In recent years, the United Arab Emirates, and in particular the Emirate of Dubai, has witnessed tremendous economic growth and remarkable development in the business sector. Dubai has an exceptional reputation as a major business and investment destination in the Middle East and the world at large. Dubai’s economic environment is characterized by political and economic stability, flexible legislation and advanced attitudes towards foreign business and investment. The costs of establishing a company in Dubai require adherence to clear and specific procedures, which include choosing the appropriate type of company, whether it is an individual company, a limited liability company, a limited liability company, or a public or private joint stock company. Financial and legal requirements must also be considered, which can vary according to the legal type of company and the chosen economic activity.

In addition, Dubai offers a variety of competitive advantages such as advanced infrastructure, flexible tax laws (with mostly no corporate income tax), and a strong international presence, making it an ideal home for startups and large corporations alike.

In conclusion, knowing the costs of establishing a company in Dubai  can be a fruitful strategic step, while adhering to local legislation and exploiting the economic and geographical advantages of this vibrant and growing emirate.

Costs of establishing a company in Dubai

Establishing a company in Dubai represents an important investment step that requires an in-depth study of the costs and requirements resulting from this process. The Emirate of Dubai is characterized by a vibrant economic environment and flexible laws that make it an ideal destination for business and investment in the Middle East. Below is a comprehensive analysis of the costs of establishing a company in Dubai :

Company type and activity license:

Incorporation costs depend largely on the type of company you wish to establish, such as a sole proprietorship, limited liability company, joint stock company, or sole proprietorship limited liability company.
Each type of business is subject to different and varying licensing fees, and some activities may require special additional licenses.
Core capital:

Corporations such as limited liability companies may require a certain initial capital to establish. This capital is determined based on the type of activity and local regulations.
Some companies, such as sole proprietorships, do not require a specific core capital.
Government fees and licenses:

These fees include basic registration fees and licensing fees for the business.
These fees must be paid to the relevant government bodies such as the Department of Commerce and Industry in Dubai.
Business address and virtual office:

New companies must provide a legally valid business address in Dubai, and virtual offices can be used as an economical and convenient alternative.
Legal and consulting services:

The incorporation process may require legal advice to ensure that the company complies with all local laws and regulations.
Additional legal consultation costs may apply to this type of service.
Additional expenses:

It may include other costs such as the costs of preparing legal and financial documents, and the costs of registering for VAT if the company is obligated to this type of tax.

 

Advantages of establishing a company in Dubai

The Emirate of Dubai is one of the most prominent global destinations for entrepreneurship and company establishment, and provides a wide range of features that make it an attractive choice for international and local investors alike. These features are considered key factors that contribute to the success and sustainability of businesses in this vibrant emirate. Here is a comprehensive look at some of the main advantages of establishing a company in Dubai :

Advanced economic environment:

Dubai provides a vibrant and developed economic environment that supports business and investments. The emirate is characterized by political and economic stability, and flexible legislation that facilitates procedures for establishing and operating companies.
Advanced infrastructure:

Dubai has an advanced infrastructure that includes international airports, advanced sea ports, and an integrated network of roads and communications. This structure makes it easier for companies to access global markets and rapid movement of goods and services.
Facilitated tax policy:

Dubai is an income tax-free zone for companies in most sectors. This easy tax system enhances the emirate’s economic attractiveness as a global business hub.
Flexible working laws:

Labor laws in Dubai are flexible and tolerant, making it easy for companies to employ local and international workers and provide a comfortable and attractive work environment.
Strong international presence:

Thanks to its strategic location, Dubai is a major intersection between East and West, providing companies with opportunities to expand into the markets of the Middle East, North Africa, India and Asia in general.
Diversity of economic sectors:

Dubai is characterized by a great diversity of economic sectors available for investment, including tourism, retail, real estate, financial services and technology, allowing companies to choose the activity that suits them best.
Government and institutional support:

The UAE government and government agencies in Dubai provide significant support to businesses, through support programmes, financing and advisory services, which helps businesses grow and achieve success.

Licenses and permits required to establish a company in Dubai

Establishing a company in Dubai requires compliance with a range of licenses and permits that ensure compliance with local laws and regulations. Dubai is known for its flexible and advanced business environment, but investors are required to submit the necessary documents and complete legal procedures to ensure the start of business is legal and smooth. In this topic, we will take a look at the basic licenses and permits that should be considered when setting up a company in Dubai:

Commercial activity permit:

Every company in Dubai must obtain a permit to conduct a specific business activity. This permit specifies the type of business activity the company will undertake, whether it is general trade, services, or industry.
Legal license:

New companies in Dubai must obtain a legal license that proves their legitimacy and determines their legal structure, such as a limited liability company, joint stock company, or sole proprietorship.
Professional License:

If the company represents a professional activity such as engineering, medical or legal consulting, a professional license must be obtained from the relevant body.
Commercial License:

A commercial license is required to conduct general commercial activities such as retail, distribution, wholesale, and other commercial activities.
Activity approvals:

Some activities may require special approvals from relevant government agencies, such as building and construction or major industrial activities.
Building permit and urban planning:

If the company is planning to build or rent a property, it may need a building permit and approval from the relevant authorities in Dubai.
Visas and Residences:

Foreign investors and employees working in the company must obtain appropriate visas and work permits from the Dubai Immigration Department.
Tax registration:

After establishing a company, it may need to register for value added tax (VAT) if it is liable for this type of tax.

