires following a set of basic steps. Here are the main steps to establish a company:

  1. Determine the type of company: Choose the appropriate legal structure (such as a limited liability company, a joint-stock company, a branch of a foreign company, or a sole proprietorship).
  2. Define the business activity: Define the activity or activities that the company will undertake, as this affects the type of licenses required.
  3. Choosing a location: Decide whether you want to set up your company in a free zone or on the mainland. Free zones offer benefits such as tax exemption and full foreign ownership.
  4. Choosing a business name: Choose a business name that complies with local laws, and avoid names that are offensive or reserved.
  5. Obtaining the necessary approvals: Submit an application to obtain initial approvals from the relevant government agencies, such as the Department of Economic Development.
  6. Preparing the required documents: Collecting the necessary documents such as passports, personal photos, office lease contract, and establishment application form.
  7. Submitting the registration application: Submit the registration application with all required documents to the competent authorities. In the case of free zones, the application must be submitted through the authority responsible for that zone.
  8. Obtaining licenses: After the application is approved, obtain the necessary licenses to practice the business activity.
  9. Open a bank account : Open a business bank account in the company’s name to ensure proper financial management.
  10. Tax Registration: Register your company with the Federal Tax Authority (if required) to ensure compliance with tax requirements.
  11. Hiring employees (if necessary): If the company needs employees, the necessary procedures must be followed to hire them and obtain work permits.
  12. Starting Business Operations: Once all steps are completed and licenses are obtained, you can officially start business operations.
  13. These steps help ensure that a company is established correctly and efficiently, making it easier for investors to achieve their goals in the UAE market.

Costs of establishing a company in the Emirates

The costs of establishing a company in the Emirates are limited to several expenses, which are as follows:

  • Price of commercial license (license to practice business)
  • The price of the office or company’s location through which you conduct business, whether renting or buying.
  • The cost of purchasing items related to the furniture and decoration of the office in which you conduct your business.
  • The cost of obtaining work permits for sponsored employees and obtaining the required visas for them under the name of your new company.
  • The cost of opening a new bank account in one of the banks in the company’s name and depositing the minimum capital according to the type of your business activity.
  • The cost of the legal form of the company, meaning that it is commercial, industrial or professional, has a fundamental role in determining the cost of establishment. The costs of establishing industrial companies are higher than those of establishing commercial and professional companies, and the cost of extracting and obtaining a commercial license in the Emirates.

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Advantages of establishing a company in the Emirates

Establishing a company in Dubai, UAE, offers a range of advantages that make it an attractive destination for investors and businessmen. The most prominent of these advantages are:

  1. Encouraging business environment: The UAE offers a business-friendly environment with flexible laws that support innovation and growth.
  2. Tax exemptions: Many free zones offer complete corporate tax exemption, which contributes to increased profitability.
  3. Strategic location: The UAE is located at the crossroads of East and West, facilitating access to new markets in the Middle East, Asia and Africa.
  4. Advanced infrastructure: The UAE has a modern infrastructure including airports, ports and highways, which facilitates the movement of transportation and trade.
  5. Intellectual Property Protection: UAE laws provide strong intellectual property protection, helping businesses protect their ideas and products.
  6. Broad Market Opportunities: The UAE has a diverse and multicultural market, allowing businesses to reach customers from diverse backgrounds.
  7. Ease of incorporation procedures: The UAE provides quick and efficient procedures for incorporating companies, reducing the time and effort required.
  8. Multiple ownership options: Foreigners can establish 100% owned companies in free zones, giving them complete control over their business.
  9. Political and economic stability : The UAE has a global reputation as a stable and safe investment hub, which enhances investor confidence.

These features contribute to making the UAE one of the best destinations for establishing companies, which encourages innovation and economic growth.

Itqan Company Services in Establishing a Company in the Emirates

Itqan Company provides a comprehensive range of services for investors and businessmen wishing to establish their companies in the UAE. The company specializes in simplifying business establishment procedures, helping clients avoid legal and administrative complications. Itqan Company’s services include:

  1. Legal Consultations: Itqan provides specialized consultations on laws and regulations related to company establishment, ensuring clients’ compliance with local regulations.
  2. Company Registration: The company assists in the process of company registration and choosing the appropriate legal structure, whether it is a limited liability company, a branch of a foreign company, or a sole proprietorship.
  3. Obtaining licenses: Itqan facilitates the process of obtaining the necessary licenses to practice commercial activities, which facilitates rapid entry into the market.
  4. Administrative Support Services: The company provides administrative support services, including opening bank accounts and filing taxes.
  5. Assistance in choosing a location: Itqan provides advice on choosing the best location to establish the company, whether in the free zones or within the country.
  6. Providing offices: Itqan provides equipped office spaces in free zones , making it easy for companies to start their business quickly.
  7. Continuous Support: Itqan continues to support its clients after establishment through ongoing advisory and management services, helping them achieve success in their businesses.

By hiring Etqan, investors can take quick and effective steps to establish their companies in the UAE, making it easier for them to achieve their business goals.

In conclusion, the steps to establish a company in the UAE are a vital process that requires careful planning and thorough knowledge of legal and commercial procedures. Investing in the UAE offers great opportunities for growth and prosperity thanks to its attractive business environment and advanced infrastructure. By adhering to the specified steps, starting from choosing the type of company and determining the business activity, all the way to obtaining the necessary licenses and registering the company, investors can achieve their goals with ease and convenience. To ensure success in this endeavor, it is advisable to cooperate with specialized companies such as Itqan, which provides the necessary support and advice throughout the process. Engaging in the UAE market will allow investors to benefit from various opportunities and achieve tangible successes in the business world.

Frequently asked questions about the steps to establish a company in the Emirates