Establishing a company in Dubai is an important strategic step for many entrepreneurs and startups. Dubai is one of the most important economic centers in the world, providing an ideal business environment for small, medium and large companies. Dubai offers many exciting investment opportunities in various sectors, making it an ideal destination for establishing companies.

Establishing a company in Dubai requires a thorough understanding of the legal and administrative procedures followed in the emirate. Entrepreneurs must determine the type of company they want to establish, whether it is a sole proprietorship, a limited liability company, or a subsidiary of foreign companies. They must also determine the location of the company, as Dubai has a variety of free zones and industrial zones whose facilities companies can benefit from.

Important aspects that entrepreneurs should consider when setting up a company in Dubai are local regulations, taxes, social insurance and employment. Therefore, it is highly recommended to cooperate with local business legal advisors to ensure that all procedures are carried out properly in accordance with local laws.

In this article, we will explore in detail how to establish a company in Dubai, including the necessary steps and challenges startups may face, as well as a review of the economic and legal environment in Dubai and how to leverage it to achieve success and sustainability in business.

Establishing a company in Dubai

Establishing a company in Dubai requires following some basic steps and adhering to the procedures specified by the relevant authorities. Here are the general steps you can follow to establish a company in Dubai:

1- Determine the type of company:

Determine the type of company you wish to establish in Dubai. You can choose between the following company types:

• sole proprietorship
• one-person company
• Limited liability company
• Joint stock company, and other available legal forms.

2- Company name:

Choose a suitable name for your business and make sure it is compliant with Dubai laws and regulations. The availability of the chosen name must be verified and registered with the relevant authorities.

3- Partnership Agreement:

If you plan to establish a company with other partners, you must prepare and sign a partnership agreement that sets out the rights and duties of each partner and details their participation in the company.

4- Obtaining licenses:

You may need to obtain different licenses depending on the company’s activity. You can contact the Department of Economic Development (DED) in Dubai to obtain specific information about the licenses required for your business.

5- Commercial address:

You must provide a registered business address for your company in Dubai. You can rent a commercial office or use the services of coworking spaces that provide business addresses for companies.

6- Establishment of the company:

Appoint a specialized lawyer or legal advisor to help you prepare the required legal documents and submit them to the relevant authorities. Some documents must be submitted, such as legal forms filled with company information, passports and visas for shareholders, and the required financial certificates.

7- Banks and bank accounts:

Open a bank account for your company in Dubai. You will need to provide some documents required by the bank to open the account, such as legal documents and financial information.

8- Visas and work:

If you intend to work for the new company in Dubai, you should familiarize yourself with the residency and visa requirements for foreign employees and investors. Contact the relevant authorities to learn more about these procedures.

9- Legal and accounting compliance:

Ensure compliance with all applicable legal and accounting obligations in Dubai. You may need to hire an accountant to prepare financial records and tax reports and comply with local accounting legislation.

10- Recruitment of employees:

Hire the employees necessary to run the company and carry out its business. You may need to advertise available positions and go through the process of selecting and hiring suitable candidates.

Establishing a company in Dubai involves many procedures and details, and it is important that you consult an Itqan company with business experience for customized and up-to-date advice according to the current laws and regulations in Dubai.

Basic commercial permits to establish a company in Dubai

The basic business permits you may need to set up a company in Dubai vary based on the type of company and the activity you intend to engage in. However, here are some basic permits you may need:

• General commercial license: This license is authorized for companies that wish to practice commercial activities in general.
• Activity-specific permits: You may need a special permit if your company’s activity requires a special permit, such as entertainment, food, construction, etc.
• Permit from government bodies: You may need permits from the relevant governmental bodies depending on the company’s activity, such as a permit from the Department of Economic Development, the Ministry of Health, the municipality, etc.
• Place Rental License: You may need a place rental license where you will establish and operate the company.
• Work Permits: If the company plans to hire employees, it may need the necessary work permits for them.
• E-commerce license (for some cases): If the company plans to operate online, it may need an e-commerce license.

Documents for establishing a company in Dubai

There are many papers and documents that every investor must bring in order to establish a company quickly and accurately. Here is a list of the basic documents required to establish a company in Dubai:

• Memorandum of Association.
• Tax Registration Form.
• A copy of the passport or ID card of shareholders and directors.
• A report on the proposed business and planned business activities.
• Proof of ownership of the company’s place of registration (lease contract or ownership certificate).
• Bank certificates or financial statements proving the financial ability to establish the company.
• A copy of the commercial activity permit notice issued by the competent authority.
• Company power of attorney documents if there are legal representatives.
• Form for appointing employees (if necessary).
• Any additional documents that may be required by the regulatory or governmental authority concerned with licensing companies.

Types of companies available in Dubai

In Dubai, there are multiple types of companies that can be established, including:

• Limited Liability Company (LLC): Requires contribution from partners and has flexibility in management.
• Sole LLC: One person has 100% liability.
• Public Joint Stock Company: for public subscription of company shares.
• Private Joint Stock Company: less than 3 shareholders, maximum 50.
• Sole Proprietorship: Citizens and foreign residents can create it with a business license.