Laws for establishing a company in Dubai

Dubai is one of the most prominent global destinations for business and investment thanks to its thriving economic environment and flexible legislation that facilitates the establishment and operation of companies. The Emirate of Dubai follows a set of laws and regulations aimed at regulating businesses and ensuring compliance with international standards, providing a safe and encouraging environment for investors. In this topic, we will review the basic laws for establishing a company in Dubai :

Commercial companies law:

The Commercial Companies Law in the UAE is the main legal framework that regulates the establishment and operation of companies. This law includes detailed provisions about types of companies, such as limited liability companies (LLC), joint stock companies, sole proprietorships, and partnerships.
Foreign Direct Investment Law:

The Foreign Direct Investment (FDI) law allows foreign investors to own up to 100% in certain specified economic activities, enhancing Dubai’s attractiveness as a global investment hub.
Free Zones Law:

Dubai’s free zone laws allow the establishment of companies with full foreign ownership and comprehensive tax exemptions. Free zones such as Dubai South, Dubai Internet City, and the Dubai International Financial Center (DIFC) offer multiple benefits to businesses including a facilitating regulatory environment and advanced infrastructure.
work law:

The UAE Labor Law regulates relations between employers and employees, and includes provisions related to employment contracts, working hours, vacations, wages, and termination of service.
Consumer Protection Law:

The Consumer Protection Law aims to guarantee consumer rights and enhance transparency in commercial transactions. This law requires companies to comply with quality and safety standards in the products and services provided.
Intellectual property law:

The UAE’s intellectual property law provides comprehensive protection for intellectual property rights, including patents, trademarks, and copyrights, which encourages innovation and investment in technology.

Steps to establish a company in Dubai

Dubai is one of the best global destinations for establishing companies thanks to its thriving economic environment and flexible legislation that allows for ease of starting a business. Establishing a company in Dubai requires following a set of legal and administrative steps that ensure compliance with local legislation. In this topic, we will review the main steps for establishing a company in Dubai:

Choose the company type:

The first step in establishing a company in Dubai is to determine the type of company you want to establish. The most common types include limited liability companies (LLC), public joint stock companies, sole proprietorships, and free companies in free zones.

Choose a business:

The business activity that the company will undertake must be determined. Commercial activities in Dubai are very diverse, and include general trade, services, industry, tourism, and others. You need to obtain preliminary approval from the Department of Economic Development (DED) for the chosen type of activity.

Determine the trade name:

Determining the trade name is a crucial step when establishing a company in Dubai, as the trade name must reflect the nature of the company’s activity and be unique and not used by another company. The name must comply with local laws and not contain any prohibited or prohibited words. After the name is chosen, it is submitted to the Department of Economic Development (DED) for approval and official registration. Defining the trade name accurately enhances the company’s identity and contributes to its distinction in the market.

Preparing the articles of association and articles of association:

Preparing the Memorandum and Articles of Association is an essential step in the process of establishing a company in Dubai. The articles of incorporation include important details such as the names of partners, ownership percentages, and the main objectives of the company. The articles of association determine the company’s management structure, the rights and duties of shareholders, and procedures related to meetings and decision-making. These documents must be prepared accurately and clearly to ensure that all parties comply with local laws and regulations, and to avoid any future disputes.

Obtaining approvals and licenses:

After approving the trade name and articles of incorporation, the necessary licenses and approvals must be obtained from the relevant government authorities. These licenses vary depending on the type of business and the type of company. For example, you may need approvals from the Telecommunications Regulatory Authority if you intend to work in the technology field.

Determine the work location:

Determining a business location is an important step when establishing a company in Dubai, as companies must choose a suitable location that reflects the needs of their business. The location can be within one of the free zones or in the city itself, depending on the nature of the work and its requirements. The right business website provides easy access to customers and partners, must comply with local laws and be officially registered.

company Registration:

Company registration is a crucial step in the process of establishing a company in Dubai, through which the company is officially recognized as a legal entity. This process begins after completing all initial requirements such as determining the trade name and preparing the articles of association and articles of association. The necessary documents are submitted to the Department of Economic Development (DED) and the required fees are paid. Once registration is approved, the company obtains a business license that allows it to operate legally.

Open a bank account:

Opening a bank account is an essential step after registering a company in Dubai, through which the company can manage its financial transactions efficiently. Opening an account requires submitting official documents such as a commercial license, articles of association, and articles of association, in addition to the identities of partners. Local banks in Dubai offer a wide range of banking services designed to meet the needs of businesses, including current accounts and online banking.

Employee Registration and Visas:

Registering employees and obtaining the necessary visas is an important part of the process of setting up a company in Dubai, especially when hiring foreign workers. This procedure requires employees to register with the Ministry of Human Resources and Emiratisation to ensure compliance with local labor laws. Next, applications for work visas must be submitted from the General Directorate of Residency and Foreigners Affairs in Dubai. This process includes submitting necessary documents such as employment contracts, health certificates, and copies of passports.

Compliance with financial controls:

Compliance with financial controls is a vital element to ensure the proper operation and financial sustainability of a company in Dubai. This requires companies to register for Value Added Tax (VAT) if they are required to do so, and commit to submitting accurate and transparent periodic financial reports in accordance with recognized accounting standards. Companies must also maintain detailed financial records and conduct periodic internal and external audits to ensure compliance with financial and tax laws.

Our company’s role in establishing a company in Dubai

In conclusion, the costs of establishing a company in Dubai are considered a strategic investment that can achieve significant returns due to the thriving economic environment and advanced infrastructure that characterize the emirate. By cooperating with Itqan Company, investors can obtain specialized guidance and comprehensive support throughout all stages of establishing the company, from determining the type of business activity to obtaining the necessary licenses and approvals. Itqan Company contributes to simplifying procedures and saving time and effort, allowing investors to focus on growing their business and achieving success in the promising Dubai market. Investing in Dubai with the professional support of Itqan Company can be a fruitful step towards a prosperous future full of opportunities.

Frequently asked questions about the costs of establishing a company in Dubai