Laws and legislation related to establishing companies in Dubai

Establishing companies in Dubai is subject to a set of laws and legislation aimed at regulating commercial activities and ensuring compliance with legal standards. Here is an overview of the most prominent laws and legislation related to establishing companies in Dubai:

1. UAE Companies Law (Law No. 2 of 2015): This law regulates the establishment and management of companies in the UAE, including different types of companies such as limited liability companies (LLC) and public and private joint-stock companies.
2. Investment Law (Law No. 18 of 1981): This law sets out the rules for foreign investment and includes basic principles related to foreign ownership and tax exemptions.
3. Federal Law No. 1 of 1972 regarding establishing and amending financial laws: This law regulates the financial and administrative laws related to companies and investors, and includes companies’ financial and accounting obligations.
4. Federal Law No. 3 of 1987 promulgating the Penal Code: includes laws related to economic crimes and their repercussions on companies, such as fraud and illegal business practices.
5. Personal Data Protection Law: This law regulates how we collect, store, and use personal data for companies and customers, and aims to protect the privacy of individuals.
6. Labor Laws: Local laws regulate labor and workers, including working conditions, hiring, and termination.
7. Tax Laws: While there is no corporate income tax in most free zones, companies must comply with tax laws in other areas such as value added tax (VAT) that applies to some activities.
8. International trade laws: include laws regulating export and import, international trade contracts, and quality standards.
9. Free Zone Regulations: Includes legislation specific to each free zone, which specifies the types of companies permitted, licenses, and registration requirements for each zone.
10. Anti-Money Laundering Legislation: Includes laws and procedures that require companies to verify the identity of their customers and take steps to combat money laundering and terrorist financing.
11. Trademark Law: Regulates the registration and protection of trademarks, and defines legal procedures to protect trademarks from infringement.
12. Joint Companies Law: specifies the legal procedures for establishing and managing companies in which local and foreign investors participate.

Costs of establishing a company in Dubai

The cost of setting up a company in Dubai is affected by several factors, including the type of company, chosen business activity, location, and other legal and administrative requirements. Here are some points that can affect the cost of establishing a company:

1. License fees: License fees vary depending on the type of company, business activity, and location.
2. Office costs: Renting the office or space in which the company will be located.
3. Staff costs: Salaries and benefits for employees if you intend to hire them.
4. Legal consultation fees: If you need legal assistance to set up the company.
5. Professional services fees: such as accounting and consulting services.
6. Registration fees: The cost of registering the company and related documents.
7. Trademark Fees: If you plan to register a trademark.
8. Other legal and administrative fees: such as government fees and other legal fees.

How to open a business bank account in Dubai

To open a business bank account in Dubai, you must follow the following steps:

• Choosing a bank: Search for a bank that meets your needs and provides the services required to open a commercial account.
• Contacting the bank: Contact the chosen bank and inquire about the requirements for opening a business account and the required documents.
• Submitting documents: Required documents may include a passport, identity document, proof of residence, business plan or documents confirming the company’s activity, and a commercial registration certificate.
• Certificates and attestations: You may be asked to provide company incorporation certificates and have them attested by the competent authorities in your country.
• Deposits and special conditions: The bank may require a deposit to open the account or specify special conditions according to the business activity and financial size of the company.
• Submission and approval: It may take a few days to weeks to process your application, depending on the bank’s policy and the amount of documents required.
• Get a Debit Card and Internet: Once approved, you’ll get a debit card and access to online banking.
• Administration and follow-up: Make sure you follow all banking procedures and requirements, and stay informed of any changed conditions or additional fees.

Advantages of establishing a company in Dubai

Establishing a company in Dubai provides many opportunities and positives for individuals and companies, including:

1. Strategic location: Dubai is located in a distinctive strategic location that makes it an important commercial and economic center in the Middle East and globally.
2. Suitable business environment: Dubai provides a flexible business environment suitable for small and large companies, with easy commercial and tax laws.
3. Advanced Infrastructure: Dubai features advanced infrastructure, including Dubai International Airport and Jebel Ali Port, which facilitates transportation, distribution and global trade.
4. Cultural and Social Diversity: Dubai has a diverse and multicultural society, which makes it easy to deal with clients and partners from different cultures and nationalities.
5. Large Consumer Market: Dubai offers a large and diverse consumer market, providing broad opportunities for companies in various sectors.
6. Flexibility of the legal system: The legal system in Dubai is flexible and transparent, which makes the legislative environment conducive to the work of companies.
7. Economic Freedom: Companies in Dubai enjoy great economic freedom to run their businesses without direct government interference.
8. Technology and Innovation: Dubai is a hub of technology and innovation, providing excellent opportunities for companies to apply the latest technologies in their businesses.

In conclusion of this article, it can be said that establishing companies in Dubai with Itqan Company is a very smart strategic move. Dubai enjoys a global position as a leading commercial and financial centre, with advanced infrastructure and an encouraging business environment. On the other hand, Itqan is a reliable and professional partner in providing advisory and foundation services in Dubai.

When you decide to establish your company in Dubai with Itqan, you will have the opportunity to benefit from the deep local experience and extensive knowledge of the company in the field of business and local legislation. Itqan will provide you with full support throughout the stages of establishing a company, starting from choosing the appropriate type of company and registering it with the relevant government bodies, all the way to providing specialized consultations in areas such as licensing, taxes, labor and human resources.

In addition, you will have the advantage of cooperating with a wide network of local and international partners and clients that Itqan deals with. This will contribute to expanding your business and increasing your chances of success and growth. You will also have the opportunity to take advantage of local government programs available to entrepreneurs, such as tax breaks and business facilities.

The most frequently asked questions about establishing a company in Dubai